Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-1007.01 Pierce Lively x2059
HOUSE BILL 24-1314
House Committees Senate Committees
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING EXPANDING THE INCOME TAX CREDIT FOR QUALIFIED101
COSTS INCURRED IN PRESER VATION OF HISTORIC
STRUCTURES,102
AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.103
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
.)
The bill modifies the income tax credit for qualified costs incurred
in preservation of historic structures (credit) by:
! Modifying the requirement that a qualified commercial or
residential structure be at least 50 years old to instead
require a qualified commercial or residential structure to be
HOUSE
3rd Reading Unamended
April 26, 2024
HOUSE
Amended 2nd Reading
April 25, 2024
HOUSE SPONSORSHIP
Lukens and Martinez, Bird, Daugherty, Hamrick, Joseph, Kipp, Lieder, McCluskie, Ricks,
Woodrow
SENATE SPONSORSHIP
Gonzales and Will,
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. 30 years old;
! Extending the period for which a taxpayer may claim the
credit through income tax years commencing prior to
January 1, 2037;
! Extending the period for which the Colorado office of
economic development may reserve the credit through
December 31, 2032;
! Limiting the credit to apply to past rehabilitation
expenditures that occurred 12, rather than 24, months prior
to the submission of an application for the credit on or after
January 1, 2026;
! Preventing a person from submitting an application for the
credit on or after January 1, 2025, in connection with an
already completed rehabilitation project;
! Increasing the amount of the credit that may be awarded for
residential rehabilitation expenditures from $50,000 to
$100,000, beginning with credits that are awarded on or
after January 1, 2025;
! Removing the 5% increase in the percentage of applicable
rehabilitation expenses incurred in a rehabilitation in a
disaster area under the credit for rehabilitations made in
connection with an application for the credit submitted on
or after January 1, 2025;
! For tax years commencing on or after January 1, 2027,
allowing the credit for qualified residential structures to be
refundable rather than able to be carried forward; and
! For calendar years commencing on or after January 1,
2025, but before January 1, 2030, establishing a second
income tax credit pool of $5 million annually that is
reserved for an owner of a qualified commercial structure
that is rehabilitated so that at least 50% of the square
footage of the qualified commercial structure will be net
new housing rental units, and, if the qualified commercial
structure is subject to a deed restriction that requires the
owner to lease rental housing to individuals with an income
below a certain amount, the taxpayer claiming the credit
may claim 5% more of the qualified expenditures.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-22-514.5, amend2
(2)(j)(I), (2)(l)(I), (2)(n), (3), (5)(a) introductory portion, (5.5)(a)(I),3
(5.5)(a)(II),
(6)(c), (7)(a), (7)(a.5), (7)(b), (8)(a), (8)(b) introductory4
1314-2- portion, (8)(c)(II), (8)(c)(IV)(B), (11), (12)(a) introductory portion,1
(12)(a)(III), (12)(b), and (14); repeal (5.5)(b) and (8)(f); and add (5)(b.5),2
(8)(c)(V), (12)(a.5), (16), and (17) as follows:3
39-22-514.5. Tax credit for qualified costs incurred in4
preservation of historic structures - commercial historic preservation5
tax credit program cash fund - short title - definitions.6
(2) Definitions. As used in this section, unless the context otherwise7
requires:8
(j) "Qualified commercial structure" means an income producing9
or commercial property located in Colorado that is:10
(I) At least fifty THIRTY years old; and11
(l) "Qualified residential structure" means a nonincome producing12
and owner-occupied residential property located in Colorado that is:13
(I) At least fifty THIRTY years old; and14
(n) "Rehabilitation plan"
OR "PLAN" means construction plans and15
specifications for the proposed rehabilitation of a qualified structure that16
is
ARE in sufficient detail to enable the office or the reviewing entity, as17
applicable, to evaluate whether the structure is in compliance with the18
standards developed under subsection (4) of this section.19
(3) General provisions. For income tax years commencing on or20
after January 1, 2016, but prior to January 1, 2030 JANUARY 1, 2037, there21
shall be allowed a credit with respect to the income taxes imposed22
pursuant to this article 22 to each owner of a qualified structure that23
complies with the requirements of this section.24
(5) Submission by owner of application and rehabilitation25
plan. (a) The owner shall submit an application and rehabilitation plan26
to either the office for a qualified commercial structure or to the27
1314
-3- reviewing entity for a qualified residential structure, along with an1
estimate of the qualified rehabilitation expenditures under the2
rehabilitation plan. The IF AN APPLICATION AND REHABILITATION PLAN IS3
FOR A QUALIFIED COMMERCIAL STRUCTURE , THE OWNER SHALL SPECIFY4
WHETHER THE OWNER IS SEEKING TO RESERVE A CREDIT ALLOWED5
PURSUANT TO SUBSECTION (12)(a) OF THIS SECTION OR A CREDIT ALLOWED6
PURSUANT TO SUBSECTION (12)(a.5) OF THIS SECTION, AND AN OWNER7
MAY ONLY APPLY FOR ONE OF THESE TWO CREDITS FOR A SINGLE8
QUALIFIED REHABILITATION PLAN AS DESCRIBED IN SUBSECTION (7) OF9
THIS SECTION. AN owner, at the owner's own risk, may incur qualified10
rehabilitation expenditures no earlier than twenty-four months prior to the11
submission of the application and rehabilitation plan
THAT AN OWNER12
SUBMITS PRIOR TO JANUARY 1, 2026, AND NO EARLIER THAN TWELVE13
MONTHS PRIOR TO THE SUBMISSION OF THE APPLICATION AND14
REHABILITATION PLAN THAT AN OWNER SUBMITS ON OR AFTER JANUARY15
1,
2026, but only if satisfactory documentation is submitted to the office16
or the reviewing entity, as applicable, indicating the condition of the17
qualified structure prior to commencement of the rehabilitation, including18
but not limited to photographs of the qualified structure and written19
declarations from persons knowledgeable about the qualified structure.20
An owner may submit an application and rehabilitation plan and may21
commence rehabilitation before the property: 22
(b.5) O
N OR AFTER JANUARY 1, 2025, AN OWNER SHALL NOT23
SUBMIT AN APPLICATION AND REHABILITATION PLAN FOR AN ALREADY24
COMPLETED REHABILITATION PROJECT .25
(5.5) Issuance of tax credit certificate for qualified residential26
structures - rules. (a) (I) Following the completion of a rehabilitation of27
1314
-4- a qualified residential structure, the owner shall notify the reviewing1
entity that the rehabilitation has been completed and shall certify that the2
qualified rehabilitation expenditures incurred in connection with the3
rehabilitation plan. The owner shall also provide the reviewing entity with4
a cost and expense certification for the total qualified rehabilitation5
expenditures and the total amount of tax credits for which the owner is6
eligible. The reviewing entity shall review the documentation of the7
rehabilitation and verify its compliance with the rehabilitation plan.8
Except as otherwise provided in subsection (5.5)(a)(II) SUBSECTIONS9
(5.5)(a)(II)
AND (5.5)(a)(III) of this section, within ninety days after10
receipt of the foregoing documentation from the owner the reviewing11
entity shall issue a tax credit certificate in an amount equal to twenty12
percent of the actual qualified rehabilitation expenditures; except that the13
amount of the tax credit certificate
AWARDED FOR TAX YEARS14
COMMENCING BEFORE JANUARY 1, 2025, shall not exceed fifty thousand15
dollars for each qualified residential structure, which amount is
THE16
AMOUNT OF THE TAX CREDIT CERTIFICATE AWARDED FOR TAX YEARS17
COMMENCING ON OR AFTER JANUARY 1, 2025, SHALL NOT EXCEED ONE18
HUNDRED THOUSAND DOLLARS FOR EACH QUALIFIED RESIDENTIAL19
STRUCTURE, AND BOTH THE FIFTY THOUSAND DOLLAR AND ONE HUNDRED20
THOUSAND DOLLAR AMOUNTS ARE to be calculated over a ten-year rolling21
period that commences with each change in ownership of the qualified22
residential structure.23
(II) For income tax years commencing prior to January 1, 2030,24
AND FOR APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (5) OF THIS25
SECTION PRIOR TO JANUARY 1, 2025, with respect to a qualified residential26
structure located in an area that the president of the United States has27
1314
-5- determined to be a major disaster area under section 102 (2) of the federal1
"Robert T. Stafford Disaster Relief and Emergency Assistance Act", 422
U.S.C. sec. 5121 et seq., or that is located in an area that the governor has3
determined to be a disaster area under the "Colorado Disaster Emergency4
Act", part 7 of article 33.5 of title 24, the amount of the tax credit5
specified in subsection (5.5)(a)(I) of this section is increased to6
twenty-five percent for an application that is filed within six years after7
the disaster determination.8
(b) Notwithstanding any other provision of law, a taxpayer may9
claim the benefits offered by either subsection (5.5)(a)(II) or (5.5)(a)(III)10
of this section but shall not claim the benefits offered by both subsections11
(5.5)(a)(II) and (5.5)(a)(III) of this section.12
(6) Application and issuance fees for qualified commercial13
structures. (c) The office may impose on the owner a reasonable14
issuance fee of up to three percent of the amount of the tax credit issued,15
which must be paid before the tax credit is issued to the owner. With16
respect to both an application fee and an issuance fee, the office shall17
share on an equal basis any such fees collected with the historical society18
and the department. Moneys MONEY collected from such fees must be19
CREDITED TO THE COMMERCIAL HISTORIC PRESERVATION TAX CREDIT20
PROGRAM CASH FUND CREATED IN SUBSECTION (17) OF THIS SECTION AND21
applied to the administration of the tax credit created by this section.22
(7) Reservation of tax credits for qualified rehabilitation plans23
for qualified commercial structures. (a) In the case of a qualified24
commercial structure, a reservation of tax credits is permitted in25
accordance with the provisions of this subsection (7). The office and the26
historical society shall review the application and rehabilitation plan for27
1314
-6- a qualified commercial structure to determine that the information1
contained in the application and plan is complete. If the office and the2
historical society determine that the application and rehabilitation plan are3
complete, the office shall reserve for the benefit of the owner an4
allocation of a tax credit as provided in subsection (12)(a)
OR (12)(a.5) of5
this section
AND SUBSECTION (8)(c)(II) OF THIS SECTION, and the office6
shall notify the owner in writing of the amount of the reservation. The7
reservation of tax credits does not entitle the owner to an issuance of any
8
A tax credits CREDIT until the owner complies with all of the other9
requirements specified in this section for the issuance of the tax credit.10
The office must SHALL SEPARATELY reserve tax credits ALLOWED11
PURSUANT TO SUBSECTION (12)(a) OF THIS SECTION AND TAX CREDITS12
ALLOWED PURSUANT TO SUBSECTION (12)(a.5) OF THIS SECTION in the13
order in which it receives completed applications and rehabilitation plans14
FOR EACH OF THOSE TWO CATEGORIES OF CREDITS . The office shall issue15
any such
A reservation of tax credits authorized by this subsection (7)16
within a reasonable time, not to exceed ninety days after the filing of a17
completed application and rehabilitation plan. The office shall stamp each18
completed application and plan with the date and time it receives the19
application and plan and shall review a plan and application on the basis20
of the order in which such THE documents were submitted by date and21
time. The office shall only review an application and plan submitted in22
connection with a property for which a property address, legal23
description, or other specific location is provided in the application and24
plan
AND FOR WHICH THE OWNER HAS SPECIFIED THE CATEGORY OF CREDIT25
SOUGHT AS REQUIRED BY SUBSECTION (5)(a) OF THIS SECTION. The owner26
shall not request the review of another property for approval in the place27
1314
-7- of the property that is the subject of the application and plan. Any1
application and plan disapproved by the office will be removed from the2
review process, and the office shall notify the owner in writing of the3
decision to remove the property from the review process. Disapproved4
applications and plans lose their priority in the review process. An owner5
may resubmit a disapproved MODIFIED application and plan, but such A6
resubmitted application and plan is deemed to be a new submission for7
purposes of the priority procedures described in this subsection (7)(a). If8
a resubmitted application and plan are submitted, the office may charge9
a new application fee in an amount specified in accordance with10
subsection (6) of this section.11
(a.5) In the case of any project for a qualified commercial12
structure the qualified rehabilitation expenditures for which amount to13
less than fifty thousand dollars, if the total number of applications for14
such projects that are received but not reserved reach FOR CREDITS15
ALLOWED PURSUANT TO EITHER SUBSECTION (12)(a) OR (12)(b) OF THIS16
SECTION REACHES fifteen, in number the office may suspend the17
submission of additional applications
FOR THAT CREDIT FOR such projects18
until such time as these
THE fifteen projects have been duly reserved or19
disapproved. The notification period that is specified in subsection (5)(c)20
of this section is extended to one hundred twenty days after receipt of the21
application and rehabilitation plan for these THE fifteen projects. Any22
application for a qualified commercial structure the qualified23
rehabilitation expenditures for which amount to fifty thousand or more24
dollars is not subject to this subsection (7)(a.5).25
(b) If, for any calendar year, the aggregate amount of reservations26
for tax credits
ALLOWED PURSUANT TO EITHER SUBSECTION (12)(a) OR27
1314
-8- (12)(a.5) OF THIS SECTION THAT the office has approved is equal to the1
total amount of tax credits available for reservation
PURSUANT TO THE2
APPLICABLE SUBSECTION (12)(a) OR (12)(a.5) OF THIS SECTION during that3
calendar year, the office shall notify all owners who have submitted4
applications and rehabilitation plans
FOR RESERVATION OF A TAX CREDIT5
ALLOWED PURSUANT TO THE APPLICABLE SUBSECTION (12)(a) OR (12)(a.5)6
OF THIS SECTION then awaiting approval or submitted for approval after7
the calculation is made that no additional approvals of applications and8
plans for reservations of tax credits will be granted during that calendar9
year. and
The office shall additionally notify the owner of the priority10
number given to the owner's application and plan then awaiting approval.11
The applications and plans will remain in priority status for two years12
from the date of the original application and plan and will be ARE13
considered for reservations of tax credits in the priority order established14
in this subsection (7) in the event that IF additional credits become15
available resulting from the rescission of approvals under subsection16
(8)(a) of this section or because a new allocation of tax credits for a17
calendar year becomes available.18
(8) Deadline for incurring specified amount of estimated costs19
of rehabilitation - proof of compliance - audit of cost and expense20
certification - issuance of tax credit certificate - commercial21
structures. (a) Any AN owner receiving a reservation of tax credits22
under subsection (7)(a) of this section shall incur not less than twenty23
percent of the estimated costs of rehabilitation contained in the24
application and rehabilitation plan not later than eighteen months after the25
date of issuance of the written notice from the office to the owner26
granting the reservation of tax credits. Any AN owner receiving a27
1314
-9- reservation of tax credits shall submit evidence of compliance with the1
provisions of this subsection (8)(a). If the office determines that an owner2
has failed to comply with the requirements of this subsection (8)(a), the3
office may rescind the issuance it previously gave the owner approving4
the reservation of tax credits and, if so, the total amount of tax credits5
made available
PURSUANT TO SUBSECTION (12)(a) OR (12)(a.5) OF THIS6
SECTION, AS APPLICABLE, for the calendar year for which reservations may7
be granted must be increased by the amount of the tax credits rescinded.8
The office shall promptly notify any owner whose reservation of tax9
credits has been rescinded and, upon receipt of the notice, the owner may10
submit a new application and plan for which the office may charge a new11
application fee in accordance with subsection (6) of this section.12
(b) Following the completion of a rehabilitation of a qualified13
commercial structure, the owner shall notify the office that the14
rehabilitation has been completed and shall certify the qualified15
rehabilitation costs and expenses. The cost and expense certification must
16
be audited by a licensed certified public accountant that is not affiliated17
with the owner. THE APPLICANT SHALL INCLUDE A REVIEW OF THE18
CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT THAT IS19
NOT AFFILIATED WITH THE QUALIFIED APPLICANT, AND THE REVIEW OF THE20
CERTIFICATION MUST ALIGN WITH OFFICE POLICIES FOR CERTIFICATION OF21
QUALIFIED REHABILITATION EXPENDITURES . The office and the historical22
society shall review the documentation of the rehabilitation and the23
historical society shall verify that the documentation satisfies the24
rehabilitation plan. Within ninety days after receipt of such25
documentation from the owner, the office shall issue a tax credit26
certificate in an amount equal to the following subject to subsection (8)(c)27
1314
-10- of this section:1
(c) Notwithstanding subsection (8)(b) of this section:2
(II) The amount of a tax credit certificate to be issued
PURSUANT3
TO SUBSECTION (12)(a) OF THIS SECTION for any one qualified commercial4
structure shall not exceed one million dollars, in any one calendar year,
5
and
THE AMOUNT OF A TAX CREDIT CERTIFICATE TO BE ISSUED PURSUANT6
TO SUBSECTION (12)(a.5) OF THIS SECTION FOR ANY ONE QUALIFIED7
REHABILITATION PLAN SHALL NOT EXCEED ONE MILLION FIVE HUNDRED8
THOUSAND DOLLARS IN ANY ONE CALENDAR YEAR ;9
(IV) For income tax years commencing on or after January 1,10
2020, with respect to a certified historic structure that is a qualified11
commercial structure that is located in a rural community, the tax credit12
amounts specified in subsections (8)(b)(I) and (8)(b)(II) of this section13
must be increased as follows for an application that is properly filed in14
accordance with this section:15
(B) The twenty percent credit amount specified in subsection16
(8)(b)(II) of this section is increased to thirty percent;
AND17
(V) F
OR A TAX CREDIT ALLOWED PURSUANT TO SUBSECTION18
(12)(a.5)
OF THIS SECTION ONLY, IF, DUE TO A REGULATORY REQUIREMENT19
OR CONDITION OF FINANCING, THE QUALIFIED COMMERCIAL STRUCTURE20
FOR WHICH THE TAX CREDIT IS CLAIMED IS SUBJECT TO A DEED21
RESTRICTION THAT REQUIRES THE OWNER TO LEASE RENTAL HOUSING22
UNITS IN THE QUALIFIED COMMERCIAL STRUCTURE ONLY TO INDIVIDUALS23
OR HOUSEHOLDS WHOSE INCOME IS BELOW A SPECIFIED AMOUNT , THEN24
THE AMOUNT OF THE TAX CREDIT SPECIFIED IN SUBSECTION (8)(b) OF THIS25
SECTION, AS INCREASED PURSUANT TO SUBSECTION (8)(c)(III) OR26
(8)(c)(IV)
OF THIS SECTION, IF APPLICABLE, IS INCREASED BY AN27
1314
-11- ADDITIONAL FIVE PERCENT.1
(f) Notwithstanding any other provision of law, a taxpayer may2
claim the benefits offered by either subsection (8)(c)(III) or (8)(c)(IV) of3
this section but shall not claim the benefits offered by both subsections4
(8)(c)(III) and (8)(c)(IV) of this section.5
(11) Residential and commercial. (a) F
OR TAX YEARS6
COMMENCING PRIOR TO JANUARY 1, 2027, the entire tax credit to be issued7
under this section for either a qualified residential structure or a qualified8
commercial structure may be claimed by the owner in the taxable year in9
which the certified rehabilitation is placed in service. If the amount of the10
credit allowed under this section exceeds the amount of income taxes11
otherwise due on the income of the owner in the income tax year for12
which the credit is being claimed, the amount of the credit not used as an13
offset against income taxes in said income tax year may be carried14
forward as a credit against subsequent years' income tax liability for a15
period not to exceed ten years and will be applied to the earliest income16
tax years possible. Any amount of the credit that is not used after such17
period shall not be refunded to the owner.18
(b) (I) F
OR TAX YEARS COMMENCING ON OR AFTER JANUARY 1,19
2027,
THE ENTIRE TAX CREDIT TO BE ISSUED UNDER THIS SECTION FOR20
EITHER A QUALIFIED RESIDENTIAL STRUCTURE OR A QUALIFIED21
COMMERCIAL STRUCTURE MAY BE CLAIMED BY THE OWNER IN THE TAX22
YEAR IN WHICH THE CERTIFIED REHABILITATION IS PLACED IN SERVICE .23
(II) I
F THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION24
FOR A QUALIFIED COMMERCIAL STRUCTURE , BUT NOT A QUALIFIED25
RESIDENTIAL STRUCTURE, EXCEEDS THE AMOUNT OF INCOME TAXES26
OTHERWISE DUE ON THE INCOME OF THE OWNER IN THE INCOME TAX YEAR27
1314
-12- FOR WHICH THE CREDIT IS BEING CLAIMED , THE AMOUNT OF THE CREDIT1
NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX2
YEAR MAY BE CARRIED FORWARD AS A CREDIT AGAINST SUBSEQUENT3
YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED TEN YEARS4
AND SHALL BE APPLIED TO THE EARLIEST INCOME TAX YEARS POSSIBLE .5
A
NY AMOUNT OF THE CREDIT THAT IS NOT USED AFTER SUCH PERIOD6
SHALL NOT BE REFUNDED TO THE OWNER .7
(III) I
F THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS8
SECTION FOR A QUALIFIED RESIDENTIAL STRUCTURE, BUT NOT A QUALIFIED9
COMMERCIAL STRUCTURE , EXCEEDS THE AMOUNT OF INCOME TAXES10
OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE11
INCOME TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED , THE12
AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES13
IN THE INCOME TAX YEAR IS REFUNDED TO THE QUALIFIED APPLICANT .14
(12) Limit on aggregate amount of all tax credits that may be15
reserved for qualified commercial structures - assignability and16
transferability of tax credits for qualified commercial structures - tax17
preference performance statement - legislative declaration.18
(a) Except as otherwise provided in this subsection (12)
SUBSECTIONS19
(12)(a.5)
AND (12)(b) OF THIS SECTION, the aggregate amount of all tax20
credits in any tax
CALENDAR year that may be reserved for qualified21
commercial structures by the office upon the certification of all22
rehabilitation plans under subsection (7)(a) of this section for such23
structures must not exceed:24
(III) For qualified commercial structures estimating qualified25
rehabilitation expenditures in any amount, ten million dollars in the26
aggregate for each of the 2020 through 2029 2032 calendar years, in27
1314
-13- addition to the amount of any previously reserved tax credits that were1
rescinded under subsection (8)(a) of this section during the applicable2
calendar year; except that the aggregate amount of the ten million dollars3
in tax credits in any tax year that may be reserved by the office must be4
equally split between qualified commercial structures for which the5
estimated qualified rehabilitation expenditures are equal to or less than6
two million dollars and qualified commercial structures for which the7
estimated qualified rehabilitation expenditures are in excess of two8
million dollars.9
(a.5) F
OR CALENDAR YEARS COMMENCING ON OR AFTER JANUARY10
1,
2025, BUT BEFORE JANUARY 1, 2030, IN ADDITION TO THE TAX CREDITS11
ALLOWED TO BE RESERVED BY THE OFFICE PURSUANT TO SUBSECTION12
(12)(a)
OF THIS SECTION, THE OFFICE SHALL SEPARATELY RESERVE13
CREDITS PURSUANT TO THIS SUBSECTION (12)(a.5) FOR AN OWNER OF A14
QUALIFIED COMMERCIAL STRUCTURE THAT SUBMITS AN APPLICATION AND15
REHABILITATION PLAN FOR REHABILITATION OF THE QUALIFIED16
COMMERCIAL STRUCTURE SO THAT AT LEAST FIFTY PERCENT OF THE17
SQUARE FOOTAGE OF THE QUALIFIED COMMERCIAL STRUCTURE WILL BE18
NET NEW RENTAL HOUSING UNITS, AS DEFINED BY THE OFFICE. EXCEPT AS19
OTHERWISE PROVIDED IN SUBSECTION (12)(b) OF THIS SECTION, THE20
AGGREGATE AMOUNT OF ALL TAX CREDITS IN ANY CALENDAR YEAR THAT21
MAY BE RESERVED PURSUANT TO THIS SUBSECTION (12)(a.5) FOR22
QUALIFIED COMMERCIAL STRUCTURES BY THE OFFICE UPON THE23
CERTIFICATION OF ALL REHABILITATION PLANS UNDER SUBSECTION (7)(a)24
OF THIS SECTION FOR SUCH STRUCTURES MUST NOT EXCEED FIVE MILLION25
DOLLARS PER YEAR IN THE AGGREGATE , IN ADDITION TO THE AMOUNT OF26
ANY PREVIOUSLY RESERVED TAX CREDITS THAT WERE RESCINDED UNDER27
1314
-14- SUBSECTION (8)(a) OF THIS SECTION DURING THE APPLICABLE CALENDAR1
YEAR.2
(b) Notwithstanding any other provision of this subsection (12),3
if the entirety of the allowable tax credit amount for any tax CALENDAR4
year is not requested and reserved under:5
(I) Subsection (12)(a) of this section, the office may use any such6
unreserved tax credits in reserving tax credits in another category for that7
same income tax CALENDAR year, and the office may also use any8
remaining unreserved tax credits for that tax CALENDAR year in reserving9
tax credits in subsequent income tax CALENDAR years; OR10
(II) S
UBSECTION (12)(a.5) OF THIS SECTION, THE OFFICE SHALL USE11
ANY REMAINING UNRESERVED TAX CREDITS FOR THAT CALENDAR YEAR IN12
RESERVING TAX CREDITS IN SUBSEQUENT CALENDAR YEARS .13
(14) Deadline for submitting application and rehabilitation14
plan. Notwithstanding any other provision of this section, the tax credits15
authorized by this section for the substantial rehabilitation of a qualified16
structure are not available to an owner of a qualified structure that17
submits an application and rehabilitation plan after December 31, 2029.
18
D
ECEMBER 31, 2032. No action or inaction on the part of the general19
assembly has the effect of limiting or suspending the issuing of tax credits20
authorized by this section in any past or future income tax year with21
respect to a qualified structure if the owner of the structure submits an22
application and rehabilitation plan with the office on or prior to December
23
31, 2029 DECEMBER 31, 2032, even if the qualified structure is placed24
into service after December 31, 2029, DECEMBER 31, 2032. Any tax25
credits that have been reserved for a qualified commercial structure in26
accordance with subsection (7)(a) of this section and any applicable rules27
1314
-15- promulgated under this section prior to December 31, 2029 DECEMBER1
31,
2032, may still be issued by the office through and including2
December 31, 2032
DECEMBER 31, 2036.3
(16) Tax preference performance statement. (a) I
N4
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL5
THAT CREATES A NEW TAX EXPENDITURE OR EXTENDS AN EXPIRING TAX6
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT7
AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL8
ASSEMBLY DECLARES THAT THE GENERAL PURPOSES OF THE TAX CREDIT9
CREATED IN THIS SECTION ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR10
BY TAXPAYERS AND TO PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR11
INDIVIDUALS. THE SPECIFIC PURPOSES OF THE TAX CREDIT ARE TO PROVIDE12
AN INCENTIVE TO TAXPAYERS TO REHABILITATE QUALIFIED STRUCTURES13
IN A WAY THAT INCREASES THE NUMBER OF NET NEW RENTAL HOUSING14
UNITS IN THE STATE AND TO PROVIDE A GREATER INCENTIVE FOR15
TAXPAYERS WHO DEVELOP SUCH UNITS FOR RENTAL TO LOW - AND16
MODERATE-INCOME RENTERS WHO NEED AFFORDABLE AND17
MIDDLE-INCOME HOUSING.18
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL19
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE20
PURPOSES SPECIFIED IN SUBSECTION (16)(a) OF THIS SECTION BASED ON21
THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED BY THE22
OFFICE TO THE STATE AUDITOR PURSUANT TO SUBSECTION (16)(c) OF THIS23
SECTION.24
(c) T
HE OFFICE SHALL MAINTAIN A DATABASE OF ANY25
INFORMATION DETERMINED NECESSARY BY THE OFFICE TO EVALUATE THE26
EFFECTIVENESS OF THE INCOME TAX CREDIT ALLOWED IN THIS SECTION IN27
1314
-16- MEETING THE PURPOSES SET FORTH IN SUBSECTION (16)(a) OF THIS1
SECTION AND SHALL PROVIDE SUCH INFORMATION , WHICH MUST INCLUDE2
THE NUMBER AND VALUE OF TAX CREDITS CLAIMED PURSUANT TO THIS3
SECTION, THE NUMBER OF NET NEW RENTAL UNITS DEVELOPED , INCLUDING4
THE NUMBER OF SUCH UNITS DEVELOPED FOR RENTAL ONLY TO LOW - AND5
MODERATE-INCOME RENTERS, THROUGH THE REHABILITATION OF6
QUALIFIED COMMERCIAL OR RESIDENTIAL STRUCTURES FOR WHICH TAX7
CREDITS WERE ALLOWED PURSUANT TO THIS SECTION , AND, IF AVAILABLE,8
ANY OTHER INFORMATION THAT MAY BE NEEDED , TO THE STATE AUDITOR9
AS PART OF THE STATE AUDITOR 'S EVALUATION OF THE TAX CREDIT10
REQUIRED BY SECTION 39-21-305.11
(17) Commercial historic preservation tax credit program12
cash fund. (a) THE COMMERCIAL HISTORIC PRESERVATION TAX CREDIT13
PROGRAM CASH FUND IS CREATED IN THE STATE TREASURY . THE FUND14
CONSISTS OF GIFTS, GRANTS, DONATIONS, FEE REVENUE CREDITED TO THE15
FUND PURSUANT TO SUBSECTION (6) OF THIS SECTION, AND ANY OTHER16
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE, TRANSFER, OR17
REQUIRE BY LAW TO BE CREDITED TO THE FUND .18
(b) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND19
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE20
COMMERCIAL HISTORIC PRESERVATION TAX CREDIT PROGRAM CASH FUND21
TO THE FUND.22
(c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE23
OFFICE FOR THE PURPOSE OF ADMINISTERING THE TAX CREDIT ISSUED24
PURSUANT TO THIS SECTION.25
(d) THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED26
AND UNENCUMBERED MONEY IN THE FUND ON DECEMBER 31, 2051, TO27
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-17- THE GENERAL FUND.1
SECTION 2. In Colorado Revised Statutes, 24-75-402, amend2
(5)(ccc) and (5)(ddd); and add (5)(eee) as follows:3
24-75-402. Cash funds - limit on uncommitted reserves -4
reduction in the amount of fees - exclusions - definitions.5
(5) Notwithstanding any provision of this section to the contrary, the6
following cash funds are excluded from the limitations specified in this7
section:8
(ccc) The wildfire resiliency code board cash fund created in9
section 24-33.5-1236 (8); and10
(ddd) The closed landfill remediation grant program fund created11
in section 30-20-124 (8); AND12
(eee) THE COMMERCIAL HISTORIC PRESERVATION TAX CREDIT13
PROGRAM CASH FUND CREATED IN SECTION 39-22-514.5 (17).14
SECTION 3. Appropriation. (1) For the 2024-25 state fiscal15
year, $74,244 is appropriated to the office of the governor for use by16
economic development programs. This appropriation is from the general17
fund and is based on an assumption that the office will require an18
additional 0.4 FTE. To implement this act, the office may use this19
appropriation for the economic development commission - general20
economic incentives and marketing.21
(2) For the 2024-25 state fiscal year, $54,419 is appropriated to22
the department of higher education for use by history Colorado. This23
appropriation is from the general fund and is based on an assumption that24
the department will require an additional 0.4 FTE. To implement this act,25
the department may use this appropriation for the office of archeology26
and historic preservation.27
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-18- SECTION 4. 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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-19-