Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0743.01 Nicole Myers x4326
HOUSE BILL 22-1203
House Committees Senate Committees
Education
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF INCO ME TAX CREDITS FOR NONPUBLIC101
EDUCATION.102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill establishes a private school tuition income tax credit for
income tax years commencing on or after January 1, 2023, but prior to
January 1, 2028, that allows any taxpayer to claim a credit when the
taxpayer enrolls a qualified child in a private school or the taxpayer
provides a scholarship to a qualified child for enrollment in a private
school. The private school issues the taxpayer a credit certificate and the
HOUSE SPONSORSHIP
Hanks,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. amount of the credit is:
! For full-time attendance, an amount equal to either the
tuition paid or the scholarship provided to a qualified child,
as applicable, or 50% of the previous year's state average
per pupil revenues, whichever is less; and
! For half-time attendance, an amount equal to either the
tuition paid or the scholarship provided to a qualified child,
as applicable, or 25% of the previous year's state average
per pupil revenues, whichever is less.
The bill also establishes an income tax credit for income tax years
commencing on or after January 1, 2023, but prior to January 1, 2028,
that allows any taxpayer who uses home-based education for a qualified
child to claim an income tax credit in an amount equal to:
! $1,500 for a taxpayer who uses home-based education for
a qualified child who was enrolled on a full-time basis in a
public school in the state prior to being taught at home; and
! $750 for a taxpayer who uses home-based education for a
qualified child who was enrolled on a half-time basis in a
public school in the state prior to being taught at home.
Both credits may be carried forward for 3 years but may not be
refunded. In addition, the credits may be transferred, subject to certain
limitations.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Short title. The short title of this section is the2
"Quality Education and Budget Reduction Act".3
SECTION 2. In Colorado Revised Statutes, add 39-22-543 and4
39-22-544 as follows:5
39-22-543. Private school tuition income tax credit - rules - tax6
preference performance statement - legislative declaration -7
definitions. (1) (a) T
HE GENERAL ASSEMBLY HEREBY FINDS AND8
DECLARES THAT:9
(I) E
VERY STUDENT IN THE STATE OF COLORADO SHOULD HAVE AS10
MUCH ACCESS AS POSSIBLE TO THE EDUCATIONAL FORMATS THAT BEST FIT11
THEIR NEEDS AND LEARNING STYLES ;12
(II) P
RIVATE SCHOOLS CAN OFTEN BEST MEET THOSE NEEDS FOR13
HB22-1203-2- MANY COLORADO STUDENTS;1
(III) P
UBLIC MONEY FOR EDUCATION IS LIMITED AND SHOULD BE2
DIRECTED TO THE MOST COST -EFFICIENT MEANS OF DELIVERING3
EDUCATIONAL OPPORTUNITIES FOR ALL COLORADO STUDENTS; AND4
(IV) P
ARENTS HAVE THE FUNDAMENTAL RIGHT AND5
RESPONSIBILITY TO DIRECT THE EDUCATION OF THEIR CHILDREN .6
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH7
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE8
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY9
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND10
DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN11
SUBSECTION (3) OF THIS SECTION ARE TO:12
(I) P
ROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR13
INDIVIDUALS, SPECIFICALLY BUSINESSES OR INDIVIDUALS THAT ENROLL A14
QUALIFIED CHILD IN A PRIVATE SCHOOL OR THAT PROVIDE A SCHOLARSHIP15
TO A QUALIFIED CHILD FOR ENROLLMENT IN A PRIVATE SCHOOL ; AND16
(II) G
IVE PARENTS AND STUDENTS MORE EDUCATIONAL CHOICES17
WHILE OPTIMIZING THE USE OF PUBLIC MONEY DESIGNATED FOR18
EDUCATIONAL PURPOSES.19
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL20
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE21
PURPOSES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE22
NUMBER OF QUALIFIED CHILDREN WHO ARE ENROLLED IN A PRIVATE23
SCHOOL FOR THE FIRST TIME IN THE APPLICABLE SCHOOL YEAR . THE24
DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE AUDITOR WITH25
AVAILABLE INFORMATION THAT WILL ASSIST THE STATE AUDITOR 'S26
MEASUREMENT.27
HB22-1203
-3- (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
REQUIRES:2
(a) "C
REDIT CERTIFICATE" MEANS A STATEMENT ISSUED BY A3
PRIVATE SCHOOL CERTIFYING THAT A CHILD ENROLLED IN THE PRIVATE4
SCHOOL IS A QUALIFIED CHILD AND THAT THE TAXPAYER IS ENTITLED TO5
AN INCOME TAX CREDIT AS SPECIFIED IN THIS SECTION.6
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .7
(c) "P
RIVATE SCHOOL" HAS THE SAME MEANING AS SET FORTH IN8
SECTION 22-30.5-103 (6.5).9
(d) (I) "Q
UALIFIED CHILD" MEANS A DEPENDENT CHILD ENROLLED10
ON A FULL-TIME BASIS, AS DESCRIBED IN STATE BOARD OF EDUCATION11
RULES, IN A PUBLIC SCHOOL IN THE STATE FOR THE SCHOOL YEAR PRIOR TO12
ENROLLMENT IN A PRIVATE SCHOOL OR A DEPENDENT CHILD WHO WAS NOT13
OLD ENOUGH TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH GRADE14
PROGRAM IN THE SCHOOL YEAR PRIOR TO ENROLLMENT IN A PRIVATE15
SCHOOL, BUT DOES NOT INCLUDE:16
(A) A
CHILD ENROLLED IN A PRIVATE SCHOOL IN THE STATE FOR17
THE SCHOOL YEAR PRIOR TO THE EFFECTIVE DATE OF THIS SECTION ; OR18
(B) A
CHILD TAUGHT AT HOME IN THE STATE AS OF THE EFFECTIVE19
DATE OF THIS SECTION.20
(II) O
NCE A CHILD IS A QUALIFIED CHILD AS SPECIFIED IN21
SUBSECTION (2)(d)(I) OF THIS SECTION, THE CHILD REMAINS A QUALIFIED22
CHILD SO LONG AS THE CHILD REMAINS ENROLLED IN A PRIVATE SCHOOL23
IN THE STATE IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM .24
(e) "S
TATE AVERAGE PER PUPIL REVENUES " HAS THE SAME25
MEANING AS SET FORTH IN SECTION 22-54-103 (12).26
(f) "T
AXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC27
HB22-1203
-4- OR FOREIGN CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS1
ARTICLE 22, A PARTNERSHIP , LIMITED LIABILITY COMPANY , S2
CORPORATION, OR OTHER SIMILAR PASS-THROUGH ENTITY, ESTATE, OR3
TRUST, AND A PARTNER, MEMBER, AND SUBCHAPTER S SHAREHOLDER OF4
SUCH A PASS-THROUGH ENTITY.5
(3) (a) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER6
J
ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, A PRIVATE SCHOOL7
SHALL ISSUE A CREDIT CERTIFICATE TO ANY TAXPAYER THAT ENROLLS A8
QUALIFIED CHILD IN THE PRIVATE SCHOOL OR THAT PROVIDES A9
SCHOLARSHIP TO A QUALIFIED CHILD FOR ENROLLMENT IN THE PRIVATE10
SCHOOL. THE CREDIT CERTIFICATE ALLOWS THE TAXPAYER TO CLAIM AN11
INCOME TAX CREDIT WITH RESPECT TO THE INCOME TAXES IMPOSED BY12
THIS ARTICLE 22.13
(II) A
TAXPAYER THAT ENROLLS A QUALIFIED CHILD IN A PRIVATE14
SCHOOL OR THAT PROVIDES A SCHOLARSHIP TO A QUALIFIED CHILD FOR15
ENROLLMENT IN A PRIVATE SCHOOL DURING THE 2022-23 STATE FISCAL16
YEAR OR ANY STATE FISCAL YEAR THEREAFTER THOUGH STATE FISCAL17
YEAR 2026-27, IS ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN18
SUBSECTION (3)(a)(I) OF THIS SECTION FOR THE INCOME TAX YEAR19
COMMENCING DURING THE STATE FISCAL YEAR IN WHICH THE QUALIFIED20
CHILD IS ENROLLED OR IN WHICH THE SCHOLARSHIP IS OFFERED ; EXCEPT21
THAT A QUALIFIED CHILD SHALL NOT GENERATE AN INCOME TAX CREDIT22
IN THE SAME INCOME TAX YEAR FOR BOTH A TAXPAYER THAT ENROLLS23
THE QUALIFIED CHILD IN A PRIVATE SCHOOL AND A TAXPAYER THAT24
PROVIDES A SCHOLARSHIP TO THE QUALIFIED CHILD FOR ENROLLMENT IN25
A PRIVATE SCHOOL.26
(b) A
PRIVATE SCHOOL SHALL ISSUE ANY CREDIT CERTIFICATES27
HB22-1203
-5- PURSUANT TO SUBSECTION (3)(a) OF THIS SECTION UPON APPLICATION FOR1
A CREDIT BY A TAXPAYER.2
(c) (I) (A) F
OR ANY QUALIFIED CHILD ATTENDING A PRIVATE3
SCHOOL ON A FULL-TIME BASIS AS DESCRIBED IN THE STATE BOARD OF4
EDUCATION RULES, THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS5
SECTION EQUALS EITHER THE AMOUNT OF TUITION PAID FOR THE6
QUALIFIED CHILD OR THE AMOUNT OF THE SCHOLARSHIP PROVIDED TO A7
QUALIFIED CHILD, AS APPLICABLE, OR FIFTY PERCENT OF THE PREVIOUS8
FISCAL YEAR'S STATE AVERAGE PER PUPIL REVENUES, WHICHEVER IS LESS.9
(B) F
OR ANY QUALIFIED CHILD ATTENDING A PRIVATE SCHOOL ON10
A HALF-TIME BASIS AS DESCRIBED IN THE STATE BOARD OF EDUCATION11
RULES, THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS SECTION EQUALS12
EITHER THE AMOUNT OF TUITION PAID FOR THE QUALIFIED CHILD OR THE13
AMOUNT OF THE SCHOLARSHIP PROVIDED TO A QUALIFIED CHILD , AS14
APPLICABLE, OR TWENTY-FIVE PERCENT OF THE PREVIOUS FISCAL YEAR'S15
STATE AVERAGE PER PUPIL REVENUES , WHICHEVER IS LESS.16
(II) O
N JANUARY 15, 2023, AND ON EVERY JANUARY 1517
THEREAFTER, THE DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE18
AVERAGE PER PUPIL REVENUES FOR THE PRIOR FISCAL YEAR TO THE19
DEPARTMENT.20
(d) T
HE TAXPAYER SHALL SUBMIT THE CREDIT CERTIFICATE TO THE21
DEPARTMENT WITH THE TAXPAYER 'S INCOME TAX RETURN FOR THAT TAX22
YEAR.23
(4) I
F THE CREDIT ALLOWED IN THIS SECTION EXCEEDS THE INCOME24
TAXES OTHERWISE DUE ON THE TAXPAYER 'S INCOME, THE AMOUNT OF THE25
CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES MAY BE CARRIED26
FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT YEARS ' INCOME TAX27
HB22-1203
-6- LIABILITY FOR A PERIOD NOT EXCEEDING THREE YEARS AND SHALL BE1
APPLIED FIRST TO THE EARLIEST YEARS POSSIBLE. ANY CREDIT REMAINING2
AFTER SAID PERIOD MAY NOT BE REFUNDED OR CREDITED TO THE3
TAXPAYER.4
(5) A
TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX5
CREDIT GRANTED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO6
ANOTHER TAXPAYER FOR SUCH OTHER TAXPAYER , AS TRANSFEREE, TO7
APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 228
SUBJECT TO THE FOLLOWING LIMITATIONS :9
(a) T
HE TAXPAYER MAY ONLY TRANSFER SUCH PORTION OF THE10
TAX CREDIT AS THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME11
TAXES IMPOSED BY THIS ARTICLE 22;12
(b) T
HE TAXPAYER MAY NOT TRANSFER A PRORATED PORTION OF13
THE TAX CREDIT TO MORE THAN ONE TRANSFEREE ;14
(c) A
TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED15
CREDIT REFUNDED;16
(d) F
OR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED17
PURSUANT TO THIS SUBSECTION (5), BOTH THE TAXPAYER AND THE18
TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX19
RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN20
TRANSFERRED. A TRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED21
PURSUANT TO THIS SUBSECTION (5) UNLESS THE TAXPAYER'S WRITTEN22
STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE23
TRANSFEREE.24
(e) T
O THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE25
TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO SUCH26
TRANSFEREE, THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE27
HB22-1203
-7- CREDIT TO PAY, IN WHOLE OR IN PART, THE INCOME TAX OBLIGATION1
IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH2
EXTENT THE TRANSFEREE'S USE OF A TAX CREDIT FROM A TRANSFEROR3
UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A4
REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE5
22
ON THE TRANSFEREE;6
(f) T
HE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT7
TO THE DEPARTMENT, IN A FORM AND MANNER TO BE DETERMINED BY THE8
DEPARTMENT, A STATEMENT THAT THE TRANSFEREE PURCHASED THE TAX9
CREDIT FROM THE TRANSFEROR ;10
(g) A
TRANSFEREE OF A TAX CREDIT SHALL PURCHASE THE CREDIT11
PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE 22, NOT INCLUDING12
ANY EXTENSIONS, FOR FILING THE TRANSFEREE'S INCOME TAX RETURN;13
(h) A
TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR14
AS A RESULT OF A DONATION BY A PASS-THROUGH ENTITY, BUT NOT A TAX15
CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S16
ESTATE FOR TAXES OWED BY THE ESTATE , SURVIVES THE DEATH OF THE17
INDIVIDUAL AND MAY BE CLAIMED OR TRANSFERRED BY THE DECEDENT 'S18
ESTATE;19
(i) T
HE TAXPAYER WHO CLAIMED A TAX CREDIT PURSUANT TO20
SUBSECTION (3) OF THIS SECTION AND TRANSFERRED THE CREDIT21
PURSUANT TO THIS SUBSECTION (5) IS THE TAX MATTERS REPRESENTATIVE22
IN ALL MATTERS WITH RESPECT TO THE CREDIT . THE TAX MATTERS23
REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE24
TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT ,25
INCLUDING, BUT NOT LIMITED TO, NOTIFICATIONS AND CORRESPONDENCE26
FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS, REFUNDS,27
HB22-1203
-8- SETTLEMENT AGREEMENTS , AND THE STATUTE OF LIMITATIONS . THE1
TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH2
RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CREDIT .3
(j) F
INAL RESOLUTION OF DISPUTES REGARDING THE TAX CREDIT4
BETWEEN THE DEPARTMENT AND TH E TAX MATTERS REPRESENTATIVE ,5
INCLUDING FINAL DETERMINATIONS , COMPROMISES, PAYMENT OF6
ADDITIONAL TAXES OR REFUNDS DUE , AND ADMINISTRATIVE AND JUDICIAL7
DECISIONS, IS BINDING ON TRANSFEREES.8
(6) I
F A TAXPAYER RECEIVING A CREDIT ALLOWED IN THIS SECTION9
IS A PARTNERSHIP, LIMITED LIABILITY COMPANY, S CORPORATION, OR10
SIMILAR PASS-THROUGH ENTITY, THE TAXPAYER MAY ALLOCATE THE11
CREDIT AMONG ITS PARTNERS , SHAREHOLDERS, MEMBERS, OR OTHER12
CONSTITUENT TAXPAYERS IN ANY MANNER AGREED TO BY THE PARTNERS ,13
SHAREHOLDERS, MEMBERS, OR OTHER CONSTITUENT TAXPAYERS . THE14
TAXPAYER SHALL CERTIFY TO THE DEPARTMENT THE AMOUNT OF THE15
CREDIT ALLOCATED TO EACH PARTNER , SHAREHOLDER, MEMBER, OR16
OTHER CONSTITUENT TAXPAYER . EACH PARTNER, SHAREHOLDER,17
MEMBER, OR OTHER CONSTITUENT TAXPAYER MAY CLAIM THE AMOUNT18
SUBJECT TO ANY RESTRICTIONS SET FORTH IN THIS SECTION .19
(7) N
O LATER THAN DECEMBER 15, 2023, AND NO LATER THAN20
D
ECEMBER 15 OF EACH YEAR THEREAFTER, EACH PRIVATE SCHOOL THAT21
ISSUES A CREDIT CERTIFICATE SHALL PROVIDE THE DEPARTMENT WITH AN22
ELECTRONIC REPORT OF ANY CREDIT CERTIFICATE ISSUED FOR THAT23
INCOME TAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION :24
(a) T
HE TAXPAYER'S NAME;25
(b) T
HE TAXPAYER'S COLORADO ACCOUNT NUMBER OR SOCIAL26
SECURITY NUMBER; AND27
HB22-1203
-9- (c) ANY ASSOCIATED TAXPAYERS ' NAMES AND COLORADO1
ACCOUNT NUMBERS OR SOCIAL SECURITY NUMBERS IF THE CREDIT2
ALLOWED IN THIS SECTION IS ALLOCATED FROM A PASS -THROUGH ENTITY3
PURSUANT TO SUBSECTION (6) OF THIS SECTION.4
39-22-544. Credit for taxpayers that use home-based5
education for a qualified child - rules - tax preference performance6
statement - legislative declaration - definitions. (1) (a) T
HE GENERAL7
ASSEMBLY HEREBY FINDS AND DECLARES THAT :8
(I) E
VERY STUDENT IN THE STATE OF COLORADO SHOULD HAVE AS9
MUCH ACCESS AS POSSIBLE TO THE EDUCATIONAL FORMATS THAT BEST FIT10
THEIR NEEDS AND LEARNING STYLES ;11
(II) H
OME-BASED EDUCATION CAN BEST MEET THOSE NEEDS FOR12
MANY COLORADO STUDENTS;13
(III) P
UBLIC MONEY FOR EDUCATION IS LIMITED AND SHOULD BE14
DIRECTED TO THE MOST COST -EFFICIENT MEANS OF DELIVERING15
EDUCATIONAL OPPORTUNITIES FOR ALL COLORADO STUDENTS; AND16
(IV) P
ARENTS HAVE THE FUNDAMENTAL RIGHT AND17
RESPONSIBILITY TO DIRECT THE EDUCATION OF THEIR CHILDREN .18
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH19
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE20
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY21
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND22
DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN23
SUBSECTION (3) OF THIS SECTION ARE TO:24
(I) P
ROVIDE TAX RELIEF FOR CERTAIN INDIVIDUALS, SPECIFICALLY25
INDIVIDUALS THAT USE HOME-BASED EDUCATION FOR A QUALIFIED CHILD;26
AND27
HB22-1203
-10- (II) GIVE PARENTS AND STUDENTS MORE EDUCATIONAL CHOICES1
WHILE OPTIMIZING THE USE OF PUBLIC MONEY DESIGNATED FOR2
EDUCATIONAL PURPOSES.3
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL4
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE5
PURPOSES SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE6
NUMBER OF QUALIFIED CHILDREN WHO ARE TAUGHT THROUGH7
HOME-BASED EDUCATION FOR THE FIRST TIME IN THE APPLICABLE SCHOOL8
YEAR. THE DEPARTMENT OF EDUCATION SHALL PROVIDE THE STATE9
AUDITOR WITH AVAILABLE INFORMATION THAT WILL ASSIST THE STATE10
AUDITOR'S MEASUREMENT.11
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE12
REQUIRES:13
(a) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .14
(b) "H
OME-BASED EDUCATION" MEANS THE EDUCATION OF A15
QUALIFIED CHILD PURSUANT TO SECTION 22-33-104.5 OR TAUGHT AT16
HOME UNDER THE SUPERVISION OF A PRIVATE SCHOOL .17
(c) (I) "Q
UALIFIED CHILD" MEANS A DEPENDENT CHILD ENROLLED18
ON A FULL-TIME OR HALF-TIME BASIS, AS DESCRIBED IN THE STATE BOARD19
OF EDUCATION RULES, IN A PUBLIC SCHOOL IN THE STATE FOR THE SCHOOL20
YEAR PRIOR TO BEING TAUGHT AT HOME OR A DEPENDENT CHILD WHO WAS21
NOT OLD ENOUGH TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH22
GRADE PROGRAM IN THE SCHOOL YEAR PRIOR TO BEING TAUGHT AT HOME ,23
BUT DOES NOT INCLUDE A DEPENDENT CHILD WHO IS ENROLLED IN A24
PRIVATE SCHOOL OR TAUGHT AT HOME IN THE STATE PRIOR TO THE25
EFFECTIVE DATE OF THIS SECTION.26
(II) O
NCE A CHILD IS A QUALIFIED CHILD AS SPECIFIED IN27
HB22-1203
-11- SUBSECTION (2)(c)(I) OF THIS SECTION, THE CHILD REMAINS A QUALIFIED1
CHILD SO LONG AS HE OR SHE CONTINUES TO BE TAUGHT AT HOME IN THE2
STATE IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM .3
(d) "T
AXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC4
OR FOREIGN CORPORATION SUBJECT TO THE PROVISIONS OF PART 3 OF THIS5
ARTICLE 22, A PARTNERSHIP, LIMITED LIABILITY COMPANY , S6
CORPORATION, OR OTHER SIMILAR PASS-THROUGH ENTITY, ESTATE, OR7
TRUST, AND A PARTNER, MEMBER, AND SUBCHAPTER S SHAREHOLDER OF8
SUCH PASS-THROUGH ENTITY.9
(3) (a) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER10
J
ANUARY 1, 2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED AS11
A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 AN12
AMOUNT EQUAL TO ONE T HOUSAND FIVE HUNDRED DOLLARS FOR ANY13
TAXPAYER WHO USES HOME -BASED EDUCATION FOR A QUALIFIED CHILD14
WHO WAS ENROLLED ON A FULL -TIME BASIS IN A PUBLIC SCHOOL IN THE15
STATE PRIOR TO BEING TAUGHT AT HOME OR WHO WAS NOT OLD ENOUGH16
TO ENROLL IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN17
THE SCHOOL YEAR PRIOR TO BEING TAUGHT AT HOME .18
(II) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY19
1,
2023, BUT PRIOR TO JANUARY 1, 2028, THERE IS ALLOWED AS A CREDIT20
AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 AN AMOUNT21
EQUAL TO SEVEN HUNDRED FIFTY DOLLARS TO ANY TAXPAYER WHO USES22
HOME-BASED EDUCATION FOR A QUALIFIED CHILD WHO WAS ENROLLED ON23
A HALF-TIME BASIS IN A PUBLIC SCHOOL IN THE STATE PRIOR TO BEING24
TAUGHT AT HOME OR WHO WAS NOT OLD E NOUGH TO ENROLL IN A25
KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN THE SCHOOL26
YEAR PRIOR TO BEING TAUGHT AT HOME .27
HB22-1203
-12- (b) A TAXPAYER WHO USES HOME -BASED EDUCATION FOR A1
QUALIFIED CHILD DURING THE 2022-23 STATE FISCAL YEAR OR ANY STATE2
FISCAL YEAR THEREAFTER , THROUGH THE 2026-27 FISCAL YEAR, IS3
ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN SUBSECTION (3)(a) OF4
THIS SECTION FOR THE INCOME TAX YEAR COMMENCING DURING THE5
STATE FISCAL YEAR IN WHICH THE QUALIFIED CHILD IS TAUGHT AT HOME .6
(4) I
F THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE7
INCOME TAXES OTHERWISE DUE ON THE TAXPAYER 'S INCOME, THE8
AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES9
MAY BE CARRIED FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT10
YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT EXCEEDING THREE11
YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST YEARS POSSIBLE .12
A
NY CREDIT REMAINING AFTER SAID PERIOD MAY NOT BE REFUNDED OR13
CREDITED TO THE TAXPAYER.14
(5) A
TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX15
CREDIT GRANTED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO16
ANOTHER TAXPAYER FOR SUCH OTHER TAXPAYER , AS TRANSFEREE, TO17
APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 2218
SUBJECT TO THE FOLLOWING LIMITATIONS :19
(a) T
HE TAXPAYER MAY ONLY TRANSFER SUCH PORTION OF THE20
TAX CREDIT AS THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME21
TAXES IMPOSED BY THIS ARTICLE 22;22
(b) T
HE TAXPAYER MAY NOT TRANSFER A PRORATED PORTION OF23
THE TAX CREDIT TO MORE THAN ONE TRANSFEREE ;24
(c) A
TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED25
CREDIT REFUNDED;26
(d) F
OR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED27
HB22-1203
-13- PURSUANT TO THIS SUBSECTION (5), BOTH THE TAXPAYER AND THE1
TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX2
RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN3
TRANSFERRED. A TRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED4
PURSUANT TO THIS SUBSECTION (5) UNLESS THE TAXPAYER'S WRITTEN5
STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE6
TRANSFEREE.7
(e) T
O THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE8
TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO SUCH9
TRANSFEREE, THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE10
CREDIT TO PAY, IN WHOLE OR IN PART, THE INCOME TAX OBLIGATION11
IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH12
EXTENT THE TRANSFEREE'S USE OF A TAX CREDIT FROM A TRANSFEROR13
UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A14
REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE15
22
ON THE TRANSFEREE;16
(f) T
HE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT17
TO THE DEPARTMENT, IN A FORM AND MANNER TO BE DETERMINED BY THE18
DEPARTMENT, A STATEMENT THAT THE TRANSFEREE PURCHASED THE TAX19
CREDIT FROM THE TRANSFEROR ;20
(g) A
TRANSFEREE OF A TAX CREDIT SHALL PURCHASE THE CREDIT21
PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE 22, NOT INCLUDING22
ANY EXTENSIONS, FOR FILING THE TRANSFEREE'S INCOME TAX RETURN;23
(h) A
TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR24
AS A RESULT OF A DONATION BY A PASS-THROUGH ENTITY, BUT NOT A TAX25
CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S26
ESTATE FOR TAXES OWED BY THE ESTATE , SURVIVES THE DEATH OF THE27
HB22-1203
-14- INDIVIDUAL AND MAY BE CLAIMED OR TRANSFERRED BY THE DECEDENT 'S1
ESTATE;2
(i) T
HE TAXPAYER WHO CLAIMED A TAX CREDIT PURSUANT TO3
SUBSECTION (3) OF THIS SECTION AND TRANSFERRED THE CREDIT4
PURSUANT TO THIS SUBSECTION (5) IS THE TAX MATTERS REPRESENTATIVE5
IN ALL MATTERS WITH RESPECT TO THE CREDIT . THE TAX MATTERS6
REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE7
TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT ,8
INCLUDING, BUT NOT LIMITED TO, NOTIFICATIONS AND CORRESPONDENCE9
FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS, REFUNDS,10
SETTLEMENT AGREEMENTS , AND THE STATUTE OF LIMITATIONS . THE11
TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH12
RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CREDIT .13
(j) F
INAL RESOLUTION OF DISPUTES REGARDING THE TAX CREDIT14
BETWEEN THE DEPARTMENT AND THE TAX MATTERS REPRESENTATIVE ,15
INCLUDING FINAL DETERMINATIONS , COMPROMISES, PAYMENT OF16
ADDITIONAL TAXES OR REFUNDS DUE, AND ADMINISTRATIVE AND JUDICIAL17
DECISIONS, IS BINDING ON TRANSFEREES.18
SECTION 3. Act subject to petition - effective date. This act19
takes effect at 12:01 a.m. on the day following the expiration of the20
ninety-day period after final adjournment of the general assembly; except21
that, if a referendum petition is filed pursuant to section 1 (3) of article V22
of the state constitution against this act or an item, section, or part of this23
act within such period, then the act, item, section, or part will not take24
effect unless approved by the people at the general election to be held in25
November 2022 and, in such case, will take effect on the date of the26
official declaration of the vote thereon by the governor.27
HB22-1203
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