Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-1003.02 Megan McCall x4215
HOUSE BILL 22-1418
House Committees Senate Committees
Finance
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.104
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
pandemic and who experienced significant financial hardship due to the
HOUSE SPONSORSHIP
Herod and McCluskie, Ransom
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. 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 This part 1 is repealed, effective July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
BY THE COVID-19 PANDEMIC.18
HB22-1418-2- (II) "STRATEGIC INDUSTRY" AND "SIGNIFICANT FINANCIAL1
HARDSHIP" FOR PURPOSES OF THE DEFINITION OF "TAXPAYER" IN2
SUBSECTION (1)(b)(I) OF THIS SECTION SHALL BE DETERMINED BY THE3
COMMISSION AND THE OFFICE . WHEN DETERMINING SIGNIFICANT4
FINANCIAL HARDSHIP, ANY FINANCIAL ASSISTANCE OR RELIEF THAT THE5
TAXPAYER MAY HAVE RECEIVED FROM OTHER SOURCES INCLUDING6
FEDERAL, STATE, OR LOCAL ASSISTANCE MAY BE CONSIDERED BUT SHALL7
NOT BE DISPOSITIVE FOR PURPOSES OF ELIGIBILITY.8
(2) T
HE COMMISSION MAY ALLOW A TAXPAYER TO CARRY9
FORWARD FOR A PERIOD OF FIVE YEARS THE TAX CREDITS SET FORTH IN10
SECTION 39-22-531 AND IN ARTICLE 30 OF TITLE 39 THAT WOULD11
OTHERWISE EXPIRE BETWEEN JANUARY 1, 2021, AND DECEMBER 31, 2025;12
EXCEPT THAT THE AGGREGATE AMOUNT OF ALL TAX CREDITS PERMITTED13
TO BE CARRIED FORWARD PURSUANT TO THIS SUBSECTION (2) IS FIFTEEN14
MILLION DOLLARS FOR EACH YEAR OF THE FIVE-YEAR PERIOD AND THE TAX15
CREDIT SET FORTH IN SECTION 39-30-103.5 IS NOT ELIGIBLE FOR THE16
FIVE-YEAR CARRY-FORWARD PERIOD SET FORTH IN THIS SECTION .17
T
AXPAYERS MUST APPLY TO THE COMMISSION AND THE OFFICE PURSUANT18
TO SUBSECTION (3) OF THIS SECTION FOR APPROVAL TO CARRY FORWARD19
THE TAX CREDITS AS SET FORTH IN THIS SUBSECTION (2).20
(3) (a) A
TAXPAYER MAY APPLY FOR APPROVAL BY THE21
COMMISSION TO CARRY FORWARD A TAX CREDIT AS SET FORTH IN22
SUBSECTION (2) OF THIS SECTION IN ACCORDANCE WITH TIMING ,23
DEADLINES, POLICIES, AND PROCEDURES ESTABLISHED BY THE24
COMMISSION, IN CONSULTATION WITH THE OFFICE, AND AS FOLLOWS:25
(I) A
TAXPAYER SHALL APPLY ONE TIME TO THE COMMISSION FOR26
THE EXTENDED CARRY-FORWARD PERIOD SET FORTH IN SUBSECTION (2) OF27
HB22-1418
-3- THIS SECTION AND MUST IDENTIFY IN THE APPLICATION ALL OF THE1
ANTICIPATED CREDITS THAT THE TAXPAYER REQUESTS TO EXTEND FOR2
EACH TAX YEAR THAT THE EXTENDED PERIOD APPLIES TO ;3
(II) A
T A MINIMUM , THE APPLICATION MUST INCLUDE4
CERTIFICATION BY THE TAXPAYER 'S PRESIDENT, CHIEF EXECUTIVE5
OFFICER, OR CHIEF FINANCIAL OFFICER THAT, BASED ON THE TAXPAYER'S6
CURRENT AND EXPECTED FINANCIAL RESULTS , IT IS ANTICIPATED THAT THE7
TAXPAYER WILL NOT BE ABLE TO USE THE TAX CREDITS BEFORE THE8
CREDITS EXPIRE AS THE RESULT OF LOSSES EXPERIENCED DURING TAX9
YEARS 2020 AND 2021 DUE TO THE COVID-19 PANDEMIC;10
(III) T
HE APPLICATION MUST INCLUDE DOCUMENTATION FROM THE11
TAXPAYER DEMONSTRATING SIGNIFICANT FINANCIAL HARDSHIP CAUSED12
BY THE COVID-19 PANDEMIC; AND13
(IV) I
N CONSULTATION WITH POTENTIAL APPLICANTS , THE14
COMMISSION AND THE OFFICE SHALL DETERMINE ADDITIONAL15
APPROPRIATE POLICIES, PROCEDURES, REQUIREMENTS, AND DEADLINES TO16
ADMINISTER THE APPLICATION PROCESS AND EXTENSION APPROVALS17
PURSUANT TO THIS SECTION , WHICH MAY INCLUDE ADDITI ONAL18
VERIFICATION PROCEDURES TO DEMONSTRATE THAT APPLICANTS ARE19
MAKING BONAFIDE REQUESTS FOR THE FIVE -YEAR EXTENSION.20
(b) I
N CONSULTATION WITH THE OFFICE, THE COMMISSION SHALL21
RECEIVE, REVIEW, AND APPROVE APPLICATIONS BY TAXPAYERS ON A FIRST22
COME, FIRST SERVED, ROLLING BASIS. IN ADDITION TO THE APPLICATION23
REQUIREMENTS SET FORTH IN SUBSECTION (3)(a) OF THIS SECTION, THE24
COMMISSION MAY CONSIDER ADDITIONAL ECONOMIC DEVELOPMENT25
COMMITMENTS TO THE STATE BY THE TAXPAYER IN DETERMINING26
APPROVAL OF APPLICATIONS INCLUDING :27
HB22-1418
-4- (I) THE SIZE OF THE TAXPAYER'S CURRENT OPERATION IN THE1
STATE RELATIVE TO BOTH THE STATE AS A WHOLE AND THE REGION THE2
TAXPAYER IS BASED IN;3
(II) A
NY STRATEGIC ECONOMIC DEVELOPMENT BENEFITS THAT THE4
TAXPAYER PROVIDES WITH EXISTING OPERATIONS TO THE STATE IN TERMS5
OF SUPPLY CHAIN, BENEFITS TO OTHER INDUSTRIES, OR OTHER SPILLOVER6
BENEFITS THAT THE APPLICANT'S OPERATIONS PROVIDE TO THE STATE OR7
REGION; AND8
(III) A
NY ADDITIONAL FORTHCOMING ECONOMIC DEVELOPMENT9
BENEFITS THAT THE TAXPAYER MAY PROVIDE TO THE STATE OR REGION10
BASED ON COMMITMENTS THAT THE APPLICANT HAS RECENTLY MADE OR11
PROPOSES THAT ARE OUTSIDE THE SCOPE OF THE ORIGINAL INCENTIVE12
AWARD.13
(c) W
HEN AN APPLICATION IS APPROVED, THE COMMISSION SHALL14
ISSUE LETTERS TO THE DEPARTMENT OF REVENUE AND APPROVED15
TAXPAYERS THAT MUST SPECIFY THE TYPE AND AMOUNT OF CREDITS16
ELIGIBLE FOR THE FIVE-YEAR EXTENSION AND FOR WHAT YEARS IN THE17
PERIOD THE EXTENSION IS ELIGIBLE.18
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2035.19
SECTION 3. In Colorado Revised Statutes, 39-22-531, amend20
(6) and (13) as follows:21
39-22-531. Colorado job growth incentive tax credit - rules -22
definitions - repeal. (6) Except as provided in section 24-46-104.3
23
SECTIONS 24-46-104.3 AND 24-46-107, if the amount of the credit allowed24
in this section exceeds the amount of income taxes otherwise due on the25
taxpayer's income in the income tax year for which the credit is being26
claimed, the amount of the credit not used as an offset against income27
HB22-1418
-5- taxes in the current income tax year may be carried forward and used as1
a credit against subsequent years' income tax liability for a period not to2
exceed ten years and shall be applied first to the earliest income tax years3
possible. Any credit remaining after said period shall not be refunded or4
credited to the taxpayer.5
(13) This section is repealed, effective January 1, 2031 JULY 1,6
2042.7
SECTION 4. In Colorado Revised Statutes, 39-30-104, amend8
(2)(c)(III) and (2.5) as follows:9
39-30-104. Credit against tax - investment in certain property10
- definitions. (2) (c) (III) (A) Except as otherwise provided in section11
24-46-104.3 SECTIONS 24-46-104.3 AND 24-46-107 and subsection12
(2)(c)(III)(B) of this section, any excess credit allowed pursuant to this13
subsection (2)(c) shall be an investment tax credit carryover to each of the14
fourteen income tax years following the unused credit year.15
(B) Except as otherwise provided in section 24-46-104.316
SECTIONS 24-46-104.3 AND 24-46-107, any excess credit allowed pursuant17
to this subsection (2)(c) for a renewable energy investment made in an18
income tax year commencing before January 1, 2018, shall be an19
investment tax credit carryover for twenty-two income tax years20
following the year the credit was originally allowed.21
(2.5) (a) (I) Notwithstanding section 39-22-507.5 (7)(b),
EXCEPT22
AS PROVIDED IN SECTION 24-46-107, and except as otherwise provided in23
subsections (2.5)(a)(II) and (2.5)(b) of this section, any excess credit24
allowed pursuant to this section shall be an investment tax credit25
carryover to each of the twelve income tax years following the unused26
credit year.27
HB22-1418
-6- (II) EXCEPT AS PROVIDED IN SECTION 24-46-107, any excess credit1
claimed pursuant to this section for a renewable energy investment made2
in an income tax year commencing before January 1, 2018, shall be an3
investment tax credit carryover for twenty income tax years following the4
year the credit was originally allowed.5
(b) (I) Except as provided in subparagraph (II) of this paragraph6
(b) SECTION 24-46-107 AND SUBSECTION (2.5)(b)(II) OF THIS SECTION, a7
taxpayer that deferred claiming any credit in excess of five hundred8
thousand dollars during an income tax year commencing on or after9
January 1, 2011, but prior to January 1, 2014, pursuant to paragraph (b)10
of subsection (2) SUBSECTION (2)(b) of this section shall be allowed to11
claim the deferred credit as an investment tax credit carryover for twelve12
income tax years following the year the credit was originally allowed plus13
one additional income tax year for each income tax year that the credit14
was deferred pursuant to paragraph (b) of subsection (2) SUBSECTION15
(2)(b) of this section.16
(II) E
XCEPT AS PROVIDED IN SECTION 24-46-107, a taxpayer is17
allowed to claim the deferred credit described in subparagraph (I) of this
18
paragraph (b) SUBSECTION (2.5)(b)(I) OF THIS SECTION for a renewable19
energy investment made in an income tax year commencing before20
January 1, 2018, as an investment tax credit carryover for twenty income21
tax years following the year the credit was originally allowed plus one22
additional income tax year for each income tax year that the credit was23
deferred pursuant to paragraph (b) of subsection (2) SUBSECTION (2)(b)24
of this section.25
SECTION 5. In Colorado Revised Statutes, 39-30-105.1, amend26
(4)(a) as follows:27
HB22-1418
-7- 39-30-105.1. Credit for new enterprise zone business1
employees - definitions. (4) (a) (I) Except as provided in section2
24-46-104.3 SECTIONS 24-46-104.3 AND 24-46-107, for any income tax3
year commencing on or after January 1, 2014, if the total amount of the4
credits claimed by a taxpayer pursuant to subsections (1)(a)(I), (1)(b), and5
(3)(a) of this section exceeds the amount of income taxes due on the6
income of the taxpayer in the income tax year for which the credits are7
being claimed, the amount of the credits not used as an offset against8
income taxes in said income tax year is not allowed as a refund but may9
be carried forward as a credit against subsequent years' tax liability for a10
period not exceeding five years and is applied first to the earliest income11
tax years possible. Any amount of the credit that is not used during said12
period is not refundable to the taxpayer.13
(II) Except as provided in section 24-46-104.3 SECTIONS14
24-46-104.3
AND 24-46-107, for any income tax year commencing on or15
after January 1, 2014, if the total amount of credits claimed by a taxpayer16
pursuant to subsections (1)(a)(II) and (3)(b) of this section exceeds the17
amount of income taxes due on the income of the taxpayer in the income18
tax year for which the credits are being claimed, the amount of credits not19
used as an offset against income taxes in said income tax year is not20
allowed as a refund but may be carried forward as a credit against21
subsequent years' tax liability for a period not exceeding seven years and22
is applied first to the earliest income tax years possible. Any amount of23
the credit that is not used during said period is not refundable to the24
taxpayer.25
SECTION 6. In Colorado Revised Statutes, 39-30-105.6, amend26
(3) as follows:27
HB22-1418
-8- 39-30-105.6. Credit against tax - rehabilitation of vacant1
buildings. (3) E
XCEPT AS PROVIDED IN SECTION 24-46-107, if the amount2
of the credit allowed pursuant to the provisions of this section exceeds the3
amount of income taxes otherwise due on the income of the taxpayer in4
the income tax year for which the credit is being claimed, the amount of5
the credit not used as an offset against income taxes in said income tax6
year may be carried forward as a credit against subsequent years' income7
tax liability for a period not exceeding five years and shall be applied first8
to the earliest income tax years possible. Any credit remaining after said9
period shall not be refunded or credited to the taxpayer.10
SECTION 7. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly; except13
that, if a referendum petition is filed pursuant to section 1 (3) of article V14
of the state constitution against this act or an item, section, or part of this15
act within such period, then the act, item, section, or part will not take16
effect unless approved by the people at the general election to be held in17
November 2022 and, in such case, will take effect on the date of the18
official declaration of the vote thereon by the governor.19
HB22-1418
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