Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0658.03 Jason Gelender x4330
HOUSE BILL 24-1295
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING COMMUNITY REVITALI ZATION INCENTIVES FOR THE101
SUPPORT OF CREATIVE INDUSTRIES , AND, IN CONNECTION102
THEREWITH , EXTENDING THE COMMUNITY GRANT103
REVITALIZATION PROGRAM AND CREATING AN INCOME TAX104
CREDIT FOR EXPENSES INCURRED IN COMPLETING105
INFRASTRUCTURE THAT SUPPORTS CREATIVE INDUSTRIES AND106
CREATIVE INDUSTRY WORKERS .107
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
.)
HOUSE SPONSORSHIP
Titone and Herod,
SENATE SPONSORSHIP
Fenberg,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. Section 1 of the bill modifies the community revitalization grant
program (grant program) by:
! Including projects that are eligible for funding under the
space to create program administered by the creative
industries division (division) within the office of economic
development (office) as projects intended to be supported
by the grant program;
! Extending deadlines for the adoption of policies,
procedures, and guidelines for the grant program and for
grant program reporting; and
! Extending the scheduled repeal of the grant program from
January 1, 2025, to the date on which all money transferred
or otherwise credited to the community revitalization fund
pursuant to this section is expended.
Section 2 creates a new community revitalization income tax
credit (credit), for income tax years commencing on or after January 1,
2026, but before January 1, 2033, in an amount equal to 25% of the
amount of eligible expenditures made by a qualified applicant in
completing an eligible project; except that the office may reduce the
credit percentage for reservations for credits made in any income tax year,
and the maximum amount of the credit for a single project is $3 million.
In addition, the maximum amount of credits that may be reserved during
any calendar year is $16 million. An eligible project is a capital
improvement project within a creative district, a historic district, or a
neighborhood commercial center or a main street that involves the
construction, rehabilitation, conversion, remodeling, or other
improvement of one or more buildings, structures, or facilities for uses
that support creative industries and creative industry workers and that is
approved as an eligible project by the office.
The bill details a process for claiming the credit that requires:
! The submission by a qualified applicant to the office of an
eligible project plan that includes an estimate of eligible
expenditures;
! Preliminary and final review and approval of the plan by
the office;
! Reservation of a credit for the qualified applicant by the
office;
! Commencement of the eligible project incurrence by the
qualified applicant of a specified minimum portion of the
eligible expenditures within a specified period;
! Completion of the eligible project;
! Issuance of a tax credit certificate by the office;
! Filing of the tax credit certificate by the qualified applicant
with the department of revenue with the qualified
HB24-1295
-2- applicant's tax return or informational return; and
! Recapture of the credit if the eligible project is not used for
a use that makes it an eligible project during a specified
compliance period.
The office is required to annually report to the general assembly
regarding the credit and may, after soliciting advice from the department
of revenue, create and modify policies and procedures as necessary to
implement the credit.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-48.5-317, amend2
(2)(a)(V), (2)(a)(VI), (4) introductory portion, (8)(a), and (9); repeal3
(2)(b); and add (2)(a)(VII) as follows:4
24-48.5-317. Community revitalization grants - fund -5
reporting - compliance with federal requirements - legislative6
declaration - definitions - repeal. (2) (a) The community revitalization7
grant program is hereby established in the division. The purpose of the8
grant program is to provide state assistance in the form of grant awards9
to finance various projects across the state that are intended to create or10
revitalize mixed-use commercial centers. The grant program is intended11
to support creative projects in these commercial centers that would12
combine revitalized or newly constructed commercial spaces with public13
or community spaces including but not limited to such projects as:14
(V) The renovation or refurbishment of vacant or blighted15
property for creative industries, economic development, or historic16
preservation purposes; and
17
(VI) Child care centers;
AND18
(VII) P
ROJECTS THAT ARE ELIGIBLE FOR FUNDING UNDER THE19
SPACE TO CREATE COLORADO PROGRAM ADMINISTERED BY THE DIVISION . 20
(b) All grants awarded under this section must be encumbered not
21
HB24-1295-3- later than December 31, 2022.1
(4) On or before September 1, 2021, DECEMBER 1, 2024, the2
director of the division, in consultation with the director of the division3
of local government, or their designees, shall adopt policies, procedures,4
and guidelines for the grant program that include without limitation:5
(8) (a) On or before November 1, 2022 NOVEMBER 1, 2024, and6
on or before November 1, 2023 NOVEMBER 1, 2026, the division shall7
publish a report summarizing the use of all of the money that was8
awarded as grants under the grant program in the preceding fiscal year.9
At a minimum, the report shall specify the amount of grant money10
distributed to each grant recipient and a description of each grant11
recipient's use of the grant money. The report must be posted on the12
website of the office of economic development created in section13
24-48.5-101.14
(9) This section is WILL BE repealed effective January 1, 2025 IF15
ALL MONEY TRANSFERRED OR OTHERWISE CREDITED TO THE COMMUNITY16
REVITALIZATION FUND PURSUANT TO THIS SECTION IS EXPENDED . THE17
DIRECTOR OF THE DIVISION SHALL NOTIFY THE REVISOR OF STATUTES IN18
WRITING OF THE DATE WHEN THE CONDITION SPECIFIED IN THIS19
SUBSECTION (9) HAS OCCURRED BY E -MAILING THE NOTICE TO20
REVISOROFSTATUTES.GA@COLEG.GOV. THIS SECTION IS REPEALED ,21
EFFECTIVE UPON THE DATE IDENTIFIED IN THE NOTICE THAT ALL MONEY22
TRANSFERRED OR OTHERWISE CREDITED TO THE COMMUNITY23
REVITALIZATION FUND PURSUANT TO THIS SECTION IS EXPENDED , OR, IF24
THE NOTICE DOES NOT SPECIFY THAT DATE, UPON THE DATE OF THE NOTICE25
TO THE REVISOR OF STATUTES.26
SECTION 2. In Colorado Revised Statutes, add 39-22-560 as27
HB24-1295
-4- follows:1
39-22-560. Community revitalization tax credit - tax2
preference performance statement - legislative declaration -3
definitions - repeal. (1) Tax preference performance statement. I
N4
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL5
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE6
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE7
DECLARATION, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :8
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT9
ALLOWED BY THIS SECTION ARE:10
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;11
AND12
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR13
INDIVIDUALS;14
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT15
ALLOWED BY THIS SECTION IS TO REVITALIZE COMMUNITIES BY PROVIDING16
FINANCIAL SUPPORT AND A FINANCIAL INCENTIVE FOR CAPITAL17
IMPROVEMENT PROJECTS IN CREATIVE DISTRICTS THAT SUPPORT CREATIVE18
INDUSTRIES AND CREATIVE I NDUSTRY WORKERS BY PROVIDING19
AFFORDABLE HOUSING AND LIVE -WORK SPACES FOR SUCH WORKERS AND20
OTHER MIXED-USE AND CREATIVE-USE SPACES FOR BOTH SUCH WORKERS21
AND THE GENERAL PUBLIC THAT ENJOYS AND BENEFITS FROM THEIR WORK .22
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL23
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE24
PURPOSES SPECIFIED IN SUBSECTIONS (2)(a) AND (2)(b) OF THIS SECTION25
BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED BY AND26
REPORTED BY THE OFFICE PURSUANT TO SUBSECTION (11) OF THIS27
HB24-1295
-5- SECTION.1
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT2
OTHERWISE REQUIRES:3
(a) "A
PPLICATION" MEANS AN APPLICATION IN THE FORM AND4
MANNER APPROVED BY THE OFFICE FOR THE CREDIT ALLOWED IN THIS5
SECTION THAT INCLUDES THE PROJECT PLAN AND ESTIMATED ELIGIBLE6
EXPENDITURES.7
(b) "C
REATIVE DISTRICT" HAS THE SAME MEANING AS SET FORTH8
IN SECTION 24-48.5-314 (2)(b).9
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .10
(d) "E
LIGIBLE EXPENDITURES" MEANS REASONABLE AND11
NECESSARY EXPENDITURES , IN ACCORDANCE WITH GUIDELINES12
DEVELOPED BY THE OFFICE , ACTUALLY PAID BY A TAXPAYER IN13
COMPLETING AN ELIGIBLE PROJECT.14
(e) "E
LIGIBLE PROJECT" MEANS A CAPITAL IMPROVEMENT PROJECT15
UNDERTAKEN IN THE STATE WITHIN A CREATIVE DISTRICT , A HISTORIC16
DISTRICT, OR A NEIGHBORHOOD COMMERCIAL CENTER OR ON A MAIN17
STREET THAT INVOLVES THE CONSTRUCTION , REHABILITATION,18
CONVERSION, REMODELING, OR OTHER IMPROVEMENT OF ONE OR MORE19
BUILDINGS, STRUCTURES, OR FACILITIES FOR USES THAT SUPPORT20
CREATIVE INDUSTRIES AND CREATIVE INDUSTRY WORKERS , INCLUDING21
AFFORDABLE HOUSING AND LIVE -WORK SPACES FOR SUCH WORKERS AND22
OTHER MIXED-USE, CREATIVE-USE, PERFORMANCE, AND EXHIBITION23
SPACES FOR SUCH WORKERS AND FOR THE GENERAL PUBLIC AND THAT IS24
APPROVED BY THE OFFICE IN ACCORDANCE WITH THE POLICIES ,25
PROCEDURES, AND GUIDELINES FOR THE IMPLEMENTATION AND26
ADMINISTRATION OF THE TAX CREDIT ALLOWED BY THIS SECTION ADOPTED27
HB24-1295
-6- BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.1
(f) "O
FFICE" MEANS THE OFFICE OF ECONOMIC DEVELOPMENT .2
(g) (I) "Q
UALIFIED APPLICANT" MEANS A PERSON THAT:3
(A) H
AS A CONTRACTUAL OR REAL PROPERTY INTEREST IN AN4
EXISTING OR PLANNED BUILDING, STRUCTURE, OR FACILITY THAT IS TO BE5
CONSTRUCTED, REHABILITATED, CONVERTED, REMODELED, OR OTHERWISE6
IMPROVED THROUGH THE COMPLETION OF AN ELIGIBLE PROJECT ; AND7
(B)
MAKES ELIGIBLE EXPENDITURES;8
(II)
A QUALIFIED APPLICANT MAY BE A PERSON SUBJECT TO TAX9
PURSUANT TO THIS ARTICLE 22 OR A PERSON OR POLITICAL SUBDIVISION OF10
THE STATE THAT IS EXEMPT FROM SUCH TAXATION PURSUANT TO SECTION11
39-22-112
(1).12
(3) Credit allowed. (a) F
OR INCOME TAX YEARS COMMENCING ON13
OR AFTER JANUARY 1, 2026, BUT PRIOR TO JANUARY 1, 2033, A QUALIFIED14
APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED15
BY THIS ARTICLE 22 FOR PLACING AN ELIGIBLE PROJECT IN SERVICE IN AN16
AMOUNT SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY THE OFFICE17
PURSUANT TO SUBSECTION (7) OF THIS SECTION.18
(b) I
N ORDER TO CLAIM THE CREDIT ALLOWED PURSUANT TO THIS19
SECTION, THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS20
SPECIFIED IN SUBSECTION (4) OF THIS SECTION, PLACE THE ELIGIBLE21
PROJECT IN SERVICE PRIOR TO JANUARY 1, 2033, OBTAIN A TAX CREDIT22
CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTION (7) OF THIS23
SECTION, AND, ONCE ISSUED BY THE OFFICE , FILE THE TAX CREDIT24
CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME TAX RETURN AS25
SPECIFIED IN SUBSECTION (8) OF THIS SECTION.26
(4) Application submission and review. (a) A
N APPLICANT MAY27
HB24-1295
-7- SUBMIT AN APPLICATION TO THE OFFICE ON OR AFTER JANUARY 1, 2025,1
BUT NO LATER THAN OCTOBER 3, 2029.2
(b) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS TO :3
(I) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED4
APPLICANT;5
(II) D
ETERMINE WHETHER THE APPLICATION IS COMPLETE AND6
INCLUDES A PROPERTY ADDRESS, LEGAL DESCRIPTION, OR OTHER SPECIFIC7
LOCATION IDENTIFIER;8
(III) M
AKE A PRELIMINARY DETERMINATION WHETHER THE9
PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT BASED ON THE POLICIES10
AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION11
(12)
OF THIS SECTION;12
(IV) D
ETERMINE WHETHER THE ELIGIBLE PROJECT IS ENTITLED TO13
A TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (6) OF THIS14
SECTION;15
(V) O
NCE THE ELIGIBLE PROJECT IS PLACED IN SERVICE, MAKE A16
FINAL DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT17
BASED ON THE POLICIES AND PROCEDURES DEVELOPED BY THE OFFICE18
PURSUANT TO SUBSECTION (12) OF THIS SECTION; AND19
(VI) I
F THE PROJECT IS AN ELIGIBLE PROJECT , REVIEW THE20
CERTIFIED ELIGIBLE EXPENDITURES AND , IF APPROVED, ISSUE A CREDIT21
CERTIFICATE TO THE QUALIFIED APPLICANT, AS SPECIFIED IN SUBSECTION22
(7)
OF THIS SECTION.23
(c) T
HE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN24
SUBSECTIONS (4)(b)(I) TO (4)(b)(V) OF THIS SECTION WITHIN NINETY DAYS25
OF THE DATE THE OFFICE RECEIVES THE APPLICATION .26
(d) (I) I
F THE OFFICE DETERMINES THAT AN APPLICATION IS27
HB24-1295
-8- INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS1
SPECIFIED IN SUBSECTIONS (4)(b)(I) TO (4)(b)(V) OF THIS SECTION, THE2
OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE 'S3
DECISION AND SHALL REMOVE THE APPLICATION FROM THE REVIEW4
PROCESS.5
(II) I
F AN APPLICANT RESUBMITS AN APPLICATION, THE OFFICE MAY6
CHARGE A NEW APPLICATION FEE IN AN AMOUNT SPECIFIED IN SUBSECTION7
(5)
OF THIS SECTION.8
(5) Application and issuance fees. (a) (I) F
OR AN APPLICATION9
FOR WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN10
APPLICANT PURSUANT TO THIS SECTION IS TWO HUNDRED FIFTY THOUSAND11
DOLLARS OR MORE, THE OFFICE MAY IMPOSE A REASONABLE APPLICATION12
FEE ON AN APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS .13
(II)
FOR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX14
CREDIT REQUESTED BY AN APPLICANT PURSUANT TO THIS SECTION IS LESS15
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS , THE OFFICE MAY IMPOSE16
A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT17
EXCEED TWO HUNDRED DOLLARS .18
(b) T
HE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A19
REASONABLE ISSUANCE FEE OF UP TO THREE PERCENT OF THE AMOUNT OF20
THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY21
THE OFFICE AS SPECIFIED IN SUBSECTION (7) OF THIS SECTION, WHICH MUST22
BE PAID BEFORE THE TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED23
APPLICANT.24
(c) A
NY FEE REVENUE COLLECTED PURSUANT TO THIS SUBSECTION25
(5)
MUST BE APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT26
CREATED BY THIS SECTION.27
HB24-1295
-9- (6) Tax credit reservation. (a) B ASED ON THE FACTORS SPECIFIED1
IN SUBSECTION (6)(d) OF THIS SECTION, THE OFFICE MAY DETERMINE THAT2
A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN3
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE OFFICE SHALL4
ISSUE TAX CREDIT RESERVATIONS SUBJECT TO THE LIMITATIONS SET FORTH5
IN THIS SUBSECTION (6) AND IN ACCORDANCE WITH THE POLICIES AND6
PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION (12) OF THIS7
SECTION. THE OFFICE SHALL NOT ISSUE TAX CREDIT RESERVATIONS AFTER8
J
ANUARY 1, 2030.9
(b) I
F THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A10
QUALIFIED APPLICANT, THE OFFICE SHALL NOTIFY THE QUALIFIED11
APPLICANT IN WRITING OF THE RESERVATION AND THE AMOUNT RESERVED .12
T
HE RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED13
APPLICANT DOES NOT ENTITLE THE QUALIFIED APPLICANT TO ISSUANCE OF14
A CREDIT CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH15
ALL THE OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE16
ISSUANCE OF THE TAX CREDIT. WHEN THE OFFICE APPROVES A TAX CREDIT17
RESERVATION, THE OFFICE MAY ALSO IMPOSE ADDITIONAL REQUIREMENTS ,18
WHICH A QUALIFIED APPLICANT SHALL SATISFY AS PART OF COMPLETING19
THE ELIGIBLE PROJECT, BEFORE A TAX CREDIT CERTIFICATE IS ISSUED TO20
THE QUALIFIED APPLICANT.21
(c) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (6)(c), IF22
APPROVED, THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A23
QUALIFIED APPLICANT FOR A SINGLE ELIGIBLE PROJECT IN AN AMOUNT24
EQUAL TO THE LESSER OF TWENTY -FIVE PERCENT OF THE QUALIFIED25
APPLICANT'S ESTIMATED ELIGIBLE EXPENDITURES OR THREE MILLION26
DOLLARS.27
HB24-1295
-10- (II) EXCEPT AS PROVIDED IN SUBSECTIONS (6)(c)(III) AND1
(6)(c)(IV)
OF THIS SECTION, THE AGGREGATE AMOUNT OF ALL TAX CREDIT2
RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO THIS SECTION3
MUST NOT EXCEED SIXTEEN MILLION DOLLARS IN ANY CALENDAR YEAR4
PLUS THE AMOUNT OF ANY PREVIOUSLY ISSUED TAX CREDIT5
RESERVATIONS THAT WERE RESCINDED PURSUANT TO SUBSECTION6
(7)(a)(II)
OF THIS SECTION FROM PREVIOUS CALENDAR YEARS .7
(III) I
F THE OFFICE'S ISSUANCE OF A TAX CREDIT RESERVATION IN8
A CALENDAR YEAR WOULD CAUSE THE OFFICE TO EXCEED THE AGGREGATE9
LIMIT SPECIFIED IN SUBSECTION (6)(c)(II) OF THIS SECTION FOR THAT10
CALENDAR YEAR, THEN THE AGGREGATE AMOUNT OF ALL TAX CREDIT11
RESERVATIONS THAT THE OFFICE MAY ISSUE IN THE FOLLOWING CALENDAR12
YEAR IS DECREASED BY THE AMOUNT OF THE TAX CREDIT RESERVATIONS13
ISSUED IN THE PREVIOUS CALENDAR YEAR THAT EXCEEDED THE14
LIMITATION SET FORTH IN SUBSECTION (6)(c)(II) OF THIS SECTION.15
(IV) I
F THE OFFICE'S ISSUANCE OF TAX CREDIT RESERVATIONS BY16
THE END OF A CALENDAR YEAR IS LESS THAN THE AGGREGATE LIMIT17
SPECIFIED IN SUBSECTION (6)(c)(II) OF THIS SECTION FOR THAT CALENDAR18
YEAR, THEN THE AGGREGATE AMOUNT OF TAX CREDIT RESERVATIONS19
THAT THE OFFICE MAY ISSUE IN THE NEXT CALENDAR YEAR IS INCREASED20
BY THE UNRESERVED AMOUNT FROM THE PREVIOUS CALENDAR YEAR .21
(d) I
N MAKING THE FINAL DETERMINATION OF WHICH PROJECT22
PLANS TO ISSUE TAX RESERVATIONS FOR PURSUANT TO THIS SUBSECTION23
(6),
THE OFFICE MAY PRIORITIZE ELIGIBLE PROJECT PLANS IN ACCORDANCE24
WITH:25
(I) T
HE NUMBER OF NEW AFFORDABLE HOUSING UNITS TO BE26
CREATED BY THE ELIGIBLE PROJECT;27
HB24-1295
-11- (II) THE NUMBER OF LIVE-WORK SPACES TO BE CREATED BY THE1
ELIGIBLE PROJECT;2
(III) T
HE GEOGRAPHIC DIVERSITY OF THE APPLICATIONS AND3
PROJECT PLANS THAT QUALIFIED APPLICANTS HAVE SUBMITTED TO THE4
OFFICE;5
(IV) T
HE QUALITY AND ACCESSIBILITY OF MAKERSPACE TO BE6
PROVIDED FOR CREATIVE INDUSTRY WORKERS BY THE ELIGIBLE PROJECT ;7
(V) D
EMONSTRATION OF COMMUNITY ENGAGEMENT IN8
IDENTIFYING HOW THE PROJECT WILL SATISFY UNMET NEEDS AND DRIVE9
THE LOCAL CREATIVE ECONOMY ;10
(VI) D
EMONSTRATION OF STRONG EVIDENCE THAT THE ELIGIBLE11
PROJECT HAS OR CAN ATTRACT DIVERSE SOURCES OF FUNDING AND BROAD12
LOCAL GOVERNMENT SUPPORT ;13
(VII) D
EMONSTRATION OF HOW THE PROJECT SERVES RURAL ,14
UNDER-RESOURCED, OR UNDERSERVED COMMUNITIES ;15
(VIII) W
HETHER THE PROJECT PLAN IS RECEIVING PROPERTY TAX16
ABATEMENTS, CREDITS, REBATES, GRANTS, OR OTHER INCENTIVES FROM17
A LOCAL TAXING JURISDICTION;18
(IX) W
HETHER THE PROJECT WILL OCCUR WITHOUT THE ISSUANCE19
OF A TAX CREDIT PURSUANT TO THIS SECTION;20
(X) W
HETHER THE QUALIFIED APPLICANT WILL RECEIVE A21
FEDERAL INCENTIVE FOR THE PROJECT;22
(XI) T
HE PROXIMITY OF THE PROJECT TO PUBLIC TRANSPORTATION ;23
AND24
(XII) T
HE EXPECTED QUALIFICATION OF THE BUILDING ,25
STRUCTURE, OR FACILITY THAT IS THE SUBJECT OF THE ELIGIBLE PROJECT26
FOR A CERTIFIABLE SUSTAINABLE PROGRAM BOTH BEFORE AND AFTER THE27
HB24-1295
-12- COMPLETION OF THE PROJECT.1
(7) Deadline for incurring specified amount of estimated2
eligible expenditures - proof of compliance - audit of eligible3
expenditure certification - issuance of tax credit certificate. (a) (I) A4
QUALIFIED APPLICANT RECEIVING A RESERVATION OF TAX CREDITS5
PURSUANT TO SUBSECTION (6) OF THIS SECTION SHALL INCUR TWENTY6
PERCENT OR MORE OF THE ESTIMATED ELIGIBLE EXPENDITURES7
CONTAINED IN THE APPLICATION AND PROJECT PLAN NOT LATER THAN8
EIGHTEEN MONTHS AFTER THE DATE OF ISSUANCE OF THE WRITTEN NOTICE9
FROM THE OFFICE TO THE QUALIFIED APPLICANT GRANTING THE10
RESERVATION OF A TAX CREDIT.11
(II) A
QUALIFIED APPLICANT FOR WHOM THE OFFICE HAS RESERVED12
A TAX CREDIT SHALL SUBMIT EVIDENCE OF COMPLIANCE WITH THE13
PROVISIONS OF SUBSECTION (7)(a)(I) OF THIS SECTION. IF THE OFFICE14
DETERMINES THAT A QUALIFIED APPLICANT HAS FAILED TO COMPLY WITH15
THE REQUIREMENTS OF SUBSECTION (7)(a)(I) OF THIS SECTION, THE OFFICE16
SHALL PROMPTLY NOTIFY THE QUALIFIED APPLICANT AND MAY RESCIND17
THE ISSUANCE OF THE WRITTEN NOTICE IT PREVIOUSLY GAVE THE18
QUALIFIED APPLICANT GRANTING THE RESERVATION OF A TAX CREDIT . IF19
THE OFFICE SO RESCINDS AN ISSUANCE OF THE WRITTEN NOTICE , THE20
QUALIFIED APPLICANT MAY SUBMIT A NEW APPLICATION , PROJECT PLAN,21
AND ESTIMATE OF ELIGIBLE EXPENDITURES FOR WHICH THE OFFICE MAY22
CHARGE A NEW APPLICATION FEE IN ACCORDANCE WITH SUBSECTION (5)23
OF THIS SECTION, AND THE TOTAL AMOUNT OF TAX CREDITS MADE24
AVAILABLE FOR RESERVATION IN THE CALENDAR YEAR DURING WHICH THE25
OFFICE RESCINDS THE ISSUANCE OF WRITTEN NOTICE MUST INCREASE BY26
THE AMOUNT OF THE TAX CREDIT RESERVED IN THE WRITTEN NOTICE .27
HB24-1295
-13- (b) AFTER A QUALIFIED APPLICANT COMPLETES A PROJECT , THE1
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE PROJECT HAS2
BEEN PLACED IN SERVICE AND SHALL CERTIFY THE ELIGIBLE3
EXPENDITURES, AFTER WHICH THE OFFICE SHALL MAKE A FINAL4
DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT AS5
REQUIRED IN SUBSECTION (4)(b)(V) OF THIS SECTION. THE APPLICANT6
SHALL INCLUDE A REVIEW OF THE CERTIFICATION BY A LICENSED7
CERTIFIED PUBLIC ACCOUNTANT THAT IS NOT AFFILIATED WITH THE8
QUALIFIED APPLICANT THAT ALIGNS WITH OFFICE POLICIES FOR9
CERTIFICATION OF ELIGIBLE EXPENDITURES. THE APPLICANT SHALL ALSO10
CERTIFY AND PROVIDE DOCUMENTS DEMONSTRATING THAT THE11
APPLICANT SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE12
OFFICE PURSUANT TO SUBSECTION (6) OF THIS SECTION. WITHIN NINETY13
DAYS AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE QUALIFIED14
APPLICANT, THE OFFICE SHALL REVIEW THE QUALIFIED APPLICANT 'S15
DOCUMENTATION OF CERTIFIED ELIGIBLE EXPENDITURES , DETERMINE16
WHETHER THE DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER17
REQUIREMENTS, AND, IF THE OFFICE DETERMINES THAT THE18
DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER19
REQUIREMENTS, THE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE IN20
THE AMOUNT SPECIFIED IN THE TAX CREDIT RESERVATION ISSUED TO THE21
QUALIFIED APPLICANT PURSUANT TO SUBSECTION (6) OF THIS SECTION;22
EXCEPT THAT A CREDIT CERTIFICATE MAY NOT BE ISSUED FOR ANY INCOME23
TAX YEAR COMMENCING BEFORE JANUARY 1, 2026.24
(c) I
F THERE ARE ANY UNRESERVED AM OUNTS OF TAX CREDITS25
AVAILABLE UNDER SUBSECTION (6) OF THIS SECTION, AND IF THE AMOUNT26
OF CERTIFIED ELIGIBLE EXPENDITURES INCURRED BY THE QUALIFIED27
HB24-1295
-14- APPLICANT WOULD HAVE RESULTED IN THE QUALIFIED APPLICANT BEING1
ISSUED A TAX CREDIT CERTIFICATE THAT EXCEEDS THE AMOUNT OF THE2
TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT , THE3
QUALIFIED APPLICANT MAY APPLY TO THE OFFICE FOR THE ISSUANCE OF AN4
ADDITIONAL TAX CREDIT CERTIFICATE IN AN AMOUNT E QUAL TO THE5
DIFFERENCE BETWEEN THE TAX CREDIT RESERVATION AND WHAT WOULD6
HAVE BEEN ISSUED AS A RESULT OF THE CERTIFIED ELIGIBLE7
EXPENDITURES BY SUBMITTING AN APPLICATION IN A FORM AND MANNER8
DETERMINED BY THE OFFICE; EXCEPT THAT THE AGGREGATE OF THE TWO9
TAX CREDIT CERTIFICATES FOR THE ELIGIBLE PROJECT MAY NOT EXCEED10
THREE MILLION DOLLARS. THE OFFICE SHALL REVIEW THE APPLICATION AS11
SPECIFIED IN SUBSECTION (4) OF THIS SECTION AND, IF APPROVED, SHALL12
ISSUE A SEPARATE TAX CREDIT CERTIFICATE AWARDING THE QUALIFIED13
APPLICANT THE ADDITIONAL CREDIT.14
(8) Filing tax credit certificate with income tax return. (a) I
N15
ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION , A QUALIFIED16
APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY THE17
OFFICE PURSUANT TO SUBSECTION (7) OF THIS SECTION WITH THE18
QUALIFIED APPLICANT'S STATE INCOME TAX RETURN . IF THE QUALIFIED19
APPLICANT IS EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1),20
THE QUALIFIED APPLICANT SHALL FILE A RETURN PURSUANT TO SECTION21
39-22-601 (7)(b). T
HE AMOUNT OF THE TAX CREDIT THAT A QUALIFIED22
APPLICANT MAY CLAIM PURSUANT TO THIS SECTION IS THE AMOUNT23
STATED ON THE TAX CREDIT CERTIFICATE .24
(b) A
TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A25
LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR MULTIPLE26
OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS ,27
HB24-1295
-15- MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT IS A1
PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR2
PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS ,3
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION4
METHOD.5
(9) Refundability. T
HE ENTIRE TAX CREDIT TO BE ISSUED6
PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE QUALIFIED7
APPLICANT IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE PROJECT IS8
PLACED IN SERVICE. IF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT9
TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE10
DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE INCOME TAX11
YEAR FOR WHICH THE CREDIT IS BEING CLAIMED , OR THE QUALIFIED12
APPLICANT IS A PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO13
SECTION 39-22-112 (1), NINETY PERCENT OF THE AMOUNT OF THE CREDIT14
NOT USED AS AN OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR15
IS REFUNDED TO THE QUALIFIED APPLICANT . THE REMAINDER OF THE16
CREDIT IS NOT CARRIED FORWARD AND MAY NOT BE USED BY THE17
TAXPAYER.18
(10) Compliance monitoring and recapture. (a) E
XCEPT AS19
PROVIDED IN SUBSECTION (10)(b) OF THIS SECTION, IF, AS OF THE LAST20
DAY OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , THE21
BUILDING, STRUCTURE, OR FACILITY THAT IS THE SUBJECT OF AN ELIGIBLE22
PROJECT IS NOT BEING USED AS AN ELIGIBLE PROJECT, THE OFFICE SHALL23
NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT THE24
CREDIT ALLOWED IN THIS SECTION IS DISALLOWED . THE QUALIFIED25
APPLICANT SHALL ADD THE FULL AMOUNT OF THE CREDIT THAT WAS26
ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT 'S INCOME TAX OR27
HB24-1295
-16- REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN AS A1
RECAPTURED CREDIT FOR THE TAXABLE YEAR IN WHICH THE CREDIT IS2
DISALLOWED PURSUANT TO THIS SUBSECTION (10).3
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO4
SUBSECTION (10)(a) OF THIS SECTION DOES NOT APPLY:5
(I) I
F A BUILDING, STRUCTURE, OR FACILITY IS NOT AN ELIGIBLE6
PROJECT AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY7
RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD8
ESTABLISHED BY THE OFFICE; OR9
(II) S
OLELY BY REASON OF THE DISPOSITION OF A BUILDING ,10
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IF IT IS REASONABLY11
EXPECTED THAT THE BUILDING, STRUCTURE, OR FACILITY WILL CONTINUE12
TO BE OPERATED AS AN ELIGIBLE PROJECT FOR THE REMAINDER OF THE13
COMPLIANCE PERIOD.14
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS15
TO MONITOR COMPLIANCE WITH THIS SUBSECTION (10), INCLUDING16
REQUIREMENTS REGARDING THE REPORTING OF A DISPOSITION OF A17
BUILDING, STRUCTURE, OR FACILITY BY THE QUALIFIED APPLICANT AND18
THE REPORTING REQUIRED FOR SUCH A BUILDING , STRUCTURE, OR19
FACILITY FOR THE REMAINDER OF THE COMPLIANCE PERIOD .20
(II) I
F A DISPUTE ARISES ABOUT WHETHER A BUILDING ,21
STRUCTURE, OR FACILITY IS AN ELIGIBLE PROJECT, THE OFFICE SHALL22
ADJUDICATE THE DISPUTE AND NOTIFY THE DEPARTMENT OF THE23
RESOLUTION.24
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A BUILDING,25
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IS DISPOSED OF26
DURING ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , AND27
HB24-1295
-17- THEREAFTER THE BUILDING, STRUCTURE, OR FACILITY IS NOT AN ELIGIBLE1
PROJECT:2
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF3
THE CREDIT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE4
YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS5
SUBSECTION (10) NOTWITHSTANDING THE DISPOSITION OF THE QUALIFIED6
RESIDENTIAL STRUCTURE;7
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY8
DEFICIENCY WITH RESPECT TO THE DISALLOWED CREDIT MUST NOT EXPIRE9
BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE OFFICE IS10
NOTIFIED, IN SUCH A MANNER AS THE OFFICE DETERMINES , THAT THE11
STRUCTURE IS NOT A QUALIFIED RESIDENTIAL STRUCTURE ; AND12
(C) T
HE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE13
EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY14
APPLICABLE INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE15
22.16
(d) A
S USED IN THIS SUBSECTION (10), UNLESS THE CONTEXT17
OTHERWISE REQUIRES, "COMPLIANCE PERIOD" MEANS THE PERIOD OF18
FIFTEEN YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED19
APPLICANT PLACED THE ELIGIBLE PROJECT IN SERVICE .20
(11) Reporting. (a) N
O LATER THAN DECEMBER 31, 2027, AND,21
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO22
LATER THAN DECEMBER 31 OF EACH YEAR THEREAFTER THROUGH 2033,23
THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL24
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE25
PUBLIC. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS26
SECTION, THE REPORT MUST INCLUDE:27
HB24-1295
-18- (I) THE NUMBER OF ELIGIBLE PROJECTS PLACED IN SERVICE ;1
(II) A
DESCRIPTION OF THE USE OR USES OF EACH ELIGIBLE2
PROJECT AND A STATEWIDE SUMMARY OF THE NUMBER OF ELIGIBLE3
PROJECTS FOR EACH USE;4
(III) F
OR ELIGIBLE PROJECTS THAT CREATE AFFORDABLE HOUSING5
OR LIVE-WORK SPACES FOR CREATIVE INDUSTRY WORKERS , THE NUMBER6
OF AFFORDABLE HOUSING OR LIVE-WORK UNITS PLANNED OR CREATED ;7
(IV) T
HE OCCUPANCY RATE OF CREATED AFFORDABLE HOUSING8
AND LIVE-WORK UNITS;9
(V) T
HE COUNTIES IN WHICH QUALIFIED COMMERCIAL STRUCTURES10
WERE CONVERTED TO QUALIFIED COMMERCIAL RESIDENTIAL STRUCTURES ;11
AND12
(VI) T
HE AMOUNT OF ANY DISALLOWED TAX CREDIT RECAPTURED13
PURSUANT TO SUBSECTION (10) OF THIS SECTION.14
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO15
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME16
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH17
AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE18
OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR19
THAT INCLUDES THE FOLLOWING INFORMATION :20
(I) T
HE QUALIFIED APPLICANT'S NAME;21
(II) T
HE AMOUNT OF THE CREDIT; AND22
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR23
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL24
EMPLOYER IDENTIFICATION NUMBER .25
(12) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND26
MODIFY POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO27
HB24-1295
-19- FURTHER IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR THE1
COMPLETION OF ELIGIBLE PROJECTS PURSUANT TO THIS SECTION AND2
SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING AND3
MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.4
(b) W
ITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION5
WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT PURSUANT6
TO SUBSECTION (4)(b)(III) OF THIS SECTION, THE OFFICE SHALL DEVELOP7
STANDARDS THAT INCLUDE , BUT ARE NOT LIMITED TO:8
(I) A
DETAILED COST ESTIMATE FOR THE PROJECT PLAN ;9
(II) E
VIDENCE OF SITE CONTROL OF THE SITE WHERE THE PROJECT10
WILL OCCUR; AND 11
(III) T
HE FINANCING OR FUNDING THAT IS AVAILABLE FOR THE12
PROJECT PLAN.13
(13) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER14
31,
2050.15
SECTION 3. Act subject to petition - effective date. This act16
takes effect at 12:01 a.m. on the day following the expiration of the17
ninety-day period after final adjournment of the general assembly; except18
that, if a referendum petition is filed pursuant to section 1 (3) of article V19
of the state constitution against this act or an item, section, or part of this20
act within such period, then the act, item, section, or part will not take21
effect unless approved by the people at the general election to be held in22
November 2024 and, in such case, will take effect on the date of the23
official declaration of the vote thereon by the governor.24
HB24-1295
-20-