Colorado 2022 Regular Session

Colorado House Bill HB1203 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Second Regular Session
2	2	Seventy-third General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 22-0743.01 Nicole Myers x4326
8	8	HOUSE BILL 22-1203
9	9	House Committees Senate Committees
10	10	Education
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE CREATION OF INCO ME TAX CREDITS FOR NONPUBLIC101
14	14	EDUCATION.102
15	15	Bill Summary
16	16	(Note: This summary applies to this bill as introduced and does
17	17	not reflect any amendments that may be subsequently adopted. If this bill
18	18	passes third reading in the house of introduction, a bill summary that
19	19	applies to the reengrossed version of this bill will be available at
20	20	http://leg.colorado.gov
21	21	.)
22	22	The bill establishes a private school tuition income tax credit for
23	23	income tax years commencing on or after January 1, 2023, but prior to
24	24	January 1, 2028, that allows any taxpayer to claim a credit when the
25	25	taxpayer enrolls a qualified child in a private school or the taxpayer
26	26	provides a scholarship to a qualified child for enrollment in a private
27	27	school. The private school issues the taxpayer a credit certificate and the
28	28	HOUSE SPONSORSHIP
29	29	Hanks,
30	30	SENATE SPONSORSHIP
31	31	(None),
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing statute.
34	34	Dashes through the words indicate deletions from existing statute. amount of the credit is:
35	35	! For full-time attendance, an amount equal to either the
36	36	tuition paid or the scholarship provided to a qualified child,
37	37	as applicable, or 50% of the previous year's state average
38	38	per pupil revenues, whichever is less; and
39	39	! For half-time attendance, an amount equal to either the
40	40	tuition paid or the scholarship provided to a qualified child,
41	41	as applicable, or 25% of the previous year's state average
42	42	per pupil revenues, whichever is less.
43	43	The bill also establishes an income tax credit for income tax years
44	44	commencing on or after January 1, 2023, but prior to January 1, 2028,
45	45	that allows any taxpayer who uses home-based education for a qualified
46	46	child to claim an income tax credit in an amount equal to:
47	47	! $1,500 for a taxpayer who uses home-based education for
48	48	a qualified child who was enrolled on a full-time basis in a
49	49	public school in the state prior to being taught at home; and
50	50	! $750 for a taxpayer who uses home-based education for a
51	51	qualified child who was enrolled on a half-time basis in a
52	52	public school in the state prior to being taught at home.
53	53	Both credits may be carried forward for 3 years but may not be
54	54	refunded. In addition, the credits may be transferred, subject to certain
55	55	limitations.
56	56	Be it enacted by the General Assembly of the State of Colorado:1
57	57	SECTION 1. Short title. The short title of this section is the2
58	58	"Quality Education and Budget Reduction Act".3
59	59	SECTION 2. In Colorado Revised Statutes, add 39-22-543 and4
60	60	39-22-544 as follows:5
61	61	39-22-543. Private school tuition income tax credit - rules - tax6
62	62	preference performance statement - legislative declaration -7
63	63	definitions. (1) (a) T
64	64	HE GENERAL ASSEMBLY HEREBY FINDS AND8
65	65	DECLARES THAT:9
66	66	(I) E
67	67	VERY STUDENT IN THE STATE OF COLORADO SHOULD HAVE AS10
68	68	MUCH ACCESS AS POSSIBLE TO THE EDUCATIONAL FORMATS THAT BEST FIT11
69	69	THEIR NEEDS AND LEARNING STYLES ;12
70	70	(II) P
71	71	RIVATE SCHOOLS CAN OFTEN BEST MEET THOSE NEEDS FOR13
72	72	HB22-1203-2- MANY COLORADO STUDENTS;1
73	73	(III) P
74	74	UBLIC MONEY FOR EDUCATION IS LIMITED AND SHOULD BE2
75	75	DIRECTED TO THE MOST COST -EFFICIENT MEANS OF DELIVERING3
76	76	EDUCATIONAL OPPORTUNITIES FOR ALL COLORADO STUDENTS; AND4
77	77	(IV) P
78	78	ARENTS HAVE THE FUNDAMENTAL RIGHT AND5
79	79	RESPONSIBILITY TO DIRECT THE EDUCATION OF THEIR CHILDREN .6
80	80	(b) I
81	81	N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH7
82	82	REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE8
83	83	A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY9
84	84	LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND10
85	85	DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN11
86	86	SUBSECTION (3) OF THIS SECTION ARE TO:12
87	87	(I) P
88	88	ROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR13
89	89	INDIVIDUALS, SPECIFICALLY BUSINESSES OR INDIVIDUALS THAT ENROLL A14
90	90	QUALIFIED CHILD IN A PRIVATE SCHOOL OR THAT PROVIDE A SCHOLARSHIP15
91	91	TO A QUALIFIED CHILD FOR ENROLLMENT IN A PRIVATE SCHOOL ; AND16
92	92	(II) G
93	93	IVE PARENTS AND STUDENTS MORE EDUCATIONAL CHOICES17
94	94	WHILE OPTIMIZING THE USE OF PUBLIC MONEY DESIGNATED FOR18
95	95	EDUCATIONAL PURPOSES.19
96	96	(c) T
97	97	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL20
98	98	MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE21
99	99	PURPOSES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE22
100	100	NUMBER OF QUALIFIED CHILDREN WHO ARE ENROLLED IN A PRIVATE23
101	101	SCHOOL FOR THE FIRST TIME IN THE APPLICABLE SCHOOL YEAR . THE24
102	102	DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE AUDITOR WITH25
103	103	AVAILABLE INFORMATION THAT WILL ASSIST THE STATE AUDITOR 'S26
104	104	MEASUREMENT.27
105	105	HB22-1203
106	106	-3- (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
107	107	REQUIRES:2
108	108	(a) "C
109	109	REDIT CERTIFICATE" MEANS A STATEMENT ISSUED BY A3
110	110	PRIVATE SCHOOL CERTIFYING THAT A CHILD ENROLLED IN THE PRIVATE4
111	111	SCHOOL IS A QUALIFIED CHILD AND THAT THE TAXPAYER IS ENTITLED TO5
112	112	AN INCOME TAX CREDIT AS SPECIFIED IN THIS SECTION.6
113	113	(b) "D
114	114	EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .7
115	115	(c) "P
116	116	RIVATE SCHOOL" HAS THE SAME MEANING AS SET FORTH IN8
117	117	SECTION 22-30.5-103 (6.5).9
118	118	(d) (I) "Q
119	119	UALIFIED CHILD" MEANS A DEPENDENT CHILD ENROLLED10
120	120	ON A FULL-TIME BASIS, AS DESCRIBED IN STATE BOARD OF EDUCATION11
121	121	RULES, IN A PUBLIC SCHOOL IN THE STATE FOR THE SCHOOL YEAR PRIOR TO12
122	122	ENROLLMENT IN A PRIVATE SCHOOL OR A DEPENDENT CHILD WHO WAS NOT13
123	123	OLD ENOUGH TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH GRADE14
124	124	PROGRAM IN THE SCHOOL YEAR PRIOR TO ENROLLMENT IN A PRIVATE15
125	125	SCHOOL, BUT DOES NOT INCLUDE:16
126	126	(A) A
127	127	CHILD ENROLLED IN A PRIVATE SCHOOL IN THE STATE FOR17
128	128	THE SCHOOL YEAR PRIOR TO THE EFFECTIVE DATE OF THIS SECTION ; OR18
129	129	(B) A
130	130	CHILD TAUGHT AT HOME IN THE STATE AS OF THE EFFECTIVE19
131	131	DATE OF THIS SECTION.20
132	132	(II) O
133	133	NCE A CHILD IS A QUALIFIED CHILD AS SPECIFIED IN21
134	134	SUBSECTION (2)(d)(I) OF THIS SECTION, THE CHILD REMAINS A QUALIFIED22
135	135	CHILD SO LONG AS THE CHILD REMAINS ENROLLED IN A PRIVATE SCHOOL23
136	136	IN THE STATE IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM .24
137	137	(e) "S
138	138	TATE AVERAGE PER PUPIL REVENUES " HAS THE SAME25
139	139	MEANING AS SET FORTH IN SECTION 22-54-103 (12).26
140	140	(f) "T
141	141	AXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC27
142	142	HB22-1203
143	143	-4- OR FOREIGN CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS1
144	144	ARTICLE 22, A PARTNERSHIP , LIMITED LIABILITY COMPANY , S2
145	145	CORPORATION, OR OTHER SIMILAR PASS-THROUGH ENTITY, ESTATE, OR3
146	146	TRUST, AND A PARTNER, MEMBER, AND SUBCHAPTER S SHAREHOLDER OF4
147	147	SUCH A PASS-THROUGH ENTITY.5
148	148	(3) (a) (I) F
149	149	OR INCOME TAX YEARS COMMENCING ON OR AFTER6
150	150	J
151	151	ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, A PRIVATE SCHOOL7
152	152	SHALL ISSUE A CREDIT CERTIFICATE TO ANY TAXPAYER THAT ENROLLS A8
153	153	QUALIFIED CHILD IN THE PRIVATE SCHOOL OR THAT PROVIDES A9
154	154	SCHOLARSHIP TO A QUALIFIED CHILD FOR ENROLLMENT IN THE PRIVATE10
155	155	SCHOOL. THE CREDIT CERTIFICATE ALLOWS THE TAXPAYER TO CLAIM AN11
156	156	INCOME TAX CREDIT WITH RESPECT TO THE INCOME TAXES IMPOSED BY12
157	157	THIS ARTICLE 22.13
158	158	(II) A
159	159	TAXPAYER THAT ENROLLS A QUALIFIED CHILD IN A PRIVATE14
160	160	SCHOOL OR THAT PROVIDES A SCHOLARSHIP TO A QUALIFIED CHILD FOR15
161	161	ENROLLMENT IN A PRIVATE SCHOOL DURING THE 2022-23 STATE FISCAL16
162	162	YEAR OR ANY STATE FISCAL YEAR THEREAFTER THOUGH STATE FISCAL17
163	163	YEAR 2026-27, IS ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN18
164	164	SUBSECTION (3)(a)(I) OF THIS SECTION FOR THE INCOME TAX YEAR19
165	165	COMMENCING DURING THE STATE FISCAL YEAR IN WHICH THE QUALIFIED20
166	166	CHILD IS ENROLLED OR IN WHICH THE SCHOLARSHIP IS OFFERED ; EXCEPT21
167	167	THAT A QUALIFIED CHILD SHALL NOT GENERATE AN INCOME TAX CREDIT22
168	168	IN THE SAME INCOME TAX YEAR FOR BOTH A TAXPAYER THAT ENROLLS23
169	169	THE QUALIFIED CHILD IN A PRIVATE SCHOOL AND A TAXPAYER THAT24
170	170	PROVIDES A SCHOLARSHIP TO THE QUALIFIED CHILD FOR ENROLLMENT IN25
171	171	A PRIVATE SCHOOL.26
172	172	(b) A
173	173	PRIVATE SCHOOL SHALL ISSUE ANY CREDIT CERTIFICATES27
174	174	HB22-1203
175	175	-5- PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION UPON APPLICATION FOR1
176	176	A CREDIT BY A TAXPAYER.2
177	177	(c) (I) (A) F
178	178	OR ANY QUALIFIED CHILD ATTENDING A PRIVATE3
179	179	SCHOOL ON A FULL-TIME BASIS AS DESCRIBED IN THE STATE BOARD OF4
180	180	EDUCATION RULES, THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS5
181	181	SECTION EQUALS EITHER THE AMOUNT OF TUITION PAID FOR THE6
182	182	QUALIFIED CHILD OR THE AMOUNT OF THE SCHOLARSHIP PROVIDED TO A7
183	183	QUALIFIED CHILD, AS APPLICABLE, OR FIFTY PERCENT OF THE PREVIOUS8
184	184	FISCAL YEAR'S STATE AVERAGE PER PUPIL REVENUES, WHICHEVER IS LESS.9
185	185	(B) F
186	186	OR ANY QUALIFIED CHILD ATTENDING A PRIVATE SCHOOL ON10
187	187	A HALF-TIME BASIS AS DESCRIBED IN THE STATE BOARD OF EDUCATION11
188	188	RULES, THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS SECTION EQUALS12
189	189	EITHER THE AMOUNT OF TUITION PAID FOR THE QUALIFIED CHILD OR THE13
190	190	AMOUNT OF THE SCHOLARSHIP PROVIDED TO A QUALIFIED CHILD , AS14
191	191	APPLICABLE, OR TWENTY-FIVE PERCENT OF THE PREVIOUS FISCAL YEAR'S15
192	192	STATE AVERAGE PER PUPIL REVENUES , WHICHEVER IS LESS.16
193	193	(II) O
194	194	N JANUARY 15, 2023, AND ON EVERY JANUARY 1517
195	195	THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE18
196	196	AVERAGE PER PUPIL REVENUES FOR THE PRIOR FISCAL YEAR TO THE19
197	197	DEPARTMENT.20
198	198	(d) T
199	199	HE TAXPAYER SHALL SUBMIT THE CREDIT CERTIFICATE TO THE21
200	200	DEPARTMENT WITH THE TAXPAYER 'S INCOME TAX RETURN FOR THAT TAX22
201	201	YEAR.23
202	202	(4) I
203	203	F THE CREDIT ALLOWED IN THIS SECTION EXCEEDS THE INCOME24
204	204	TAXES OTHERWISE DUE ON THE TAXPAYER 'S INCOME, THE AMOUNT OF THE25
205	205	CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES MAY BE CARRIED26
206	206	FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT YEARS ' INCOME TAX27
207	207	HB22-1203
208	208	-6- LIABILITY FOR A PERIOD NOT EXCEEDING THREE YEARS AND SHALL BE1
209	209	APPLIED FIRST TO THE EARLIEST YEARS POSSIBLE. ANY CREDIT REMAINING2
210	210	AFTER SAID PERIOD MAY NOT BE REFUNDED OR CREDITED TO THE3
211	211	TAXPAYER.4
212	212	(5) A
213	213	TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX5
214	214	CREDIT GRANTED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO6
215	215	ANOTHER TAXPAYER FOR SUCH OTHER TAXPAYER , AS TRANSFEREE, TO7
216	216	APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 228
217	217	SUBJECT TO THE FOLLOWING LIMITATIONS :9
218	218	(a) T
219	219	HE TAXPAYER MAY ONLY TRANSFER SUCH PORTION OF THE10
220	220	TAX CREDIT AS THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME11
221	221	TAXES IMPOSED BY THIS ARTICLE 22;12
222	222	(b) T
223	223	HE TAXPAYER MAY NOT TRANSFER A PRORATED PORTION OF13
224	224	THE TAX CREDIT TO MORE THAN ONE TRANSFEREE ;14
225	225	(c) A
226	226	TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED15
227	227	CREDIT REFUNDED;16
228	228	(d) F
229	229	OR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED17
230	230	PURSUANT TO THIS SUBSECTION (5), BOTH THE TAXPAYER AND THE18
231	231	TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX19
232	232	RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN20
233	233	TRANSFERRED. A TRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED21
234	234	PURSUANT TO THIS SUBSECTION (5) UNLESS THE TAXPAYER'S WRITTEN22
235	235	STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE23
236	236	TRANSFEREE.24
237	237	(e) T
238	238	O THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE25
239	239	TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO SUCH26
240	240	TRANSFEREE, THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE27
241	241	HB22-1203
242	242	-7- CREDIT TO PAY, IN WHOLE OR IN PART, THE INCOME TAX OBLIGATION1
243	243	IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH2
244	244	EXTENT THE TRANSFEREE'S USE OF A TAX CREDIT FROM A TRANSFEROR3
245	245	UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A4
246	246	REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE5
247	247	22
248	248	ON THE TRANSFEREE;6
249	249	(f) T
250	250	HE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT7
251	251	TO THE DEPARTMENT, IN A FORM AND MANNER TO BE DETERMINED BY THE8
252	252	DEPARTMENT, A STATEMENT THAT THE TRANSFEREE PURCHASED THE TAX9
253	253	CREDIT FROM THE TRANSFEROR ;10
254	254	(g) A
255	255	TRANSFEREE OF A TAX CREDIT SHALL PURCHASE THE CREDIT11
256	256	PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE 22, NOT INCLUDING12
257	257	ANY EXTENSIONS, FOR FILING THE TRANSFEREE'S INCOME TAX RETURN;13
258	258	(h) A
259	259	TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR14
260	260	AS A RESULT OF A DONATION BY A PASS-THROUGH ENTITY, BUT NOT A TAX15
261	261	CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S16
262	262	ESTATE FOR TAXES OWED BY THE ESTATE , SURVIVES THE DEATH OF THE17
263	263	INDIVIDUAL AND MAY BE CLAIMED OR TRANSFERRED BY THE DECEDENT 'S18
264	264	ESTATE;19
265	265	(i) T
266	266	HE TAXPAYER WHO CLAIMED A TAX CREDIT PURSUANT TO20
267	267	SUBSECTION (3) OF THIS SECTION AND TRANSFERRED THE CREDIT21
268	268	PURSUANT TO THIS SUBSECTION (5) IS THE TAX MATTERS REPRESENTATIVE22
269	269	IN ALL MATTERS WITH RESPECT TO THE CREDIT . THE TAX MATTERS23
270	270	REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE24
271	271	TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT ,25
272	272	INCLUDING, BUT NOT LIMITED TO, NOTIFICATIONS AND CORRESPONDENCE26
273	273	FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS, REFUNDS,27
274	274	HB22-1203
275	275	-8- SETTLEMENT AGREEMENTS , AND THE STATUTE OF LIMITATIONS . THE1
276	276	TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH2
277	277	RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CREDIT .3
278	278	(j) F
279	279	INAL RESOLUTION OF DISPUTES REGARDING THE TAX CREDIT4
280	280	BETWEEN THE DEPARTMENT AND TH E TAX MATTERS REPRESENTATIVE ,5
281	281	INCLUDING FINAL DETERMINATIONS , COMPROMISES, PAYMENT OF6
282	282	ADDITIONAL TAXES OR REFUNDS DUE , AND ADMINISTRATIVE AND JUDICIAL7
283	283	DECISIONS, IS BINDING ON TRANSFEREES.8
284	284	(6) I
285	285	F A TAXPAYER RECEIVING A CREDIT ALLOWED IN THIS SECTION9
286	286	IS A PARTNERSHIP, LIMITED LIABILITY COMPANY, S CORPORATION, OR10
287	287	SIMILAR PASS-THROUGH ENTITY, THE TAXPAYER MAY ALLOCATE THE11
288	288	CREDIT AMONG ITS PARTNERS , SHAREHOLDERS, MEMBERS, OR OTHER12
289	289	CONSTITUENT TAXPAYERS IN ANY MANNER AGREED TO BY THE PARTNERS ,13
290	290	SHAREHOLDERS, MEMBERS, OR OTHER CONSTITUENT TAXPAYERS . THE14
291	291	TAXPAYER SHALL CERTIFY TO THE DEPARTMENT THE AMOUNT OF THE15
292	292	CREDIT ALLOCATED TO EACH PARTNER , SHAREHOLDER, MEMBER, OR16
293	293	OTHER CONSTITUENT TAXPAYER . EACH PARTNER, SHAREHOLDER,17
294	294	MEMBER, OR OTHER CONSTITUENT TAXPAYER MAY CLAIM THE AMOUNT18
295	295	SUBJECT TO ANY RESTRICTIONS SET FORTH IN THIS SECTION .19
296	296	(7) N
297	297	O LATER THAN DECEMBER 15, 2023, AND NO LATER THAN20
298	298	D
299	299	ECEMBER 15 OF EACH YEAR THEREAFTER, EACH PRIVATE SCHOOL THAT21
300	300	ISSUES A CREDIT CERTIFICATE SHALL PROVIDE THE DEPARTMENT WITH AN22
301	301	ELECTRONIC REPORT OF ANY CREDIT CERTIFICATE ISSUED FOR THAT23
302	302	INCOME TAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION :24
303	303	(a) T
304	304	HE TAXPAYER'S NAME;25
305	305	(b) T
306	306	HE TAXPAYER'S COLORADO ACCOUNT NUMBER OR SOCIAL26
307	307	SECURITY NUMBER; AND27
308	308	HB22-1203
309	309	-9- (c) ANY ASSOCIATED TAXPAYERS ' NAMES AND COLORADO1
310	310	ACCOUNT NUMBERS OR SOCIAL SECURITY NUMBERS IF THE CREDIT2
311	311	ALLOWED IN THIS SECTION IS ALLOCATED FROM A PASS -THROUGH ENTITY3
312	312	PURSUANT TO SUBSECTION (6) OF THIS SECTION.4
313	313	39-22-544. Credit for taxpayers that use home-based5
314	314	education for a qualified child - rules - tax preference performance6
315	315	statement - legislative declaration - definitions. (1) (a) T
316	316	HE GENERAL7
317	317	ASSEMBLY HEREBY FINDS AND DECLARES THAT :8
318	318	(I) E
319	319	VERY STUDENT IN THE STATE OF COLORADO SHOULD HAVE AS9
320	320	MUCH ACCESS AS POSSIBLE TO THE EDUCATIONAL FORMATS THAT BEST FIT10
321	321	THEIR NEEDS AND LEARNING STYLES ;11
322	322	(II) H
323	323	OME-BASED EDUCATION CAN BEST MEET THOSE NEEDS FOR12
324	324	MANY COLORADO STUDENTS;13
325	325	(III) P
326	326	UBLIC MONEY FOR EDUCATION IS LIMITED AND SHOULD BE14
327	327	DIRECTED TO THE MOST COST -EFFICIENT MEANS OF DELIVERING15
328	328	EDUCATIONAL OPPORTUNITIES FOR ALL COLORADO STUDENTS; AND16
329	329	(IV) P
330	330	ARENTS HAVE THE FUNDAMENTAL RIGHT AND17
331	331	RESPONSIBILITY TO DIRECT THE EDUCATION OF THEIR CHILDREN .18
332	332	(b) I
333	333	N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH19
334	334	REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE20
335	335	A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY21
336	336	LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND22
337	337	DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN23
338	338	SUBSECTION (3) OF THIS SECTION ARE TO:24
339	339	(I) P
340	340	ROVIDE TAX RELIEF FOR CERTAIN INDIVIDUALS, SPECIFICALLY25
341	341	INDIVIDUALS THAT USE HOME-BASED EDUCATION FOR A QUALIFIED CHILD;26
342	342	AND27
343	343	HB22-1203
344	344	-10- (II) GIVE PARENTS AND STUDENTS MORE EDUCATIONAL CHOICES1
345	345	WHILE OPTIMIZING THE USE OF PUBLIC MONEY DESIGNATED FOR2
346	346	EDUCATIONAL PURPOSES.3
347	347	(c) T
348	348	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL4
349	349	MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE5
350	350	PURPOSES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE6
351	351	NUMBER OF QUALIFIED CHILDREN WHO ARE TAUGHT THROUGH7
352	352	HOME-BASED EDUCATION FOR THE FIRST TIME IN THE APPLICABLE SCHOOL8
353	353	YEAR. THE DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE9
354	354	AUDITOR WITH AVAILABLE INFORMATION THAT WILL ASSIST THE STATE10
355	355	AUDITOR'S MEASUREMENT.11
356	356	(2) A
357	357	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE12
358	358	REQUIRES:13
359	359	(a) "D
360	360	EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .14
361	361	(b) "H
362	362	OME-BASED EDUCATION" MEANS THE EDUCATION OF A15
363	363	QUALIFIED CHILD PURSUANT TO SECTION 22-33-104.5 OR TAUGHT AT16
364	364	HOME UNDER THE SUPERVISION OF A PRIVATE SCHOOL .17
365	365	(c) (I) "Q
366	366	UALIFIED CHILD" MEANS A DEPENDENT CHILD ENROLLED18
367	367	ON A FULL-TIME OR HALF-TIME BASIS, AS DESCRIBED IN THE STATE BOARD19
368	368	OF EDUCATION RULES, IN A PUBLIC SCHOOL IN THE STATE FOR THE SCHOOL20
369	369	YEAR PRIOR TO BEING TAUGHT AT HOME OR A DEPENDENT CHILD WHO WAS21
370	370	NOT OLD ENOUGH TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH22
371	371	GRADE PROGRAM IN THE SCHOOL YEAR PRIOR TO BEING TAUGHT AT HOME ,23
372	372	BUT DOES NOT INCLUDE A DEPENDENT CHILD WHO IS ENROLLED IN A24
373	373	PRIVATE SCHOOL OR TAUGHT AT HOME IN THE STATE PRIOR TO THE25
374	374	EFFECTIVE DATE OF THIS SECTION.26
375	375	(II) O
376	376	NCE A CHILD IS A QUALIFIED CHILD AS SPECIFIED IN27
377	377	HB22-1203
378	378	-11- SUBSECTION (2)(c)(I) OF THIS SECTION, THE CHILD REMAINS A QUALIFIED1
379	379	CHILD SO LONG AS HE OR SHE CONTINUES TO BE TAUGHT AT HOME IN THE2
380	380	STATE IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM .3
381	381	(d) "T
382	382	AXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC4
383	383	OR FOREIGN CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS5
384	384	ARTICLE 22, A PARTNERSHIP, LIMITED LIABILITY COMPANY , S6
385	385	CORPORATION, OR OTHER SIMILAR PASS-THROUGH ENTITY, ESTATE, OR7
386	386	TRUST, AND A PARTNER, MEMBER, AND SUBCHAPTER S SHAREHOLDER OF8
387	387	SUCH PASS-THROUGH ENTITY.9
388	388	(3) (a) (I) F
389	389	OR INCOME TAX YEARS COMMENCING ON OR AFTER10
390	390	J
391	391	ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED AS11
392	392	A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 AN12
393	393	AMOUNT EQUAL TO ONE T HOUSAND FIVE HUNDRED DOLLARS FOR ANY13
394	394	TAXPAYER WHO USES HOME -BASED EDUCATION FOR A QUALIFIED CHILD14
395	395	WHO WAS ENROLLED ON A FULL -TIME BASIS IN A PUBLIC SCHOOL IN THE15
396	396	STATE PRIOR TO BEING TAUGHT AT HOME OR WHO WAS NOT OLD ENOUGH16
397	397	TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN17
398	398	THE SCHOOL YEAR PRIOR TO BEING TAUGHT AT HOME .18
399	399	(II) F
400	400	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY19
401	401	1,
402	402	2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED AS A CREDIT20
403	403	AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 AN AMOUNT21
404	404	EQUAL TO SEVEN HUNDRED FIFTY DOLLARS TO ANY TAXPAYER WHO USES22
405	405	HOME-BASED EDUCATION FOR A QUALIFIED CHILD WHO WAS ENROLLED ON23
406	406	A HALF-TIME BASIS IN A PUBLIC SCHOOL IN THE STATE PRIOR TO BEING24
407	407	TAUGHT AT HOME OR WHO WAS NOT OLD E NOUGH TO ENROLL IN A25
408	408	KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN THE SCHOOL26
409	409	YEAR PRIOR TO BEING TAUGHT AT HOME .27
410	410	HB22-1203
411	411	-12- (b) A TAXPAYER WHO USES HOME -BASED EDUCATION FOR A1
412	412	QUALIFIED CHILD DURING THE 2022-23 STATE FISCAL YEAR OR ANY STATE2
413	413	FISCAL YEAR THEREAFTER , THROUGH THE 2026-27 FISCAL YEAR, IS3
414	414	ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN SUBSECTION (3)(a) OF4
415	415	THIS SECTION FOR THE INCOME TAX YEAR COMMENCING DURING THE5
416	416	STATE FISCAL YEAR IN WHICH THE QUALIFIED CHILD IS TAUGHT AT HOME .6
417	417	(4) I
418	418	F THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE7
419	419	INCOME TAXES OTHERWISE DUE ON THE TAXPAYER 'S INCOME, THE8
420	420	AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES9
421	421	MAY BE CARRIED FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT10
422	422	YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT EXCEEDING THREE11
423	423	YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST YEARS POSSIBLE .12
424	424	A
425	425	NY CREDIT REMAINING AFTER SAID PERIOD MAY NOT BE REFUNDED OR13
426	426	CREDITED TO THE TAXPAYER.14
427	427	(5) A
428	428	TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX15
429	429	CREDIT GRANTED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO16
430	430	ANOTHER TAXPAYER FOR SUCH OTHER TAXPAYER , AS TRANSFEREE, TO17
431	431	APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 2218
432	432	SUBJECT TO THE FOLLOWING LIMITATIONS :19
433	433	(a) T
434	434	HE TAXPAYER MAY ONLY TRANSFER SUCH PORTION OF THE20
435	435	TAX CREDIT AS THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME21
436	436	TAXES IMPOSED BY THIS ARTICLE 22;22
437	437	(b) T
438	438	HE TAXPAYER MAY NOT TRANSFER A PRORATED PORTION OF23
439	439	THE TAX CREDIT TO MORE THAN ONE TRANSFEREE ;24
440	440	(c) A
441	441	TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED25
442	442	CREDIT REFUNDED;26
443	443	(d) F
444	444	OR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED27
445	445	HB22-1203
446	446	-13- PURSUANT TO THIS SUBSECTION (5), BOTH THE TAXPAYER AND THE1
447	447	TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX2
448	448	RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN3
449	449	TRANSFERRED. A TRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED4
450	450	PURSUANT TO THIS SUBSECTION (5) UNLESS THE TAXPAYER'S WRITTEN5
451	451	STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE6
452	452	TRANSFEREE.7
453	453	(e) T
454	454	O THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE8
455	455	TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO SUCH9
456	456	TRANSFEREE, THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE10
457	457	CREDIT TO PAY, IN WHOLE OR IN PART, THE INCOME TAX OBLIGATION11
458	458	IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH12
459	459	EXTENT THE TRANSFEREE'S USE OF A TAX CREDIT FROM A TRANSFEROR13
460	460	UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A14
461	461	REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE15
462	462	22
463	463	ON THE TRANSFEREE;16
464	464	(f) T
465	465	HE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT17
466	466	TO THE DEPARTMENT, IN A FORM AND MANNER TO BE DETERMINED BY THE18
467	467	DEPARTMENT, A STATEMENT THAT THE TRANSFEREE PURCHASED THE TAX19
468	468	CREDIT FROM THE TRANSFEROR ;20
469	469	(g) A
470	470	TRANSFEREE OF A TAX CREDIT SHALL PURCHASE THE CREDIT21
471	471	PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE 22, NOT INCLUDING22
472	472	ANY EXTENSIONS, FOR FILING THE TRANSFEREE'S INCOME TAX RETURN;23
473	473	(h) A
474	474	TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR24
475	475	AS A RESULT OF A DONATION BY A PASS-THROUGH ENTITY, BUT NOT A TAX25
476	476	CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S26
477	477	ESTATE FOR TAXES OWED BY THE ESTATE , SURVIVES THE DEATH OF THE27
478	478	HB22-1203
479	479	-14- INDIVIDUAL AND MAY BE CLAIMED OR TRANSFERRED BY THE DECEDENT 'S1
480	480	ESTATE;2
481	481	(i) T
482	482	HE TAXPAYER WHO CLAIMED A TAX CREDIT PURSUANT TO3
483	483	SUBSECTION (3) OF THIS SECTION AND TRANSFERRED THE CREDIT4
484	484	PURSUANT TO THIS SUBSECTION (5) IS THE TAX MATTERS REPRESENTATIVE5
485	485	IN ALL MATTERS WITH RESPECT TO THE CREDIT . THE TAX MATTERS6
486	486	REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE7
487	487	TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT ,8
488	488	INCLUDING, BUT NOT LIMITED TO, NOTIFICATIONS AND CORRESPONDENCE9
489	489	FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS, REFUNDS,10
490	490	SETTLEMENT AGREEMENTS , AND THE STATUTE OF LIMITATIONS . THE11
491	491	TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH12
492	492	RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CREDIT .13
493	493	(j) F
494	494	INAL RESOLUTION OF DISPUTES REGARDING THE TAX CREDIT14
495	495	BETWEEN THE DEPARTMENT AND THE TAX MATTERS REPRESENTATIVE ,15
496	496	INCLUDING FINAL DETERMINATIONS , COMPROMISES, PAYMENT OF16
497	497	ADDITIONAL TAXES OR REFUNDS DUE, AND ADMINISTRATIVE AND JUDICIAL17
498	498	DECISIONS, IS BINDING ON TRANSFEREES.18
499	499	SECTION 3. Act subject to petition - effective date. This act19
500	500	takes effect at 12:01 a.m. on the day following the expiration of the20
501	501	ninety-day period after final adjournment of the general assembly; except21
502	502	that, if a referendum petition is filed pursuant to section 1 (3) of article V22
503	503	of the state constitution against this act or an item, section, or part of this23
504	504	act within such period, then the act, item, section, or part will not take24
505	505	effect unless approved by the people at the general election to be held in25
506	506	November 2022 and, in such case, will take effect on the date of the26
507	507	official declaration of the vote thereon by the governor.27
508	508	HB22-1203
509	509	-15-