HOUSE BILL 24-1036
BY REPRESENTATIVE(S) Weissman and Frizell, Bacon, Bird, deGruy
Kennedy, Duran, Rutinel, Sirota, Velasco, Amabile, Lindsay, Ortiz, Snyder,
McCluskie;
also SENATOR(S) Hansen and Kolker, Liston, Buckner, Cutter, Exum,
Fields, Jaquez Lewis, Marchman, Michaelson Jenet, Priola, Sullivan,
Winter F.
C
ONCERNING THE ADJUSTMENT OF CERTAIN TAX EXPENDITURES .
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) The office of the state auditor has researched and identified
certain tax expenditures that are either unused or very infrequently used;
(b) The office of the state auditor has recommended repeal of certain
unused or infrequently used tax expenditures;
(c) Some of the unused or infrequently used tax expenditures
identified by the office of the state auditor to be repealed are:
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. (I) The catastrophic health insurance deduction, as described in
sections 10-16-116 and 39-22-104.5;
(II) The non-resident disaster relief worker subtraction, as described
in sections 39-22-104 (4)(t), 39-22-601 (1)(a)(II), and 39-22-604 (19);
(III) The medical savings account deduction, as described in
sections 39-22-104 (4)(h), 39-22-104.6, 39-22-304, and 39-22-504.7;
(IV) The childcare facility investment credit, as described in section
39-22-517;
(V) The school to career expenses credit, as described in section
39-22-520 (2)(a);
(VI) The Colorado works program employer credit, as described in
section 39-22-521 (1);
(VII) The credit for purchase of uniquely valuable motor vehicle
registration numbers, as described in section 39-22-535;
(VIII) The low-emitting vehicles and commercial vehicles used in
interstate commerce exemptions, as described in sections 30-20-604.5,
39-26-113.5, and 39-26-719;
(IX) The biotechnology sales and use tax refund, as described in
section 39-26-402 (1);
(X) The rural broadband equipment sales tax refund, as described
in section 39-26-129;
(XI) The first time home buyer savings account deduction, as
described in sections 39-22-104 (4)(w)(I) and 39-22-4704;
(XII) The aircraft gasoline tax exemption, as described in section
39-27-102.5; and
(XIII) The structural cigarette and tobacco excise tax expenditures,
as described in sections 39-28-104 (4) and 39-28.5-107 (2).
PAGE 2-HOUSE BILL 24-1036 (d) Administration of these tax expenditures by the department of
revenue is costly and inefficient;
(e) Inclusion of these tax expenditures in statute unnecessarily
complicates and lengthens the Colorado Revised Statutes;
(f) These tax expenditures are so infrequently used that they bring
no value to the state; and
(g) The repeal of these tax expenditures will cause, at most, only de
minimis impact to the state budget.
(2) Therefore, the general assembly further finds and declares that
the purposes of repealing these infrequently used tax expenditures are to
follow the office of the state auditor's recommendations regarding these tax
expenditures, to improve the efficiency and lower the cost of administration
at the department of revenue, to reduce the length and complexity of the
Colorado Revised Statutes, and to remove ineffective tax expenditures and
that any de minimis revenue increase that may result from the repeals is
incidental to those purposes.
SECTION 2. In Colorado Revised Statutes, 10-16-116, amend (2)
and (5) as follows:
10-16-116. Catastrophic health insurance - coverage - premium
payments - reporting requirements - definitions - short title - repeal.
(2) (a) An employer may offer catastrophic health insurance to its
employees pursuant to this section.
(b) P
RIOR TO JANUARY 1, 2025, employees who elect the coverage
shall pay the cost of the insurance pursuant to subsection (5) of this section.
(c) T
HIS SUBSECTION (2)(c) AND SUBSECTION (2)(b) OF THIS SECTION
ARE REPEALED
, EFFECTIVE DECEMBER 31, 2028.
(5) (a) P
RIOR TO JANUARY 1, 2025, if claiming an exclusion of
premium payments for state income tax purposes pursuant to section
39-22-104.5, C.R.S.,
an employee shall elect to purchase catastrophic health
insurance by signing a written election, which must be in the form
prescribed by the executive director of the department of revenue and
PAGE 3-HOUSE BILL 24-1036 signed by the employee prior to the date the employer withholds the first
contribution.
(b) P
RIOR TO JANUARY 1, 2025, an employer shall withhold the
premium payments for catastrophic health insurance from the wages of an
employee who has elected coverage pursuant to paragraph (a) of thissubsection (5) SUBSECTION (5)(a) OF THIS SECTION and shall remit the
premiums to the insuring entity on the employee's behalf. All premiums
collected by an employer are withheld from the employee's wages on a
pre-tax basis pursuant to section 39-22-104.5. C.R.S.
(c) PRIOR TO JANUARY 1, 2025, an employer withholding premium
payments from an employee's wages pursuant to paragraph (b) of this
subsection (5) SUBSECTION (5)(b) OF THIS SECTION shall report the amount
withheld to the department of revenue, pursuant to rules promulgated by the
executive director of the department.
(d) T
HIS SUBSECTION (5) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 3. In Colorado Revised Statutes, amend 39-22-104.5 as
follows:
39-22-104.5. Pretax payments - catastrophic health insurance -
repeal. (1) For income tax years commencing on or after January 1, 1995,
AND PRIOR TO JANUARY 1, 2025, amounts withheld from an individual's
wages that are used to pay for catastrophic health insurance pursuant to and
within the limitations prescribed by section 10-16-116, C.R.S.,
are excluded
from the individual's federal taxable income for purposes of the state
income tax imposed by section 39-22-104.
(2) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2028.
SECTION 4. In Colorado Revised Statutes, 39-22-104, amend
(4)(t)(I); and add (4)(t)(III) as follows:
39-22-104. Income tax imposed on individuals, estates, and
trusts - single rate - report - legislative declaration - definitions - repeal.
(4) There shall be subtracted from federal taxable income:
PAGE 4-HOUSE BILL 24-1036 (t) (I) For income tax years commencing on or after January 1, 2015,
AND PRIOR TO JANUARY 1, 2025, compensation that would be subject to
withholding under section 39-22-604, received by a nonresident individual
for performing disaster-related work in the state during a disaster period.
(III) T
HIS SUBSECTION (4)(t) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 5. In Colorado Revised Statutes, 39-22-601, amend
(1)(a)(II) as follows:
39-22-601. Returns - repeal. (1) (a) (II) For purposes of this
paragraph (a)
SUBSECTION (1)(a)(II), a nonresident individual whose only
source of income from this state is compensation that is subtracted from
federal taxable income under section 39-22-104 (4)(t) need not file a return.
(A) T
HIS SUBSECTION (1)(a)(II) APPLIES TO TAX YEARS COMMENCING
BEFORE
JANUARY 1, 2025.
(B) T
HIS SUBSECTION (1)(a)(II) IS REPEALED, EFFECTIVE DECEMBER
31, 2028.
SECTION 6. In Colorado Revised Statutes, 39-22-604, amend (19)
as follows:
39-22-604. Withholding tax - requirement to withhold - tax lien
- exemption from lien - annual statement - notice - definitions - repeal.
(19) (a) P
RIOR TO JANUARY 1, 2025, no amount is required to be deducted
and withheld from an employee's wages pursuant to this section for income
tax due to the state if the employee's withholding certificate indicates that
the compensation is eligible to be subtracted from federal taxable income
pursuant to section 39-22-104 (4)(t).
(b) T
HIS SUBSECTION (19) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 7. In Colorado Revised Statutes, 39-22-104, amend
(4)(h) as follows:
39-22-104. Income tax imposed on individuals, estates, and
PAGE 5-HOUSE BILL 24-1036 trusts - single rate - report - legislative declaration - definitions - repeal.
(4) There shall be subtracted from federal taxable income:
(h) (I) P
RIOR TO JANUARY 1, 2025, any amount contributed to a
medical savings account by an employer pursuant to section 39-22-504.7
(2)(e), to the extent such amount is not claimed as a deduction on the
taxpayer's federal tax return;
(II) T
HIS SUBSECTION (4)(h) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 8. In Colorado Revised Statutes, amend 39-22-104.6 as
follows:
39-22-104.6. Pretax payments - medical savings accounts -
repeal. (1) P
RIOR TO JANUARY 1, 2025, to the extent a taxpayer is not
otherwise claiming deductions on federal income tax returns for
contributions to medical savings accounts, amounts withheld from an
individual's wages which are contributed to such individual's medical
savings account, pursuant to section 39-22-504.7, are excluded from an
individual's federal taxable income for purposes of the state income tax
imposed by section 39-22-104.
(2) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2028.
SECTION 9. In Colorado Revised Statutes, 39-22-304, amend
(3)(k) as follows:
39-22-304. Net income of corporation - legislative declaration -
definitions - repeal. (3) There shall be subtracted from federal taxable
income:
(k) (I) P
RIOR TO JANUARY 1, 2025, any amount contributed to a
medical savings account pursuant to section 39-22-504.7 (2)(e), to the
extent such amount is not claimed as a deduction on the taxpayer's federal
tax return;
(II) T
HIS SUBSECTION (3)(k) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
PAGE 6-HOUSE BILL 24-1036 SECTION 10. In Colorado Revised Statutes, 39-22-504.7, amend
(1) and (2)(e); and add (8) as follows:
39-22-504.7. Medical savings accounts - establishment -
contributions - distributions - restrictions - taxation - portability -
repeal. (1) (a) Establishment of accounts. On and after January 1, 1995,
AND PRIOR TO JANUARY 1, 2025, an employer may offer to establish medical
savings accounts.
(b) P
RIOR TO JANUARY 1, 2025, an employee on whose behalf a
medical savings account has not been established by his or her employer
may establish such an account on his or her own behalf.
(2) (e) Employer contributions - tax deduction. P
RIOR TO
JANUARY 1, 2025, employer contributions to employee medical savings
accounts constitute a deduction from the employer's federal taxable income,
pursuant to sections 39-22-104 (4)(h) and 39-22-304 (3)(k).
(8) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 11. In Colorado Revised Statutes, 39-22-517, amend (1)
and (2); and add (4) as follows:
39-22-517. Tax credit for child care center investments - repeal.
(1) With respect to taxable years commencing on or after January 1, 1992,
AND PRIOR TO JANUARY 1, 2026, there is allowed to any person operating a
child care center licensed pursuant to section 26-6-905 or 26.5-5-309,
family child care home licensed pursuant to section 26.5-5-309, or foster
care home licensed pursuant to section 26-6-905 a credit against the tax
imposed by this article 22 in the amount of twenty percent of the taxpayer's
annual investment in tangible personal property to be used in such child
care center, family child care home, or foster care home.
(2) With respect to taxable years commencing on or after July 1,
1992,
AND PRIOR TO JANUARY 1, 2026, there is allowed to any sole
proprietorship, partnership, limited liability corporation, subchapter S
corporation, or regular corporation that provides child care facilities that are
incidental to their business and are licensed pursuant to section 26-6-905 or
26.5-5-309 for the use of its employees a credit against the tax imposed by
PAGE 7-HOUSE BILL 24-1036 this article 22 in the amount of ten percent of the taxpayer's annual
investment in tangible personal property to be used in such child care
facilities.
(4) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.
SECTION 12. In Colorado Revised Statutes, 39-22-520, amend
(2)(a); and add (4) as follows:
39-22-520. Credit against tax - investment in school-to-career
program - definitions - repeal. (2) (a) For income tax years beginning on
or after January 1, 1997,
AND PRIOR TO JANUARY 1, 2025, there shall be
allowed to any person as a credit against the tax imposed by this article
ARTICLE 22 an amount equal to ten percent of the total qualified investment
made in a qualified school-to-career program.
(4) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2034.
SECTION 13. In Colorado Revised Statutes, 39-22-521, amend (1)
introductory portion; and add (4) as follows:
39-22-521. Credits against tax - employer expenses - public
assistance recipients - repeal. (1) With respect to taxable years
commencing on or after January 1, 1998,
AND PRIOR TO JANUARY 1, 2025,
there shall be allowed to an employer of any person receiving public
assistance pursuant to the Colorado works program set forth in part 7 of
article 2 of title 26, C.R.S.,
a credit, for not more than two years, against the
tax imposed by this article in the amount of twenty percent of the
employer's annual investment in any one or more of the following services
that are incidental to the employer's business:
(4) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2032.
SECTION 14. In Colorado Revised Statutes, 39-22-535, amend
(1); and add (3) as follows:
39-22-535. Credit for purchase of uniquely valuable motor
vehicle registration numbers - repeal. (1) For tax years commencing on
or after January 1, 2013,
AND PRIOR TO JANUARY 1, 2025, a person who
buys the right to use a registration number under section 24-30-2206 is
PAGE 8-HOUSE BILL 24-1036 allowed a credit against the income taxes imposed by this article 22 for
twenty percent of the purchase price of the right to use the registration
number that is paid to the Colorado disability funding committee created in
section 24-30-2203.
(3) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2034.
SECTION 15. In Colorado Revised Statutes, 30-20-604.5, amend
(1) as follows:
30-20-604.5. District sales tax - repeal. (1) (a) The board of any
county or of any city that has been authorized to become a city and county
pursuant to an amendment to the state constitution that has been approved
by the registered electors of the state of Colorado and that subsequently
becomes a city and county for the purpose of funding all or a portion of the
cost of any improvements constructed or transportation services provided
pursuant to section 30-20-603 (1)(a), (1)(a.5), and (1)(c), may levy a sales
tax throughout the district upon every transaction or other incident with
respect to which a sales tax is authorized pursuant to section 29-2-105;
except that such tax may be levied only upon those transactions specified
in section 39-26-104 (1)(a), (1)(b), (1)(e), and (1)(f). the board may, in its
discretion, levy or continue to levy a sales tax on the sales of low-emitting
motor vehicles, power sources, or parts used for converting such power
sources as specified in section 39-26-719 (1).
(b) THIS SUBSECTION (1) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 16. In Colorado Revised Statutes, 39-26-113.5, amend
(1)(a); and add (4) as follows:
39-26-113.5. Refund of state sales taxes for vehicles used in
interstate commerce - fund - repeal. (1) (a) Except as provided in
subsection (3) of this section, for the calendar year commencing on AND
AFTER
January 1, 2011, and for each calendar year thereafter
BUT BEFORE
JULY 1, 2025, a taxpayer may claim a refund of a percentage of all state
sales and use taxes paid by the taxpayer pursuant to this part 1 and part 2 of
this article on the sale, storage, or use of a model year 2010 or newer truck
tractor or semitrailer with a gross vehicle weight rating of fifty-four
thousand pounds or greater that is purchased on or after July 1, 2011,
BUT
PAGE 9-HOUSE BILL 24-1036 BEFORE JULY 1, 2025.
(4) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2026.
SECTION 17. In Colorado Revised Statutes, amend 42-1-225 as
follows:
42-1-225. Commercial vehicle enterprise tax fund - creation -
repeal. (1) The commercial vehicle enterprise tax fund is hereby created
in the state treasury.
(a) (I) P
RIOR TO JULY 1, 2025, the fund consists of moneys
MONEY
collected and transmitted to the fund pursuant to section 42-4-1701
(4)(a)(II). The general assembly shall annually appropriate the moneys
MONEY in the fund to cover the actual cost of administering sections
39-26-113.5 and 39-30-104 (1)(b). C.R.S. Moneys MONEY in the fund are
IS continuously appropriated to the department of revenue for the payment
of sales and use tax refunds pursuant to section 39-26-113.5. C.R.S. After
receiving the statement pursuant to section 39-30-104 (1)(b)(VI), C.R.S. the
state treasurer shall credit the total cost of the amount of the tax credits
stated therein to the general fund. Any moneys remaining in the commercial
vehicle enterprise tax fund at the end of the fiscal year shall not revert to the
general fund.
(II) THIS SUBSECTION (1)(a) IS REPEALED, EFFECTIVE JULY 1, 2026.
(b) O
N OR AFTER JULY 1, 2025, THE FUND CONSISTS OF MONEY
COLLECTED AND TRANSMITTED TO THE FUND PURSUANT TO SECTION
42-4-1701 (4)(a)(II). THE GENERAL ASSEMBLY SHALL ANNUALLY
APPROPRIATE THE MONEY IN THE FUND TO COVER THE ACTUAL COST OF
ADMINISTERING SECTION
39-30-104 (1)(b). AFTER RECEIVING THE
STATEMENT PURSUANT TO SECTION
39-30-104 (1)(b)(VI), THE STATE
TREASURER SHALL CREDIT THE TOTAL COST OF THE AMOUNT OF THE TAX
CREDITS STATED THEREIN TO THE GENERAL FUND
. ANY MONEY REMAINING
IN THE COMMERCIAL VEHICLE ENTERPRISE TAX FUND AT THE END OF THE
FISCAL YEAR SHALL NOT REVERT TO THE GENERAL FUND
.
(2) (a) (I) On July 1, 2011, and each July 1 thereafter
THROUGH JULY
1, 2024, the department shall allocate one-third of the fund balance, not
including the amount appropriated to cover the actual cost of administering
PAGE 10-HOUSE BILL 24-1036 sections 39-26-113.5 and 39-30-104 (1)(b), C.R.S., to make the sales tax
refunds granted in section 39-26-113.5. C.R.S.
(II) THIS SUBSECTION (2)(a) IS REPEALED, EFFECTIVE JULY 1, 2025.
(b) (I) On July 1, 2011, and each July 1 thereafter
THROUGH JULY 1,
2024, the department shall allocate two-thirds of the fund balance, not
including the amount appropriated to cover the actual cost of administering
sections 39-26-113.5 and 39-30-104 (1)(b), C.R.S.
to offset the income tax
credit granted in section 39-30-104 (1)(b). C.R.S. By January 1, 2012, the
department shall notify the Colorado economic development commission
created in section 24-46-102 C.R.S. of the amount allocated for such
purposes.
(II) THIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2025.
(c) O
N JULY 1, 2025, AND EACH JULY 1 THEREAFTER, THE
DEPARTMENT SHALL ALLOCATE THE FUND BALANCE
, NOT INCLUDING THE
AMOUNT APPROPRIATED TO COVER THE ACTUAL COST OF ADMINISTERING
SECTION
39-30-104 (1)(b), TO OFFSET THE INCOME TAX CREDIT GRANTED IN
SECTION
39-30-104 (1)(b).
SECTION 18. In Colorado Revised Statutes, 39-26-719, amend
(1)(a) introductory portion, (2) introductory portion, and (2)(b)(I)
introductory portion; and add (1)(c) and (2)(b)(III) as follows:
39-26-719. Motor vehicles - repeal. (1) (a) P
RIOR TO JANUARY 1,
2025, there shall be exempt from taxation under the provisions of part 1 of
this article
ARTICLE 26 the sale of any motor vehicle, power source for any
motor vehicle, or parts used for converting the power source for any motor
vehicle, if:
(c) T
HIS SUBSECTION (1) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
(2) The following shall be exempt from taxation under the
provisions of part 2 of this article
ARTICLE 26:
(b) (I) P
RIOR TO JANUARY 1, 2025, the storage, use, or consumption
of a motor vehicle, power source for a motor vehicle, and parts used for
PAGE 11-HOUSE BILL 24-1036 converting the power source of a motor vehicle, if:
(III) T
HIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 19. In Colorado Revised Statutes, 39-26-402, amend (1)
as follows:
39-26-402. Refund of state sales and use tax for biotechnology
- application requirements and procedures - repeal. (1) For the calendar
year commencing January 1, 1999, and for each calendar year thereafter
PRIOR TO JANUARY 1, 2026, each qualified biotechnology taxpayer shall be
allowed to claim a refund of all state sales and use tax paid by the qualified
biotechnology taxpayer, pursuant to parts 1 and 2 of this article
ARTICLE 26,
on the sale, storage, use, or consumption of tangible personal property to be
used in Colorado directly and predominately in research and development
of biotechnology during that calendar year.
SECTION 20. In Colorado Revised Statutes, add 39-26-403 as
follows:
39-26-403. Repeal. T
HIS PART 4 IS REPEALED, EFFECTIVE DECEMBER
31, 2029.
SECTION 21. In Colorado Revised Statutes, 39-26-129, amend (1)
and (3); and add (6) as follows:
39-26-129. Refund for property used in rural broadband service
- legislative declaration - definitions - repeal. (1) The general assembly
declares that the intended purpose of the tax refund created in this section
is to encourage broadband providers to deploy broadband infrastructure in
rural areas of the state
AND TO CREATE INCENTIVES FOR INVESTMENT IN
BROADBAND INFRASTRUCTURE IN ADDITION TO THE INCENTIVES ALREADY
CREATED BY OTHER STATE OR FEDERAL LAW
.
(3) Except as provided in subsection (5) of this section, for the
calendar year commencing January 1, 2014, and for each calendar year
thereafter
PRIOR TO JANUARY 1, 2027, a broadband provider is allowed to
claim a refund of all the state sales and use tax the provider pays pursuant
to parts 1 and 2 of this article
ARTICLE 26 for tangible personal property that
PAGE 12-HOUSE BILL 24-1036 is installed in a target area for the provision of broadband service.
(6) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2030.
SECTION 22. In Colorado Revised Statutes, 39-22-104, amend
(3)(k) and (4)(w)(I); and add (4)(w)(III) as follows:
39-22-104. Income tax imposed on individuals, estates, and
trusts - single rate - report - legislative declaration - definitions - repeal.
(3) There shall be added to the federal taxable income:
(k) (I) P
RIOR TO JANUARY 1, 2025, the amount recaptured in
accordance with section 39-22-4705 (2).
(II) T
HIS SUBSECTION (3)(k) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
(4) There shall be subtracted from federal taxable income:
(w) (I) For income tax years commencing on or after January 1,
2017,
AND PRIOR TO JANUARY 1, 2025, to the extent included in federal
taxable income and as permitted under part 47 of this article
ARTICLE 22, an
amount equal to any interest and other income earned on the investment of
the money in a first-time home buyer savings account during the taxable
year.
(III) T
HIS SUBSECTION (4)(w) IS REPEALED, EFFECTIVE DECEMBER
31, 2028.
SECTION 23. In Colorado Revised Statutes, 39-22-558, amend (6)
as follows:
39-22-558. Tax credit for employer's contribution to employee
for eligible expenses in connection with a qualifying home purchase -
tax preference performance statement - legislative declaration -
definitions - repeal. (6) (a) Nothing in this section is intended to preclude
an employee who receives a contribution from their employer in accordance
with subsection (3) of this section from having a first-time home buyer
savings account pursuant to part 47 of this article 22.
PAGE 13-HOUSE BILL 24-1036 (b) THIS SUBSECTION (6) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 24. In Colorado Revised Statutes, 39-22-4704, amend
(1) as follows:
39-22-4704. First-time home buyer savings account - repeal.
(1) Beginning January 1, 2017,
AND PRIOR TO JANUARY 1, 2025, any
individual may open an account with a financial institution and designate
the account, in its entirety, as a first-time home buyer savings account to be
used to pay or reimburse a qualified beneficiary's eligible expenses for the
purchase of a primary residence in Colorado. An individual may be the
account holder of multiple accounts, and an individual may jointly own the
account with another person if they file a joint income tax return. To be
eligible for the subtraction under section 39-22-104 (4)(w)(I), an account
holder must comply with the requirements of this section.
SECTION 25. In Colorado Revised Statutes, add 39-22-4708 as
follows:
39-22-4708. Repeal. T
HIS PART 47 IS REPEALED, EFFECTIVE
DECEMBER 31, 2028.
SECTION 26. In Colorado Revised Statutes, 39-27-102.5, amend
(2.5)(a)(II) and (2.5)(a)(III); and add (2.5)(a)(IV) as follows:
39-27-102.5. Exemptions on tax imposed - ex-tax purchases -
definition - repeal. (2.5) (a) (II) P
RIOR TO JANUARY 1, 2025, gasoline used
by domestic or foreign part 121 air carriers or part 135 commuter air
carriers authorized to provide passenger and cargo air transportation
services pursuant to the regulations of the office of the secretary of
transportation and federal aviation administration of the United States
department of transportation is exempt from the tax imposed pursuant to
this part 1. For those air carriers that are certificated by the United States
department of transportation for both part 121 air carrier operations and part
135 on-demand operations, the provisions of this subsection (2.5)(a)(II)
shall not apply to the air carrier's part 135 on-demand operations.
(III) P
RIOR TO JANUARY 1, 2025, gasoline used by direct air carriers
providing air transportation to authorized public charter operators pursuant
PAGE 14-HOUSE BILL 24-1036 to 14 CFR 380 is exempt from the tax imposed pursuant to this part 1.
(IV) S
UBSECTIONS (2.5)(a)(II) AND (2.5)(a)(III) OF THIS SECTION
AND THIS SUBSECTION
(2.5)(a)(IV) ARE REPEALED, EFFECTIVE DECEMBER
31, 2028.
SECTION 27. In Colorado Revised Statutes, 39-28-104, amend
(4)(a); and add (4)(e) as follows:
39-28-104. Evidence of payment of tax - credits - redemptions -
repeal. (4) (a) P
RIOR TO JANUARY 1, 2025, credit shall be given by the
department to a wholesaler for all taxes levied pursuant to this article and
section 21 of article X of the state constitution and paid pursuant to the
provisions of this article
ARTICLE 28 that are bad debts. Such credit shall
offset taxes levied pursuant to this article and section 21 of article X of the
state constitution and paid pursuant to the provisions of this article only. No
credit shall be given unless the bad debt has been charged off as
uncollectible on the books of the wholesaler. Subsequent to receiving the
credit, if the wholesaler receives a payment for the bad debt, the wholesaler
shall be liable to the department for the amount received and shall remit this
amount in the next payment to the department under this section or section
39-28-105.
(e) T
HIS SUBSECTION (4) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 28. In Colorado Revised Statutes, 39-28.5-107, amend
(2)(a); and add (2)(e) as follows:
39-28.5-107. When credit may be obtained for tax paid - repeal.
(2) (a) P
RIOR TO JANUARY 1, 2025, credit shall be given by the department
to a distributor or remote retail seller for all taxes levied pursuant to this
article 28.5 and section 21 of article X of the state constitution and paid
pursuant to the provisions of this article 28.5 that are bad debts. Such credit
shall offset taxes levied pursuant to this article 28.5 and section 21 of article
X of the state constitution and paid pursuant to the provisions of this article
28.5 only. No credit shall be given unless the bad debt has been charged off
as uncollectible on the books of the distributor or remote retail seller.
Subsequent to receiving the credit, if the distributor or remote retail seller
receives a payment for the bad debt, the distributor or remote retail seller
PAGE 15-HOUSE BILL 24-1036 shall be liable to the department for the amount received and shall remit this
amount in the next payment to the department under section 39-28.5-106.
(e) T
HIS SUBSECTION (2) IS REPEALED, EFFECTIVE DECEMBER 31,
2028.
SECTION 29. In Colorado Revised Statutes, 39-21-303, amend
(4); and repeal (3)(b) as follows:
39-21-303. Tax profile and expenditure report - repeal.
(3) (b) No later than February 1, 2013, and February 1 of every
odd-numbered year thereafter, the executive director, or his or her designee,
shall present the tax profile and expenditure report to the finance
committees of the house of representatives and the senate, or any successor
committees.
(4) The reporting requirement set forth in this section is exempt
from the provisions of section 24-1-136 (11). C.R.S., and the biennial
reporting requirement shall remain in effect until changed by the general
assembly acting by bill.
SECTION 30. In Colorado Revised Statutes, 39-22-104, amend
(4)(n.5)(I)(A) and (4)(n.5)(IV); and add (4)(i)(VI) as follows:
39-22-104. Income tax imposed on individuals, estates, and
trusts - single rate - report - legislative declaration - definitions - repeal.
(4) There shall be subtracted from federal taxable income:
(i) (VI) T
HE PURPOSE OF THE DEDUCTION AUTHORIZED IN THIS
SUBSECTION
(4)(i) IS TO CREATE ADDITIONAL INCENTIVES FOR SAVING FOR
COLLEGE TUITION NOT ALREADY CREATED BY OTHER STATE OR FEDERAL
LAW
.
(n.5) (I) (A) For income tax years commencing on or after January
1, 2014, but prior to January 1, 2017, and for income tax years commencing
on or after January 1, 2020, but prior to January 1, 2026,
JANUARY 1, 2025,
an amount equal to fifty percent of a landowner's costs incurred in
performing wildfire mitigation measures in that income tax year on his or
her property located within the state; except that the amount of the
deduction claimed in an income tax year shall not exceed two thousand five
PAGE 16-HOUSE BILL 24-1036 hundred dollars or the total amount of the landowner's federal taxable
income for the income tax year for which the deduction is claimed,
whichever is less.
(IV) This subsection (4)(n.5) is repealed, effective January 1, 2030
JANUARY 1, 2028.
SECTION 31. In Colorado Revised Statutes, 39-22-538, amend
(3)(a) and (3)(b)(I) as follows:
39-22-538. Credit for health-care preceptors working in health
professional shortage areas - legislative declaration - definitions.
(3) (a) (I) For income tax years commencing on or after January 1, 2017,
but prior to January 1, 2033 JANUARY 1, 2025, and subject to the
requirements of subsection (3)(b)(I)(A) of this section, a taxpayer is allowed
a credit against the income taxes imposed by this article 22 in an amount
equal to one thousand dollars for a preceptorship provided by the taxpayer
during the applicable income tax year for which the credit is claimed.
(II) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2025, BUT PRIOR TO JANUARY 1, 2033, AND SUBJECT TO THE
REQUIREMENTS OF SUBSECTION
(3)(b)(I)(B) OF THIS SECTION, A TAXPAYER
IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS
ARTICLE
22 IN AN AMOUNT EQUAL TO TWO THOUSAND DOLLARS FOR EACH
PRECEPTORSHIP PROVIDED BY THE TAXPAYER DURING THE APPLICABLE
INCOME TAX YEAR FOR WHICH THE CREDIT IS CLAIMED
. A CREDIT IS
ALLOWED FOR A MAXIMUM OF THREE PRECEPTORSHIPS PER APPLICABLE
INCOME TAX YEAR
. THE MAXIMUM TOTAL CREDIT IN A TAXABLE YEAR IS SIX
THOUSAND DOLLARS
.
(b) Notwithstanding any other provision of this section:
(I) (A) F
OR INCOME TAX YEARS COMMENCING BEFORE JANUARY 1,
2025, the aggregate amount of the credit awarded to any one taxpayer under
this section shall not exceed one thousand dollars for any one income tax
year regardless of the number of preceptorships undertaken by the taxpayer
during the applicable income tax year or the number of eligible health
professional students the taxpayer instructs, trains, or supervises during the
applicable income tax year;
PAGE 17-HOUSE BILL 24-1036 (B) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2025, BUT PRIOR TO JANUARY 1, 2033, THE AGGREGATE AMOUNT OF THE
CREDIT AWARDED TO ANY ONE TAXPAYER UNDER THIS SECTION SHALL NOT
EXCEED SIX THOUSAND DOLLARS FOR ANY ONE INCOME TAX YEAR
REGARDLESS OF THE NUMBER OF PRECEPTORSHIPS UNDERTAKEN BY THE
TAXPAYER DURING THE APPLICABLE INCOME TAX YEAR OR THE NUMBER OF
ELIGIBLE HEALTH PROFESSIONAL STUDENTS THE TAXPAYER INSTRUCTS
,
TRAINS, OR SUPERVISES DURING THE APPLICABLE INCOME TAX YEAR .
SECTION 32. In Colorado Revised Statutes, 39-22-543, amend
(2)(a) and (4) as follows:
39-22-543. Credit for wildfire hazard mitigation expenses -
legislative declaration - definitions - repeal. (2) As used in this section,
unless the context otherwise requires:
(a) "Costs" means any actual out-of-pocket expense incurred and
paid by the landowner
TO A THIRD-PARTY SERVICE PROVIDER, documented
by receipt, for performing wildfire mitigation measures. "Costs" does not
include any inspection or certification fees, in-kind contributions, donations,
incentives, or cost sharing associated with performing wildfire mitigation
measures. "Costs" does not include expenses paid by the landowner from
any grants awarded to the landowner for performing wildfire mitigation
measures. "C
OSTS" DOES NOT INCLUDE ANY AMOUNT PAID BY THE
LANDOWNER FOR THE PURCHASE OR RENTAL OF ANY ARTICLE OF TANGIBLE
PERSONAL PROPERTY FOR THE LANDOWNER
'S OWN USE.
(4) (a) For income tax years commencing on or after January 1,
2023, but prior to January 1, 2026,
JANUARY 1, 2025, a landowner with a
federal taxable income at or below one hundred twenty thousand dollars for
the income tax year commencing on or after January 1, 2023, as adjusted for
inflation and rounded to the nearest hundred dollar amount for each income
tax year thereafter, is allowed a credit against the income taxes imposed by
this article 22 in an amount equal to twenty-five percent of up to two
thousand five hundred dollars in costs for wildfire mitigation measures. The
maximum total credit in a taxable year is six hundred twenty-five dollars.
(b) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2025,
BUT PRIOR TO JANUARY 1, 2028, A LANDOWNER WITH A FEDERAL
TAXABLE INCOME AT OR BELOW ONE HUNDRED TWENTY THOUSAND DOLLARS
PAGE 18-HOUSE BILL 24-1036 FOR THE INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2023,
AS ADJUSTED FOR INFLATION AND ROUNDED TO THE NEAREST HUNDRED
DOLLARS FOR EACH INCOME TAX YEAR THEREAFTER
, IS ALLOWED A CREDIT
AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE
22 IN AN AMOUNT
EQUAL TO THE LANDOWNER
'S COSTS INCURRED FOR WILDFIRE MITIGATION
MEASURES IN AN AMOUNT UP TO ONE THOUSAND DOLLARS
. THE MAXIMUM
TOTAL CREDIT IN A TAXABLE YEAR IS ONE THOUSAND DOLLARS
.
SECTION 33. In Colorado Revised Statutes, 39-22-509, amend
(3)(b) as follows:
39-22-509. Credit against tax - employer expenditures for
alternative transportation options for employees - legislative
declaration - definitions - repeal. (3) (b) (I) F
OR INCOME TAX YEARS
COMMENCING BEFORE
JANUARY 1, 2024, a local government or nonprofit
organization shall file a corporate income tax return for informational
purposes for each income tax year that the local government or nonprofit
organization claims the credit allowed in subsection (3)(a) of this section.
(II) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2024, BUT BEFORE JANUARY 1, 2025, A LOCAL GOVERNMENT OR
NONPROFIT ORGANIZATION THAT CLAIMS THE CREDIT ALLOWED IN
SUBSECTION
(3)(a) OF THIS SECTION SHALL FILE A RETURN PURSUANT TO
SECTION
39-22-601 (7)(b).
SECTION 34. In Colorado Revised Statutes, 39-22-522, add (12)
as follows:
39-22-522. Credit against tax - conservation easements -
definition. (12) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2024, EVERY TAXPAYER EXEMPT FROM TAXES PURSUANT TO
SECTION
39-22-112 THAT CLAIMS THE CREDIT ALLOWED IN THIS SECTION
SHALL FILE A RETURN PURSUANT TO SECTION
39-22-601 (7)(b).
SECTION 35. In Colorado Revised Statutes, 39-22-526, add (3.7)
as follows:
39-22-526. Credit for environmental remediation of
contaminated land - legislative declaration - definition - repeal.
(3.7) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2024,
PAGE 19-HOUSE BILL 24-1036 BUT PRIOR TO JANUARY 1, 2025, EVERY TAXPAYER EXEMPT FROM TAXES
PURSUANT TO SECTION
39-22-112 THAT CLAIMS THE CREDIT ALLOWED IN
THIS SECTION SHALL FILE A RETURN PURSUANT TO SECTION
39-22-601 (7)(b).
SECTION 36. In Colorado Revised Statutes, 39-26-721, amend (3)
as follows:
39-26-721. Manufactured homes and tiny homes. (3) (a) P
RIOR
TO
JANUARY 1, 2025, the sale, storage, usage, or consumption of a
manufactured home, as defined in section 39-1-102 (7.8), or a tiny home,
as defined in section 24-32-3302 (35), is exempt from taxation under parts
1 and 2 of this article 26.
(b) O
N AND AFTER JANUARY 1, 2025, THE SALE, STORAGE, USAGE, OR
CONSUMPTION OF A MANUFACTURED HOME
, AS DEFINED IN SECTION
39-1-102 (7.8), A MODULAR HOME, AS DEFINED IN SECTION 39-1-102 (8.3),
A TINY HOME, AS DEFINED IN SECTION 24-32-3302 (35), OR ANY CLOSED
PANEL SYSTEM UTILIZED IN CONSTRUCTION OF A FACTORY
-BUILT
RESIDENTIAL STRUCTURE
, AS DEFINED IN SECTION 24-32-3302 (10), IS
EXEMPT FROM TAXATION UNDER PARTS
1 AND 2 OF THIS ARTICLE 26.
SECTION 37. In Colorado Revised Statutes, 29-2-105, amend
(1)(d)(I)(P) as follows:
29-2-105. Contents of sales tax ordinances and proposals.
(1) The sales tax ordinance or proposal of any incorporated town, city, or
county adopted pursuant to this article 2 shall be imposed on the sale of
tangible personal property at retail or the furnishing of services, as provided
in subsection (1)(d) of this section. Any countywide or incorporated town
or city sales tax ordinance or proposal shall include the following
provisions:
(d) (I) A provision that the sale of tangible personal property and
services taxable pursuant to this article 2 is the same as the sale of tangible
personal property and services taxable pursuant to section 39-26-104,
except as otherwise provided in this subsection (1)(d). The sale of tangible
personal property and services taxable pursuant to this article 2 is subject
to the same sales tax exemptions as those specified in part 7 of article 26 of
title 39; except that the sale of the following may be exempted from a town,
city, or county sales tax only by the express inclusion of the exemption
PAGE 20-HOUSE BILL 24-1036 either at the time of adoption of the initial sales tax ordinance or resolution
or by amendment thereto:
(P) The exemption for manufactured homes,
MODULAR HOMES, and
tiny homes, AND ANY CLOSED PANEL SYSTEM UTILIZED IN CONSTRUCTION OF
A FACTORY
-BUILT RESIDENTIAL STRUCTURE set forth in section 39-26-721
(3);
SECTION 38. In Colorado Revised Statutes, 39-26-724, add (3) as
follows:
39-26-724. Components used to produce energy from a
renewable energy source - definitions. (3) T
HE PURPOSE OF THE
EXEMPTION AUTHORIZED IN THIS SECTION IS TO CREATE ADDITIONAL
INCENTIVES FOR DEVELOPING RENEWABLE ENERGY PROJECTS NOT ALREADY
CREATED BY OTHER STATE OR FEDERAL LAW
.
SECTION 39. In Colorado Revised Statutes, 39-30-111, repeal (2),
(3), and (4) as follows:
39-30-111. Department of revenue - enterprise zone data -
electronic filing - submission of carryforward schedule. (2) For the 2012
income tax year and each income tax year thereafter, any taxpayer that
claims one or more income tax credits pursuant to this article shall submit
to the department of revenue, along with the taxpayer's state income tax
return, a full carryforward schedule for each income tax credit claimed
pursuant to this article.
(3) For the 2012 income tax year and each income tax year
thereafter, the department of revenue shall aggregate and report data on all
of the income tax credits that are claimed pursuant to this article for each
income tax year. The department shall categorize such aggregated data by
the date that the income tax credit was certified by an enterprise zone
administrator, the specific income tax credit allowed pursuant to this article
that each taxpayer was authorized to claim, and the total amount of the
income tax credits claimed for each income tax credit allowed pursuant to
this article.
(4) The department of revenue shall submit the data collected
pursuant to subsection (2) of this section and aggregated pursuant to
PAGE 21-HOUSE BILL 24-1036 subsection (3) of this section to the Colorado office of economic
development on August 1, 2013, and on August 1 each year thereafter.
SECTION 40. In Colorado Revised Statutes, 39-21-113, amend
(22) as follows:
39-21-113. Reports and returns - rule - repeal.
(22) Notwithstanding the provisions of this section, the executive director
shall supply the Colorado office of economic development with information
relating to the actual amount of any enterprise zone tax credit claimed
pursuant to article 30 of this title or any CHIPS zone tax credit claimed
pursuant to article 36 of this title as well as information submitted to and
aggregated by the department pursuant to section 39-30-111 (2) and (3) and
section 39-36-106 (1) and (3) regarding such income tax credits. Any information provided to the office pursuant to this subsection (22) shall remain confidential, and all office employees shall be subject to the limitations set forth in subsection (4) of this section and the penalties contained in subsection (6) of this section. Nothing in this subsection (22) shall prevent the office from making aggregated data regarding enterprise zone and CHIPS zone tax credits available.
SECTION 41. In Colorado Revised Statutes, 39-22-509, amend
(3)(a) and (6) as follows:
39-22-509. Credit against tax - employer expenditures for
alternative transportation options for employees - legislative
declaration - definitions - repeal. (3) (a) For income tax years beginning
on or after January 1, 2023, but before January 1, 2025
JANUARY 1, 2027,
there is allowed a credit to each employer in an amount equal to fifty
percent of the amount spent by the employer to provide alternative
transportation options to its employees, subject to the limitations that the
maximum amount spent in any income tax year for which an employer may
claim a credit is two hundred fifty thousand dollars and that the maximum
amount spent in any income tax year for any one employee for which an
employer may claim a credit is two thousand dollars.
(6) This section is repealed, effective January 1, 2029
JANUARY 1,
2031.
SECTION 42. Act subject to petition - effective date. This act
PAGE 22-HOUSE BILL 24-1036 takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Julie McCluskie 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 23-HOUSE BILL 24-1036