Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-1003.02 Megan McCall x4215
HOUSE BILL 22-1418
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE EXTENSION OF THE PERIOD FOR WHICH UNUSED AND101
EXPIRING COLORADO JOB GROWTH INCENTIVE AND ENTERPRISE102
ZONE INCOME TAX CREDITS MAY BE CARRIED FORWARD TO103
SUBSEQUENT
YEARS, AND, IN CONNECTION THEREWITH , MAKING104
AN APPROPRIATION.105
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/
.)
Joint Budget Committee. The bill allows a taxpayer who operates
in a strategic industry disproportionately impacted by the COVID-19
SENATE
2nd Reading Unamended
May 10, 2022
HOUSE
3rd Reading Unamended
May 10, 2022
HOUSE
Amended 2nd Reading
May 9, 2022
HOUSE SPONSORSHIP
Herod and McCluskie, Ransom, Bernett, Bird, Garnett, Hooton, Jodeh, Lindsay, Lontine,
McKean, Ricks, Snyder
SENATE SPONSORSHIP
Hansen and Zenzinger, Rankin
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. pandemic and who experienced significant financial hardship due to the
COVID-19 pandemic to apply to the economic development commission
(commission) for a 5-year extension of the allowable carry-forward
period for unused Colorado job growth incentive tax credits and unused
enterprise zone tax credits that would otherwise expire between January
1, 2021, and December 31, 2025; except that the tax credit for
contributions to enterprise zone administrators to implement economic
development plans is not eligible for the 5-year carry-forward extension.
The bill requires the commission, in consultation with the office of
economic development, to establish a process for accepting, reviewing,
and approving one-time applications by taxpayers for the extended
carry-forward period subject to taxpayers meeting certain eligibility
requirements. The bill caps the total amount of tax credits allowed to be
carried forward in the extended period at $15 million per year.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, amend 24-46-106 as2
follows:3
24-46-106. Repeal of part. This part 1 is repealed, effective July
4
1, 2025 JULY 1, 2035.5
SECTION 2. In Colorado Revised Statutes, add 24-46-107 as6
follows:7
24-46-107. Temporary extension of carry-forward provisions8
- Colorado job growth incentive tax credit - enterprise zone tax9
credits - definitions - repeal. (1) A
S USED IN THIS SECTION, UNLESS THE10
CONTEXT OTHERWISE REQUIRES :11
(a) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC12
DEVELOPMENT CREATED IN SECTION 24-48.5-101.13
(b) (I) "T
AXPAYER" MEANS ANY PERSON DOING BUSINESS IN THE14
STATE, INCLUDING AN AFFILIATED GROUP, THAT OPERATES IN A STRATEGIC15
INDUSTRY THAT WAS DISPROPORTIONALLY IMPACTED BY THE COVID-1916
PANDEMIC AND EXPERIENCED SIGNIFICANT FINANCIAL HARDSHIP CAUSED17
1418-2- BY THE COVID-19 PANDEMIC.1
(II) "S
TRATEGIC INDUSTRY" AND "SIGNIFICANT FINANCIAL2
HARDSHIP" FOR PURPOSES OF THE DEFINITION OF "TAXPAYER" IN3
SUBSECTION (1)(b)(I) OF THIS SECTION SHALL BE DETERMINED BY THE4
COMMISSION AND THE OFFICE . WHEN DETERMINING SIGNIFICANT5
FINANCIAL HARDSHIP, ANY FINANCIAL ASSISTANCE OR RELIEF THAT THE6
TAXPAYER MAY HAVE RECEIVED FROM OTHER SOURCES INCLUDING7
FEDERAL, STATE, OR LOCAL ASSISTANCE MAY BE CONSIDERED BUT SHALL8
NOT BE DISPOSITIVE FOR PURPOSES OF ELIGIBILITY.9
(2) T
HE COMMISSION MAY ALLOW A TAXPAYER TO CARRY10
FORWARD FOR A PERIOD OF FIVE YEARS THE TAX CREDITS SET FORTH IN11
SECTION 39-22-531 AND IN ARTICLE 30 OF TITLE 39 THAT WOULD12
OTHERWISE EXPIRE BETWEEN JANUARY 1, 2021, AND DECEMBER 31, 2025;13
EXCEPT THAT THE AGGREGATE AMOUNT OF ALL TAX CREDITS PERMITTED14
TO BE CARRIED FORWARD PURSUANT TO THIS SUBSECTION (2) IS
ZERO15
DOLLARS FOR THE FIRST TWO YEARS IN THE FIVE-YEAR PERIOD, TEN16
MILLION DOLLARS FOR THE THIRD YEAR IN THE FIVE-YEAR PERIOD, AND17
FIFTEEN MILLION DOLLARS FOR THE FOURTH AND FIFTH YEAR IN THE18
FIVE-YEAR PERIOD AND THE TAX CREDIT SET FORTH IN SECTION19
39-30-103.5
IS NOT ELIGIBLE FOR THE FIVE-YEAR CARRY-FORWARD PERIOD20
SET FORTH IN THIS SECTION. TAXPAYERS MUST APPLY TO THE COMMISSION21
AND THE OFFICE PURSUANT TO SUBSECTION (3) OF THIS SECTION FOR22
APPROVAL TO CARRY FORWARD THE TAX CREDITS AS SET FORTH IN THIS23
SUBSECTION (2).24
(3) (a) A
TAXPAYER MAY APPLY FOR APPROVAL BY THE25
COMMISSION TO CARRY FORWARD A TAX CREDIT AS SET FORTH IN26
SUBSECTION (2) OF THIS SECTION IN ACCORDANCE WITH TIMING ,27
1418
-3- DEADLINES, POLICIES, AND PROCEDURES ESTABLISHED BY THE1
COMMISSION, IN CONSULTATION WITH THE OFFICE, AND AS FOLLOWS:2
(I) A
TAXPAYER SHALL APPLY ONE TIME TO THE COMMISSION FOR3
THE EXTENDED CARRY-FORWARD PERIOD SET FORTH IN SUBSECTION (2) OF4
THIS SECTION AND MUST IDENTIFY IN THE APPLICATION ALL OF THE5
ANTICIPATED CREDITS THAT THE TAXPAYER REQUESTS TO EXTEND FOR6
EACH TAX YEAR THAT THE EXTENDED PERIOD APPLIES TO ;7
(II) A
T A MINIMUM , THE APPLICATION MUST INCLUDE8
CERTIFICATION BY THE TAXPAYER 'S PRESIDENT, CHIEF EXECUTIVE9
OFFICER, OR CHIEF FINANCIAL OFFICER THAT, BASED ON THE TAXPAYER'S10
CURRENT AND EXPECTED FINANCIAL RESULTS , IT IS ANTICIPATED THAT THE11
TAXPAYER WILL NOT BE ABLE TO USE THE TAX CREDITS BEFORE THE12
CREDITS EXPIRE AS THE RESULT OF LOSSES EXPERIENCED DURING TAX13
YEARS 2020 AND 2021 DUE TO THE COVID-19 PANDEMIC;14
(III) T
HE APPLICATION MUST INCLUDE DOCUMENTATION FROM THE15
TAXPAYER DEMONSTRATING SIGNIFICANT FINANCIAL HARDSHIP CAUSED16
BY THE COVID-19 PANDEMIC; AND17
(IV) I
N CONSULTATION WITH POTENTIAL APPLICANTS , THE18
COMMISSION AND THE OFFICE SHALL DETERMINE ADDITIONAL19
APPROPRIATE POLICIES, PROCEDURES, REQUIREMENTS, AND DEADLINES TO20
ADMINISTER THE APPLICATION PROCESS AND EXTENSION APPROVALS21
PURSUANT TO THIS SECTION , WHICH MAY INCLUDE ADDITIONAL22
VERIFICATION PROCEDURES TO DEMONSTRATE THAT APPLICANTS ARE23
MAKING BONAFIDE REQUESTS FOR THE FIVE -YEAR EXTENSION.24
(b) I
N CONSULTATION WITH THE OFFICE, THE COMMISSION SHALL25
RECEIVE, REVIEW, AND APPROVE APPLICATIONS BY TAXPAYERS ON A FIRST26
COME, FIRST SERVED, ROLLING BASIS. IN ADDITION TO THE APPLICATION27
1418
-4- REQUIREMENTS SET FORTH IN SUBSECTION (3)(a) OF THIS SECTION, THE1
COMMISSION MAY CONSIDER ADDITIONAL ECONOMIC DEVELOPMENT2
COMMITMENTS TO THE STATE BY THE TAXPAYER IN DETERMINING3
APPROVAL OF APPLICATIONS INCLUDING :4
(I) T
HE SIZE OF THE TAXPAYER'S CURRENT OPERATION IN THE5
STATE RELATIVE TO BOTH THE STATE AS A WHOLE AND THE REGION THE6
TAXPAYER IS BASED IN;7
(II) A
NY STRATEGIC ECONOMIC DEVELOPMENT BENEFITS THAT THE8
TAXPAYER PROVIDES WITH EXISTING OPERATIONS TO THE STATE IN TERMS9
OF SUPPLY CHAIN, BENEFITS TO OTHER INDUSTRIES, OR OTHER SPILLOVER10
BENEFITS THAT THE APPLICANT'S OPERATIONS PROVIDE TO THE STATE OR11
REGION; AND12
(III) A
NY ADDITIONAL FORTHCOMING ECONOMIC DEVELOPMENT13
BENEFITS THAT THE TAXPAYER MAY PROVIDE TO THE STATE OR REGION14
BASED ON COMMITMENTS THAT THE APPLICANT HAS RECENTLY MADE OR15
PROPOSES THAT ARE OUTSIDE THE SCOPE OF THE ORIGINAL INCENTIVE16
AWARD.17
(c) W
HEN AN APPLICATION IS APPROVED, THE COMMISSION SHALL18
ISSUE LETTERS TO THE DEPARTMENT OF REVENUE AND APPROVED19
TAXPAYERS THAT MUST SPECIFY THE TYPE AND AMOUNT OF CREDITS20
ELIGIBLE FOR THE FIVE-YEAR EXTENSION AND FOR WHAT YEARS IN THE21
PERIOD THE EXTENSION IS ELIGIBLE.22
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2035.23
SECTION 3. In Colorado Revised Statutes, 39-22-531, amend24
(6) and (13) as follows:25
39-22-531. Colorado job growth incentive tax credit - rules -26
definitions - repeal. (6) Except as provided in section 24-46-104.3
27
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-5- SECTIONS 24-46-104.3 AND 24-46-107, if the amount of the credit allowed1
in this section exceeds the amount of income taxes otherwise due on the2
taxpayer's income in the income tax year for which the credit is being3
claimed, the amount of the credit not used as an offset against income4
taxes in the current income tax year may be carried forward and used as5
a credit against subsequent years' income tax liability for a period not to6
exceed ten years and shall be applied first to the earliest income tax years7
possible. Any credit remaining after said period shall not be refunded or8
credited to the taxpayer.9
(13) This section is repealed, effective January 1, 2031 JULY 1,10
2042.11
SECTION 4. In Colorado Revised Statutes, 39-30-104, amend12
(2)(c)(III) and (2.5) as follows:13
39-30-104. Credit against tax - investment in certain property14
- definitions. (2) (c) (III) (A) Except as otherwise provided in section15
24-46-104.3 SECTIONS 24-46-104.3 AND 24-46-107 and subsection16
(2)(c)(III)(B) of this section, any excess credit allowed pursuant to this17
subsection (2)(c) shall be an investment tax credit carryover to each of the18
fourteen income tax years following the unused credit year.19
(B) Except as otherwise provided in section 24-46-104.320
SECTIONS 24-46-104.3 AND 24-46-107, any excess credit allowed pursuant21
to this subsection (2)(c) for a renewable energy investment made in an22
income tax year commencing before January 1, 2018, shall be an23
investment tax credit carryover for twenty-two income tax years24
following the year the credit was originally allowed.25
(2.5) (a) (I) Notwithstanding section 39-22-507.5 (7)(b),
EXCEPT26
AS PROVIDED IN SECTION 24-46-107, and except as otherwise provided in27
1418
-6- subsections (2.5)(a)(II) and (2.5)(b) of this section, any excess credit1
allowed pursuant to this section shall be an investment tax credit2
carryover to each of the twelve income tax years following the unused3
credit year.4
(II) E
XCEPT AS PROVIDED IN SECTION 24-46-107, any excess credit5
claimed pursuant to this section for a renewable energy investment made6
in an income tax year commencing before January 1, 2018, shall be an7
investment tax credit carryover for twenty income tax years following the8
year the credit was originally allowed.9
(b) (I) Except as provided in subparagraph (II) of this paragraph
10
(b) SECTION 24-46-107 AND SUBSECTION (2.5)(b)(II) OF THIS SECTION, a11
taxpayer that deferred claiming any credit in excess of five hundred12
thousand dollars during an income tax year commencing on or after13
January 1, 2011, but prior to January 1, 2014, pursuant to paragraph (b)14
of subsection (2) SUBSECTION (2)(b) of this section shall be allowed to15
claim the deferred credit as an investment tax credit carryover for twelve16
income tax years following the year the credit was originally allowed plus17
one additional income tax year for each income tax year that the credit18
was deferred pursuant to paragraph (b) of subsection (2) SUBSECTION19
(2)(b) of this section.20
(II) E
XCEPT AS PROVIDED IN SECTION 24-46-107, a taxpayer is21
allowed to claim the deferred credit described in subparagraph (I) of this
22
paragraph (b) SUBSECTION (2.5)(b)(I) OF THIS SECTION for a renewable23
energy investment made in an income tax year commencing before24
January 1, 2018, as an investment tax credit carryover for twenty income25
tax years following the year the credit was originally allowed plus one26
additional income tax year for each income tax year that the credit was27
1418
-7- deferred pursuant to paragraph (b) of subsection (2) SUBSECTION (2)(b)1
of this section.2
SECTION 5. In Colorado Revised Statutes, 39-30-105.1, amend3
(4)(a) as follows:4
39-30-105.1. Credit for new enterprise zone business5
employees - definitions. (4) (a) (I) Except as provided in section6
24-46-104.3 SECTIONS 24-46-104.3 AND 24-46-107, for any income tax7
year commencing on or after January 1, 2014, if the total amount of the8
credits claimed by a taxpayer pursuant to subsections (1)(a)(I), (1)(b), and9
(3)(a) of this section exceeds the amount of income taxes due on the10
income of the taxpayer in the income tax year for which the credits are11
being claimed, the amount of the credits not used as an offset against12
income taxes in said income tax year is not allowed as a refund but may13
be carried forward as a credit against subsequent years' tax liability for a14
period not exceeding five years and is applied first to the earliest income15
tax years possible. Any amount of the credit that is not used during said16
period is not refundable to the taxpayer.17
(II) Except as provided in section 24-46-104.3 SECTIONS18
24-46-104.3
AND 24-46-107, for any income tax year commencing on or19
after January 1, 2014, if the total amount of credits claimed by a taxpayer20
pursuant to subsections (1)(a)(II) and (3)(b) of this section exceeds the21
amount of income taxes due on the income of the taxpayer in the income22
tax year for which the credits are being claimed, the amount of credits not23
used as an offset against income taxes in said income tax year is not24
allowed as a refund but may be carried forward as a credit against25
subsequent years' tax liability for a period not exceeding seven years and26
is applied first to the earliest income tax years possible. Any amount of27
1418
-8- the credit that is not used during said period is not refundable to the1
taxpayer.2
SECTION 6. In Colorado Revised Statutes, 39-30-105.6, amend3
(3) as follows:4
39-30-105.6. Credit against tax - rehabilitation of vacant5
buildings. (3) E
XCEPT AS PROVIDED IN SECTION 24-46-107, if the amount6
of the credit allowed pursuant to the provisions of this section exceeds the7
amount of income taxes otherwise due on the income of the taxpayer in8
the income tax year for which the credit is being claimed, the amount of9
the credit not used as an offset against income taxes in said income tax10
year may be carried forward as a credit against subsequent years' income11
tax liability for a period not exceeding five years and shall be applied first12
to the earliest income tax years possible. Any credit remaining after said13
period shall not be refunded or credited to the taxpayer.14
SECTION 7. Appropriation. For the 2022-23 state fiscal year,15
$18,412 is appropriated to the office of the governor for use by economic16
development programs. This appropriation is from the general fund and17
is based on an assumption that the office will require an additional 0.218
FTE. To implement this act, the office may use this appropriation for19
economic development commission - general economic incentives and20
marketing.21
SECTION 8. Act subject to petition - effective date. This act22
takes effect at 12:01 a.m. on the day following the expiration of the23
ninety-day period after final adjournment of the general assembly; except24
that, if a referendum petition is filed pursuant to section 1 (3) of article V25
of the state constitution against this act or an item, section, or part of this26
act within such period, then the act, item, section, or part will not take27
1418
-9- effect unless approved by the people at the general election to be held in1
November 2022 and, in such case, will take effect on the date of the2
official declaration of the vote thereon by the governor.3
1418
-10-