Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0997.01 Nicole Myers x4326
HOUSE BILL 24-1325
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF TAX INCENTIVES TO SUPPORT THE101
QUANTUM INDUSTRY .102
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 creates 2 tax incentives to support the development of the
quantum technology ecosystem in the state. Neither of the tax credits
created in the bill are allowed to any qualified applicant unless a
Colorado-based entity receives a multi-million dollar federal grant from
the economic development administration for the regional technology and
innovation program or a comparable federal grant program.
HOUSE SPONSORSHIP
Valdez and Soper,
SENATE SPONSORSHIP
Bridges and Baisley,
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. Tax credit for investments in fixed capital assets to create a
shared quantum facility. Section 2 of the bill creates a 100% refundable
income tax credit for qualifying investments in fixed capital assets as part
of a coordinated plan to create a shared quantum facility (facility credit)
for income tax years commencing on or after January 1, 2025, but before
January 1, 2033. The amount of the facility credit is equal to the amount
of the qualifying investment made by a qualified applicant for an eligible
project; except that the maximum aggregate amount of all facility credits
is $44 million. In addition, the maximum aggregate amount of facility
credits that may be claimed in the taxable year in which the eligible
project is placed in service is $24 million. If qualified applicants are
issued more than an aggregate of $24 million in facility credits, the
qualified applicants may claim the credits in future taxable years, subject
to a specified limit on the amount of the credit that may be claimed in a
single taxable year.
A qualified applicant may be a consortium of entities that are
jointly participating in creating a shared quantum facility. An eligible
project is a project to create a shared quantum facility, which is a primary
place in the state where an applicant performs activities and provides the
economic benefits related to quantum business and that is approved as an
eligible project by the office of economic development (office).
The bill details a process for claiming the facility credit that
requires:
! The submission by a qualified applicant to the office of an
application for a facility credit reservation;
! Preliminary and final review of the application and
approval of the request for a facility credit reservation by
the office;
! Issuance of a facility credit reservation to the qualified
applicant by the office;
! Completion of the eligible project and certification by the
qualified applicant of the qualified applicant's qualifying
investments;
! Review of the eligible project and qualifying investments
by the office;
! Issuance of a tax credit certificate by the office;
! Filing of the tax credit certificate with the department of
revenue with the qualified 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.
Quantum business loan loss reserve tax credit. Section 3 creates
a 100% refundable income tax credit to offset losses incurred by a
qualified applicant in connection with a registered loan to a quantum
HB24-1325
-2- company (loan loss credit) for income tax years commencing on or after
January 1, 2026, but before January 1, 2046. A qualified applicant is a
commercial bank, depository institution, private lending fund, or other
entity that makes loans for commercial purposes to a quantum company
that satisfies certain income and other criteria (eligible loan). The
administrator of the loan loss credit (administrator) may be the office, or
the office may contract with a third-party program administrator to
administer the credit. The administrator is required to determine the
method by which the loan loss credit will be distributed to qualified
applicants. The distribution method may be on a first-come, first-served
basis or based on a competitive lender selection process where the
administrator chooses which lenders are eligible to apply for the loan loss
credit.
A qualified applicant is required to register any loan that is the
basis of a loan loss tax credit with the administrator and is not eligible to
claim the loan loss credit until the qualified applicant has incurred a loss
in connection with a registered loan. The amount of the loan loss credit
is an amount up to 15 cents for every dollar of an eligible loan that the
qualified applicant has made or will make; except that the maximum
aggregate amount of all loan loss credits is $30 million. In addition,
subject to specified requirements and, if the administrator is not the
office, the approval of the office, the administrator may establish policies
and procedures to set the amount of the loan loss credit below 15 cents
for every dollar loaned, change the amount of the loan loss credit from
time to time, or cap the total amount of loan loss credits issued to a
qualified applicant.
Each qualified applicant that is issued more than one loan loss
credit certificate is required to hold all the loan loss credit certificates that
were issued to the qualified applicant in a pooled loan loss reserve. A
qualified applicant may use all or any portion of the loan loss credit
certificates issued to that qualified applicant to offset any loss incurred by
that qualified applicant in connection with one or more registered loans.
The bill details a process for claiming the loan loss credit that
requires:
! Submission of an application for a loan loss credit
certificate and a request that the administrator register an
eligible loan;
! Preliminary and final review of the application and
registration of eligible loans by the administrator;
! Issuance of a loan loss tax credit certificate to a qualified
applicant;
! Periodic updates to the administrator by a qualified
applicant that was issued a loan loss credit certificate
regarding the status of each of the qualified applicant's
registered loans;
HB24-1325
-3- ! Application to the administrator for a registered loan loss
certificate after a qualified applicant incurs a loss in
connection with a registered loan;
! Review of information regarding the loan by the
administrator and issuance of a registered loan loss
certificate to the qualified applicant; and
! Filing the loan loss credit certificate and the registered loan
loss certificate with the department of revenue with the
qualified applicant's tax return or informational return.
The administrator of the loan loss credit may impose a registration
and issuance fee on a qualified applicant or on the borrower to which a
qualified applicant made an eligible loan. The administrator is required
to credit any fee revenue to the quantum business loan loss reserve cash
fund, which is created in the bill and is exempted, in section 3, from the
restriction on the statutory amount of authorized cash fund reserves.
The office and the administrator are required to annually report to
the general assembly regarding the facility credit and the loan loss credit
and may, after soliciting advice from the department of revenue and
quantum industry participants, create and modify policies and procedures
as necessary to implement the facility credit or the loan loss credit, as
applicable.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) Under the federal "Creating Helpful Incentives to Produce4
Semiconductors (CHIPS) and Science Act", enacted in 2022, the United5
States Department of Commerce's Economic Development6
Administration is overseeing the Regional Technology and Innovation7
Hubs, or "Tech Hubs", program, a competitive process to select 5 to 108
federally designated Tech Hubs across the country, with $500 million in9
appropriated funding available in 2024 and up to $10 billion over 5 years; 10
(b) In October 2023, the federal government announced that11
Colorado was successful in its bid pursuing a regional Phase 1 Tech Hub12
designation, enabling the state to compete for new funds to develop the13
HB24-1325-4- quantum technology industry; the Tech Hub bid is led by a Colorado-led1
nonprofit consisting of a consortium of over 70 member organizations2
across Colorado, New Mexico, and Wyoming aiming to maintain the3
Mountain West as the nation's leading quantum ecosystem;4
(c) Colorado is currently competing nationally for the Tech Hubs5
program's Phase 2 Tech Hub designation and accompanying grant for6
quantum technology. If successful, Colorado will secure the federal7
funding necessary to develop a global hub for the quantum technology8
ecosystem, including quantum computing, sensing, networking, and9
enabling hardware.10
(d) Colorado is internationally recognized for its contributions to11
quantum physics and is home to 4 winners of the Nobel Prize in Physics12
for quantum breakthroughs that shifted global understanding in the field;13
(e) Colorado has more quantum startups, deployed quantum14
technology, private sector investments in quantum technology employees15
working for quantum companies, and overall economic output within the16
quantum industry than any other state;17
(f) Colorado's quantum technology industry has fostered a 40%18
increase in the number of patents secured in the state over the last 1019
years and a 545% increase in the total third-party funding amount directed20
to quantum companies in the state over the last 15 years;21
(g) Establishing Colorado as the global hub for quantum22
technology will result in an economic impact of more than $1 billion23
statewide and over 10,000 jobs from the Phase 2 Tech Hub designation24
alone, but state support will be essential in obtaining this federal money;25
(h) Colorado's quantum technology industry has garnered26
international recognition for its groundbreaking achievements,27
HB24-1325
-5- positioning the state as a leader in quantum research, development, and1
innovation; and2
(i) The collaborative efforts of higher education institutions,3
industry, and government agencies have played a pivotal role in nurturing4
Colorado's quantum technology ecosystem, fostering an environment5
conducive to research advancements, technology deployment to improve6
the quality of life, and economic prosperity for Colorado and our global7
community.8
(2) The general assembly further finds and declares that the tax9
incentives provided in this act will strengthen the growing and10
competitive position of Colorado as a Tech Hub for quantum technology11
and will enable the state to continue its exemplary achievements and12
strategic initiatives in quantum technology.13
SECTION 2. In Colorado Revised Statutes, add 39-22-560 and14
39-22-561 as follows:15
39-22-560. Tax credit for investments in fixed capital assets16
for a shared quantum facility - tax preference performance statement17
- definitions - repeal. (1) Tax preference performance statement. I
N18
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL19
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE20
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE21
DECLARATION, THE 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 IMPROVE INDUSTRY COMPETITIVENESS ;27
HB24-1325
-6- (b) THE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT1
ALLOWED BY THIS SECTION IS TO INDUCE A QUALIFIED APPLICANT TO2
INVEST IN FIXED CAPITAL ASSETS TO CREATE A HUB THAT IS A SHARED3
QUANTUM FACILITY THAT ACCOMPLISHES TRANSLATI ONAL RESEARCH AND4
INCUBATION, LOW-VOLUME MANUFACTURING AND FABRICATION AND5
RAPID PROTOTYPING IN A LABORATORY ENVIRONMENT AND TO PROVIDE6
RELATED SERVICES TO SUPPORT THE DEVELOPMENT OF QUANTUM7
BUSINESSES AND THE QUANTUM ECOSYSTEM IN THE STATE ; AND8
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL9
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES10
SPECIFIED IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION BASED ON11
THE INFORMATION REPORTED BY THE OFFICE PURSUANT TO SUBSECTION12
(11)
OF THIS SECTION.13
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT14
OTHERWISE REQUIRES:15
(a) "C
ONSORTIUM" MEANS A GROUP OF NONPROFIT OR FOR-PROFIT16
ENTITIES, OR BOTH, THAT ARE JOINTLY MAKING QUALIFYING INVESTMENTS17
IN AN ELIGIBLE PROJECT TO CREATE AND OPERATE A SHARED QUANTUM18
FACILITY. A CONSORTIUM MAY INCLUDE ONE OR MORE MEMBERS EXEMPT19
FROM TAX PURSUANT TO SECTION 39-22-112.20
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .21
(c) "E
LIGIBLE PROJECT" MEANS A CAPITAL PROJECT UNDERTAKEN22
IN THE STATE TO CREATE A SHARED QUANTUM FACILITY FOR WHICH A23
QUALIFIED APPLICANT MAKES QUALIFYING INVESTMENTS 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
HB24-1325
-7- BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.1
(d) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC2
DEVELOPMENT CREATED IN SECTION 24-48.5-101.3
(e) (I) "Q
UALIFIED APPLICANT" MEANS A NONPROFIT OR4
FOR-PROFIT ENTITY THAT SUBMITS AN APPLICATION FOR THE RESERVATION5
AND ISSUANCE OF TAX CREDITS TO THE OFFICE PURSUANT TO THIS6
SECTION. AN APPLICANT MAY BE A CONSORTIUM AS SET FORTH IN7
SUBSECTION (4) OF THIS SECTION.8
(II) A
"QUALIFIED APPLICANT" INCLUDES A PERSON THAT IS9
EXEMPT FROM TAXATION PURSUANT TO SECTION 39-22-112.10
(f) (I) "Q
UALIFYING FIXED CAPITAL ASSETS" MEANS:11
(A) L
AND IN THIS STATE;12
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS13
OF BUILDINGS IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS14
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF15
THE INTERNAL REVENUE CODE , INCLUDING PURCHASING OR16
CONSTRUCTING A FACILITY, RENOVATING A FACILITY, MAKING TENANT17
IMPROVEMENTS, FUNDING A CAPITAL LEASE , CAPITALIZED LABOR,18
CONSTRUCTION, AND INSTALLATION COSTS;19
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE20
EXCLUSIVELY IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS21
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF22
THE INTERNAL REVENUE CODE , INCLUDING FURNITURE, FIXTURES AND23
EQUIPMENT SUCH AS OUTFITTING AN OFFICE , LABORATORY MACHINES ,24
REFRIGERATION, HVAC SYSTEMS, PIPING, MEASURING, MONITORING AND25
INSTRUMENTATION EQUIPMENT , FABRICATION MACHINES, TOOLS AND26
EQUIPMENT, AND ANY HARDWARE AND SOFTWARE DEVELOPED BY THIRD27
HB24-1325
-8- PARTIES NECESSARY FOR QUANTUM TECHNOLOGY APPLICATIONS ; AND1
(D) C
OMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN2
THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS ALLOWED A3
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE4
INTERNAL REVENUE CODE.5
(II) "Q
UALIFYING FIXED CAPITAL ASSETS" IS LIMITED TO PROPERTY6
ACQUIRED, CONSTRUCTED, RECONSTRUCTED, OR ERECTED AS PART OF A7
COORDINATED PLAN TO CREATE A SHARED QUANTUM FACILITY .8
(III) F
OR PURPOSES OF THIS SUBSECTION (2)(f), IF A QUALIFIED9
APPLICANT IS NOT SUBJECT TO FEDERAL INCOME TAX , THE QUALIFIED10
APPLICANT IS DEEMED TO BE ALLOWED A DEDUCTION FOR DEPRECIATION11
IF SUCH A DEDUCTION WOULD HAVE BEEN ALLOWED WERE THE QUALIFIED12
APPLICANT SUBJECT TO FEDERAL INCOME TAX .13
(g) "Q
UALIFYING INVESTMENT" MEANS THE AMOUNT PAID BY A14
QUALIFIED APPLICANT TO ACQUIRE, CONSTRUCT, RECONSTRUCT, OR ERECT15
QUALIFYING FIXED CAPITAL ASSETS TO THE EXTENT SUCH AMOUNT IS16
REQUIRED TO BE CAPITALIZED PURSUANT TO THE INTERNAL REVENUE17
CODE OR SUCH AMOUNT IS ALLOWED TO BE DEDUCTED UNDER SECTION 17918
OF THE INTERNAL REVENUE CODE. "QUALIFYING INVESTMENT" INCLUDES19
AN AMOUNT CAPITALIZED BY A LESSEE OF QUALIFYING FIXED CAPITAL20
ASSETS FOR A LEASE THAT IS TREATED AS A SALE FOR FEDERAL INCOME21
TAX PURPOSES.22
(h) "Q
UANTUM BUSINESS" MEANS A PRIVATE FOR-PROFIT TRADE23
OR BUSINESS OR NONPROFIT ORGANIZATION THAT HAS QUANTUM24
TECHNOLOGY AS A KEY PART OF ITS BUSINESS MODEL OR OR GANIZATIONAL25
PURPOSE, INCLUDING BUT NOT LIMITED TO MANUFACTURING , TESTING,26
PRODUCTION, RESEARCH AND DEVELOPMENT , OR ENHANCEMENT OF27
HB24-1325
-9- HARDWARE OR SOFTWARE TO PERFORM OR USE QUANTUM TECHNOLOGY1
AS A KEY INPUT OR OUTPUT OF ITS BUSINESS MODEL , AND COMPANIES2
THAT PRODUCE GOODS OR SERVICES THAT ARE KEY INPUTS FOR OTHER3
QUANTUM BUSINESS.4
(i) "S
HARED QUANTUM FACILITY" MEANS A PRIMARY PLACE IN THE5
STATE WHERE AN APPLICANT PERFORMS ACTIVITIES AND PROVIDES6
ECONOMIC BENEFITS RELATED TO SUPPORTING QUANTUM BUSINESSES AND7
THE QUANTUM ECOSYSTEM .8
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF9
SUBSECTION (3)(c) OF THIS SECTION, FOR INCOME TAX YEARS10
COMMENCING ON OR AFTER JANUARY 1, 2025, BUT PRIOR TO JANUARY 1,11
2033,
A QUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME12
TAXES IMPOSED BY THIS ARTICLE 22 FOR PLACING AN ELIGIBLE PROJECT IN13
SERVICE IN AN AMOUNT SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY14
THE OFFICE PURSUANT TO SUBSECTION (7) OF THIS SECTION.15
(b) T
O CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION ,16
THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION FOR A TAX17
CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (5) OF THIS SECTION,18
PLACE THE ELIGIBLE PROJECT IN SERVICE PRIOR TO JANUARY 1, 2031,19
OBTAIN A TAX CREDIT CERTIFICATE FROM THE OFFICE AS SPECIFIED IN20
SUBSECTION (7) OF THIS SECTION, AND, ONCE ISSUED BY THE OFFICE, FILE21
THE TAX CREDIT CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME22
TAX RETURN AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION.23
(c) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT ALLOWED TO24
ANY QUALIFIED APPLICANT UNLESS A COLORADO-BASED ENTITY RECEIVES25
A MULTI-MILLION DOLLAR FEDERAL GRANT FROM THE ECONOMIC26
DEVELOPMENT ADMINISTRATION FOR THE REGIONAL TECHNOLOGY AND27
HB24-1325
-10- INNOVATION PROGRAM OR A COMPAR ABLE FEDERAL GRANT PROGRAM .1
T
HE OFFICE SHALL NOTIFY THE DEPARTMENT IF A GRANT SPECIFIED IN THIS2
SUBSECTION (3)(c) IS RECEIVED.3
(4) Consortium as qualified applicant - tax matters4
representative. I
F A QUALIFIED APPLICANT IS A CONSORTIUM:5
(a) T
HE BASIS OF THE CREDIT ALLOWED BY THIS SECTION INCLUDES6
THE AGGREGATE QUALIFYING INVESTMENT BY ALL THE MEMBERS OF THE7
CONSORTIUM AS DESCRIBED IN SUBSECTION (7)(a)(II) OF THIS SECTION.8
(b) W
HETHER THE APPLICANT PERFORMS THE ACTIVITIES AND9
PROVIDES THE ECONOMIC BENEFITS RELATED TO QUANTUM BUSINESS IS10
BASED UPON THE ACTIVITIES PERFORMED BY AND THE BENEFITS PROVIDED11
BY ALL THE MEMBERS OF THE CONSORTIUM .12
(c) T
HE MEMBERS OF THE CONSORTIUM SHALL DESIGNATE ONE13
MEMBER TO BE THE TAX MATTERS REPRESENTATIVE . THE TAX MATTERS14
REPRESENTATIVE SHALL DISCLOSE TO THE OFFICE THAT IT IS THE TAX15
MATTERS REPRESENTATIVE ACTING ON BEHALF OF THE CONSORTIUM . THE16
TAX MATTERS REPRESENTATIVE SHALL ALSO DISCLOSE TO THE OFFICE THE17
NAME AND TAXPAYER IDENTIFICATION NUMBER OF EACH MEMBER OF THE18
CONSORTIUM.19
(d) T
HE TAX MATTERS REPRESENTATIVE IS RESPONSIBLE FOR20
REPRESENTING AND BINDING THE CONSORTIUM WITH RESPECT TO ALL21
ISSUES AFFECTING THE CREDIT, INCLUDING SUBMITTING THE APPLICATION22
FOR A TAX CREDIT RESERVATION , REPRESENTING THE CONSORTIUM23
BEFORE THE OFFICE WITH RESPECT TO THE APPLICATION , NOTIFYING THE24
OFFICE THAT THE ELIGIBLE PROJECT HAS BEEN PLACED IN SERVICE ,25
SUBMITTING PROOF OF COMPLIANCE , SUBMITTING ONGOING COMPLIANCE26
REPORTS, SUBMITTING ANY OTHER REPORT OR DOCUMENT REQUIRED BY27
HB24-1325
-11- THE OFFICE OR THE DEPARTMENT , ADJUDICATING ANY DISPUTES , AND1
TAKING ANY OTHER ACTION REQUIRED OF A QUALIFIED APPLICANT BY THIS2
SECTION. THE ACTS OF THE TAX MATTERS REPRESENTATIVE ARE BINDING3
UPON ALL MEMBERS OF THE CONSORTIUM .4
(e) T
HE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE TO, AND5
IN THE NAME OF, THE TAX MATTERS REPRESENTATIVE . THE TAX MATTERS6
REPRESENTATIVE SHALL FILE THE RETURN AND CLAIM THE FULL AMOUNT7
OF THE TAX CREDIT PURSUANT TO SUBSECTION (8) OF THIS SECTION. THE8
DEPARTMENT SHALL PAY ANY AMOUNT REFUNDED PURSUANT TO9
SUBSECTION (9) OF THIS SECTION TO THE TAX MATTERS REPRESENTATIVE .10
(f) I
F THE CREDIT ALLOWED BY THIS SECTION IS RECAPTURED11
PURSUANT TO SUBSECTION (10) OF THIS SECTION, THE TAX MATTERS12
REPRESENTATIVE SHALL ADD THE RECAPTURED CREDIT , PLUS ANY13
APPLICABLE PENALTIES AND INTEREST , TO ITS RETURN. NEVERTHELESS,14
EVERY MEMBER OF THE CONSORTIUM IS JOINTLY AND SEVERALLY LIABLE15
FOR ANY RESULTING DEFICIENCY.16
(5) Application submission and review for tax credit17
reservation. (a) A
N APPLICANT MAY SUBMIT AN APPLICATION FOR A TAX18
CREDIT RESERVATION TO THE OFFICE ON OR AFTER JANUARY 1, 2024, BUT19
NO LATER THAN DECEMBER 31, 2025; EXCEPT THAT IF THE FEDERAL20
GOVERNMENT HAS NOT ANNOUNCED THE GRANT RECIPIENT DESCRIBED IN21
SUBSECTION (3)(c) OF THIS SECTION BY JUNE 30, 2025, THE OFFICE MAY22
EXTEND THE APPLICATION DEADLINE TO NO MORE THAN SIX MONTHS23
AFTER AN ANNOUNCEMENT THAT A COLORADO-BASED ENTITY HAS24
RECEIVED THE GRANT DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION.25
T
HE APPLICATION SHALL INCLUDE A PROJECT PLAN FOR A SHARED26
QUANTUM FACILITY.27
HB24-1325
-12- (b) THE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS FOR1
A TAX CREDIT RESERVATION TO:2
(I) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED3
APPLICANT;4
(II) D
ETERMINE WHETHER THE APPLICATION FOR A TAX CREDIT5
RESERVATION IS COMPLETE AND INCLUDES A PLAN TO MAKE INVESTMENTS6
IN QUALIFYING FIXED CAPITAL ASSETS FOR THE CREATION OF A SHARED7
QUANTUM FACILITY;8
(III) M
AKE A PRELIMINARY DETERMINATION WHETHER THE9
PROJECT PLAN FOR A SHARED QUANTUM FACILITY IS FOR AN ELIGIBLE10
PROJECT BASED ON THE POLICIES AND PROCEDURES DEVELOPED BY THE11
OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION; AND12
(IV) D
ETERMINE WHETHER THE ELIGIBLE PROJECT IS ENTITLED TO13
A TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (6) OF THIS14
SECTION.15
(c) T
HE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN16
SUBSECTION (5)(b) OF THIS SECTION WITHIN NINETY DAYS OF THE DATE17
THE OFFICE RECEIVES THE COMPLETE APPLICATION FOR A TAX CREDIT18
RESERVATION.19
(d) I
F THE OFFICE DETERMINES THAT AN APPLICATION FOR A TAX20
CREDIT RESERVATION IS INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE21
DETERMINATION SPECIFIED IN SUBSECTION (5)(b) OF THIS SECTION, THE22
OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE 'S23
DECISION AND MAY REMOVE THE APPLICATION FOR A TAX CREDIT24
RESERVATION FROM THE REVIEW PROCESS .25
(e) A
S PART OF THE APPLICATION REVIEW PROCESS REQUIRED26
PURSUANT TO SUBSECTION (5)(b) OF THIS SECTION, THE OFFICE MAY27
HB24-1325
-13- REQUEST CLARIFICATIONS AND MODIFICATIONS TO THE APPLICATION .1
(f) T
HE OFFICE MAY INCLUDE PERFORMANCE REQUIREMENTS AND2
CRITERIA THAT A QUALIFIED APPLICANT IS REQUIRED TO SATISFY BEFORE3
THE OFFICE WILL ISSUE A TAX CREDIT RESERVATION PURSUANT TO4
SUBSECTION (6) OF THIS SECTION OR A TAX CREDIT CERTIFICATE PURSUANT5
TO SUBSECTION (7) OF THIS SECTION. THE OFFICE MUST DOCUMENT IN6
WRITING ANY REQUIREMENTS CREATED PURSUANT TO THIS SUBSECTION7
(5)(f).8
(6) Tax credit reservation. (a) B
ASED ON THE FACTORS SPECIFIED9
IN SUBSECTION (6)(d) OF THIS SECTION, THE OFFICE MAY DETERMINE THAT10
A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN11
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE OFFICE SHALL12
ISSUE TAX CREDIT RESERVATIONS SUBJECT TO THE LIMITATIONS SET FORTH13
IN THIS SUBSECTION (6) AND IN ACCORDANCE WITH THE POLICIES AND14
PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION (12) OF THIS15
SECTION.16
(b) I
F THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A17
QUALIFIED APPLICANT, THE OFFICE SHALL NOTIFY THE QUALIFIED18
APPLICANT IN WRITING OF THE RESERVATION AND THE AMOUNT RESERVED .19
T
HE RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED20
APPLICANT DOES NOT ENTITLE THE QUALIFIED APPLICANT TO ISSUANCE OF21
A CREDIT CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH22
ALL THE OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE23
ISSUANCE OF THE TAX CREDIT. WHEN THE OFFICE APPROVES A TAX CREDIT24
RESERVATION, THE OFFICE MAY ALSO IMPOSE ADDITIONAL REQUIREMENTS ,25
WHICH A QUALIFIED APPLICANT SHALL SATISFY AS PART OF COMPLETING26
THE QUALIFYING INVESTMENT , BEFORE A TAX CREDIT CERTIFICATE IS27
HB24-1325
-14- ISSUED TO THE QUALIFIED APPLICANT.1
(c) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (6)(c), IF2
APPROVED, THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A3
QUALIFIED APPLICANT FOR AN ELIGIBLE PROJECT IN AN AMOUNT EQUAL TO4
THE QUALIFIED APPLICANT'S ESTIMATED QUALIFYING INVESTMENT .5
(II) T
HE AGGREGATE AMOUNT OF ALL FIXED ASSET INVESTMENT6
TAX CREDIT RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO7
THIS SECTION MUST NOT EXCEED FORTY -FOUR MILLION DOLLARS.8
(III) T
HE OFFICE MAY ESTABLISH POLICIES AND PROCEDURES TO9
CAP THE TOTAL AMOUNT OF ANY TAX CREDIT RESERVATION ISSUED TO A10
QUALIFIED APPLICANT PURSUANT TO THIS SUBSECTION (6).11
(d) I
N MAKING THE FINAL DETERMINATION OF WHICH PROJECT12
PLAN TO ISSUE TAX RESERVATIONS TO PURSUANT TO THIS SUBSECTION (6),13
THE OFFICE MAY PRIORITIZE A PROJECT PLAN THAT :14
(I) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT IS A15
CONSORTIUM THAT INCLUDES THE FOLLOWING OR IS SUBMITTED BY A16
QUALIFIED APPLICANT THAT IS NOT A CONSORTIUM AND THAT17
COLLABORATES WITH THE FOLLOWING :18
(A) A
NONPROFIT ENTITY CREATED BY INSTITUTIONS OF HIGHER19
EDUCATION OF HIGH RESEARCH ACTIVITY, CLASSIFIED AS R1 UNIVERSITIES,20
LED BY A PUBLIC R1 UNIVERSITY WITH A DEMONSTRATED HISTORY OF21
QUANTUM-RELATED RESEARCH AND INVESTMENT IN COLORADO; AND22
(B) A
NONPROFIT ENTITY THAT HAS RECEIVED A SUBSTANTIAL23
FEDERAL AWARD FOR THE PURPOSES OF CULTIVATING AND EXPANDING A24
QUANTUM-RELATED ECOSYSTEM WITHIN COLORADO;25
(II) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT26
DEMONSTRATES AN ABILITY TO MEET APPLICATION REQUIREMENTS27
HB24-1325
-15- DESIGNATED BY THE OFFICE, INCLUDING:1
(A) T
HE SUBMISSION OF A BUDGET FOR THE PROJECT PLAN THAT2
INCLUDES THE SOURCES OF FUNDING FOR THE PROJECT AND ANTICIPATED3
USES OF THE FUNDING; AND4
(B) T
HE SUBMISSION OF AN EXPLANATION FOR THE WAYS IN WHICH5
THE SHARED QUANTUM FACILITY WILL BE USED AND HOW IT WILL BENEFIT6
THE QUANTUM INDUSTRY IN THIS STATE ;7
(III) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT :8
(A) D
EMONSTRATES THAT THE PROJECT PLAN IS AGREED UPON BY9
THE ENTITIES DESCRIBED IN SUBSECTIONS (6)(d)(I)(A) AND (6)(d)(I)(B) OF10
THIS SECTION;11
(B) D
EMONSTRATES AN INTENT TO EQUITABLY AND EFFECTIVELY12
DISTRIBUTE THE TAX CREDITS OR THE REFUND PROCEEDS OF THE TAX13
CREDIT;14
(C) D
EMONSTRATES AN INTENT TO LEVERAGE THE PROCEEDS OF15
THE REFUNDABLE TAX CREDIT PURS UANT TO THIS SECTION FOR THE16
PURPOSE OF CREATING AND FINANCING A SHARED QUANTUM FACILITY TO17
ACCOMPLISH THE GOALS SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION; 18
(D) I
NCLUDES A SUMMARY OF ANY THIRD -PARTY RESOURCES19
APART FROM THE TAX CREDITS ALLOWED PURSUANT TO THIS SECTION20
THAT WILL BE USED TO CREATE OR FINANCE THE SHARED QUANTUM21
FACILITY; AND22
(E) I
NCLUDES A PROPOSED COLLABORATION PLAN THAT OUTLINES23
THE OPERATIONAL AND GOVERNANCE PLAN FOR THE SHARED QUANTUM24
FACILITY;25
(IV) P
ROPOSES A SUITABLE LOCATION FOR THE SHARED QUANTUM26
FACILITY; AND27
HB24-1325
-16- (V) IS MADE BY A QUALIFIED APPLICANT THAT IS A1
NEWLY-CREATED NONPROFIT ORGANIZATION DEDICATED TO THE PURPOSE2
OF PROMOTING THE QUANTUM ECOSYSTEM AND ITS COMMERCIAL3
GROWTH.4
(e) A
S PART OF THE TAX CREDIT RESERVATION PROCESS PURSUANT5
TO THIS SUBSECTION (6), THE OFFICE MAY REQUEST CLARIFICATIONS OR6
MODIFICATIONS TO THE APPLICATION SUBMITTED PURSUANT TO7
SUBSECTION (5) OF THIS SECTION.8
(f) T
HE APPLICANT, AT THE APPLICANT'S OWN RISK, MAY BEGIN9
MAKING INVESTMENTS IN QUALIFYING FIXED CAPITAL ASSETS BEFORE A10
TAX CREDIT RESERVATION IS AWARDED TO THE QUALIFIED APPLICANT11
PURSUANT TO THIS SUBSECTION (6). IF A TAX CREDIT RESERVATION12
APPLICATION IS APPROVED FOR A QUALIFIED APPLICANT , INVESTMENTS IN13
QUALIFYING FIXED CAPITAL ASSETS THAT THE QUALIFIED APPLICANT MADE14
UP TO TWELVE MONTHS BEFORE THE DATE THE TAX CREDIT RESERVATION15
WAS SUBMITTED MAY BE INCLUDED IN THE CALCULATION OF QUALIFYING16
FIXED CAPITAL ASSETS FOR THE PURPOSE OF DETERMINING THE AMOUNT17
OF THE TAX CREDIT CERTIFICATE ISSUED PURSUANT TO SUBSECTION (7) OF18
THIS SECTION.19
(7) Proof of compliance - audit of qualifying investments20
certification - issuance of tax credit certificate. (a) (I)
AFTER A21
QUALIFIED APPLICANT COMPLETES A PROJECT OR A PHASE OF A PROJECT ,22
THE QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE PROJECT23
OR PHASE OF THE PROJECT HAS BEEN PLACED IN SERVICE AND SHALL24
CERTIFY THE TYPES AND AMOUNT OF THE QUALIFYING INVESTMENTS AND25
HOW THE INVESTMENTS WERE USED IN AN ELIGIBLE PROJECT , AFTER WHICH26
THE OFFICE SHALL MAKE A FINAL DETERMINATION AS TO WHETHER THE27
HB24-1325
-17- PROJECT IS AN ELIGIBLE PROJECT. THE APPLICANT SHALL INCLUDE A1
REVIEW OF THE CERTIFICATION BY A LICENSED CERTIFIED PUBLIC2
ACCOUNTANT THAT IS NOT AFFILIATED WITH THE QUALIFIED APPLICANT3
THAT ALIGNS WITH OFFICE POLICIES FOR CERTIFICATION OF QUALIFYING4
INVESTMENTS. THE APPLICANT SHALL ALSO CERTIFY AND PROVIDE5
DOCUMENTS DEMONSTRATING THAT THE APPLICANT SATISFIED ANY6
ADDITIONAL REQUIREMENTS IMPOSED BY THE OFFICE PURSUANT TO7
SUBSECTIONS (6) AND (12) OF THIS SECTION.8
(II) Q
UALIFYING INVESTMENT EXPENDITURES THAT ARE ELIGIBLE9
FOR THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION MAY BE MADE10
BY THE APPLICANT, MEMBERS OF A CONSORTIUM , IF APPLICABLE, OR11
OTHER ENTITIES CONTRACTED TO MAKE THE EXPENDITURES ON BEHALF OF12
THE APPLICANT OR MEMBERS OF A CONSORTIUM AS PART OF A13
COORDINATED PLAN TO CREATE THE SHARED QUANTUM FACILITY . THE14
SOURCE OF MONEY FOR THE QUALIFYING INVESTMENT EXPENDITURES15
THAT ARE ELIGIBLE FOR THE TAX CREDIT CAN BE FROM ANY SOURCE OF16
MONEY THAT THE APPLICANT OR MEMB ERS OF A CONSORTIUM OR OTHER17
ENTITIES HAVE AVAILABLE FOR MAKING THE INVESTMENTS .18
(III) W
ITHIN NINETY DAYS AFTER RECEIPT OF THE COMPLETE19
DOCUMENTATION REQUIRED IN SUBSECTION (7)(a)(I) OF THIS SECTION20
FROM THE QUALIFIED APPLICANT , THE OFFICE SHALL REVIEW THE21
QUALIFIED APPLICANT'S DOCUMENTATION OF CERTIFIED QUALIFYING22
INVESTMENTS, DETERMINE WHETHER THE DOCUMENTATION SATISFIES THE23
PROJECT PLAN AND OTHER REQUIREMENTS , AND, IF THE OFFICE24
DETERMINES THAT THE DOCUMENTATION SATISFIES THE PROJECT PLAN25
AND OTHER REQUIREMENTS , THE OFFICE SHALL ISSUE A TAX CREDIT26
CERTIFICATE FOR THE LESSER OF THE AMOUNT SPECIFIED IN THE TAX27
HB24-1325
-18- CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT PURSUANT TO1
SUBSECTION (6) OF THIS SECTION OR THE AMOUNT OF THE QUALIFYING2
INVESTMENT.3
(b) I
F THERE ARE ANY UNRESERVED AM OUNTS OF TAX CREDITS4
AVAILABLE UNDER SUBSECTION (6) OF THIS SECTION, AND IF THE AMOUNT5
OF CERTIFIED QUALIFYING INVESTMENTS INCURRED BY THE QUALIFIED6
APPLICANT WOULD HAVE RESULTED IN THE QUALIFIED APPLICANT BEING7
ISSUED A TAX CREDIT CERTIFICATE THAT EXCEEDS THE AMOUNT OF THE8
TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT , THE9
QUALIFIED APPLICANT MAY APPLY TO THE OFFICE FOR THE ISSUANCE OF AN10
ADDITIONAL TAX CREDIT CERTIFICATE IN AN AMOUNT EQUAL TO THE11
DIFFERENCE BETWEEN THE AMOUNT THAT WOULD HAVE BEEN ISSUED AS12
A RESULT OF THE CERTIFIED QUALIFYING INVESTMENTS IF THAT AMOUNT13
WAS NOT LIMITED TO THE AMOUNT OF THE TAX CREDIT RESERVATION14
PURSUANT TO SUBSECTION (7)(a)(III) OF THIS SECTION AND THE AMOUNT15
OF THE TAX CREDIT RESERVATION BY SUBMITTING AN APPLICATION IN A16
FORM AND MANNER DETERMINED BY THE OFFICE . THE OFFICE SHALL17
REVIEW THE APPLICATION AS SPECIFIED IN SUBSECTION (5) OF THIS18
SECTION AND, IF APPROVED, SHALL ISSUE A SEPARATE TAX CREDIT19
CERTIFICATE AWARDING THE QUALIFIED APPLICANT THE ADDITIONAL20
CREDIT.21
(c) T
HE FIRST APPLICATION FOR TAX CREDIT ISSUANCE MAY22
INCLUDE QUALIFYING INVESTMENTS FOR THE ENTIRE ELIGIBLE PROJECT OR23
JUST THE INITIAL PHASE AND MUST BE SUBMITTED BY THE QUALIFIED24
APPLICANT NO LATER THAN DECEMBER 31, 2028.25
(d) A
QUALIFIED APPLICANT MAY SUBMIT ADDITIONAL26
APPLICATIONS FOR TAX CREDIT ISSUANCE PURSUANT TO THIS SUBSECTION27
HB24-1325
-19- (7) AS THE QUALIFIED APPLICANT COMPLETES ADDITIONAL PHASES OF THE1
PROJECT THAT ARE PLACED IN SERVICE. THE QUALIFIED APPLICANT MAY2
SUBMIT SUCH APPLICATIONS THROUGH DECEMBER 31, 2030, AND UP TO3
THE AMOUNT OF TAX CREDITS RESERVED BY THE APPLICANT .4
(8) Filing tax credit certificate with income tax return. (a) T
O5
CLAIM THE CREDIT AUTHORIZED BY THIS SECTION, A QUALIFIED APPLICANT6
SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY THE OFFICE7
PURSUANT TO SUBSECTION (7) OF THIS SECTION WITH THE QUALIFIED8
APPLICANT'S STATE INCOME TAX RETURN. IF THE QUALIFIED APPLICANT IS9
EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1), THE QUALIFIED10
APPLICANT SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b).11
T
HE AMOUNT OF THE TAX CREDIT THAT A QUALIFIED APPLICANT MAY12
CLAIM PURSUANT TO THIS SECTION IS THE AMOUNT STATED ON THE TAX13
CREDIT CERTIFICATE.14
(b) A
QUALIFIED APPLICANT MAY NOT USE A TAX CREDIT15
CERTIFICATE ISSUED PURSUANT TO THIS SUBSECTION (8) BEFORE THE16
INCOME TAX YEAR THAT BEGINS ON OR AFTER JANUARY 1, 2026, BUT17
MUST USE THE TAX CREDIT CERTIFICATE BEFORE THE LAST INCOME TAX18
YEAR THAT COMMENCES BEFORE JANUARY 1, 2033.19
(c) A
TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A20
LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR MULTIPLE21
OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS ,22
MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT IS A23
PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR24
PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS ,25
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION26
METHOD.27
HB24-1325
-20- (9) Refundability. (a) E XCEPT AS OTHERWISE PROVIDED IN1
SUBSECTION (9)(b) OF THIS SECTION, NOT MORE THAN THE AGGREGATE OF2
TWENTY-FOUR MILLION DOLLARS OF CREDITS TO BE ISSUED TO ALL3
QUALIFIED APPLICANTS PURSUANT TO THIS SECTION MAY BE CLAIMED BY4
THE QUALIFIED APPLICANTS IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE5
PROJECT IS PLACED IN SERVICE. IF THE QUALIFIED APPLICANTS ARE ISSUED6
MORE THAN AN AGGREGATE OF TWENTY -FOUR MILLION DOLLARS IN7
CREDITS PURSUANT TO THIS SECTION, NOT MORE THAN TWENTY MILLION8
DOLLARS OF THE TOTAL AMOUNT OF CREDITS TO BE ISSUED MAY BE9
CLAIMED IN ANY SINGLE FUTURE TAXABLE YEAR ; EXCEPT THAT CREDITS10
MAY NOT BE CLAIMED FOR ANY INCOME TAX YEAR THAT BEGINS ON OR11
AFTER JANUARY 1, 2033.12
(b) I
F THE AMOUNT OF THE CREDIT ALLOWED TO BE CLAIMED IN13
THE APPLICABLE TAXABLE YEAR PURSUANT TO THIS SECTION EXCEEDS THE14
AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF THE15
QUALIFIED APPLICANT IN THE INCOME TAX YEAR FOR WHICH THE CREDIT16
IS BEING CLAIMED, OR THE QUALIFIED APPLICANT IS A PERSON WHO IS17
EXEMPT FROM TAXATION PURSUANT TO SECTION 39-22-112 (1), ONE18
HUNDRED PERCENT OF THE AMOUNT OF THE CREDIT THAT IS ALLOWED TO19
BE CLAIMED FOR THE APPLICABLE TAX YEAR THAT IS NOT USED AS AN20
OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REF UNDED TO21
THE QUALIFIED APPLICANT.22
(10) Compliance monitoring and recapture. (a) E
XCEPT AS23
PROVIDED IN SUBSECTION (10)(b) OF THIS SECTION, IF, DURING THE24
COMPLIANCE PERIOD, THE QUALIFIED APPLICANT SELLS , TRANSFERS,25
ABANDONS, OR REPURPOSES A SUBSTANTIAL PORTION OF THE QUALIFYING26
FIXED CAPITAL ASSETS FOR WHICH THE QUALIFIED APPLICANT WAS27
HB24-1325
-21- ALLOWED A CREDIT PURSUANT TO THIS SECTION , OR OTHERWISE CEASES1
TO OPERATE THE SHARED QUANTUM FACILITY IN THIS STATE , THE OFFICE2
SHALL NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT3
THE CREDIT ALLOWED IN THIS SECTION IS DISALLOWED . THE QUALIFIED4
APPLICANT SHALL ADD THE FULL AM OUNT OF THE CREDIT THAT WAS5
ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT 'S INCOME TAX OR6
REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN AS A7
RECAPTURED CREDIT FOR THE TAXABLE YEAR IN WHICH THE CREDIT IS8
DISALLOWED PURSUANT TO THIS SUBSECTION (10).9
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO10
SUBSECTION (10)(a) OF THIS SECTION DOES NOT APPLY IF:11
(I) A
LL OR PART OF THE SHARED QUANTUM FACILITY EXPERIENCES12
A CASUALTY LOSS AND IF THE QUALIFYING FIXED CAPITAL ASSETS LOST13
ARE RESTORED WITHIN A REASONABLE PERIOD ESTABLISHED BY THE14
OFFICE;15
(II) S
OLELY BY REASON OF THE DISPOSITION OF LAND, A BUILDING,16
A STRUCTURE, OR A FACILITY, OR AN INTEREST THEREIN, THE SHARED17
QUANTUM FACILITY IS RELOCATED WITHIN THIS STATE TO A PROPERTY18
APPROVED BY THE OFFICE; OR19
(III) A
QUALIFYING FIXED CAPITAL ASSET IS REPLACED OR20
UPGRADED IN THE NORMAL COURSE OF ITS USE .21
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS22
TO MONITOR COMPLIANCE WITH THIS SUBSECTION (10), INCLUDING23
REQUIREMENTS REGARDING THE REPORTING OF A DISPOSITION OF A24
BUILDING, STRUCTURE, OR FACILITY BY THE QUALIFIED APPLICANT.25
(II) I
F A DISPUTE ARISES ABOUT WHETHER A BUILDING ,26
STRUCTURE, OR FACILITY IS A SHARED QUANTUM FACILITY , THE OFFICE27
HB24-1325
-22- SHALL ADJUDICATE THE DISPUTE AND NOTIFY THE DEPARTMENT OF THE1
RESOLUTION.2
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A BUILDING,3
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IS DISPOSED OF4
DURING ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , AND5
THEREAFTER THE BUILDING , STRUCTURE, OR FACILITY OR ANY6
REPLACEMENT FOR THE BUILDING , STRUCTURE, OR FACILITY IS NOT A7
SHARED QUANTUM FACILITY , THEN:8
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF9
THE CREDIT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE10
YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS11
SUBSECTION (10) NOTWITHSTANDING THE DISPOSITION OF THE BUILDING ,12
STRUCTURE, OR FACILITY;13
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY14
DEFICIENCY WITH RESPECT TO THE DISALLOWED CREDIT MUST NOT EXPIRE15
BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE OFFICE IS16
NOTIFIED, IN SUCH A MANNER AS THE OFFICE DETERMINES , THAT THE17
PROJECT IS NOT AN ELIGIBLE PROJECT; AND18
(C) T
HE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE19
EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY20
APPLICABLE INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE21
22.22
(d) A
S USED IN THIS SUBSECTION (10), UNLESS THE CONTEXT23
OTHERWISE REQUIRES, "COMPLIANCE PERIOD" MEANS THE PERIOD OF24
FIFTEEN YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED25
APPLICANT PLACED THE ELIGIBLE PROJECT OR THE INITIAL PHASE OF THE26
ELIGIBLE PROJECT IN SERVICE.27
HB24-1325
-23- (11) Reporting. (a) N O LATER THAN DECEMBER 31, 2027, AND,1
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO2
LATER THAN DECEMBER 31 OF EACH TWO YEARS THEREAFTER THROUGH3
2033,
THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL4
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE5
PUBLIC. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS6
SECTION, THE REPORT MUST INCLUDE:7
(I) A
DESCRIPTION OF EACH ELIGIBLE PROJECT PLACED IN SERVICE;8
(II) A
DESCRIPTION OF THE USE OR USES OF THE ELIGIBLE PROJECT;9
(III) T
HE NUMBER OF JOBS SUPPORTED IN THE QUANTUM INDUSTRY10
AS A RESULT OF THE ELIGIBLE PROJECT;11
(IV) T
HE NUMBER OF QUANTUM BUSINESSES THAT HAVE BEEN12
SUPPORTED THROUGH THE ELIGIBLE PROJECT ;13
(V) A
N OVERVIEW OF THE TYPES OF INTELLECTUAL PROPERTY14
THAT HAVE BEEN ADVANCED THROUGH THE ELIGIBLE PROJECT ; AND15
(VI) T
HE AMOUNT OF FEDERAL MONEY THAT HAS BEEN AWARDED16
TO THE ELIGIBLE FACILITY.17
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO18
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME19
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH20
AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE21
OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR22
THAT INCLUDES THE FOLLOWING INFORMATION :23
(I) T
HE QUALIFIED APPLICANT'S NAME;24
(II) T
HE AMOUNT OF THE CREDIT; AND25
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR26
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL27
HB24-1325
-24- EMPLOYER IDENTIFICATION NUMBER .1
(12) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND2
MODIFY POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO3
FURTHER IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR THE4
COMPLETION OF ELIGIBLE PROJECTS PURSUANT TO THIS SECTION AND5
SHALL SOLICIT ADVICE FROM THE DEPARTMENT AND QUANTUM INDUSTRY6
PARTICIPANTS IN CREATING AND MODIFYING SUCH POLICIES , PROCEDURES,7
AND GUIDELINES.8
(b) W
ITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION9
AS TO WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT10
PURSUANT TO SUBSECTION (5)(b)(III) OF THIS SECTION, THE OFFICE SHALL11
DEVELOP STANDARDS THAT INCLUDE , BUT ARE NOT LIMITED TO:12
(I) P
ERFORMANCE STANDARDS AND GUIDELINES FOR A SHARED13
QUANTUM FACILITY;14
(II) A
DETAILED COST ESTIMATE FOR THE PROJECT PLAN ;15
(III) E
VIDENCE OF SITE CONTROL OF THE SITE WHERE THE PROJECT16
WILL OCCUR; AND17
(IV) T
HE FINANCING OR FUNDING THAT IS AVAILABLE FOR THE18
PROJECT PLAN.19
(13) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER20
31,
2050.21
39-22-561. Quantum business loan loss reserve income tax22
credit - tax preference performance statement - definitions - repeal.23
(1) Tax preference performance statement. I
N ACCORDANCE WITH24
SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW25
TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE26
STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE27
HB24-1325
-25- GENERAL ASSEMBLY FINDS AND DECLARES THAT :1
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT2
ALLOWED BY THIS SECTION ARE:3
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;4
AND5
(II) T
O IMPROVE INDUSTRY COMPETITIVENESS ;6
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT7
ALLOWED BY THIS SECTION IS TO SUPPORT AND FACILITATE THE8
DEVELOPMENT OF THE QUANTUM BUSINESS ECOSYSTEM IN THE STATE BY9
ENCOURAGING QUALIFIED APPLICANTS TO MAKE LOANS THAT THE10
QUALIFIED APPLICANTS MIGHT NOT OTHERWISE MAKE OR AT MORE11
FAVORABLE TERMS THAN THEY WOULD OTHERWISE MAKE TO BORROWERS12
THAT HAVE LIMITED ACCESS TO CAPITAL ; AND13
(c) T
HE GENERAL ASSEMBLY AND STATE AUDITOR SHALL MEASURE14
THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES SPECIFIED15
IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION BASED ON THE16
INFORMATION REPORTED BY THE ADMINISTRATOR PURSUANT TO17
SUBSECTION (11) OF THIS SECTION.18
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT19
OTHERWISE REQUIRES:20
(a) "A
DMINISTRATOR" MEANS THE OFFICE, A THIRD PARTY21
SELECTED BY THE OFFICE, OR THE THIRD PARTY WORKING IN COMBINATION22
WITH THE OFFICE TO ADMINISTER THE TAX CREDIT CREATED IN THIS23
SECTION.24
(b) "B
ORROWER" MEANS A QUANTUM COMPANY DOING BUSINESS25
IN COLORADO THAT IS AN EARLY-STAGE OR GROWTH-STAGE COMPANY AT26
THE TIME A QUALIFIED APPLICANT MAKES A LOAN TO THE COMPANY AND27
HB24-1325
-26- THAT, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (12)(c) OF THIS1
SECTION, HAD AN ANNUAL REVENUE OF LESS THAN ONE HUNDRED MILLION2
DOLLARS IN THE YEAR PRIOR TO THE YEAR IN WHICH A QUALIFIED3
APPLICANT MADE A LOAN TO THE COMPANY .4
(c) "D
EPARTMENT" MEANS THE COLORADO DEPARTMENT OF5
REVENUE.6
(d) "E
LIGIBLE LOAN" MEANS A LOAN MADE BY A QUALIFIED7
APPLICANT TO A BORROWER.8
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC9
DEVELOPMENT CREATED IN SECTION 24-48.5-101.10
(f) "Q
UALIFIED APPLICANT" MEANS A COMMERCIAL BANK ,11
DEPOSITORY INSTITUTION, PRIVATE LENDING FUND, OR OTHER ENTITY12
THAT MAKES LOANS FOR COMMERCIAL PURPOSES AND MAKES A LOAN TO13
A BORROWER.14
(g) "Q
UANTUM COMPANY " MEANS A PRIVATE FOR-PROFIT OR15
NONPROFIT ORGANIZATION THAT HAS QUANTUM TECHNOLOGY AS A KEY16
PART OF ITS BUSINESS MODEL , INCLUDING BUT NOT LIMITED TO17
MANUFACTURING, TESTING, PRODUCTION, RESEARCH AND DEVELOPMENT ,18
OR ENHANCEMENT OF HARDWARE OR SOFTWARE TO PERFORM OR USE19
QUANTUM TECHNOLOGY AS A KEY INPUT OR OUTPUT OF ITS BUSINESS20
MODEL, AND COMPANIES THAT PRODUCE GOODS OR SERVICES THAT ARE21
KEY INPUTS FOR OTHER QUANTUM COMPANIES .22
(h) "R
EGISTERED LOAN" MEANS AN ELIGIBLE LOAN MADE TO A23
BORROWER THAT IS REGISTERED WITH THE ADMINISTRATOR PURSUANT TO24
SUBSECTION (7)(a) OF THIS SECTION.25
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF26
SUBSECTION (3)(c) OF THIS SECTION, FOR INCOME TAX YEARS27
HB24-1325
-27- COMMENCING ON OR AFTER JANUARY 1, 2026, BUT PRIOR TO JANUARY 1,1
2046,
A QUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME2
TAXES IMPOSED BY THIS ARTICLE 22 TO OFFSET LOSSES INCURRED IN3
CONNECTION WITH ONE OR MORE REGISTERED LOANS IN AN AMOUNT4
SPECIFIED ON THE REGISTERED LOAN LOSS CERTIFICATE ISSUED BY THE5
ADMINISTRATOR PURSUANT TO SUBSECTION (8) OF THIS SECTION; EXCEPT6
THAT, IF A QUALIFIED TAXPAYER CLAIMS MORE THAN ONE REGISTERED7
LOAN LOSS, IN NO EVENT MAY THE AGGREGATE REGISTERED LOAN LOSSES8
CLAIMED BY THE QUALIFIED TAXPAYER EXCEED THE TOTAL AMOUNT9
SPECIFIED ON THE TAX CREDIT CERTIFICATES ISSUED PURSUANT TO10
SUBSECTION (7) OF THIS SECTION.11
(b) T
O CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION ,12
THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS SPECIFIED IN13
SUBSECTION (5) OF THIS SECTION, MAKE AN ELIGIBLE LOAN AND REGISTER14
THE ELIGIBLE LOAN PRIOR TO JUNE 30, 2036, OBTAIN A TAX CREDIT15
CERTIFICATE FROM THE ADMINISTRATOR AS SPECIFIED IN SUBSECTION (7)16
OF THIS SECTION, INCUR A LOSS IN CONNECTION WITH A REGISTERED LOAN17
AND OBTAIN A REGISTERED LOAN LOSS CERTIFICATE FROM THE18
ADMINISTRATOR AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION PRIOR19
TO JANUARY 1, 2045, AND, ONCE ISSUED BY THE ADMINISTRATOR, FILE THE20
TAX CREDIT CERTIFICATE AND THE REGISTERED LOAN LOSS CERTIFICATE21
WITH THE QUALIFIED APPLICANT'S INCOME TAX RETURN AS SPECIFIED IN22
SUBSECTION (9) OF THIS SECTION.23
(c) T
HE ADMINISTRATOR SHALL DETERMINE THE METHOD IT WILL24
USE TO DISTRIBUTE TAX CREDIT CERTIFICATES TO QUALIFIED APPLICANTS25
PURSUANT TO SUBSECTION (7) OF THIS SECTION. IN SELECTING THE26
DISTRIBUTION METHOD USED TO DISTRIBUTE THE TAX CREDIT27
HB24-1325
-28- CERTIFICATES, THE ADMINISTRATOR MAY CONSULT WITH QUANTUM1
INDUSTRY PARTICIPANTS. THE DISTRIBUTION METHOD MAY BE : 2
(I) O
N A FIRST-COME, FIRST-SERVED BASIS TO QUALIFIED3
APPLICANTS WHO APPLY TO THE ADMINISTRATOR FOR A TAX CREDIT4
PURSUANT TO SUBSECTION (5) OF THIS SECTION FOR ONE OR MORE5
ELIGIBLE LOANS EACH, AFTER THE QUALIFIED APPLICANT HAS MADE THE6
LOAN;7
(II) B
ASED ON A COMPETITIVE LENDER SELECTION PROCESS WHERE8
THE ADMINISTRATOR CHOOSES WHICH LENDERS ARE ELIGIBLE TO APPLY9
FOR THE TAX CREDIT ALLOWED BY THIS SECTION IN ADVANCE OF10
ACCEPTING APPLICATIONS AND REQUESTS TO REGISTER LOANS AND IN11
ADVANCE OF ISSUING TAX CREDITS . IN SELECTING LENDERS TO BE12
ALLOWED A TAX CREDIT PURSUANT TO THIS SECTION , THE ADMINISTRATOR13
MAY ALLOCATE SOME OR ALL OF THE CREDITS SOLELY TO SELECTED14
LENDERS. IF THE ADMINISTRATOR USES THIS DISTRIBUTION METHOD , THE15
SELECTED LENDERS ARE THE ONLY QUALIFIED APPLICANTS THAT ARE16
ALLOWED TO APPLY TO THE ADMINISTRATOR , REQUEST REGISTRATION OF17
THE LOAN, AND BE ISSUED A TAX CREDIT CERTIFICATE AND REGISTERED18
LOAN LOSS CERTIFICATE PURSUANT TO THIS SECTION .19
(III) A
COMBINATION OF THE METHODS DESCRIBED IN20
SUBSECTIONS (3)(c)(I) AND (3)(c)(II) OF THIS SECTION.21
(d) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT ALLOWED TO22
ANY QUALIFIED APPLICANT UNLESS A COLORADO-BASED ENTITY RECEIVES23
A MULTI-MILLION DOLLAR FEDERAL GRANT FROM THE ECONOMIC24
DEVELOPMENT ADMINISTRATION FOR THE REGIONAL TECHNOLOGY AND25
INNOVATION PROGRAM OR A COMPAR ABLE FEDERAL GRANT PROGRAM .26
(4) Credit administration. (a) E
XCEPT AS OTHERWISE PROVIDED27
HB24-1325
-29- IN SUBSECTION (4)(b) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR1
OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION . THE OFFICE MAY2
WORK WITH A THIRD-PARTY PROGRAM ADMINISTRATOR SELECTED BY THE3
OFFICE TO ASSIST IN ADMINISTERING THE CREDIT.4
(b) I
N LIEU OF THE OFFICE SERVING AS THE ADMINISTRATOR5
PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION, THE OFFICE MAY6
CONTRACT WITH THE COLORADO HOUSING AND FINANCE AUTHORITY7
CREATED IN SECTION 29-4-704 WITHOUT RECOURSE TO A COMPETITIVE8
PROCESS TO SERVE AS THE CREDIT ADMINISTRATOR . THE OFFICE MAY ALSO9
CONTRACT WITH ANOTHER ENTITY TO BE THE ADMINISTRATOR , HOWEVER,10
IF THE OFFICE CONTRACTS WITH ANOTHER ENTITY TO BE THE11
ADMINISTRATOR, THEN THE OFFICE MUST SELECT THE THIRD -PARTY12
ADMINISTRATOR USING A COMPETITIVE SELECTION PROCESS .13
(5) Application submission and request for loan registration.14
(a) A
N APPLICANT THAT HAS MADE A LOAN FOR THE PURPOSES OF THE15
TAX CREDIT ALLOWED PURSUANT TO THIS SECTION MAY SUBMIT AN16
APPLICATION FOR A TAX CREDIT CERTIFICATE DESCRIBED IN SUBSECTION17
(7)
OF THIS SECTION AND REQUEST THAT THE ADMINISTRATOR REGISTER18
THE LOAN PURSUANT TO THIS SUBSECTION (5) ON OR AFTER JANUARY 1,19
2025,
BUT NO LATER THAN JUNE 30, 2036.20
(b) (I) T
HE ADMINISTRATOR SHALL REVIEW ALL SUBMITTED21
APPLICATIONS TO:22
(A) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED23
APPLICANT;24
(B) D
ETERMINE WHETHER THE QUANTUM COMPANY THAT IS THE25
LOAN RECIPIENT IS A BORROWER;26
(C) D
ETERMINE WHETHER THE APPLICATION IS COMPLETE AND27
HB24-1325
-30- INCLUDES A DESCRIPTION OF THE LOAN THAT THE QUALIFIED APPLICANT1
MADE OR WILL MAKE TO A BORROWER AND A DESCRIPTION OF THE2
PURPOSES FOR WHICH THE BORROWER WILL USE THE LOAN ; 3
(D) M
AKE A DETERMINATION OF WHETHER THE LOAN IS AN4
ELIGIBLE LOAN AND WHETHER THE ADMINISTRATOR MAY REGISTER THE5
LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION; AND6
(E) D
ETERMINE WHETHER, BASED ON THE ELIGIBLE LOAN, THE7
QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT CERTIFICATE AS8
SPECIFIED IN SUBSECTION (7) OF THIS SECTION.9
(II) I
F THE ADMINISTRATOR DETERMINES THAT AN APPLICATION IS10
INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS11
SPECIFIED IN SUBSECTION (5)(b)(I) OF THIS SECTION, THE ADMINISTRATOR12
SHALL NOTIFY THE APPLICANT IN WRITING OF THE ADMINISTRATOR 'S13
DECISION AND SHALL NOT REVIEW ANY LOAN TO DETERMINE WHETHER14
THE LOAN MAY BE REGISTERED PURSUANT TO SUBSECTION (5)(c) OF THIS15
SECTION.16
(c) (I) T
O BE ELIGIBLE TO RECEIVE A TAX CREDIT CERTIFICATE17
PURSUANT TO SUBSECTION (7) OF THIS SECTION, A QUALIFIED APPLICANT18
MUST REQUEST THAT THE ADMINISTRATOR REGISTER THE LOAN FOR WHICH19
THE TAX CREDIT APPLICATION WAS SUBMITTED PURSUANT TO THIS20
SUBSECTION (5). TO REGISTER A LOAN, A QUALIFIED APPLICANT MUST21
PROVIDE THE FOLLOWING INFORMATION TO THE ADMINISTRATOR :22
(A) T
HE NAME OF THE BORROWER AND THE LOCATION WHERE THE23
BORROWER IS DOING BUSINESS;24
(B) T
HE AMOUNT AND TERMS OF THE LOAN ISSUED TO THE25
BORROWER BY THE QUALIFIED APPLICANT ;26
(C) T
HE PURPOSES FOR WHICH THE BORROWER WILL USE THE27
HB24-1325
-31- LOAN;1
(D) A
N AFFIDAVIT REGARDING HOW THE TAX CREDIT ALLOWED2
PURSUANT TO THIS SECTION INDUCED THE QUALIFIED APPLICANT TO MAKE3
THE LOAN TO THE BORROWER OR IMPROVE THE TERMS OF THE LOAN4
BEYOND WHAT NORMAL MARKET CONDITIONS WOULD PROVIDE ;5
(E) C
ERTIFICATION FROM THE BORROWER THAT THE BORROWER6
WILL PRIMARILY USE THE PROCEEDS OF THE LOAN FROM THE QUALIFIED7
APPLICANT TO CONTINUE OR EXPAND THE BORROWER 'S QUANTUM8
BUSINESS OPERATIONS IN COLORADO; AND9
(F) A
NY OTHER INFORMATION THAT THE ADMINISTRATOR DEEMS10
NECESSARY.11
(II) T
HE ADMINISTRATOR SHALL REVIEW THE INFORMATION12
SUBMITTED PURSUANT TO SUBSECTION (5)(c)(I) OF THIS SECTION AND13
DETERMINE WHETHER THE LOAN IS AN ELIGIBLE LOAN . IF THE14
ADMINISTRATOR DETERMINES THAT THE LOAN THAT IS THE BASIS OF THE15
APPLICATION SUBMITTED PURS UANT TO THIS SUBSECTION (5) IS AN16
ELIGIBLE LOAN, THE ADMINISTRATOR SHALL REGISTER THE LOAN AND17
KEEP RECORDS OF THE LOAN PURSUANT TO SUBSECTION (8)(a) OF THIS18
SECTION. IF THE ADMINISTRATOR DETERMINES THAT THE LOAN THAT IS19
THE BASIS OF THE APPLICATI ON SUBMITTED PURSUANT TO THIS20
SUBSECTION (5) IS NOT AN ELIGIBLE LOAN, THE ADMINISTRATOR SHALL21
NOTIFY THE QUALIFIED APPLICANT AND SHALL NOT REGISTER THE LOAN . 22
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND23
PROCEDURES THAT SPECIFY ADDITIONAL REQUIREMENTS FOR L OANS TO BE24
DESIGNATED AS ELIGIBLE LOANS AND FOR LOANS TO BE REGISTERED25
PURSUANT TO THIS SUBSECTION (5)(c).26
(d) T
HE ADMINISTRATOR SHALL MAKE THE DETERMINATIONS27
HB24-1325
-32- SPECIFIED IN SUBSECTIONS (5)(b) AND (5)(c) OF THIS SECTION WITHIN1
NINETY DAYS OF THE DATE THE ADMINISTRATOR RECEIVES THE COMPLETE2
APPLICATION AND REQUEST FOR LOAN REGISTRATION .3
(e) T
HE ADMINISTRATOR MAY DEVELOP A PROCESS THAT ALLOWS4
A POTENTIAL APPLICANT FOR A TAX CREDIT PURSUANT TO THIS SECTION TO5
PROVIDE INFORMATION TO THE ADMINISTRATOR REGARDING A LOAN THAT6
IT PLANS TO MAKE TO A BORROWER AND TO REQUEST THAT THE7
ADMINISTRATOR ADVISE THE POTENTIAL APPLICANT REGARDING WHETHER8
THE LOAN, IF MADE, IS AN ELIGIBLE LOAN THAT CAN BE REGISTERED9
PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION. ANY POTENTIAL10
APPLICANT THAT REQUESTS ADVICE FROM THE ADMINISTRATOR PURS UANT11
TO THIS SUBSECTION (5)(e) AND THEN MAKES A LOAN IS REQUIRED TO12
SUBMIT AN APPLICATION AND REQUEST THAT THE LOAN BE REGISTERED13
PURSUANT TO THIS SUBSECTION (5) BEFORE THE ADMINISTRATOR ISSUES14
A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (7) OF THIS15
SECTION.16
(6) Application and issuance fees. (a) T
HE ADMINISTRATOR MAY17
IMPOSE ON A QUALIFIED APPLICANT OR ON THE BORROWER TO WHICH A18
QUALIFIED APPLICANT MADE AN ELIGIBLE LOAN A REASONABLE19
REGISTRATION AND ISSUANCE FEE OF UP TO EIGHT PERCENT OF THE20
AMOUNT OF THE TAX CREDIT THAT WILL BE CLAIMED AS SPECIFIED ON THE21
REGISTERED LOAN LOSS CERTIFICATE ISSUED BY THE ADMINISTRATOR AS22
SPECIFIED IN SUBSECTION (8) OF THIS SECTION, WHICH MUST BE PAID23
BEFORE THE QUALIFIED APPLICANT'S LOAN IS REGISTERED AND BEFORE A24
TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED APPLICANT .25
(b) T
HE ADMINISTRATOR SHALL TRANSFER ANY FEE REVENUE26
COLLECTED OR PAID TO THE OFFICE PURSUANT TO THIS SUBSECTION (6) TO27
HB24-1325
-33- THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND CREATED IN1
SUBSECTION (13) OF THIS SECTION.2
(7) Tax credit certificate - loan registration - pooled loan loss3
reserve. (a) T
O RECEIVE A TAX CREDIT CERTIFICATE PURSUANT TO THIS4
SUBSECTION (7), A QUALIFIED APPLICANT MUST FIRST APPLY TO THE5
ADMINISTRATOR FOR THE ISSUANCE OF A TAX CREDIT CERTIFICATE AND6
REGISTER THE LOAN FOR WHICH THE TAX CREDIT APPLICATION WAS7
SUBMITTED PURSUANT TO SUBSECTION (5) OF THIS SECTION. 8
(b) (I) O
N THE BASIS OF ANY LOAN THAT IS REGISTERED PURSUANT9
TO SUBSECTION (5)(c) OF THIS SECTION, THE ADMINISTRATOR MAY10
DETERMINE THAT A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT11
CERTIFICATE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE12
ADMINISTRATOR SHALL ISSUE THE TAX CREDIT CERTIFICATE SUBJECT TO13
THE LIMITATIONS SET FORTH IN THIS SUBSECTION (7) AND IN ACCORDANCE14
WITH THE POLICIES AND PROCEDURES ESTABLISHED PURSUANT TO15
SUBSECTION (12) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT ISSUE16
TAX CREDIT CERTIFICATES AFTER SEPTEMBER 30, 2036.17
(II) T
HE ADMINISTRATOR MAY , BEFORE ISSUING A TAX CREDIT18
CERTIFICATE PURSUANT TO THIS SUBSECTION (7), ESTABLISH ADDITIONAL19
POLICIES OR PROCEDURES FOR A QUALIFIED APPLICANT TO BE ELIGIBLE FOR20
THE ISSUANCE OF A TAX CREDIT CERTIFICATE.21
(c) I
F THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE TO22
A QUALIFIED APPLICANT, THE ADMINISTRATOR SHALL NOTIFY THE23
QUALIFIED APPLICANT IN WRITING OF THE CERTIFICATE AND THE AMOUNT24
OF THE CERTIFICATE. THE ISSUANCE OF A TAX CREDIT CERTIFICATE BY THE25
ADMINISTRATOR FOR A QUALIFIED APPLICANT DOES NOT ENTITLE THE26
QUALIFIED APPLICANT TO CLAIM THE CREDIT UNTIL THE QUALIFIED27
HB24-1325
-34- APPLICANT HAS BEEN ISSUED A REGISTERED LOAN LOSS CERTIFICATE1
PURSUANT TO SUBSECTION (8) OF THIS SECTION.2
(d) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (7)(d),3
IF APPROVED, THE ADMINISTRATOR MAY ISSUE A TAX CREDIT CERTIFICATE4
TO A QUALIFIED APPLICANT FOR ONE OR MORE ELIGIBLE LOANS IN AN5
AMOUNT UP TO FIFTEEN CENTS FOR EVERY DOLLAR OF AN ELIGIBLE LOAN6
THAT THE QUALIFIED APPLICANT HAS MADE OR WILL MAKE . 7
(II) T
HE AGGREGATE AMOUNT OF ALL TAX CREDIT CERTIFICATES8
THAT THE ADMINISTRATOR MAY ISSUE PURSUANT TO THIS SECTION MUST9
NOT EXCEED THIRTY MILLION DOLLARS .10
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND11
PROCEDURES TO SET THE AMOUNT OF THE TAX CREDIT CERTIFICATE ISSUED12
ON THE BASIS OF A REGISTERED LOAN AT OR BELOW FIFTEEN CENTS FOR13
EVERY DOLLAR OF THE REGISTERED LOAN OR CHANGE THE AMOUNT OF14
THE CREDIT ALLOWED FROM TIME TO TIME FOR CREDIT CERTIFICATES THAT15
HAVE NOT YET BEEN ISSUED. THE ADMINISTRATOR MAY ALSO CAP THE16
TOTAL AMOUNT OF ANY TAX CREDIT CERTIFICATES ISSUED TO A QUALIFIED17
APPLICANT PURSUANT TO THIS SUBSECTION (7), DETERMINE A CAP ON THE18
TOTAL AMOUNT OF A TAX CREDIT CERTIFICATE ALLOWED TO A QUALIFIED19
APPLICANT FOR A SINGLE ELIGIBLE LOAN TO A SINGLE BORROWER OR IN20
THE AGGREGATE FOR MULTIPLE ELIGIBLE LOANS TO ONE OR MORE21
BORROWERS, OR DETERMINE ANY OTHER CAPS DEEMED NECESSARY BY THE22
ADMINISTRATOR. THE ADMINISTRATOR SHALL MAKE THE POLICIES AND23
PROCEDURES SPECIFIED IN THIS SUBSECTION (7)(d)(III) BASED ON MARKET24
CONDITIONS AND OTHER FACTORS DETERMINED TO BE RELEVANT BY THE25
ADMINISTRATOR. IF THE OFFICE IS NOT THE ADMINISTRATOR, THE OFFICE26
SHALL APPROVE THE ADMINISTRATOR 'S FINAL DECISIONS ON POLICIES AND27
HB24-1325
-35- PROCEDURES. 1
(e) T
HE ADMINISTRATOR SHALL DISTRIBUTE THE TAX CREDIT2
CERTIFICATES IN THE MANNER THAT THE ADMINISTRATOR DETERMINES3
PURSUANT TO SUBSECTION (3)(c) OF THIS SECTION. 4
(f) E
ACH QUALIFIED APPLICANT THAT IS ISSUED MORE THAN ONE5
TAX CREDIT CERTIFICATE PURSUANT TO THIS SUBSECTION (7) SHALL HOLD6
THE CREDIT CERTIFICATES ISSUED TO THE QUALIFIED APPLICANT IN A7
POOLED LOAN LOSS RESERVE OF ALL TAX CREDIT CERTIFICATES ISSUED TO8
THAT QUALIFIED APPLICANT. A QUALIFIED APPLICANT MAY USE ALL OR9
ANY PORTION OF THE CREDIT CERTIFICATES ISSUED TO THAT QUALIFIED10
APPLICANT TO OFFSET ANY LOSS INCURRED BY THAT QUALIFIED APPLICANT11
IN CONNECTION WITH ONE OR MORE REGISTERED LOANS , SUBJECT TO THE12
PROVISIONS OF SUBSECTION (8) OF THIS SECTION.13
(g) T
HE ADMINISTRATOR MAY ALLOW A QUALIFIED APPLICANT TO14
REGISTER AN ELIGIBLE LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS15
SECTION AFTER THE ADMINISTRATOR HAS ISSUED THE TOTAL AMOUNT OF16
TAX CREDIT CERTIFICATES ALLOWED PURSUANT TO SUBSECTION (7)(d)(II)17
OF THIS SECTION OR THE AMOUNT OF CREDITS ALLOWED PURS UANT TO18
ANY OTHER CAP DETERMINED BY THE ADMINISTRATOR PURSUANT TO19
SUBSECTION (7)(d)(III) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT20
ISSUE A CREDIT CERTIFICATE FOR ANY LOAN REGISTERED PURSUANT TO21
THIS SUBSECTION (7)(g), BUT THE QUALIFIED LENDER MAY USE ANY22
AMOUNT OF TAX CREDIT CERTIFICATES ALREADY ISSUED TO THE23
QUALIFIED LENDER AND NOT ALREADY CLAIMED PURSUANT TO24
SUBSECTION (9) OF THIS SECTION TO OFFSET ANY LOSS INCURRED IN25
CONNECTION WITH THE REGISTERED LOAN PURSUANT TO SUBSECTION (8)26
OF THIS SECTION.27
HB24-1325
-36- (8) Status of registered loans - proof of registered loan loss -1
issuance of registered loan loss certificate. (a) (I) A
QUALIFIED2
APPLICANT THAT WAS ISSUED A TAX CREDIT CERTIFICATE PURSUANT TO3
SUBSECTION (7) OF THIS SECTION SHALL PROVIDE PERIODIC UPDATES TO4
THE ADMINISTRATOR, IN A FORM, MANNER, AND FREQUENCY TO BE5
DETERMINED BY THE ADMINISTRATOR , REGARDING THE STATUS OF THE6
REGISTERED LOAN THAT IS THE BASIS OF THE CREDIT CERTIFICATE . IN7
ADDITION TO PERIODIC UPDATES, THE QUALIFIED APPLICANT SHALL NOTIFY8
THE ADMINISTRATOR WHEN ANY REGISTERED LOAN IS PAID OFF ,9
EXTENDED, RENEWED, RESTRUCTURED OR REFINANCED , OR HAS BECOME10
PAST DUE OR NON-PERFORMING. A QUALIFIED APPLICANT THAT INCURS A11
LOSS ASSOCIATED WITH A REGISTERED LOAN SHALL NOTIFY THE12
ADMINISTRATOR AND COMPLY WITH THE REQUIREMENTS OF SUBSECTION13
(8)(b)
OF THIS SECTION BEFORE THE QUALIFIED APPLICANT IS ELIGIBLE TO14
RECEIVE A LOAN LOSS CERTIFICATE PURSUANT TO SUBSECTION (8)(d) OF15
THIS SECTION.16
(II) T
HE ADMINISTRATOR SHALL KEEP A RECORD OF THE STATUS OF17
ALL REGISTERED LOANS MADE BY EACH QUALIFIED APPLICANT FOR WHICH18
THE ADMINISTRATOR ISSUED A CREDIT CERTIFICATE PURSUANT TO19
SUBSECTION (7) OF THIS SECTION.20
(b) (I) A
QUALIFIED APPLICANT THAT INCURS A LOSS IN21
CONNECTION WITH ONE OR MORE REGISTERED LOANS MAY APPLY TO THE22
ADMINISTRATOR FOR ISSUANCE OF A REGISTERED LOAN LOSS CERTIFICATE23
PURSUANT TO SUBSECTION (8)(d) OF THIS SECTION. BEFORE APPLYING FOR24
A REGISTERED LOAN LOSS CERTIFICATE, A QUALIFIED APPLICANT THAT HAS25
INCURRED A LOSS ASSOCIATED WITH ONE OR MORE REGISTERED LOANS26
SHALL CHARGE OFF ALL OR A PORTION OF THE OUTSTANDING BALANCE OF27
HB24-1325
-37- THE REGISTERED LOAN IN ACCORDANCE WITH THE QUALIFIED APPLICANT 'S1
CUSTOMARY POLICIES AND PROCEDURES AND IN ACCORDANCE WITH THE2
REQUIREMENTS OF FEDERAL OR STATE REGULATORY AGENCIES . THE3
QUALIFIED APPLICANT SHALL CEASE TO ASSESS INTEREST ON THE4
REGISTERED LOAN IN ACCORDANCE WITH GENERALLY ACCEPTED5
ACCOUNTING PRINCIPLES AND AS REQUIRED BY FEDERAL AND STATE6
REGULATORY AGENCIES AND SHALL TAKE REASONABLE ACTIONS , AS7
DETERMINED BY THE ADMINISTRATOR , TO OBTAIN PARTIAL PAYMENTS AND8
RECOVERY, INCLUDING ACCESSING COLLATERAL AND LOAN GUARANTORS .9
(II) A
QUALIFIED APPLICANT SHALL SUBMIT TO THE10
ADMINISTRATOR, WITH THE QUALIFIED APPLICANT'S APPLICATION FOR A11
REGISTERED LOAN LOSS CERTIFICATE , EVIDENCE OF THE QUALIFIED12
APPLICANT'S COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (8)(b)(I)13
OF THIS SECTION AND EVIDENCE OF THE AMOUNT OF THE LOSS INCURRED14
IN CONNECTION WITH ONE OR MORE REGISTERED LOANS , INCLUDING15
OUT-OF-POCKET EXPENSES INCURRED BY THE QUALIFIED APPLICANT IN16
PURSUING RECOVERY OF THE REGISTERED LOAN . THE APPLICANT SHALL17
ALSO PROVIDE DOCUMENTS TO THE ADMINISTRATOR DEMONSTRATING18
THAT THE QUALIFIED APPLICANT SATISFIED ANY ADDITIONAL19
REQUIREMENTS IMPOSED BY THE ADMINISTRATOR PURSUANT TO20
SUBSECTION (12) OF THIS SECTION.21
(c) (I) W
ITHIN NINETY DAYS AFTER RECEIPT OF THE COMPLETE22
APPLICATION FROM THE QUALIFIED APPLICANT SUBMITTED PURSUANT TO23
SUBSECTION (8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL REVIEW24
THE QUALIFIED APPLICANT'S DOCUMENTATION OF THE LOSS INCURRED IN25
CONNECTION WITH A REGISTERED L OAN AND DETERMINE WHETHER THE26
DOCUMENTATION SATISFIES THE REQUIREMENTS OF SUBSECTION (8)(b) OF27
HB24-1325
-38- THIS SECTION. IF THE ADMINISTRATOR DETERMINES THAT A QUALIFIED1
APPLICANT HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF2
SUBSECTION (8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL3
PROMPTLY NOTIFY THE QUALIFIED APPLICANT IN WRITING AND SHALL NOT4
ISSUE A REGISTERED LOAN LOSS CERTIFICATE TO THE QUALIFIED5
APPLICANT.6
(II) I
F THE ADMINISTRATOR DETERMINES THAT THE7
DOCUMENTATION PROVIDED BY THE QUALIFIED APPLICANT SATISFIES THE8
REQUIREMENTS OF SUBSECTION (8)(b) OF THIS SECTION, THE9
ADMINISTRATOR SHALL DETERMINE THE TOTAL AMOUNT OF THE LOSS10
INCURRED IN CONNECTION WITH THE REGISTERED LOAN AND CERTIFY THE11
AMOUNT OF THE REGISTERED LOAN LOSS . THE AMOUNT OF THE CERTIFIED12
LOAN LOSS DETERMINED BY THE ADMINISTRATOR SHALL BE AN AMOUNT13
EQUAL TO THE TOTAL OF THE OUTSTANDING AND UNRECOVERED14
PRINCIPAL AND ACCRUED INTEREST ON THE REGISTERED LOAN OR LOANS15
AND THE AMOUNT OF REASONABLE OUT -OF-POCKET EXPENSES INCURRED16
BY THE QUALIFIED APPLICANT IN PURSUING RECOVERY UNDER THE17
REGISTERED LOAN OR LOANS ; EXCEPT THAT THE AMOUNT OF THE18
CERTIFIED LOAN LOSS DETERMINED BY THE ADMINISTRATOR SHALL NOT19
EXCEED THE ORIGINAL PRINCIPAL AMOUNT OF THE REGISTERED LOAN AS20
STATED IN THE DOCUMENTATION PROVIDED WHEN THE QUALIFIED21
APPLICANT REGISTERED THE ELIGIBLE LOAN . THE AMOUNT OF THE22
CERTIFIED LOAN LOSS SHALL NOT INCLUDE ANY AMOUNT ATTRIBUTABLE23
TO DAMAGES PAID BY THE QUALIFIED APPLICANT AS A RESULT OF A LEGAL24
CLAIM AGAINST THE QUALIFIED APPLICANT FOR NEGLIGENCE ,25
MISCONDUCT, OR ANY OTHER ALLEGATION OF WRONGDOING OR ANY26
AMOUNT OF LATE CHARGES OR UNPAID DEFAULT INTEREST CHARGES27
HB24-1325
-39- IMPOSED ON THE BORROWER BY THE QUALIFIED APPLICANT .1
(d) T
HE ADMINISTRATOR SHALL ISSUE A REGISTERED LOAN LOSS2
CERTIFICATE TO ANY QUALIFIED APPLICANT THAT HAS SATISFIED THE3
REQUIREMENTS OF SUBSECTION (8)(b) OF THIS SECTION IN THE AMOUNT OF4
THE CERTIFIED LOAN LOSS CALCULATED PURSUANT TO SUBSECTION (8)(c)5
OF THIS SECTION; EXCEPT THAT THE ADMINISTRATOR SHALL NOT ISSUE A6
REGISTERED LOAN LOSS CERTIFICATE THAT EXCEEDS THE TOTAL AMOUNT7
OF UNCLAIMED TAX CREDIT CERTIFICATES ISSUED TO THE QUALIFIED8
APPLICANT PURSUANT TO SUBSECTION (7) OF THIS SECTION. THE9
ADMINISTRATOR SHALL NOT ISSUE A REGISTERED LOAN LOSS CERTIFICATE10
BEFORE JANUARY 1, 2026, OR AFTER DECEMBER 31, 2045.11
(9) Filing tax credit certificate and registered loan loss12
certificate with income tax return. (a) T
O CLAIM THE CREDIT13
AUTHORIZED BY THIS SECTION, A QUALIFIED APPLICANT SHALL FILE THE14
TAX CREDIT CERTIFICATE ISSUED BY THE ADMINISTRATOR PURSUANT TO15
SUBSECTION (7) OF THIS SECTION AND THE REGISTERED LOAN LOSS16
CERTIFICATE ISSUED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION17
(8)
OF THIS SECTION WITH THE QUALIFIED APPLICANT'S STATE INCOME TAX18
RETURN FOR THE INCOME TAX YEAR IN WHICH THE REGISTERED LOAN LOSS19
OCCURS. IF THE QUALIFIED APPLICANT IS EXEMPT FROM TAX PURSUANT TO20
SECTION 39-22-112 (1), THE QUALIFIED APPLICANT SHALL FILE A RETURN21
PURSUANT TO SECTION 39-22-601 (7)(b). THE AMOUNT OF THE TAX22
CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM PURSUANT TO THIS23
SECTION IS THE AMOUNT STATED ON THE REGISTERED LOAN LOSS24
CERTIFICATE.25
(b) A
QUALIFIED APPLICANT MAY NOT CLAIM A CREDIT PURSUANT26
TO THIS SECTION FOR ANY INCOME TAX YEAR COMMENCING BEFORE27
HB24-1325
-40- JANUARY 1, 2026, OR AFTER DECEMBER 31, 2045. ANY TAX CREDIT1
CERTIFICATES AND REGISTERED LOAN LOSS CERTIFICATES THAT THE2
ADMINISTRATOR ISSUED, BUT FOR WHICH A TAX CREDIT HAS NOT BEEN3
CLAIMED PURSUANT TO SUBSECTION (9)(a) OF THIS SECTION BEFORE THE4
TAX YEAR COMMENCING ON JANUARY 1, 2046, EXPIRE AND NO LONGER5
HAVE VALUE.6
(c) A
QUALIFIED APPLICANT MAY CLAIM AN INCOME TAX CREDIT7
ALLOWED PURSUANT TO THIS SECTION MORE THAN ONCE , SO LONG AS THE8
QUALIFIED APPLICANT HAS REMAINING TAX CREDIT CERTIFICATES THAT IT9
HAS NOT YET FILED WITH THE DEPARTMENT PURSUANT TO THIS10
SUBSECTION (9), INCURS AN ADDITIONAL LOSS IN CONNECTION WITH A11
REGISTERED LOAN, AND IS ISSUED A REGISTERED LOAN LOSS CERTIFICATE12
FOR THE ADDITIONAL LOSS PURSUANT TO SUBSECTION (8) OF THIS SECTION.13
(d) A
REGISTERED LOAN LOSS CERTIFICATE ISSUED TO A14
PARTNERSHIP, A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP ,15
OR MULTIPLE OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE16
PARTNERS, MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY17
THAT IS A PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA18
BASIS OR PURSUANT TO AN EXECUTED AGREEMENT AM ONG THE PARTNERS ,19
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION20
METHOD.21
(10) 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 QUALIFIED APPLICANT24
INCURS A LOSS IN CONNECTION WITH A REGISTERED LOAN . IF THE AMOUNT25
OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION EXCEEDS THE26
AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF THE27
HB24-1325
-41- QUALIFIED APPLICANT IN THE INCOME TAX YEAR FOR WHICH THE CREDIT1
IS BEING CLAIMED, OR THE QUALIFIED APPLICANT IS A PERSON WHO IS2
EXEMPT FROM TAXATION PURSUANT TO SECTION 39-22-112 (1), ONE3
HUNDRED PERCENT OF THE AMOUNT OF THE CREDIT NOT USED AS AN4
OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REF UNDED TO5
THE QUALIFIED APPLICANT.6
(11) Reporting. (a) N
O LATER THAN NOVEMBER 1, 2027, AND,7
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO8
LATER THAN NOVEMBER 1 OF EACH YEAR THEREAFTER THROUGH 2046,9
THE ADMINISTRATOR SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL10
ASSEMBLY ABOUT THE ACTIVITY IN CONNECTION WITH THE TAX CREDIT11
ALLOWED PURSUANT TO THIS SECTION IN THE PREVIOUS FISCAL YEAR AND12
SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC . IN13
CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS SECTION , THE14
REPORT MUST INCLUDE, BUT NEED NOT BE LIMITED TO:15
(I) T
HE NUMBER OF ELIGIBLE LOANS THAT HAVE BEEN REGISTERED16
PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION; 17
(II) T
HE NUMBER OF REGISTERED LOANS FOR WHICH A QUALIFIED18
APPLICANT NOTIFIED THE ADMINISTRATOR OF A LOAN LOSS PURSUANT TO19
SUBSECTION (8)(a) OF THIS SECTION;20
(III) A
LIST OF EACH QUANTUM BUSINESS IN THE STATE THAT IS A21
BORROWER PURSUANT TO THIS SECTION ; AND22
(IV) A
SUMMARY OF THE BORROWER 'S USE OR USES OF EACH23
REGISTERED LOAN AND THE IMPACT THAT THE LOANS HAVE HAD ON THE24
DEVELOPMENT OF QUANTUM BUSINESSES IN THIS STATE .25
(b) T
HE ADMINISTRATOR SHALL , IN A SUFFICIENTLY TIMELY26
MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING27
HB24-1325
-42- THE INCOME TAX CREDIT ALLOWED IN THIS SECTION , PROVIDE THE1
DEPARTMENT WITH AN ELECTRONIC REPORT OF EACH QUALIFIED2
APPLICANT TO WHICH THE OFFICE ISSUES A TAX CREDIT CERTIFICATE AND3
A REGISTERED LOAN LOSS CERTIFICATE FOR THE PRECEDING TAX YEAR4
THAT INCLUDES THE FOLLOWING INFORMATION :5
(I) T
HE QUALIFIED APPLICANT'S NAME;6
(II) T
HE AMOUNT OF THE CREDIT AS STATED IN THE REGISTERED7
LOAN LOSS CERTIFICATE; AND8
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR9
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL10
EMPLOYER IDENTIFICATION NUMBER .11
(12) Policies and procedures. (a) T
HE ADMINISTRATOR MAY12
CREATE AND MODIFY POLICIES , PROCEDURES, AND GUIDELINES AND13
SPECIFY ADDITIONAL REQUIREMENTS AS NECESSARY TO FURTHER14
IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR MAKING ELIGIBLE15
LOANS PURSUANT TO THIS SECTION AND SHALL SOLICIT ADVICE FROM THE16
DEPARTMENT AND FROM QUANTUM INDUSTRY PARTICIPANTS IN CREATING17
AND MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.18
(b) T
HE ADMINISTRATOR SHALL DEVELOP STANDARDS TO : 19
(I) M
AKE THE DETERMINATION OF WHETHER A LOAN IS AN20
ELIGIBLE LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION;21
(II) D
ETERMINE WHETHER AN ELIGIBLE LOAN MAY BE REGISTERED22
WITH THE ADMINISTRATOR AND WHETHER THE ADMINISTRATOR MAY ISSUE23
A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (7) OF THIS24
SECTION; AND25
(III)
DETERMINE THE AMOUNT OF A CERTIFIED LOAN LOSS26
PURSUANT TO SUBSECTION (8)(c)(II) OF THIS SECTION.27
HB24-1325
-43- (c) THE ADMINISTRATOR MAY CLARIFY THE DEFINITION OF1
QUANTUM COMPANY WHEN NEEDED BASED ON INPUT FROM QUANTUM2
INDUSTRY COMPANIES, RESEARCHERS, TRADE ASSOCIATIONS, AND OTHER3
SECTOR PARTICIPANTS. IN ADDITION, THE ADMINISTRATOR MAY WAIVE4
THE ANNUAL INCOME REQUIREMENT FOR A QUANTUM COMPANY TO BE A5
BORROWER IF THE ADMINISTRATOR DETERMINES THAT WAIVING THAT6
REQUIREMENT IS IN THE BEST INTEREST OF THIS STATE.7
(13) Quantum business loan loss reserve cash fund - creation.8
(a) T
HE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND IS CREATED9
IN THE STATE TREASURY. THE FUND CONSISTS OF MONEY CREDITED TO THE10
FUND PURSUANT TO SUBSECTION (6)(b) OF THIS SECTION AND ANY OTHER11
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER12
TO THE FUND.13
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND14
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE15
QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND TO THE FUND .16
(c) M
ONEY IN THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH17
FUND IS CONTINUOUSLY APPROPRIATED TO THE OFFICE FOR THE18
ADMINISTRATION OF THE QUANTUM BUSINESS LOAN LOSS RESERVE TAX19
CREDIT CREATED IN THIS SECTION.20
(d) T
HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED21
AND UNENCUMBERED MONEY IN THE FUND ON JANUARY 1, 2051, TO THE22
GENERAL FUND.23
(14) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER24
31,
2050.25
SECTION 3. In Colorado Revised Statutes, 24-75-402, amend26
(5)(ccc) and (5)(ddd); and add (5)(eee) as follows:27
HB24-1325
-44- 24-75-402. Cash funds - limit on uncommitted reserves -1
reduction in the amount of fees - exclusions - definitions.2
(5) Notwithstanding any provision of this section to the contrary, the3
following cash funds are excluded from the limitations specified in this4
section:5
(ccc) The wildfire resiliency code board cash fund created in6
section 24-33.5-1236 (8); and7
(ddd) The closed landfill remediation grant program fund created8
in section 30-20-124 (8);
AND9
(eee) T
HE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND10
CREATED IN SECTION 39-22-561 (13).11
SECTION 4. Safety clause. The general assembly finds,12
determines, and declares that this act is necessary for the immediate13
preservation of the public peace, health, or safety or for appropriations for14
the support and maintenance of the departments of the state and state15
institutions.16
HB24-1325
-45-