HOUSE BILL 22-1392
BY REPRESENTATIVE(S) Bird and Lindsay, Bernett, Hooton, Jodeh,
Kipp, Lontine, McCluskie, McCormick, Mullica, Ricks, Roberts, Snyder,
Titone, Valdez D.;
also SENATOR(S) Moreno, Buckner, Fields, Hansen, Jaquez Lewis, Lee,
Priola, Zenzinger.
C
ONCERNING THE EXTENSION OF STATE TAX INCENTIVES AFFECTING THE USE
OF REAL PROPERTY TO PROMOTE COMMUNITY DEVELOPMENT
, AND,
IN CONNECTION THEREWITH, EXTENDING THE CONTAMINATED LAND
STATE INCOME TAX CREDIT AND PROPERTY TAX EXEMPTION FOR
AFFORDABLE HOUSING PROJECTS AND MAKING AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 39-3-112, amend
(3)(c)(II)(A) and (3)(c)(IV)(A) as follows:
39-3-112. Definitions - residential property - orphanage -
low-income elderly or individuals with disabilities - homeless or abused
- low-income households - charitable purposes - exemption -
limitations. (3) In order for property to be exempt from the levy and
collection of property tax pursuant to subsection (2) of this section, the
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. administrator must find, pursuant to section 39-2-117, that:
(c) The property is owned:
(II) (A) With respect to residential structures specified in
sub-subparagraphs (A), (C), and (D) of subparagraph (II) of paragraph (a)
of this subsection (3), SUBSECTIONS (3)(a)(II)(A), (3)(a)(II)(C), AND
(3)(a)(II)(D) OF THIS SECTION during any compliance period, as defined by
section 42 (i)(1) of the "Internal Revenue Code of 1986", as amended,
INCLUDING ANY EXTENDED USE PERIOD PROVIDED UNDER SECTION 42 OF THE
"INTERNAL REVENUE CODE OF 1986", AS AMENDED, by any domestic or
foreign limited partnership of which any nonprofit corporation that satisfies
the provisions of subparagraph (I) of this paragraph (c)
SUBSECTION
(3)(c)(I) OF THIS SECTION is a general partner and that was formed for the
purpose of obtaining, and has been allocated, low-income housing credits
pursuant to section 42 of the "Internal Revenue Code of 1986", as amended.
(IV) (A) With respect to elderly or disabled low-income residential
facilities or low-income household residential facilities, during any
compliance period, as defined by section 42 (i)(1) of the "Internal Revenue
Code of 1986", as amended,
INCLUDING ANY EXTENDED USE PERIOD
PROVIDED UNDER SECTION
42 OF THE "INTERNAL REVENUE CODE OF 1986",
AS AMENDED, by any domestic or foreign limited partnership so long as each
of the general partners of such limited partnership is a for-profit
corporation, seventy-five percent or more of the outstanding voting stock
of which is owned by, and seventy-five percent or more of the members of
the board of directors of which is elected by, one or more nonprofit
corporations that satisfy the provisions of subparagraph (I) of this paragraph
(c) SUBSECTION (3)(c)(I) OF THIS SECTION and so long as such limited
partnership was formed for the purpose of obtaining, and the structure that
is owned by such limited partnership has been allocated, low-income
housing credits pursuant to section 42 of the "Internal Revenue Code of
1986", as amended.
SECTION 2. In Colorado Revised Statutes, 39-22-526, amend
(1)(a) introductory portion, (1)(b), (1)(c), (1)(d) introductory portion,
(1)(d)(III), (1)(d)(VII), (1)(d)(VIII), (2)(a) introductory portion, (2)(b),
(2)(c) introductory portion, (2)(c)(II), (2)(c)(VI), (2)(c)(VII), (2)(d), (3), and
(4); repeal (1)(d)(V), (1)(d)(IX), (1)(d)(X), (2)(c)(IV), and (2)(c)(VIII); and
add (3.5) as follows:
PAGE 2-HOUSE BILL 22-1392 39-22-526. Credit for environmental remediation of
contaminated land - legislative declaration - definitions - repeal.
(1) (a) For income tax years commencing on or after January 1, 2014, but
prior to January 1, 2023 JANUARY 1, 2025, there is allowed a credit against
the income taxes imposed by this article ARTICLE 22 for any approved
environmental remediation of contaminated property to any taxpayer who
meets the following requirements:
(b) (I) The tax credit allowed in this section must not exceed forty
percent of the first seven hundred fifty thousand dollars expended for the
approved remediation, and must not exceed thirty percent of the next seven
hundred fifty thousand dollars expended for the approved remediation. F
OR
INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2022, WITH
RESPECT TO APPROVED REMEDIATION OF A SITE LOCATED IN A RURAL
COMMUNITY
, THE AMOUNT OF THE TAX CREDIT SHALL NOT EXCEED FIFTY
PERCENT OF THE FIRST SEVEN HUNDRED FIFTY THOUS AND DOLLARS
EXPENDED FOR THE APPROVED REMEDIATION
, AND MUST NOT EXCEED FORTY
PERCENT OF THE NEXT SEVEN HUNDRED FIFTY THOUSAND DOLLARS
EXPENDED FOR THE APPROVED REMEDIATION
. A tax credit is not allowed for
expenditures exceeding one million five hundred thousand dollars on any
individual project.
(II) A
S USED IN THIS SUBSECTION (1)(b) AND SUBSECTION (2)(b) OF
THIS SECTION
, "RURAL COMMUNITY" MEANS:
(A) A
MUNICIPALITY WITH A POPULATION OF LESS THAN FIFTY
THOUSAND PEOPLE THAT IS NOT LOCATED WITHIN THE
DENVER
METROPOLITAN AREA
; OR
(B) THE UNINCORPORATED AREA OF ANY COUNTY THAT IS NOT
LOCATED IN THE
DENVER METROPOLITAN AREA AND THAT HAS A TOTAL
POPULATION OF LESS THAN FIFTY THOUSAND PEOPLE
.
(III) A
S USED IN THIS SUBSECTION (1)(b) AND SUBSECTION (2)(b) OF
THIS SECTION
, "DENVER METROPOLITAN AREA" MEANS ADAMS, ARAPAHOE,
B
OULDER, AND JEFFERSON COUNTIES, THE CITY AND COUNTY OF
BROOMFIELD, THE CITY AND COUNTY OF DENVER, AND ALL OF DOUGLAS
COUNTY OTHER T HAN THE TOWN OF
CASTLE ROCK AND THE TOWN OF
LARKSPUR.
PAGE 3-HOUSE BILL 22-1392 (c) A credit must be first applied to taxes due or transferred to
another taxpayer pursuant to paragraph (d) of this subsection (1) no later
than the tax year following the tax year in which the certification is
provided to the department pursuant to section 25-16-306 (5)(a), C.R.S. If
the credit allowed by this section exceeds the tax otherwise due, the excess
credit may be carried forward and claimed on the earliest possible
subsequent tax return for a period not to exceed five years.
(d) A taxpayer may transfer all or a portion of a tax credit granted
pursuant to this subsection (1) to another taxpayer for such other taxpayer,
as transferee, to apply as a credit against the taxes imposed by this article
ARTICLE 22 subject to the following limitations:
(III) For any tax year in which a tax credit is transferred pursuant to
this paragraph (d), both the taxpayer and the transferee shall file written
statements with their income tax returns specifying the amount of the tax
credit transferred. A transferee may only claim a credit transferred pursuant
to this paragraph (d) if the taxpayer's written statement verifies the amount
of the tax credit claimed by the transferee. ANY TRANSFEREE OF A TAX
CREDIT ISSUED UNDER THIS SECTION MAY USE THE AMOUNT OF THE TAX
CREDITS TRANSFERRED TO OFFSET AGAINST ANY OTHER TAX DUE UNDER
THIS ARTICLE
22. THE TRANSFEROR AND THE TRANSFEREE OF THE TAX
CREDITS SHALL JOINTLY FILE A COPY OF THE WRITTEN TRANSFER
AGREEMENT WITH THE
COLORADO DEPARTMENT OF PUBLIC HEALTH AND
ENVIRONMENT
, REFERRED TO IN THIS SECTION AS "CDPHE", WITHIN THIRTY
DAYS AFTER THE TRANSFER
. ANY FILING OF THE WRITTEN TRANSFER
AGREEMENT WITH
CDPHE PERFECTS THE TRANSFER, AND CDPHE SHALL
DEVELOP A SYSTEM TO TRACK THE TRANSFERS OF TAX CREDITS AND TO
CERTIFY THE OWNERSHIP OF TAX CREDITS
. A CERTIFICATION BY CDPHE OF
THE OWNERSHIP AND THE AMOUNT OF TAX CREDITS MAY BE RELIED ON BY
THE DEPARTMENT OF REVENUE AND THE TRANSFEREE AS BEING ACCURATE
,
AND NEITHER CDPHE NOR THE DEPARTMENT OF REVENUE SHALL ADJUST
THE AMOUNT OF TAX CREDITS AS TO THE TRANSFEREE
; EXCEPT THAT
CDPHE AND THE DEPARTMENT OF REVENUE RETAIN ANY REMEDIES THEY
MAY HAVE AGAINST THE OWNER
.
(V) The transferee shall submit to the department of revenue a form
approved by the department establishing that the taxpayer has satisfied the
requirements of this section. The transferee shall also file a copy of the form
with the department of public health and environment.
PAGE 4-HOUSE BILL 22-1392 (VII) A tax credit held by an individual either directly or as a result
of a donation DISTRIBUTION by a pass-through entity, but not a tax credit
held by a transferee unless used by the transferee's estate for taxes owed by
the estate, survives the death of the individual and may be claimed or
transferred by the decedent's estate.
(VIII) The transferor of a tax credit transferred pursuant to this
paragraph (d)
SUBSECTION (1)(d) is the tax matters representative in all
matters with respect to the credit. The tax matters representative is
responsible for representing and binding the transferees with respect to all
issues affecting the credit, including the amounts expended for the approved
remediation, the certificate issued by the department of public health and
environment, notifications and correspondence from and with the
department of revenue, audit examinations, assessments or refunds,
settlement agreements, and the statute of limitations. The transferee is
subject to the same statute of limitations with respect to the credit as the
transferor of the credit.
(IX) Final resolution of disputes regarding the tax credit between the
department of revenue and the tax matters representative, including final
determinations, compromises, payment of additional taxes or refunds due,
and administrative and judicial decisions, is binding on transferees.
(X) Any person who has claimed a credit or who may be eligible to
claim a tax credit either as a taxpayer or a transferee may petition the
department of revenue to change the tax matters representative's
designation. The executive director shall promulgate rules specifying the
procedures for a change to the tax matters representative's designation when
the executive director determines that the tax matters representative is
unavailable or unwilling to act as the tax matters representative. If the
department grants the petition, the new tax matters representative shall
serve in that capacity on and after the date the department grants the
petition.
(2) (a) For income tax years commencing on or after January 1,
2014, but prior to January 1, 2023 JANUARY 1, 2025, there is allowed to any
qualified entity a transferable expense amount for expenses incurred by the
qualified entity in performing approved environmental remediation. The
transferable expense amount may only be transferred to a taxpayer to be
claimed by the taxpayer as a credit pursuant to the provisions of this
PAGE 5-HOUSE BILL 22-1392 subsection (2). The transferrable expense amount is allowed to any qualified
entity that meets the following requirements:
(b) The transferable expense amount allowed in this section must
not exceed forty percent of the first seven hundred fifty thousand dollars
expended by the qualified entity for the approved remediation, and must not
exceed thirty percent of the next seven hundred fifty thousand dollars
expended by the qualified entity for the approved remediation;
EXCEPT
THAT
, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2022,
BUT BEFORE JANUARY 1, 2025, WITH RESPECT TO APPROVED
REMEDIATION OF A SITE LOCATED IN A RURAL COMMUNITY
, THE AMOUNT OF
THE TRANSFERABLE EXPENSE SHALL NOT EXCEED FIFTY PERCENT OF THE
FIRST SEVEN HUNDRED FIFTY T HOUSAND DOLLARS EXPENDED FOR THE
APPROVED REMEDIATION
, AND MUST NOT EXCEED FORTY PERCENT OF THE
NEXT SEVEN HUNDRED FIFTY THOUSAND DOLLARS EXPENDED FOR THE
APPROVED REMEDIATION
. A transferable expense amount is not allowed for
expenditures exceeding one million five hundred thousand dollars on any
individual project.
(c) A qualified entity may transfer all or a portion of a transferable
expense amount allowed pursuant to this subsection (2) to a taxpayer for
such taxpayer, as transferee, to apply as a credit against the taxes imposed
by this article
ARTICLE 22 subject to the following limitations:
(II) For any tax year in which a transferable expense amount is
transferred pursuant to this subsection (2), the qualified entity shall file a
written statement with the department of revenue on a form approved by the
department of revenue and the transferee shall file a written statement with
the transferee's income tax return specifying the amount transferred to the
transferee to be claimed as a credit. A transferee may only claim a credit
pursuant to this subsection (2) if the qualified entity's written statement
verifies the amount of the tax credit claimed by the transferee. ANY
TRANSFEREE OF A TRANSFERABLE EXPENSE AMOUNT ISSUED UNDER THIS
SECTION MAY USE THE AMOUNT OF THE TRANSFERABLE EXPENSE AMOUNT
TRANSFERRED TO OFFSET AGAINST ANY OTHER TAX DUE UNDER THIS
ARTICLE
22. THE TRANSFEROR AND THE TRANSFEREE OF THE TRANSFERABLE
EXPENSE AMOUNT SHALL JOINTLY FILE A COPY OF THE WRITTEN TRANSFER
AGREEMENT WITH
CDPHE WITHIN THIRTY DAYS AFTER THE TRANSFER. ANY
FILING OF THE WRITTEN TRANSFER AGREEMENT WITH
CDPHE PERFECTS THE
TRANSFER
, AND CDPHE SHALL DEVELOP A SYSTEM TO TRACK THE
PAGE 6-HOUSE BILL 22-1392 TRANSFERS OF TRANSFERABLE EXPENSE AMOUNTS AND TO CERTIFY THE
OWNERSHIP OF TRANSFERABLE EXPENSE AMOUNTS
. A CERTIFICATION BY
CDPHE OF THE OWNERSHIP AND THE AMOUNT OF TRANSFERABLE EXPENSE
MAY BE RELIED ON BY THE DEPARTMENT OF REVENUE AND THE TRANSFEREE
AS BEING ACCURATE
, AND NEITHER CDPHE NOR THE DEPARTMENT OF
REVENUE SHALL ADJUST THE AMOUNT OF TRANSFERABLE EXPENSE AS TO
THE TRANSFEREE
; EXCEPT THAT CDPHE AND THE DEPARTMENT OF REVENUE
RETAIN ANY REMEDIES THEY MAY HAVE AGAINST THE OWNER
.
(IV) The transferee shall submit to the department of revenue a form
approved by the department establishing that the transferee has satisfied the
requirements of this section. The transferee shall also file a copy of the form
with the department of public health and environment.
(VI) A tax credit TRANSFERABLE EXPENSE AMOUNT held by a
transferee's estate for taxes owed by the estate, survives the death of the
transferee and may be claimed or transferred by the decedent's estate.
(VII) The qualified entity that transfers a transferable expense
amount to be claimed as a credit by a transferee pursuant to this subsection
(2) is the tax matters representative in all matters with respect to the credit.
The tax matters representative is responsible for representing and binding
the transferees with respect to all issues affecting the credit, including the
amounts expended for the approved remediation, the certificate issued by
the department of public health and environment, notifications and
correspondence from and with the department of revenue, audit
examinations, assessments or refunds, settlement agreements, and the
statute of limitations.
(VIII) Final resolution of disputes regarding the tax credit between
the department of revenue and the tax matters representative, including final
determinations, compromises, payment of additional taxes or refunds due,
and administrative and judicial decisions, is binding on transferees.
(d) For purposes of AS USED IN this subsection (2), "qualified entity"
means a county, home rule county, city, town, home rule city, home rule
city and county,
SCHOOL DISTRICT, CHARTER SCHOOL, SPECIAL DISTRICT,
DISTRICT AUTHORIZED BY ARTICLE 20 OF TITLE 30, ARTICLE 25 OF TITLE 31,
AND ARTICLES 41 TO 50 OF TITLE 37, STATE INSTITUTION OF HIGHER
EDUCATION
, QUASI-GOVERNMENTAL ENTITY , OR MUNICIPAL ,
PAGE 7-HOUSE BILL 22-1392 QUASI-MUNICIPAL, OR PUBLIC CORPORATION ORGANIZED PURSUANT TO LAW ,
or a private nonprofit entity that is exempt from the income taxes imposed
by this article
ARTICLE 22.
(3) In addition to any other requirements of this section, a taxpayer
shall submit a claim for a credit and a qualified entity shall submit a claim
for a transferrable expense amount to the department of public health and
environment. The department shall issue certificates for the claims received
in the order submitted. After certificates have been issued for credits and
transferrable expense amounts in the aggregate amount of three million
dollars for all taxpayers and qualified entities combined for the 2014
TO
2021 calendar years and three
FIVE million dollars for each calendar year
thereafter, FOR THE 2022, 2023, AND 2024 CALENDAR YEARS, any claims that
exceed the amount allowed for the calendar year shall be placed on a wait
list in the order submitted and a certificate shall be issued for use of the
credit or transferrable expense amount in the next year for which the
department has not issued credit certificates in excess of three
OR FIVE
million dollars except that no more than one million dollars in claims shall
be placed on the wait list for any given calendar year RESPECTIVELY. The
department shall not issue certificates for any calendar year, including
certificates placed on a wait list for that year, in an aggregate amount that
exceeds three
OR FIVE million dollars RESPECTIVELY. TWO MILLION DOLLARS
OF THE FIVE MILLION DOLLAR CAP IS RESERVED ONLY FOR PROJECTS IN A
RURAL COMMUNITY
. THE REMAINING THREE MILLION DOLLARS EACH YEAR
MAY BE USED BY RURAL OR NONRURAL COMMUNITIES
. No claim for a credit
or a transferrable expense amount is allowed for any income tax year
commencing on or after January 1, 2014, unless a certificate has been issued
by the department pursuant to this subsection (3).
(3.5) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
EACH BILL THAT CREATES A NEW TAX EXPENDITURE OR EXTENDS AN
EXPIRING TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE
STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION
, THE
GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT
:
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE INCOME TAX
CREDIT ALLOWED BY THIS SECTION ARE
:
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ; AND
PAGE 8-HOUSE BILL 22-1392 (II) TO PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR
INDIVIDUALS
;
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE INCOME TAX CREDIT
ALLOWED BY THIS SECTION IS TO ENCOURAGE VOLUNTARY ENVIRONMENTAL
REMEDIATION OF CONTAMINATED SITES BY PROVIDING A FINANCIAL
INCENTIVE TO MOVE FORWARD WITH COSTLY REMEDIATION PROJECTS
; AND
(c) IN ORDER TO ALLOW THE GENERAL ASSEMBLY AND THE STATE
AUDITOR TO MEASURE THE EFFECTIVENESS OF ACHIEVING THE PURPOSES
SPECIFIED IN SUBSECTIONS
(3.5)(a) AND (3.5)(b) OF THIS SECTION, CDPHE
IS REQUIRED TO PROVIDE DATA THAT INDICATES FOR EACH CALENDER YEAR
HOW MANY PROJECTS QUALIFIED FOR THE CREDIT AND THE NUMBER OF
CREDIT RECIPIENTS
.
(4) This section is repealed, effective December 31, 2029
DECEMBER 31, 2031.
SECTION 3. Appropriation. (1) For the 2022-23 state fiscal year,
$41,102 is appropriated to the department of revenue for use by the taxation
business group. This appropriation is from the general fund. To implement
this act, the group may use this appropriation for tax administration IT
system (GenTax) support.
(2) For the 2022-23 state fiscal year, $10,000 is appropriated to the
department of public health and environment for use by the hazardous
materials and waste management division. This appropriation is from the
hazardous substance site response fund created in section 25-16-104.9 (2),
C.R.S. To implement this act, the division may use this appropriation for
program costs related to administration.
SECTION 4. Safety clause. The general assembly hereby finds,
PAGE 9-HOUSE BILL 22-1392 determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 10-HOUSE BILL 22-1392