Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0658.03 Jason Gelender x4330
HOUSE BILL 24-1295
House Committees Senate Committees
Business Affairs & Labor
Finance
Appropriations
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, CREATING AN INCOME TAX CREDIT104
FOR EXPENSES INCURRED IN COMPLETING INFRASTRUCTURE105
THAT SUPPORTS CREATIVE INDUSTRIES AND CREATIVE INDUSTRY106
WORKERS, AND MAKING AN APPROPRIATION .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
Amended 2nd Reading
April 25, 2024
HOUSE SPONSORSHIP
Titone and Herod,
SENATE SPONSORSHIP
Fenberg and Coleman,
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
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
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, 24-75-402, amend27
1295
-4- (5)(ccc) and (5)(ddd); and add (5)(eee) as follows:1
24-75-402. Cash funds - limit on uncommitted reserves -2
reduction in the amount of fees - exclusions - definitions.3
(5) Notwithstanding any provision of this section to the contrary, the4
following cash funds are excluded from the limitations specified in this5
section:6
(ccc) The wildfire resiliency code board cash fund created in7
section 24-33.5-1236 (8); and8
(ddd) The closed landfill remediation grant program fund created9
in section 30-20-124 (8); AND10
(eee) THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAM11
CASH FUND CREATED IN SECTION 39-22-560 (13).12
SECTION 3. In Colorado Revised Statutes, add 39-22-560 as13
follows:14
39-22-560. Community revitalization tax credit - community15
revitalization tax credit program cash fund - tax preference16
performance statement - legislative declaration - definitions - repeal.17
(1) Tax preference performance statement. I
N ACCORDANCE WITH18
SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW19
TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE20
STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE21
GENERAL ASSEMBLY FINDS AND DECLARES THAT :22
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT23
ALLOWED BY THIS SECTION ARE:24
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;25
AND26
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR27
1295
-5- INDIVIDUALS;1
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT2
ALLOWED BY THIS SECTION IS TO REVITALIZE COMMUNITIES BY PROVIDING3
FINANCIAL SUPPORT AND A FINANCIAL INCENTIVE FOR CAPITAL4
IMPROVEMENT PROJECTS IN CREATIVE DISTRICTS THAT SUPPORT CREATIVE5
INDUSTRIES AND CREATIVE I NDUSTRY WORKERS BY PROVIDING6
AFFORDABLE HOUSING AND LIVE -WORK SPACES FOR SUCH WORKERS AND7
OTHER MIXED-USE AND CREATIVE-USE SPACES FOR BOTH SUCH WORKERS8
AND THE GENERAL PUBLIC THAT ENJOYS AND BENEFITS FROM THEIR WORK .9
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL10
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE11
PURPOSES SPECIFIED IN SUBSECTIONS (2)(a) AND (2)(b) OF THIS SECTION12
BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED BY AND13
REPORTED BY THE OFFICE PURSUANT TO SUBSECTION (11) OF THIS14
SECTION.15
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT16
OTHERWISE REQUIRES:17
(a) "A
PPLICATION" MEANS AN APPLICATION IN THE FORM AND18
MANNER APPROVED BY THE OFFICE FOR THE CREDIT ALLOWED IN THIS19
SECTION THAT INCLUDES THE PROJECT PLAN AND ESTIMATED ELIGIBLE20
EXPENDITURES.21
(b) "C
REATIVE DISTRICT" HAS THE SAME MEANING AS SET FORTH22
IN SECTION 24-48.5-314 (2)(b).23
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .24
(d) "E
LIGIBLE EXPENDITURES" MEANS REASONABLE AND25
NECESSARY EXPENDITURES , IN ACCORDANCE WITH GUIDELINES26
DEVELOPED BY THE OFFICE , ACTUALLY PAID BY A TAXPAYER IN27
1295
-6- COMPLETING AN ELIGIBLE PROJECT.1
(e) "E
LIGIBLE PROJECT" MEANS A CAPITAL IMPROVEMENT PROJECT2
UNDERTAKEN IN THE STATE WITHIN A CREATIVE DISTRICT , A HISTORIC3
DISTRICT, OR A NEIGHBORHOOD COMMERCIAL CENTER OR ON A MAIN4
STREET THAT I NVOLVES THE CONSTRUCTION , REHABILITATION,5
CONVERSION, REMODELING, OR OTHER IMPROVEMENT OF ONE OR MORE6
BUILDINGS, STRUCTURES, OR FACILITIES FOR USES THAT SUPPORT7
CREATIVE INDUSTRIES AND CREATIVE INDUSTRY WORKERS , INCLUDING8
AFFORDABLE HOUSING AND LIVE -WORK SPACES FOR SUCH WORKERS AND9
OTHER MIXED-USE, CREATIVE-USE, PERFORMANCE, AND EXHIBITION10
SPACES FOR SUCH WORKERS AND FOR THE GENERAL PUBLIC AND THAT IS11
APPROVED BY THE OFFICE IN ACCORDANCE WITH THE POLICIES ,12
PROCEDURES, AND GUIDELINES FOR THE IMPLEMENTATION AND13
ADMINISTRATION OF THE TAX CREDIT ALLOWED BY THIS SECTION ADOPTED14
BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.15
(f) "O
FFICE" MEANS THE OFFICE OF ECONOMIC DEVELOPMENT .16
(g) (I) "Q
UALIFIED APPLICANT" MEANS A PERSON THAT:17
(A) H
AS A CONTRACTUAL OR REAL PROPERTY INTEREST IN AN18
EXISTING OR PLANNED BUILDING, STRUCTURE, OR FACILITY THAT IS TO BE19
CONSTRUCTED, REHABILITATED, CONVERTED, REMODELED, OR OTHERWISE20
IMPROVED THROUGH THE COMPLETION OF AN ELIGIBLE PROJECT ; AND21
(B)
MAKES ELIGIBLE EXPENDITURES;22
(II)
A QUALIFIED APPLICANT MAY BE A PERSON SUBJECT TO TAX23
PURSUANT TO THIS ARTICLE 22 OR A PERSON OR POLITICAL SUBDIVISION OF24
THE STATE THAT IS EXEMPT FROM SUCH TAXATION PURSUANT TO SECTION25
39-22-112
(1).26
(3) Credit allowed. (a) F
OR INCOME TAX YEARS COMMENCING ON27
1295
-7- OR AFTER JANUARY 1, 2026, BUT PRIOR TO JANUARY 1, 2033, A QUALIFIED1
APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED2
BY THIS ARTICLE 22 FOR PLACING AN ELIGIBLE PROJECT IN SERVICE IN AN3
AMOUNT SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY THE OFFICE4
PURSUANT TO SUBSECTION (7) OF THIS SECTION.5
(b) I
N ORDER TO CLAIM THE CREDIT ALLOWED PURSUANT TO THIS6
SECTION, THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS7
SPECIFIED IN SUBSECTION (4) OF THIS SECTION, PLACE THE ELIGIBLE8
PROJECT IN SERVICE PRIOR TO JANUARY 1, 2033, OBTAIN A TAX CREDIT9
CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTION (7) OF THIS10
SECTION, AND, ONCE ISSUED BY THE OFFICE , FILE THE TAX CREDIT11
CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME TAX RETURN AS12
SPECIFIED IN SUBSECTION (8) OF THIS SECTION.13
(4) Application submission and review. (a) A
N APPLICANT MAY14
SUBMIT AN APPLICATION TO THE OFFICE ON OR AFTER JANUARY 1, 2025,15
BUT NO LATER THAN OCTOBER 3, 2029.16
(b) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS TO :17
(I) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED18
APPLICANT;19
(II) D
ETERMINE WHETHER THE APPLICATION IS COMPLETE AND20
INCLUDES A PROPERTY ADDRESS, LEGAL DESCRIPTION, OR OTHER SPECIFIC21
LOCATION IDENTIFIER;22
(III) M
AKE A PRELIMINARY DETERMINATION WHETHER THE23
PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT BASED ON THE POLICIES24
AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION25
(12)
OF THIS SECTION;26
(IV) D
ETERMINE WHETHER THE ELIGIBLE PROJECT IS ENTITLED TO27
1295
-8- A TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (6) OF THIS1
SECTION;2
(V) O
NCE THE ELIGIBLE PROJECT IS PLACED IN SERVICE, MAKE A3
FINAL DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT4
BASED ON THE POLICIES AND PROCEDURES DEVELOPED BY THE OFFICE5
PURSUANT TO SUBSECTION (12) OF THIS SECTION; AND6
(VI) I
F THE PROJECT IS AN ELIGIBLE PROJECT , REVIEW THE7
CERTIFIED ELIGIBLE EXPENDITURES AND , IF APPROVED, ISSUE A CREDIT8
CERTIFICATE TO THE QUALIFIED APPLICANT, AS SPECIFIED IN SUBSECTION9
(7)
OF THIS SECTION.10
(c) T
HE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN11
SUBSECTIONS (4)(b)(I) TO (4)(b)(V) OF THIS SECTION WITHIN NINETY DAYS12
OF THE DATE THE OFFICE RECEIVES THE APPLICATION .13
(d) (I) I
F THE OFFICE DETERMINES THAT AN APPLICATION IS14
INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS15
SPECIFIED IN SUBSECTIONS (4)(b)(I) TO (4)(b)(V) OF THIS SECTION, THE16
OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE 'S17
DECISION AND SHALL REMOVE THE APPLICATION FROM THE REVIEW18
PROCESS.19
(II) I
F AN APPLICANT RESUBMITS AN APPLICATION, THE OFFICE MAY20
CHARGE A NEW APPLICATION FEE IN AN AMOUNT SPECIFIED IN SUBSECTION21
(5)
OF THIS SECTION.22
(5) Application and issuance fees. (a) (I) F
OR AN APPLICATION23
FOR WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN24
APPLICANT PURSUANT TO THIS SECTION IS TWO HUNDRED FIFTY THOUSAND25
DOLLARS OR MORE, THE OFFICE MAY IMPOSE A REASONABLE APPLICATION26
FEE ON AN APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS .27
1295
-9- (II) FOR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX1
CREDIT REQUESTED BY AN APPLICANT PURSUANT TO THIS SECTION IS LESS2
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS , THE OFFICE MAY IMPOSE3
A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT4
EXCEED TWO HUNDRED DOLLARS .5
(b) T
HE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A6
REASONABLE ISSUANCE FEE OF UP TO THREE PERCENT OF THE AMOUNT OF7
THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY8
THE OFFICE AS SPECIFIED IN SUBSECTION (7) OF THIS SECTION, WHICH MUST9
BE PAID BEFORE THE TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED10
APPLICANT.11
(c) A
NY FEE REVENUE COLLECTED PURSUANT TO THIS SUBSECTION12
(5)
MUST BE
CREDITED TO THE COMMUNITY REVITALIZATION TAX CREDIT13
PROGRAM CASH FUND CREATED IN SUBSECTION (13) OF THIS SECTION AND14
APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT CREATED BY THIS15
SECTION.16
(6) Tax credit reservation. (a) B
ASED ON THE FACTORS SPECIFIED17
IN SUBSECTION (6)(d) OF THIS SECTION, THE OFFICE MAY DETERMINE THAT18
A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN19
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE OFFICE SHALL20
ISSUE TAX CREDIT RESERVATIONS SUBJECT TO THE LIMITATIONS SET FORTH21
IN THIS SUBSECTION (6) AND IN ACCORDANCE WITH THE POLICIES AND22
PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION (12) OF THIS23
SECTION. THE OFFICE SHALL NOT ISSUE TAX CREDIT RESERVATIONS AFTER24
J
ANUARY 1, 2030.25
(b) I
F THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A26
QUALIFIED APPLICANT, THE OFFICE SHALL NOTIFY THE QUALIFIED27
1295
-10- APPLICANT IN WRITING OF THE RESERVATION AND THE AMOUNT RESERVED .1
T
HE RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED2
APPLICANT DOES NOT ENTITLE THE QUALIFIED APPLICANT TO ISSUANCE OF3
A CREDIT CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH4
ALL THE OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE5
ISSUANCE OF THE TAX CREDIT. WHEN THE OFFICE APPROVES A TAX CREDIT6
RESERVATION, THE OFFICE MAY ALSO IMPOSE ADDITIONAL REQUIREMENTS ,7
WHICH A QUALIFIED APPLICANT SHALL SATISFY AS PART OF COMPLETING8
THE ELIGIBLE PROJECT, BEFORE A TAX CREDIT CERTIFICATE IS ISSUED TO9
THE QUALIFIED APPLICANT.10
(c) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (6)(c), IF11
APPROVED, THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A12
QUALIFIED APPLICANT FOR A SINGLE ELIGIBLE PROJECT IN AN AMOUNT13
EQUAL TO THE LESSER OF TWENTY -FIVE PERCENT OF THE QUALIFIED14
APPLICANT'S ESTIMATED ELIGIBLE EXPENDITURES OR THREE MILLION15
DOLLARS.16
(II) E
XCEPT AS PROVIDED IN SUBSECTIONS (6)(c)(III) AND17
(6)(c)(IV)
OF THIS SECTION, THE AGGREGATE AMOUNT OF ALL TAX CREDIT18
RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO THIS SECTION19
MUST NOT EXCEED
TEN MILLION DOLLARS IN ANY CALENDAR YEAR PLUS20
THE AMOUNT OF ANY PREVIOUSLY ISSUED TAX CREDIT RESERVATIONS21
THAT WERE RESCINDED PURSUANT TO SUBSECTION (7)(a)(II) OF THIS22
SECTION FROM PREVIOUS CALENDAR YEARS .23
(III) I
F THE OFFICE'S ISSUANCE OF A TAX CREDIT RESERVATION IN24
A CALENDAR YEAR WOULD CAUSE THE OFFICE TO EXCEED THE AGGREGATE25
LIMIT SPECIFIED IN SUBSECTION (6)(c)(II) OF THIS SECTION FOR THAT26
CALENDAR YEAR, THEN THE AGGREGATE AM OUNT OF ALL TAX CREDIT27
1295
-11- RESERVATIONS THAT THE OFFICE MAY ISSUE IN THE FOLLOWING CALENDAR1
YEAR IS DECREASED BY THE AMOUNT OF THE TAX CREDIT RESERVATIONS2
ISSUED IN THE PREVIOUS CALENDAR YEAR THAT EXCEEDED THE3
LIMITATION SET FORTH IN SUBSECTION (6)(c)(II) OF THIS SECTION.4
(IV) I
F THE OFFICE'S ISSUANCE OF TAX CREDIT RESERVATIONS BY5
THE END OF A CALENDAR YEAR IS LESS THAN THE AGGREGATE LIMIT6
SPECIFIED IN SUBSECTION (6)(c)(II) OF THIS SECTION FOR THAT CALENDAR7
YEAR, THEN THE AGGREGATE AMOUNT OF TAX CREDIT RESERVATIONS8
THAT THE OFFICE MAY ISSUE IN THE NEXT CALENDAR YEAR IS INCREASED9
BY THE UNRESERVED AMOUNT FROM THE PREVIOUS CALENDAR YEAR .10
(d) I
N MAKING THE FINAL DETERMINATION OF WHICH PROJECT11
PLANS TO ISSUE TAX RESERVATIONS FOR PURSUANT TO THIS SUBSECTION12
(6),
THE OFFICE MAY PRIORITIZE ELIGIBLE PROJECT PLANS IN ACCORDANCE13
WITH:14
(I) T
HE NUMBER OF NEW AFFORDABLE HOUSING UNITS TO BE15
CREATED BY THE ELIGIBLE PROJECT;16
(II) T
HE NUMBER OF LIVE-WORK SPACES TO BE CREATED BY THE17
ELIGIBLE PROJECT;18
(III) T
HE GEOGRAPHIC DIVERSITY OF THE APPLICATIONS AND19
PROJECT PLANS THAT QUALIFIED APPLICANTS HAVE SUBMITTED TO THE20
OFFICE;21
(IV) T
HE QUALITY AND ACCESSIBILITY OF MAKERSPACE TO BE22
PROVIDED FOR CREATIVE INDUSTRY WORKERS BY THE ELIGIBLE PROJECT ;23
(V) D
EMONSTRATION OF COMMUNITY ENGAGEMENT IN24
IDENTIFYING HOW THE PROJECT WILL SATISFY UNMET NEEDS AND DRIVE25
THE LOCAL CREATIVE ECONOMY ;26
(VI) D
EMONSTRATION OF STRONG EVIDENCE THAT THE ELIGIBLE27
1295
-12- PROJECT HAS OR CAN ATTRACT DIVERSE SOURCES OF FUNDING AND BROAD1
LOCAL GOVERNMENT SUPPORT ;2
(VII) D
EMONSTRATION OF HOW THE PROJECT SERVES RURAL ,3
UNDER-RESOURCED, OR UNDERSERVED COMMUNITIES ;4
(VIII) W
HETHER THE PROJECT PLAN IS RECEIVING PROPERTY TAX5
ABATEMENTS, CREDITS, REBATES, GRANTS, OR OTHER INCENTIVES FROM6
A LOCAL TAXING JURISDICTION;7
(IX) W
HETHER THE PROJECT WILL OCCUR WITHOUT THE ISSUANCE8
OF A TAX CREDIT PURSUANT TO THIS SECTION;9
(X) W
HETHER THE QUALIFIED APPLICANT WILL RECEIVE A10
FEDERAL INCENTIVE FOR THE PROJECT;11
(XI) T
HE PROXIMITY OF THE PROJECT TO PUBLIC TRANSPORTATION ;12
AND13
(XII) T
HE EXPECTED QUALIFICATION OF THE BUILDING ,14
STRUCTURE, OR FACILITY THAT IS THE SUBJECT OF THE ELIGIBLE PROJECT15
FOR A CERTIFIABLE SUSTAINABLE PROGRAM BOTH BEFORE AND AFTER THE16
COMPLETION OF THE PROJECT.17
(7) Deadline for incurring specified amount of estimated18
eligible expenditures - proof of compliance - audit of eligible19
expenditure certification - issuance of tax credit certificate. (a) (I) A20
QUALIFIED APPLICANT RECEIVING A RESERVATION OF TAX CREDITS21
PURSUANT TO SUBSECTION (6) OF THIS SECTION SHALL INCUR TWENTY22
PERCENT OR MORE OF THE ESTIMATED ELIGIBLE EXPENDITURES23
CONTAINED IN THE APPLICATION AND PROJECT PLAN NOT LATER THAN24
EIGHTEEN MONTHS AFTER THE DATE OF ISSUANCE OF THE WRITTEN NOTICE25
FROM THE OFFICE TO THE QUALIFIED APPLICANT GRANTING THE26
RESERVATION OF A TAX CREDIT.27
1295
-13- (II) A QUALIFIED APPLICANT FOR WHOM THE OFFICE HAS RESERVED1
A TAX CREDIT SHALL SUBMIT EVIDENCE OF COMPLIANCE WITH THE2
PROVISIONS OF SUBSECTION (7)(a)(I) OF THIS SECTION. IF THE OFFICE3
DETERMINES THAT A QUALIFIED APPLICANT HAS FAILED TO COMPLY WITH4
THE REQUIREMENTS OF SUBSECTION (7)(a)(I) OF THIS SECTION, THE OFFICE5
SHALL PROMPTLY NOTIFY THE QUALIFIED APPLICANT AND MAY RESCIND6
THE ISSUANCE OF THE WRI TTEN NOTICE IT PREVIOUSLY GAVE THE7
QUALIFIED APPLICANT GRANTING THE RESERVATION OF A TAX CREDIT . IF8
THE OFFICE SO RESCINDS AN ISSUANCE OF THE WRITTEN NOTICE , THE9
QUALIFIED APPLICANT MAY SUBMIT A NEW APPLICATION , PROJECT PLAN,10
AND ESTIMATE OF ELIGIBLE EXPENDITURES FOR WHICH THE OFFICE MAY11
CHARGE A NEW APPLICATION FEE IN ACCORDANCE WITH SUBSECTION (5)12
OF THIS SECTION, AND THE TOTAL AMOUNT OF TAX CREDITS MADE13
AVAILABLE FOR RESERVATION IN THE CALE NDAR YEAR DURING WHICH THE14
OFFICE RESCINDS THE ISSUANCE OF WRITTEN NOTICE MUST INCREASE BY15
THE AMOUNT OF THE TAX CREDIT RESERVED IN THE WRITTEN NOTICE .16
(b) A
FTER A QUALIFIED APPLICANT COMPLETES A PROJECT , THE17
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE PROJECT HAS18
BEEN PLACED IN SERVICE AND SHALL CERTIFY THE ELIGIBLE19
EXPENDITURES, AFTER WHICH THE OFFICE SHALL MAKE A FINAL20
DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT AS21
REQUIRED IN SUBSECTION (4)(b)(V) OF THIS SECTION. THE APPLICANT22
SHALL INCLUDE A REVIEW OF THE CERTIFICATION BY A LICENSED23
CERTIFIED PUBLIC ACCOUNTANT THAT IS NOT AFFILIATED WITH THE24
QUALIFIED APPLICANT THAT ALIGNS WITH OFFICE POLICIES FOR25
CERTIFICATION OF ELIGIBLE EXPENDITURES. THE APPLICANT SHALL ALSO26
CERTIFY AND PROVIDE DOCUMENTS DEMONSTRATING THAT THE27
1295
-14- APPLICANT SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE1
OFFICE PURSUANT TO SUBSECTION (6) OF THIS SECTION. WITHIN NINETY2
DAYS AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE QUALIFIED3
APPLICANT, THE OFFICE SHALL REVIEW THE QUALIFIED APPLICANT 'S4
DOCUMENTATION OF CERTIFIED ELIGIBLE EXPENDITURES , DETERMINE5
WHETHER THE DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER6
REQUIREMENTS, AND, IF THE OFFICE DETERMINES THAT THE7
DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER8
REQUIREMENTS, THE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE IN9
THE AMOUNT SPECIFIED IN THE TAX CREDIT RESERVATION ISSUED TO THE10
QUALIFIED APPLICANT PURSUANT TO SUBSECTION (6) OF THIS SECTION;11
EXCEPT THAT A CREDIT CERTIFICATE MAY NOT BE ISSUED FOR ANY INCOME12
TAX YEAR COMMENCING BEFORE JANUARY 1, 2026.13
(c) I
F THERE ARE ANY UNRESERVED AM OUNTS OF TAX CREDITS14
AVAILABLE UNDER SUBSECTION (6) OF THIS SECTION, AND IF THE AMOUNT15
OF CERTIFIED ELIGIBLE EXPENDITURES INCURRED BY THE QUALIFIED16
APPLICANT WOULD HAVE RESULTED IN THE QUALIFIED APPLICANT BEING17
ISSUED A TAX CREDIT CERTIFICATE THAT EXCEEDS THE AMOUNT OF THE18
TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT , THE19
QUALIFIED APPLICANT MAY APPLY TO THE OFFICE FOR THE ISS UANCE OF AN20
ADDITIONAL TAX CREDIT CERTIFICATE IN AN AM OUNT EQUAL TO THE21
DIFFERENCE BETWEEN THE TAX CREDIT RESERVATION AND WHAT WOULD22
HAVE BEEN ISSUED AS A RESULT OF THE CERTIFIED ELIGIBLE23
EXPENDITURES BY SUBMITTING AN APPLICATION IN A FORM AND MANNER24
DETERMINED BY THE OFFICE; EXCEPT THAT THE AGGREGATE OF THE TWO25
TAX CREDIT CERTIFICATES FOR THE ELIGIBLE PROJECT MAY NOT EXCEED26
THREE MILLION DOLLARS. THE OFFICE SHALL REVIEW THE APPLICATION AS27
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-15- SPECIFIED IN SUBSECTION (4) OF THIS SECTION AND, IF APPROVED, SHALL1
ISSUE A SEPARATE TAX CREDIT CERTIFICATE AWARDING THE QUALIFIED2
APPLICANT THE ADDITIONAL CREDIT.3
(8) Filing tax credit certificate with income tax return. (a) I
N4
ORDER TO CLAIM THE CREDIT AUTHORIZED BY THIS SECTION , A QUALIFIED5
APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY THE6
OFFICE PURSUANT TO SUBSECTION (7) OF THIS SECTION WITH THE7
QUALIFIED APPLICANT'S STATE INCOME TAX RETURN . IF THE QUALIFIED8
APPLICANT IS EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1),9
THE QUALIFIED APPLICANT SHALL FILE A RETURN PURSUANT TO SECTION10
39-22-601 (7)(b). T
HE AMOUNT OF THE TAX CREDIT THAT A QUALIFIED11
APPLICANT MAY CLAIM PURSUANT TO THIS SECTION IS THE AMOUNT12
STATED ON THE TAX CREDIT CERTIFICATE .13
(b) A
TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A14
LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR MULTIPLE15
OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS ,16
MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT IS A17
PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR18
PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS ,19
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION20
METHOD.21
(9) Refundability. T
HE ENTIRE TAX CREDIT TO BE ISSUED22
PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE QUALIFIED23
APPLICANT IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE PROJECT IS24
PLACED IN SERVICE. IF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT25
TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE26
DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE INCOME TAX27
1295
-16- YEAR FOR WHICH THE CREDIT IS BEING CLAIMED , OR THE QUALIFIED1
APPLICANT IS A PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO2
SECTION 39-22-112 (1), NINETY PERCENT OF THE AMOUNT OF THE CREDIT3
NOT USED AS AN OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR4
IS REFUNDED TO THE QUALIFIED APPLICANT . THE REMAINDER OF THE5
CREDIT IS NOT CARRIED FORWARD AND MAY NOT BE USED BY THE6
TAXPAYER.7
(10) Compliance monitoring and recapture. (a) E
XCEPT AS8
PROVIDED IN SUBSECTION (10)(b) OF THIS SECTION, IF, AS OF THE LAST9
DAY OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , THE10
BUILDING, STRUCTURE, OR FACILITY THAT IS THE SUBJECT OF AN ELIGIBLE11
PROJECT IS NOT BEING USED AS AN ELIGIBLE PROJECT, THE OFFICE SHALL12
NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT THE13
CREDIT ALLOWED IN THIS SECTION IS DISALLOWED . THE QUALIFIED14
APPLICANT SHALL ADD THE FULL AMOUNT OF THE CREDIT THAT WAS15
ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT 'S INCOME TAX OR16
REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN AS A17
RECAPTURED CREDIT FOR THE TAXABLE YEAR IN WHICH THE CREDIT IS18
DISALLOWED PURSUANT TO THIS SUBSECTION (10).19
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO20
SUBSECTION (10)(a) OF THIS SECTION DOES NOT APPLY:21
(I) I
F A BUILDING, STRUCTURE, OR FACILITY IS NOT AN ELIGIBLE22
PROJECT AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY23
RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD24
ESTABLISHED BY THE OFFICE; OR25
(II) S
OLELY BY REASON OF THE DISPOSITION OF A BUILDING ,26
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IF IT IS REASONABLY27
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-17- EXPECTED THAT THE BUILDING, STRUCTURE, OR FACILITY WILL CONTINUE1
TO BE OPERATED AS AN ELIGIBLE PROJECT FOR THE REMAINDER OF THE2
COMPLIANCE PERIOD.3
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS4
TO MONITOR COMPLIANCE WITH THIS SUBSECTION (10), INCLUDING5
REQUIREMENTS REGARDING THE REPORTING OF A DISPOSITION OF A6
BUILDING, STRUCTURE, OR FACILITY BY THE QUALIFIED APPLICANT AND7
THE REPORTING REQUIRED FOR SUCH A BUILDING , STRUCTURE, OR8
FACILITY FOR THE REMAINDER OF THE COMPLIANCE PERIOD .9
(II) I
F A DISPUTE ARISES ABOUT WHETHER A BUILDING ,10
STRUCTURE, OR FACILITY IS AN ELIGIBLE PROJECT, THE OFFICE SHALL11
ADJUDICATE THE DISPUTE AND NOTIFY THE DEPARTMENT OF THE12
RESOLUTION.13
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A BUILDING,14
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IS DISPOSED OF15
DURING ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , AND16
THEREAFTER THE BUILDING, STRUCTURE, OR FACILITY IS NOT AN ELIGIBLE17
PROJECT:18
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF19
THE CREDIT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE20
YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS21
SUBSECTION (10) NOTWITHSTANDING THE DISPOSITION OF THE QUALIFIED22
RESIDENTIAL STRUCTURE;23
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY24
DEFICIENCY WITH RESPECT TO THE DISALLOWED CREDIT MUST NOT EXPIRE25
BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE OFFICE IS26
NOTIFIED, IN SUCH A MANNER AS THE OFFICE DETERMINES , THAT THE27
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-18- STRUCTURE IS NOT A QUALIFIED RESIDENTIAL STRUCTURE ; AND1
(C) T
HE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE2
EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY3
APPLICABLE INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE4
22.5
(d) A
S USED IN THIS SUBSECTION (10), UNLESS THE CONTEXT6
OTHERWISE REQUIRES, "COMPLIANCE PERIOD" MEANS THE PERIOD OF7
FIFTEEN YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED8
APPLICANT PLACED THE ELIGIBLE PROJECT IN SERVICE .9
(11) Reporting. (a) N
O LATER THAN DECEMBER 31, 2027, AND,10
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO11
LATER THAN DECEMBER 31 OF EACH YEAR THEREAFTER THROUGH 2033,12
THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL13
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE14
PUBLIC. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS15
SECTION, THE REPORT MUST INCLUDE:16
(I) T
HE NUMBER OF ELIGIBLE PROJECTS PLACED IN SERVICE ;17
(II) A
DESCRIPTION OF THE USE OR USES OF EACH ELIGIBLE18
PROJECT AND A STATEWIDE SUMMARY OF THE NUMBER OF ELIGIBLE19
PROJECTS FOR EACH USE;20
(III) F
OR ELIGIBLE PROJECTS THAT CREATE AFFORDABLE HOUSING21
OR LIVE-WORK SPACES FOR CREATIVE INDUSTRY WORKERS , THE NUMBER22
OF AFFORDABLE HOUSING OR LIVE-WORK UNITS PLANNED OR CREATED ;23
(IV) T
HE OCCUPANCY RATE OF CREATED AFFORDABLE HOUSING24
AND LIVE-WORK UNITS;25
(V) T
HE COUNTIES IN WHICH QUALIFIED COMMERCIAL STRUCTURES26
WERE CONVERTED TO QUALIFIED COMMERCIAL RESIDENTIAL STRUCTURES ;27
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-19- AND1
(VI) T
HE AMOUNT OF ANY DISALLOWED TAX CREDIT RECAPTURED2
PURSUANT TO SUBSECTION (10) OF THIS SECTION.3
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO4
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME5
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH6
AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE7
OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR8
THAT INCLUDES THE FOLLOWING INFORMATION :9
(I) T
HE QUALIFIED APPLICANT'S NAME;10
(II) T
HE AMOUNT OF THE CREDIT; AND11
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR12
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL13
EMPLOYER IDENTIFICATION NUMBER .14
(12) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND15
MODIFY POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO16
FURTHER IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR THE17
COMPLETION OF ELIGIBLE PROJECTS PURSUANT TO THIS SECTION AND18
SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING AND19
MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.20
(b) W
ITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION21
WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT PURSUANT22
TO SUBSECTION (4)(b)(III) OF THIS SECTION, THE OFFICE SHALL DEVELOP23
STANDARDS THAT INCLUDE , BUT ARE NOT LIMITED TO:24
(I) A
DETAILED COST ESTIMATE FOR THE PROJECT PLAN ;25
(II) E
VIDENCE OF SITE CONTROL OF THE SITE WHERE THE PROJECT26
WILL OCCUR; AND 27
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-20- (III) THE FINANCING OR FUNDING THAT IS AVAILABLE FOR THE1
PROJECT PLAN.2
(13) Community revitalization tax credit program cash fund.3
(a) THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAM CASH FUND4
IS CREATED IN THE STATE TREASURY. THE FUND CONSISTS OF GIFTS,5
GRANTS, DONATIONS, FEE REVENUE CREDITED TO THE FUND PURSUANT TO6
SUBSECTION (5) OF THIS SECTION, AND ANY OTHER MONEY THAT THE7
GENERAL ASSEMBLY MAY APPROPRIATE, TRANSFER, OR REQUIRE BY LAW8
TO BE CREDITED TO THE FUND.9
(b) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND10
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE11
COMMUNITY REVITALIZATION TAX CREDIT PROGRAM CASH FUND TO THE12
FUND.13
(c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE14
OFFICE FOR THE PURPOSE OF ADMINISTERING THE TAX CREDIT ISSUED15
PURSUANT TO THIS SECTION.16
(d) THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED17
AND UNENCUMBERED MONEY IN THE FUND ON DECEMBER 31, 2050, TO18
THE GENERAL FUND.19
(14) Repeal. T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER20
31,
2050.21SECTION 4. Appropriation. For the 2024-25 state fiscal year,22
$102,498 is appropriated to the office of the governor for use by23
economic development programs. This appropriation is from the general24
fund and is based on an assumption that the office will require an25
additional 0.8 FTE. To implement this act, the office may use this26
appropriation for the council on creative industries.27
1295
-21- SECTION 5. Act subject to petition - effective date. This act1
takes effect at 12:01 a.m. on the day following the expiration of the2
ninety-day period after final adjournment of the general assembly; except3
that, if a referendum petition is filed pursuant to section 1 (3) of article V4
of the state constitution against this act or an item, section, or part of this5
act within such period, then the act, item, section, or part will not take6
effect unless approved by the people at the general election to be held in7
November 2024 and, in such case, will take effect on the date of the8
official declaration of the vote thereon by the governor.9
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