Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0997.01 Nicole Myers x4326
HOUSE BILL 24-1325
House Committees Senate Committees
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF TAX INCENTIVES TO SUPPORT THE101
QUANTUM
INDUSTRY, AND, IN CONNECTION THEREWITH ,102
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 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
HOUSE
3rd Reading Unamended
April 30, 2024
HOUSE
Amended 2nd Reading
April 29, 2024
HOUSE SPONSORSHIP
Valdez and Soper, Bacon, Bird, Boesenecker, Brown, Clifford, Daugherty, Duran, English,
Hamrick, Jodeh, Lindstedt, Lukens, Mauro, McCluskie, McCormick, Ricks, Snyder, Titone,
Woodrow
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. innovation program or a comparable federal grant program.
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
1325
-2- qualified applicant in connection with a registered loan to a quantum
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
1325
-3- registered loans;
! 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
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 deeply committed to ensuring that all residents of11
the state have equitable access to high-quality careers, and maintains that12
the state's economy and social well-being is greatly strengthened when13
investments in industries assist to create and retain high-road,14
family-sustaining jobs;15
(e) The federal Tech Hubs program requires the development of16
robust workforce development programs in partnership with training17
providers, educational institutions, and labor and community18
organizations, requires that programs align with the "Good Jobs19
Principles" established by the United States department of labor and20
United States department of commerce, and requires that programs21
demonstrate how workforce development organizations and organizations22
representing workers, including labor organizations and federations, will23
collaborate within the Tech Hub to increase job quality and the quantity24
of good jobs in the selected core technology areas;25
(f) Colorado is internationally recognized for its contributions to26
quantum physics and is home to 4 winners of the Nobel Prize in Physics27
1325
-5- for quantum breakthroughs that shifted global understanding in the field;1
(g) Colorado has more quantum startups, deployed quantum2
technology, private sector investments in quantum technology employees3
working for quantum companies, and overall economic output within the4
quantum industry than any other state;5
(h) Colorado's quantum technology industry has fostered a 40%6
increase in the number of patents secured in the state over the last 107
years and a 545% increase in the total third-party funding amount directed8
to quantum companies in the state over the last 15 years;9
(i) Establishing Colorado as the global hub for quantum10
technology will result in an economic impact of more than $1 billion11
statewide and over 10,000 high-quality jobs from the Phase 2 Tech Hub12
designation alone, but state support will be essential in obtaining this13
federal money;14
(j) Colorado's quantum technology industry has garnered15
international recognition for its groundbreaking achievements,16
positioning the state as a leader in quantum research, development, and17
innovation; and18
(k) The collaborative efforts of higher education institutions,19
industry, and government agencies have played a pivotal role in nurturing20
Colorado's quantum technology ecosystem, fostering an environment21
conducive to research advancements, technology deployment to improve22
the quality of life, and economic prosperity for Colorado and our global23
community.24
(2) The general assembly further finds and declares that the tax25
incentives provided in this act will strengthen the growing and26
competitive position of Colorado as a Tech Hub for quantum technology27
1325
-6- and will enable the state to continue its exemplary achievements and1
strategic initiatives in quantum technology.2
SECTION 2. In Colorado Revised Statutes, add 39-22-560 and3
39-22-561 as follows:4
39-22-560. Tax credit for investments in fixed capital assets5
for a shared quantum facility - tax preference performance statement6
- definitions - repeal. (1) Tax preference performance statement. I
N7
ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL8
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE9
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE10
DECLARATION, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :11
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT12
ALLOWED BY THIS SECTION ARE:13
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;14
AND15
(II) T
O IMPROVE INDUSTRY COMPETITIVENESS ;16
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT17
ALLOWED BY THIS SECTION IS TO INDUCE A QUALIFIED APPLICANT TO18
INVEST IN FIXED CAPITAL ASSETS TO CREATE A HUB THAT IS A SHARED19
QUANTUM FACILITY THAT ACCOMPLISHES TRANSLATIONAL RESEARCH AND20
INCUBATION, LOW-VOLUME MANUFACTURING AND FABRICATION AND21
RAPID PROTOTYPING IN A LABORATORY ENVIRONMENT AND TO PROVIDE22
RELATED SERVICES
AND WORKFORCE DEVELOPMENT TO SUPPORT THE23
DEVELOPMENT OF QUANTUM BUSINESSES AND THE QUANTUM ECOSYSTEM24
IN THE STATE; AND25
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL26
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES27
1325
-7- SPECIFIED IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION BASED ON1
THE INFORMATION REPORTED BY THE OFFICE PURSUANT TO SUBSECTION2
(11)
OF THIS SECTION.3
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT4
OTHERWISE REQUIRES:5
(a) "C
ONSORTIUM" MEANS A GROUP OF NONPROFIT OR FOR-PROFIT6
ENTITIES, OR BOTH, THAT ARE JOINTLY MAKING QUALIFYING INVESTMENTS7
IN AN ELIGIBLE PROJECT TO CREATE AND OPERATE A SHARED QUANTUM8
FACILITY. A CONSORTIUM MAY INCLUDE ONE OR MORE MEMBERS EXEMPT9
FROM TAX PURSUANT TO SECTION 39-22-112.10
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .11
(c) "E
LIGIBLE PROJECT" MEANS A CAPITAL PROJECT UNDERTAKEN12
IN THE STATE TO CREATE A SHARED QUANTUM FACILITY FOR WHICH A13
QUALIFIED APPLICANT MAKES QUALIFYING INVESTMENTS AND THAT IS14
APPROVED BY THE OFFICE IN ACCORDANCE WITH THE POLICIES ,15
PROCEDURES, AND GUIDELINES FOR THE IMPLEMENTATION AND16
ADMINISTRATION OF THE TAX CREDIT ALLOWED BY THIS SECTION ADOPTED17
BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.18
(d) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC19
DEVELOPMENT CREATED IN SECTION 24-48.5-101.20
(e) (I) "Q
UALIFIED APPLICANT" MEANS A NONPROFIT OR21
FOR-PROFIT ENTITY THAT SUBMITS AN APPLICATION FOR THE RESERVATION22
AND ISSUANCE OF TAX CREDITS TO THE OFFICE PURSUANT TO THIS23
SECTION. AN APPLICANT MAY BE A CONSORTIUM AS SET FORTH IN24
SUBSECTION (4) OF THIS SECTION.25
(II) A
"QUALIFIED APPLICANT" INCLUDES A PERSON THAT IS26
EXEMPT FROM TAXATION PURSUANT TO SECTION 39-22-112.27
1325
-8- (f) (I) "QUALIFYING FIXED CAPITAL ASSETS" MEANS:1
(A) L
AND IN THIS STATE;2
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS3
OF BUILDINGS IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS4
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF5
THE INTERNAL REVENUE CODE , INCLUDING PURCHASING OR6
CONSTRUCTING A FACILITY, RENOVATING A FACILITY, MAKING TENANT7
IMPROVEMENTS, FUNDING A CAPITAL LEASE , CAPITALIZED LABOR,8
CONSTRUCTION, AND INSTALLATION COSTS;9
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE10
EXCLUSIVELY IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS11
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF12
THE INTERNAL REVENUE CODE , INCLUDING FURNITURE, FIXTURES AND13
EQUIPMENT SUCH AS OUTFITTING AN OFFICE , LABORATORY MACHINES ,14
REFRIGERATION, HVAC SYSTEMS, PIPING, MEASURING, MONITORING AND15
INSTRUMENTATION EQUIPMENT , FABRICATION MACHINES, TOOLS AND16
EQUIPMENT, AND ANY HARDWARE AND SOFTWARE DEVELOPED BY THIRD17
PARTIES NECESSARY FOR QUANTUM TECHNOLOGY APPLICATIONS ; AND18
(D) C
OMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN19
THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS ALLOWED A20
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE21
INTERNAL REVENUE CODE.22
(II) "Q
UALIFYING FIXED CAPITAL ASSETS" IS LIMITED TO PROPERTY23
ACQUIRED, CONSTRUCTED, RECONSTRUCTED, OR ERECTED AS PART OF A24
COORDINATED PLAN TO CREATE A SHARED QUANTUM FACILITY .25
(III) F
OR PURPOSES OF THIS SUBSECTION (2)(f), IF A QUALIFIED26
APPLICANT IS NOT SUBJECT TO FEDERAL INCOME TAX , THE QUALIFIED27
1325
-9- APPLICANT IS DEEMED TO BE ALLOWED A DEDUCTION FOR DEPRECIATION1
IF SUCH A DEDUCTION WOULD HAVE BEEN ALLOWED WERE THE QUALIFIED2
APPLICANT SUBJECT TO FEDERAL INCOME TAX .3
(IV) "QUALIFYING FIXED CAPITAL ASSETS" SHALL BE ACQUIRED,4
CONSTRUCTED, RECONSTRUCTED, OR ERECTED WHERE POSSIBLE BY A5
CERTIFIED CONTRACTOR ON A CERTIFIED CONTRACTOR LIST THAT IS6
OBTAINED FROM THE COLORADO DEPARTMENT OF LABOR AND7
EMPLOYMENT AND THAT CONTAINS THE INFORMATION SPECIFIED IN8
SECTION 40-3.2-105.6 (3)(a).9
(g) "Q
UALIFYING INVESTMENT" MEANS THE AMOUNT PAID BY A10
QUALIFIED APPLICANT TO ACQUIRE, CONSTRUCT, RECONSTRUCT, OR ERECT11
QUALIFYING FIXED CAPITAL ASSETS TO THE EXTENT SUCH AMOUNT IS12
REQUIRED TO BE CAPITALIZED PURSUANT TO THE INTERNAL REVENUE13
CODE OR SUCH AMOUNT IS ALLOWED TO BE DEDUCTED UNDER SECTION 17914
OF THE INTERNAL REVENUE CODE. "QUALIFYING INVESTMENT" INCLUDES15
AN AMOUNT CAPITALIZED BY A LESSEE OF QUALIFYING FIXED CAPITAL16
ASSETS FOR A LEASE THAT IS TREATED AS A SALE FOR FEDERAL INCOME17
TAX PURPOSES.18
(h) "Q
UANTUM BUSINESS" MEANS A PRIVATE FOR-PROFIT TRADE19
OR BUSINESS OR NONPROFIT ORGANIZATION THAT HAS QUANTUM20
TECHNOLOGY AS A KEY PART OF ITS BUSINESS MODEL OR OR GANIZATIONAL21
PURPOSE, INCLUDING BUT NOT LIMITED TO MANUFACTURING , TESTING,22
PRODUCTION, RESEARCH AND DEVELOPMENT , OR ENHANCEMENT OF23
HARDWARE OR SOFTWARE TO PERFORM OR USE QUANTUM TECHNOLOGY24
AS A KEY INPUT OR OUTPUT OF ITS BUSINESS MODEL , AND COMPANIES25
THAT PRODUCE GOODS OR SERVICES THAT ARE KEY INPUTS FOR OTHER26
QUANTUM BUSINESS.27
1325
-10- (i) "SHARED QUANTUM FACILITY" MEANS A PRIMARY PLACE IN THE1
STATE WHERE AN APPLICANT PERFORMS ACTIVITIES AND PROVIDES2
ECONOMIC BENEFITS RELATED TO SUPPORTING QUANTUM BUSINESSES AND3
THE QUANTUM ECOSYSTEM .4
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF5
SUBSECTION (3)(c) OF THIS SECTION, FOR INCOME TAX YEARS6
COMMENCING ON OR AFTER JANUARY 1, 2025, BUT PRIOR TO JANUARY 1,7
2033,
A QUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME8
TAXES IMPOSED BY THIS ARTICLE 22 FOR PLACING AN ELIGIBLE PROJECT IN9
SERVICE IN AN AMOUNT SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY10
THE OFFICE PURSUANT TO 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 FOR A TAX13
CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (5) OF THIS SECTION,14
PLACE THE ELIGIBLE PROJECT IN SERVICE PRIOR TO JANUARY 1, 2031,15
OBTAIN A TAX CREDIT CERTIFICATE FROM THE OFFICE AS SPECIFIED IN16
SUBSECTION (7) OF THIS SECTION, AND, ONCE ISSUED BY THE OFFICE, FILE17
THE TAX CREDIT CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME18
TAX RETURN AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION.19
(c) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT ALLOWED TO20
ANY QUALIFIED APPLICANT UNLESS A COLORADO-BASED ENTITY RECEIVES21
A MULTI-MILLION DOLLAR FEDERAL GRANT FROM THE ECONOMIC22
DEVELOPMENT ADMINISTRATION FOR THE REGIONAL TECHNOLOGY AND23
INNOVATION PROGRAM OR A COMPAR ABLE FEDERAL GRANT PROGRAM .24
T
HE OFFICE SHALL NOTIFY THE DEPARTMENT IF A GRANT SPECIFIED IN THIS25
SUBSECTION (3)(c) IS RECEIVED.26
(4) Consortium as qualified applicant - tax matters27
1325
-11- representative. I F A QUALIFIED APPLICANT IS A CONSORTIUM:1
(a) T
HE BASIS OF THE CREDIT ALLOWED BY THIS SECTION INCLUDES2
THE AGGREGATE QUALIFYING INVESTMENT BY ALL THE MEMBERS OF THE3
CONSORTIUM AS DESCRIBED IN SUBSECTION (7)(a)(II) OF THIS SECTION.4
(b) W
HETHER THE APPLICANT PERFORMS THE ACTIVITIES AND5
PROVIDES THE ECONOMIC BENEFITS RELATED TO QUANTUM BUSINESS IS6
BASED UPON THE ACTIVITIES PERFORMED BY AND THE BENEFITS PROVIDED7
BY ALL THE MEMBERS OF THE CONSORTIUM .8
(c) T
HE MEMBERS OF THE CONSORTIUM SHALL DESIGNATE ONE9
MEMBER TO BE THE TAX MATTERS REPRESENTATIVE . THE TAX MATTERS10
REPRESENTATIVE SHALL DISCLOSE TO THE OFFICE THAT IT IS THE TAX11
MATTERS REPRESENTATIVE ACTING ON BEHALF OF THE CONSORTIUM . THE12
TAX MATTERS REPRESENTATIVE SHALL ALSO DISCLOSE TO THE OFFICE THE13
NAME AND TAXPAYER IDENTIFICATION NUMBER OF EACH MEMBER OF THE14
CONSORTIUM.15
(d) T
HE TAX MATTERS REPRESENTATIVE IS RESPONSIBLE FOR16
REPRESENTING AND BINDING THE CONSORTIUM WITH RESPECT TO ALL17
ISSUES AFFECTING THE CREDIT, INCLUDING SUBMITTING THE APPLICATION18
FOR A TAX CREDIT RESERVATION , REPRESENTING THE CONSORTIUM19
BEFORE THE OFFICE WITH RESPECT TO THE APPLICATION , NOTIFYING THE20
OFFICE THAT THE ELIGIBLE PROJECT HAS BEEN PLACED IN SERVICE ,21
SUBMITTING PROOF OF COMPLIANCE , SUBMITTING ONGOING COMPLIANCE22
REPORTS, SUBMITTING ANY OTHER REPORT OR DOCUMENT REQUIRED BY23
THE OFFICE OR THE DEPARTMENT , ADJUDICATING ANY DISPUTES, AND24
TAKING ANY OTHER ACTION REQUIRED OF A QUALIFIED APPLICANT BY THIS25
SECTION. THE ACTS OF THE TAX MATTERS REPRESENTATIVE ARE BINDING26
UPON ALL MEMBERS OF THE CONSORTIUM .27
1325
-12- (e) THE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE TO, AND1
IN THE NAME OF, THE TAX MATTERS REPRESENTATIVE . THE TAX MATTERS2
REPRESENTATIVE SHALL FILE THE RETURN AND CLAIM THE FULL AMOUNT3
OF THE TAX CREDIT PURSUANT TO SUBSECTION (8) OF THIS SECTION. THE4
DEPARTMENT SHALL PAY ANY AMOUNT REFUNDED PURSUANT TO5
SUBSECTION (9) OF THIS SECTION TO THE TAX MATTERS REPRESENTATIVE .6
(f) I
F THE CREDIT ALLOWED BY THIS SECTION IS RECAPTURED7
PURSUANT TO SUBSECTION (10) OF THIS SECTION, THE TAX MATTERS8
REPRESENTATIVE SHALL ADD THE RECAPTURED CREDIT , PLUS ANY9
APPLICABLE PENALTIES AND INTEREST , TO ITS RETURN. NEVERTHELESS,10
EVERY MEMBER OF THE CONSORTIUM IS JOINTLY AND SEVERALLY LIABLE11
FOR ANY RESULTING DEFICIENCY.12
(5) Application submission and review for tax credit13
reservation. (a) A
N APPLICANT MAY SUBMIT AN APPLICATION FOR A TAX14
CREDIT RESERVATION TO THE OFFICE ON OR AFTER JANUARY 1, 2024, BUT15
NO LATER THAN DECEMBER 31, 2025; EXCEPT THAT IF THE FEDERAL16
GOVERNMENT HAS NOT ANNOUNCED THE GRANT RECIPIENT DESCRIBED IN17
SUBSECTION (3)(c) OF THIS SECTION BY JUNE 30, 2025, THE OFFICE MAY18
EXTEND THE APPLICATION DEADLINE TO NO MORE THAN SIX MONTHS19
AFTER AN ANNOUNCEMENT THAT A COLORADO-BASED ENTITY HAS20
RECEIVED THE GRANT DESCRIBED IN SUBSECTION (3)(c) OF THIS SECTION.21
T
HE APPLICATION SHALL INCLUDE A PROJECT PLAN FOR A SHARED22
QUANTUM FACILITY.23
(b) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS FOR24
A TAX CREDIT RESERVATION TO:25
(I) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED26
APPLICANT;27
1325
-13- (II) DETERMINE WHETHER THE APPLICATION FOR A TAX CREDIT1
RESERVATION IS COMPLETE AND INCLUDE S A PLAN TO MAKE INVESTMENTS2
IN QUALIFYING FIXED CAPITAL ASSETS FOR THE CREATION OF A SHARED3
QUANTUM FACILITY;4
(III) M
AKE A PRELIMINARY DETERMINATION WHETHER THE5
PROJECT PLAN FOR A SHARED QUANTUM FACILITY IS FOR AN ELIGIBLE6
PROJECT BASED ON THE POLICIES AND PROCEDURES DEVELOPED BY THE7
OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION; AND8
(IV) D
ETERMINE WHETHER THE ELIGIBLE PROJECT IS ENTITLED TO9
A TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (6) OF THIS10
SECTION.11
(c) T
HE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN12
SUBSECTION (5)(b) OF THIS SECTION WITHIN NINETY DAYS OF THE DATE13
THE OFFICE RECEIVES THE COMPLETE APPLICATION FOR A TAX CREDIT14
RESERVATION.15
(d) I
F THE OFFICE DETERMINES THAT AN APPLICATION FOR A TAX16
CREDIT RESERVATION IS INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE17
DETERMINATION SPECIFIED IN SUBSECTION (5)(b) OF THIS SECTION, THE18
OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE 'S19
DECISION AND MAY REMOVE THE APPLICATION FOR A TAX CREDIT20
RESERVATION FROM THE REVIEW PROCESS .21
(e) A
S PART OF THE APPLICATION REVIEW PROCESS REQUIRED22
PURSUANT TO SUBSECTION (5)(b) OF THIS SECTION, THE OFFICE MAY23
REQUEST CLARIFICATIONS AND MODIFICATIONS TO THE APPLICATION .24
(f) T
HE OFFICE MAY INCLUDE PERFORMANCE REQUIREMENTS AND25
CRITERIA THAT A QUALIFIED APPLICANT IS REQUIRED TO SATISFY BEFORE26
THE OFFICE WILL ISSUE A TAX CREDIT RESERVATION PURSUANT TO27
1325
-14- SUBSECTION (6) OF THIS SECTION OR A TAX CREDIT CERTIFICATE PURSUANT1
TO SUBSECTION (7) OF THIS SECTION. THE OFFICE MUST DOCUMENT IN2
WRITING ANY REQUIREMENTS CREATED PURSUANT TO THIS SUBSECTION3
(5)(f).4
(6) Tax credit reservation. (a) B
ASED ON THE FACTORS SPECIFIED5
IN SUBSECTION (6)(d) OF THIS SECTION, THE OFFICE MAY DETERMINE THAT6
A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN7
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE OFFICE SHALL8
ISSUE TAX CREDIT RESERVATIONS SUBJECT TO THE LIMITATIONS SET FORTH9
IN THIS SUBSECTION (6) AND IN ACCORDANCE WITH THE POLICIES AND10
PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION (12) OF THIS11
SECTION.12
(b) I
F THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A13
QUALIFIED APPLICANT, THE OFFICE SHALL NOTIFY THE QUALIFIED14
APPLICANT IN WRITING OF THE RESERVATION AND THE AM OUNT RESERVED .15
T
HE RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED16
APPLICANT DOES NOT ENTITLE THE QUALIFIED APPLICANT TO ISSUANCE OF17
A CREDIT CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH18
ALL THE OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE19
ISSUANCE OF THE TAX CREDIT. WHEN THE OFFICE APPROVES A TAX CREDIT20
RESERVATION, THE OFFICE MAY ALSO IMPOSE ADDITIONAL REQUIREMENTS ,21
WHICH A QUALIFIED APPLICANT SHALL SATISFY AS PART OF COMPLETING22
THE QUALIFYING INVESTMENT , BEFORE A TAX CREDIT CERTIFICATE IS23
ISSUED TO THE QUALIFIED APPLICANT.24
(c) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (6)(c), IF25
APPROVED, THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A26
QUALIFIED APPLICANT FOR AN ELIGIBLE PROJECT IN AN AMOUNT EQUAL TO27
1325
-15- THE QUALIFIED APPLICANT'S ESTIMATED QUALIFYING INVESTMENT .1
(II) T
HE AGGREGATE AM OUNT OF ALL FIXED ASSET INVESTMENT2
TAX CREDIT RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO3
THIS SECTION MUST NOT EXCEED FORTY -FOUR MILLION DOLLARS.4
(III) T
HE OFFICE MAY ESTABLISH POLICIES AND PROCEDURES TO5
CAP THE TOTAL AMOUNT OF ANY TAX CREDIT RESERVATION ISSUED TO A6
QUALIFIED APPLICANT PURSUANT TO THIS SUBSECTION (6).7
(d) I
N MAKING THE FINAL DETERMINATION OF WHICH PROJECT8
PLAN TO ISSUE TAX RESERVATIONS TO PURSUANT TO THIS SUBSECTION (6),9
THE OFFICE MAY PRIORITIZE A PROJECT PLAN THAT :10
(I) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT IS A11
CONSORTIUM THAT INCLUDES THE FOLLOWING OR IS SUBMITTED BY A12
QUALIFIED APPLICANT THAT IS NOT A CONSORTIUM AND THAT13
COLLABORATES WITH THE FOLLOWING :14
(A) A
NONPROFIT ENTITY CREATED BY INSTITUTIONS OF HIGHER15
EDUCATION OF HIGH RESEARCH ACTIVITY, CLASSIFIED AS R1 UNIVERSITIES,16
LED BY A PUBLIC R1 UNIVERSITY WITH A DEMONSTRATED HISTORY OF17
QUANTUM-RELATED RESEARCH AND INVESTMENT IN COLORADO; AND18
(B) A
NONPROFIT ENTITY THAT HAS RECEIVED A SUBSTANTIAL19
FEDERAL AWARD FOR THE PURPOSES OF CULTIVATING AND EXPANDING A20
QUANTUM-RELATED ECOSYSTEM WITHIN COLORADO;21
(II) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT22
DEMONSTRATES AN ABILITY TO MEET APPLICATION REQUIREMENTS23
DESIGNATED BY THE OFFICE, INCLUDING:24
(A) T
HE SUBMISSION OF A BUDGET FOR THE PROJECT PLAN THAT25
INCLUDES THE SOURCES OF FUNDING FOR THE PROJECT AND ANTICIPATED26
USES OF THE FUNDING;
27
1325
-16- (B) THE SUBMISSION OF AN EXPLANATION FOR THE WAYS IN WHICH1
THE SHARED QUANTUM FACILITY WILL BE USED AND HOW IT WILL BENEFIT2
THE QUANTUM INDUSTRY IN THIS STATE ; AND3
(C) THE SUBMISSION OF A COMMUNITY BENEFITS PLAN DEVELOPED4
BY A NONPROFIT ENTITY DESCRIBED IN SUBSECTION (6)(d)(I)(B) OF THIS5
SECTION, THROUGH ENGAGEMENT WITH THE COMMUNITY SURROUNDING6
THE SHARED QUANTUM FACILITY AND LABOR ORGANIZATIONS ;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
1325
-17- (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
1325
-18- 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
1325
-19- 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
1325
-20- (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
1325
-21- (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
1325
-22- 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
1325
-23- 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
1325
-24- (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
AND QUALITY OF JOBS SUPPORTED IN THE10
QUANTUM INDUSTRY 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
1325
-25- 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
(c) WITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION20
AS TO WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT21
PURSUANT TO SUBSECTION (5)(b)(III) OF THIS SECTION, THE OFFICE SHALL22
CONSIDER JOB QUALITY STANDARDS AND GUIDELINES FOR THE SHARED23
QUANTUM FACILITY THAT ADHERE TO THE "GOOD JOBS PRINCIPLES"24
ESTABLISHED BY THE UNITED STATES DEPARTMENT OF LABOR AND25
UNITED STATES DEPARTMENT OF COMMERCE .26
(13) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER27
1325
-26- 31, 2050.1
39-22-561. Quantum business loan loss reserve income tax2
credit - tax preference performance statement - definitions - repeal.3
(1) Tax preference performance statement. I
N ACCORDANCE WITH4
SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW5
TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE6
STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE7
GENERAL ASSEMBLY FINDS AND DECLARES THAT :8
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT9
ALLOWED BY THIS SECTION ARE:10
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;11
AND12
(II) T
O IMPROVE INDUSTRY COMPETITIVENESS ;13
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT14
ALLOWED BY THIS SECTION IS TO SUPPORT AND FACILITATE THE15
DEVELOPMENT OF THE QUANTUM BUSINESS ECOSYSTEM
AND HIGH16
QUALITY JOBS IN THE STATE BY ENCOURAGING QUALIFIED APPLICANTS TO17
MAKE LOANS THAT THE QUALIFIED APPLICANTS MIGHT NOT OTHERWISE18
MAKE OR AT MORE FAVORABLE TERMS THAN THEY WOULD OTHERWISE19
MAKE TO BORROWERS THAT HAVE LIMITED ACCESS TO CAPITAL ; AND20
(c) T
HE GENERAL ASSEMBLY AND STATE AUDITOR SHALL MEASURE21
THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES SPECIFIED22
IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION BASED ON THE23
INFORMATION REPORTED BY THE ADMINISTRATOR PURSUANT TO24
SUBSECTION (11) OF THIS SECTION.25
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT26
OTHERWISE REQUIRES:27
1325
-27- (a) "ADMINISTRATOR" MEANS THE OFFICE, A THIRD PARTY1
SELECTED BY THE OFFICE, OR THE THIRD PARTY WORKING IN COMBINATION2
WITH THE OFFICE TO ADMINISTER THE TAX CREDIT CREATED IN THIS3
SECTION.4
(b) "B
ORROWER" MEANS A QUANTUM COMPANY DOING BUSINESS5
IN COLORADO THAT IS AN EARLY-STAGE OR GROWTH-STAGE COMPANY AT6
THE TIME A QUALIFIED APPLICANT MAKES A LOAN TO THE COMPANY AND7
THAT, EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (12)(c) OF THIS8
SECTION, HAD AN ANNUAL REVENUE OF LESS THAN ONE H UNDRED MILLION9
DOLLARS IN THE YEAR PRIOR TO THE YEAR IN WHICH A QUALIFIED10
APPLICANT MADE A LOAN TO THE COMPANY .11
(c) "D
EPARTMENT" MEANS THE COLORADO DEPARTMENT OF12
REVENUE.13
(d) "E
LIGIBLE LOAN" MEANS A LOAN MADE BY A QUALIFIED14
APPLICANT TO A BORROWER.15
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC16
DEVELOPMENT CREATED IN SECTION 24-48.5-101.17
(f) "Q
UALIFIED APPLICANT" MEANS A COMMERCIAL BANK ,18
DEPOSITORY INSTITUTION, PRIVATE LENDING FUND, OR OTHER ENTITY19
THAT MAKES LOANS FOR COMMERCIAL PURPOSES AND MAKES A LOAN TO20
A BORROWER.21
(g) "Q
UANTUM COMPANY " MEANS A PRIVATE FOR-PROFIT OR22
NONPROFIT ORGANIZATION THAT HAS QUANTUM TECHNOLOGY AS A KEY23
PART OF ITS BUSINESS MODEL , INCLUDING BUT NOT LIMITED TO24
MANUFACTURING, TESTING, PRODUCTION, RESEARCH AND DEVELOPMENT ,25
OR ENHANCEMENT OF HARDWARE OR SOFTWARE TO PERFORM OR USE26
QUANTUM TECHNOLOGY AS A KEY INPUT OR OUTPUT OF ITS BUSINESS27
1325
-28- MODEL, AND COMPANIES THAT PRODUCE GOODS OR SERVICES THAT ARE1
KEY INPUTS FOR OTHER QUANTUM COMPANIES .2
(h) "R
EGISTERED LOAN" MEANS AN ELIGIBLE LOAN MADE TO A3
BORROWER THAT IS REGISTERED WITH THE ADMINISTRATOR PURSUANT TO4
SUBSECTION (7)(a) OF THIS SECTION.5
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF6
SUBSECTION (3)(c) OF THIS SECTION, FOR INCOME TAX YEARS7
COMMENCING ON OR AFTER JANUARY 1, 2026, BUT PRIOR TO JANUARY 1,8
2046,
A QUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME9
TAXES IMPOSED BY THIS ARTICLE 22 TO OFFSET LOSSES INCURRED IN10
CONNECTION WITH ONE OR MORE REGISTERED LOANS IN AN AMOUNT11
SPECIFIED ON THE REGISTERED LOAN LOSS CERTIFICATE ISSUED BY THE12
ADMINISTRATOR PURSUANT TO SUBSECTION (8) OF THIS SECTION; EXCEPT13
THAT, IF A QUALIFIED TAXPAYER CLAIMS MORE THAN ONE REGISTERED14
LOAN LOSS, IN NO EVENT MAY THE AGGREGATE REGISTERED LOAN LOSSES15
CLAIMED BY THE QUALIFIED TAXPAYER EXCEED THE TOTAL AM OUNT16
SPECIFIED ON THE TAX CREDIT CERTIFICATES ISSUED PURSUANT TO17
SUBSECTION (7) OF THIS SECTION.18
(b) T
O CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION ,19
THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS SPECIFIED IN20
SUBSECTION (5) OF THIS SECTION, MAKE AN ELIGIBLE LOAN AND REGISTER21
THE ELIGIBLE LOAN PRIOR TO JUNE 30, 2036, OBTAIN A TAX CREDIT22
CERTIFICATE FROM THE ADMINISTRATOR AS SPECIFIED IN SUBSECTION (7)23
OF THIS SECTION, INCUR A LOSS IN CONNECTION WITH A REGISTERED LOAN24
AND OBTAIN A REGISTERED LOAN LOSS CERTIFICATE FROM THE25
ADMINISTRATOR AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION PRIOR26
TO JANUARY 1, 2045, AND, ONCE ISSUED BY THE ADMINISTRATOR, FILE THE27
1325
-29- TAX CREDIT CERTIFICATE AND THE REGISTERED LOAN LOSS CERTIFICATE1
WITH THE QUALIFIED APPLICANT'S INCOME TAX RETURN AS SPECIFIED IN2
SUBSECTION (9) OF THIS SECTION.3
(c) T
HE ADMINISTRATOR SHALL DETERMINE THE METHOD IT WILL4
USE TO DISTRIBUTE TAX CREDIT CERTIFICATES TO QUALIFIED APPLICANTS5
PURSUANT TO SUBSECTION (7) OF THIS SECTION. IN SELECTING THE6
DISTRIBUTION METHOD USED TO DISTRIBUTE THE TAX CREDIT7
CERTIFICATES, THE ADMINISTRATOR MAY CONSULT WITH QUANTUM8
INDUSTRY PARTICIPANTS. THE DISTRIBUTION METHOD MAY BE : 9
(I) O
N A FIRST-COME, FIRST-SERVED BASIS TO QUALIFIED10
APPLICANTS WHO APPLY TO THE ADMINISTRATOR FOR A TAX CREDIT11
PURSUANT TO SUBSECTION (5) OF THIS SECTION FOR ONE OR MORE12
ELIGIBLE LOANS EACH, AFTER THE QUALIFIED APPLICANT HAS MADE THE13
LOAN;14
(II) B
ASED ON A COMPETITIVE LENDER SELECTION PROCESS WHERE15
THE ADMINISTRATOR CHOOSES WHICH LENDERS ARE ELIGIBLE TO APPLY16
FOR THE TAX CREDIT ALLOWED BY THIS SECTION IN ADVANCE OF17
ACCEPTING APPLICATIONS AND REQUESTS TO REGISTER LOANS AND IN18
ADVANCE OF ISSUING TAX CREDITS . IN SELECTING LENDERS TO BE19
ALLOWED A TAX CREDIT PURSUANT TO THIS SECTION , THE ADMINISTRATOR20
MAY ALLOCATE SOME OR ALL OF THE CREDITS SOLELY TO SELECTED21
LENDERS. IF THE ADMINISTRATOR USES THIS DISTRIBUTION METHOD , THE22
SELECTED LENDERS ARE THE ONLY QUALIFIED APPLICANTS THAT ARE23
ALLOWED TO APPLY TO THE ADMINISTRATOR , REQUEST REGISTRATION OF24
THE LOAN, AND BE ISSUED A TAX CREDIT CERTIFICATE AND REGISTERED25
LOAN LOSS CERTIFICATE PURSUANT TO THIS SECTION .26
(III) A
COMBINATION OF THE METHODS DESCRIBED IN27
1325
-30- SUBSECTIONS (3)(c)(I) AND (3)(c)(II) OF THIS SECTION.1
(d) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT ALLOWED TO2
ANY QUALIFIED APPLICANT UNLESS A COLORADO-BASED ENTITY RECEIVES3
A MULTI-MILLION DOLLAR FEDERAL GRANT FROM THE ECONOMIC4
DEVELOPMENT ADMINISTRATION FOR THE REGIONAL TECHNOLOGY AND5
INNOVATION PROGRAM OR A COMPAR ABLE FEDERAL GRANT PROGRAM .6
(4) Credit administration. (a) E
XCEPT AS OTHERWISE PROVIDED7
IN SUBSECTION (4)(b) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR8
OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION . THE OFFICE MAY9
WORK WITH A THIRD-PARTY PROGRAM ADMINISTRATOR SELECTED BY THE10
OFFICE TO ASSIST IN ADMINISTERING THE CREDIT.
IN ADDITION, THE OFFICE11
MAY CONTRACT WITH THE COLORADO HOUSING AND FINANCE AUTHORITY12
CREATED IN SECTION 29-4-704 WITHOUT RECOURSE TO A COMPETITIVE13
PROCESS TO PROVIDE SERVICES TO THE OFFICE IN ITS ROLE AS THE14
ADMINISTRATOR.15
(b) I
N LIEU OF THE OFFICE SERVING AS THE ADMINISTRATOR16
PURSUANT TO SUBSECTION (4)(a) OF THIS SECTION, THE OFFICE MAY
17
CONTRACT WITH ANOTHER ENTITY TO BE THE ADMINISTRATOR. HOWEVER,18
IF THE OFFICE CONTRACTS WITH ANOTHER ENTITY TO BE THE19
ADMINISTRATOR, THEN THE OFFICE MUST SELECT THE THIRD -PARTY20
ADMINISTRATOR USING A COMPETITIVE SELECTION PROCESS .21
(5) Application submission and request for loan registration.22
(a) A
N APPLICANT THAT HAS MADE A LOAN FOR THE PURPOSES OF THE23
TAX CREDIT ALLOWED PURSUANT TO THIS SECTION MAY SUBMIT AN24
APPLICATION FOR A TAX CREDIT CERTIFICATE DESCRIBED IN SUBSECTION25
(7)
OF THIS SECTION AND REQUEST THAT THE ADMINISTRATOR REGISTER26
THE LOAN PURSUANT TO THIS SUBSECTION (5) ON OR AFTER JANUARY 1,27
1325
-31- 2025, BUT NO LATER THAN JUNE 30, 2036.1
(b) (I) T
HE ADMINISTRATOR SHALL REVIEW ALL SUBMITTED2
APPLICATIONS TO:3
(A) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED4
APPLICANT;5
(B) D
ETERMINE WHETHER THE QUANTUM COMPANY THAT IS THE6
LOAN RECIPIENT IS A BORROWER;7
(C) D
ETERMINE WHETHER THE APPLICATION IS COMPL ETE AND8
INCLUDES A DESCRIPTION OF THE LOAN THAT THE QUALIFIED APPLICANT9
MADE OR WILL MAKE TO A BORROWER AND A DESCRIPTION OF THE10
PURPOSES FOR WHICH THE BORROWER WILL USE THE LOAN ; 11
(D) M
AKE A DETERMINATION OF WHETHER THE LOAN IS AN12
ELIGIBLE LOAN AND WHETHER THE ADMINISTRATOR MAY REGISTER THE13
LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION; AND14
(E) D
ETERMINE WHETHER, BASED ON THE ELIGIBLE LOAN, THE15
QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT CERTIFICATE AS16
SPECIFIED IN SUBSECTION (7) OF THIS SECTION.17
(II) I
F THE ADMINISTRATOR DETERMINES THAT AN APPLICATION IS18
INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS19
SPECIFIED IN SUBSECTION (5)(b)(I) OF THIS SECTION, THE ADMINISTRATOR20
SHALL NOTIFY THE APPLICANT IN WRITING OF THE ADMINISTRATOR 'S21
DECISION AND SHALL NOT REVIEW ANY LOAN TO DETERMINE WHETHER22
THE LOAN MAY BE REGISTERED PURSUANT TO SUBSECTION (5)(c) OF THIS23
SECTION.24
(c) (I) T
O BE ELIGIBLE TO RECEIVE A TAX CREDIT CERTIFICATE25
PURSUANT TO SUBSECTION (7) OF THIS SECTION, A QUALIFIED APPLICANT26
MUST REQUEST THAT THE ADMINISTRATOR REGISTER THE LOAN FOR WHICH27
1325
-32- THE TAX CREDIT APPLICATION WAS SUBMITTED PURSUANT TO THIS1
SUBSECTION (5). TO REGISTER A LOAN, A QUALIFIED APPLICANT MUST2
PROVIDE THE FOLLOWING INFORMATION TO THE ADMINISTRATOR :3
(A) T
HE NAME OF THE BORROWER AND THE LOCATION WHERE THE4
BORROWER IS DOING BUSINESS;5
(B) T
HE AMOUNT AND TERMS OF THE LOAN ISSUED TO THE6
BORROWER BY THE QUALIFIED APPLICANT ;7
(C) T
HE PURPOSES FOR WHICH THE BORROWER WILL USE THE8
LOAN;9
(D) A
N AFFIDAVIT REGARDING HOW THE TAX CREDIT ALLOWED10
PURSUANT TO THIS SECTION INDUCED THE QUALIFIED APPLICANT TO MAKE11
THE LOAN TO THE BORROWER OR IMPROVE THE TERMS OF THE LOAN12
BEYOND WHAT NORMAL MARKET CONDITIONS WOULD PROVIDE ;13
(E) C
ERTIFICATION FROM THE BORROWER THAT THE BORROWER14
WILL PRIMARILY USE THE PROCEEDS OF THE LOAN FROM THE QUALIFIED15
APPLICANT TO CONTINUE OR EXPAND THE BORROWER 'S QUANTUM16
BUSINESS OPERATIONS IN COLORADO;
17
(F) AN AFFIDAVIT FROM THE BORROWER CONFIRMING THAT THE18
BORROWER WILL ADHERE TO EXISTING LABOR PROTECTION LAWS ; AND19
(G) ANY OTHER INFORMATION THAT THE ADMINISTRATOR DEEMS20
NECESSARY.21
(II) T
HE ADMINISTRATOR SHALL REVIEW THE INFORMATION22
SUBMITTED PURSUANT TO SUBSECTION (5)(c)(I) OF THIS SECTION AND23
DETERMINE WHETHER THE LOAN IS AN ELIGIBLE LOAN . IF THE24
ADMINISTRATOR DETERMINES THAT THE LOAN THAT IS THE BASIS OF THE25
APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION (5) IS AN26ELIGIBLE LOAN, THE ADMINISTRATOR SHALL DETERMINE THE AMOUNT OF27
1325
-33- THE REGISTRATION AND ISSUANCE FEE DESCRIBED IN SUBSECTION (6)(a)1
OF THIS SECTION AS UP TO EIGHT PERCENT OF THE AMOUNT THAT WILL BE2
SPECIFIED ON THE TAX CREDIT CERTIFICATE AS DESCRIBED IN SUBSECTION3
(7)(d)(I) OF THIS SECTION, AND SHALL COLLECT THE FEE FROM THE4
QUALIFIED APPLICANT OR THE BORROWER TO WHICH A QUALIFIED5
APPLICANT MADE AN ELIGIBLE LOAN . ONCE THE REGISTRATION AND6
ISSUANCE FEE IS COLLECTED, THE ADMINISTRATOR SHALL REGISTER THE7
LOAN, KEEP RECORDS OF THE LOAN PURSUANT TO SUBSECTION (8)(a) OF8
THIS SECTION, AND MAY ISSUE THE TAX CREDIT CERTIFICATE AS SPECIFIED9
IN SUBSECTION (7) OF THIS SECTION. IF THE ADMINISTRATOR DETERMINES10
THAT THE LOAN THAT IS THE BASIS OF THE APPLICATION SUBMITTED11
PURSUANT TO THIS SUBSECTION (5) IS NOT AN ELIGIBLE LOAN, THE12
ADMINISTRATOR SHALL NOTIFY THE QUALIFIED APPLICANT AND SHALL NOT13
REGISTER THE LOAN. 14
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND15
PROCEDURES THAT SPECIFY ADDITIONAL REQUIREMENTS FOR LOANS TO BE16
DESIGNATED AS ELIGIBLE LOANS AND FOR LOANS TO BE REGISTERED17
PURSUANT TO THIS SUBSECTION (5)(c).18
(d) T
HE ADMINISTRATOR SHALL MAKE THE DETERMINATIONS19
SPECIFIED IN SUBSECTIONS (5)(b) AND (5)(c) OF THIS SECTION WITHIN20
NINETY DAYS OF THE DATE THE ADMINISTRATOR RECEIVES THE COMPLETE21
APPLICATION AND REQUEST FOR LOAN REGISTRATION .22
(e) T
HE ADMINISTRATOR MAY DEVELOP A PROCESS THAT ALLOWS23
A POTENTIAL APPLICANT FOR A TAX CREDIT PURSUANT TO THIS SECTION TO24
PROVIDE INFORMATION TO THE ADMINISTRATOR REGARDING A LOAN THAT25
IT PLANS TO MAKE TO A BORROWER AND TO REQUEST THAT THE26
ADMINISTRATOR ADVISE THE POTENTIAL APPLICANT REGARDING WHETHER27
1325
-34- THE LOAN, IF MADE, IS AN ELIGIBLE LOAN THAT CAN BE REGISTERED1
PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION. ANY POTENTIAL2
APPLICANT THAT REQUESTS ADVICE FROM THE ADMINISTRATOR PURS UANT3
TO THIS SUBSECTION (5)(e) AND THEN MAKES A LOAN IS REQUIRED TO4
SUBMIT AN APPLICATION AND REQUEST THAT THE LOAN BE REGISTERED5
PURSUANT TO THIS SUBSECTION (5) BEFORE THE ADMINISTRATOR ISSUES6
A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (7) OF THIS7
SECTION.8
(6) Registration and issuance fee. (a) THE ADMINISTRATOR9
SHALL IMPOSE ON AND COLLECT FROM A QUALIFIED APPLICANT OR THE10
BORROWER TO WHICH A QUALIFIED APPLICANT MADE AN ELIGIBLE LOAN11
A REASONABLE REGISTRATION AND ISSUANCE FEE PURSUANT TO12
SUBSECTION (5)(c)(II) OF THIS SECTION.13
(b) T
HE ADMINISTRATOR SHALL TRANSFER ANY FEE REVENUE14
COLLECTED OR PAID TO THE OFFICE PURSUANT TO THIS SUBSECTION (6) TO15
THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND CREATED IN16
SUBSECTION (13) OF THIS SECTION.17
(7) Tax credit certificate - loan registration - pooled loan loss18
reserve. (a) T
O RECEIVE A TAX CREDIT CERTIFICATE PURSUANT TO THIS19
SUBSECTION (7), A QUALIFIED APPLICANT MUST FIRST APPLY TO THE20
ADMINISTRATOR FOR THE ISSUANCE OF A TAX CREDIT CERTIFICATE AND21
REGISTER THE LOAN FOR WHICH THE TAX CREDIT APPLICATION WAS22
SUBMITTED PURSUANT TO SUBSECTION (5) OF THIS SECTION. 23
(b) (I) O
N THE BASIS OF ANY LOAN THAT IS REGISTERED PURSUANT24
TO SUBSECTION (5)(c) OF THIS SECTION, THE ADMINISTRATOR MAY25
DETERMINE THAT A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT26
CERTIFICATE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION . THE27
1325
-35- ADMINISTRATOR SHALL ISSUE THE TAX CREDIT CERTIFICATE SUBJECT TO1
THE LIMITATIONS SET FORTH IN THIS SUBSECTION (7) AND IN ACCORDANCE2
WITH THE POLICIES AND PROCEDURES ESTABLISHED PURSUANT TO3
SUBSECTION (12) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT ISSUE4
TAX CREDIT CERTIFICATES AFTER SEPTEMBER 30, 2036.5
(II) T
HE ADMINISTRATOR MAY , BEFORE ISSUING A TAX CREDIT6
CERTIFICATE PURSUANT TO THIS SUBSECTION (7), ESTABLISH ADDITIONAL7
POLICIES OR PROCEDURES FOR A QUALIFIED APPLICANT TO BE ELIGIBLE FOR8
THE ISSUANCE OF A TAX CREDIT CERTIFICATE.9
(c) I
F THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE TO10
A QUALIFIED APPLICANT, THE ADMINISTRATOR SHALL NOTIFY THE11
QUALIFIED APPLICANT IN WRITING OF THE CERTIFICATE AND THE AMOUNT12
OF THE CERTIFICATE. THE ISSUANCE OF A TAX CREDIT CERTIFICATE BY THE13
ADMINISTRATOR FOR A QUALIFIED APPLICANT DOES NOT ENTITLE THE14
QUALIFIED APPLICANT TO CLAIM THE CREDIT UNTIL THE QUALIFIED15
APPLICANT HAS BEEN ISSUED A REGISTERED LOAN LOSS CERTIFICATE16
PURSUANT TO SUBSECTION (8) OF THIS SECTION.17
(d) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (7)(d),18
IF APPROVED, THE ADMINISTRATOR MAY ISSUE A TAX CREDIT CERTIFICATE19
TO A QUALIFIED APPLICANT FOR ONE OR MORE ELIGIBLE LOANS IN AN20
AMOUNT UP TO FIFTEEN CENTS FOR EVERY DOLLAR OF AN ELIGIBLE LOAN21
THAT THE QUALIFIED APPLICANT HAS MADE OR WILL MAKE . 22
(II) T
HE AGGREGATE AMOUNT OF ALL TAX CREDIT CERTIFICATES23
THAT THE ADMINISTRATOR MAY ISSUE PURSUANT TO THIS SECTION MUST24
NOT EXCEED THIRTY MILLION DOLLARS .25
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND26
PROCEDURES TO SET THE AMOUNT OF THE TAX CREDIT CERTIFICATE ISSUED27
1325
-36- ON THE BASIS OF A REGISTERED LOAN AT OR BELOW FIFTEEN CENTS FOR1
EVERY DOLLAR OF THE REGISTERED LOAN OR C HANGE THE AMOUNT OF2
THE CREDIT ALLOWED FROM TIME TO TIME FOR CREDIT CERTIFICATES THAT3
HAVE NOT YET BEEN ISSUED. THE ADMINISTRATOR MAY ALSO CAP THE4
TOTAL AMOUNT OF ANY TAX CREDIT CERTIFICATES ISSUED TO A QUALIFIED5
APPLICANT PURSUANT TO THIS SUBSECTION (7), DETERMINE A CAP ON THE6
TOTAL AMOUNT OF A TAX CREDIT CERTIFICATE ALLOWED TO A QUALIFIED7
APPLICANT FOR A SINGLE ELIGIBLE LOAN TO A SINGLE BORROWER OR IN8
THE AGGREGATE FOR MULTIPLE ELIGIBLE LOANS TO ONE OR MORE9
BORROWERS, OR DETERMINE ANY OTHER CAPS DEEMED NECESSARY BY THE10
ADMINISTRATOR. THE ADMINISTRATOR SHALL MAKE THE POLICIES AND11
PROCEDURES SPECIFIED IN THIS SUBSECTION (7)(d)(III) BASED ON MARKET12
CONDITIONS AND OTHER FACTORS DETERMINED TO BE RELEVANT BY THE13
ADMINISTRATOR. IF THE OFFICE IS NOT THE ADMINISTRATOR, THE OFFICE14
SHALL APPROVE THE ADMINISTRATOR 'S FINAL DECISIONS ON POLICIES AND15
PROCEDURES. 16
(e) T
HE ADMINISTRATOR SHALL DISTRIBUTE THE TAX CREDIT17
CERTIFICATES IN THE MANNER THAT THE ADMINISTRATOR DETERMINES18
PURSUANT TO SUBSECTION (3)(c) OF THIS SECTION. 19
(f) E
ACH QUALIFIED APPLICANT THAT IS ISSUED MORE THAN ONE20
TAX CREDIT CERTIFICATE PURSUANT TO THIS SUBSECTION (7) SHALL HOLD21
THE CREDIT CERTIFICATES ISSUED TO THE QUALIFIED APPLICANT IN A22
POOLED LOAN LOSS RESERVE OF ALL TAX CREDIT CERTIFICATES ISSUED TO23
THAT QUALIFIED APPLICANT. A QUALIFIED APPLICANT MAY USE ALL OR24
ANY PORTION OF THE CREDIT CERTIFICATES ISSUED TO THAT QUALIFIED25
APPLICANT TO OFFSET ANY LOSS INCURRED BY THAT QUALIFIED APPLICANT26
IN CONNECTION WITH ONE OR MORE REGISTERED LOANS , SUBJECT TO THE27
1325
-37- PROVISIONS OF SUBSECTION (8) OF THIS SECTION.1
(g) T
HE ADMINISTRATOR MAY ALLOW A QUALIFIED APPLICANT TO2
REGISTER AN ELIGIBLE LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS3
SECTION AFTER THE ADMINISTRATOR HAS ISSUED THE TOTAL AMOUNT OF4
TAX CREDIT CERTIFICATES ALLOWED PURSUANT TO SUBSECTION (7)(d)(II)5
OF THIS SECTION OR THE AMOUNT OF CREDITS ALLOWED PURS UANT TO6
ANY OTHER CAP DETERMINED BY THE ADMINISTRATOR PURSUANT TO7
SUBSECTION (7)(d)(III) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT8
ISSUE A CREDIT CERTIFICATE FOR ANY LOAN REGISTERED PURSUANT TO9
THIS SUBSECTION (7)(g), BUT THE QUALIFIED LENDER MAY USE ANY10
AMOUNT OF TAX CREDIT CERTIFICATES ALREADY ISSUED TO THE11
QUALIFIED LENDER AND NOT ALREADY CLAIMED PURSUANT TO12
SUBSECTION (9) OF THIS SECTION TO OFFSET ANY LOSS INCURRED IN13
CONNECTION WITH THE REGISTERED LOAN PURSUANT TO SUBSECTION (8)14
OF THIS SECTION.15
(8) Status of registered loans - proof of registered loan loss -16
issuance of registered loan loss certificate. (a) (I) A
QUALIFIED17
APPLICANT THAT WAS ISSUED A TAX CREDIT CERTIFICATE PURSUANT TO18
SUBSECTION (7) OF THIS SECTION SHALL PROVIDE PERIODIC UPDATES TO19
THE ADMINISTRATOR, IN A FORM, MANNER, AND FREQUENCY TO BE20
DETERMINED BY THE ADMINISTRATOR , REGARDING THE STATUS OF THE21
REGISTERED LOAN THAT IS THE BASIS OF THE CREDIT CERTIFICATE . IN22
ADDITION TO PERIODIC UPDATES, THE QUALIFIED APPLICANT SHALL NOTIFY23
THE ADMINISTRATOR WHEN ANY REGISTERED LOAN IS PAID OFF ,24
EXTENDED, RENEWED, RESTRUCTURED OR REFINANCED , OR HAS BECOME25
PAST DUE OR NON-PERFORMING. A QUALIFIED APPLICANT THAT INCURS A26
LOSS ASSOCIATED WITH A REGISTERED LOAN SHALL NOTIFY THE27
1325
-38- ADMINISTRATOR AND COMPLY WITH THE REQUIREMENTS OF SUBSECTION1
(8)(b)
OF THIS SECTION BEFORE THE QUALIFIED APPLICANT IS ELIGIBLE TO2
RECEIVE A LOAN LOSS CERTIFICATE PURSUANT TO SUBSECTION (8)(d) OF3
THIS SECTION.4
(II) T
HE ADMINISTRATOR SHALL KEEP A RECORD OF THE STATUS OF5
ALL REGISTERED LOANS MADE BY EACH QUALIFIED APPLICANT FOR WHICH6
THE ADMINISTRATOR ISSUED A CREDIT CERTIFICATE PURSUANT TO7
SUBSECTION (7) OF THIS SECTION.8
(b) (I) A
QUALIFIED APPLICANT THAT INCURS A LOSS IN9
CONNECTION WITH ONE OR MORE REGISTERED LOANS MAY APPLY TO THE10
ADMINISTRATOR FOR ISSUANCE OF A REGISTERED LOAN LOSS CERTIFICATE11
PURSUANT TO SUBSECTION (8)(d) OF THIS SECTION. BEFORE APPLYING FOR12
A REGISTERED LOAN LOSS CERTIFICATE, A QUALIFIED APPLICANT THAT HAS13
INCURRED A LOSS ASSOCIATED WITH ONE OR MORE REGISTERED LOANS14
SHALL CHARGE OFF ALL OR A PORTION OF THE OUTSTANDING BALANCE OF15
THE REGISTERED LOAN IN ACCORDANCE WITH THE QUALIFIED APPLICANT 'S16
CUSTOMARY POLICIES AND PROCEDURES AND IN ACCORDANCE WITH THE17
REQUIREMENTS OF FEDERAL OR STATE REGULATORY AGENCIES . THE18
QUALIFIED APPLICANT SHALL CEASE TO ASSESS INTEREST ON THE19
REGISTERED LOAN IN ACCORDANCE WITH GENERALLY ACCEPTED20
ACCOUNTING PRINCIPLES AND AS REQUIRED BY FEDERAL AND STATE21
REGULATORY AGENCIES AND SHALL TAKE REASONABLE ACTIONS , AS22
DETERMINED BY THE ADMINISTRATOR , TO OBTAIN PARTIAL PAYMENTS AND23
RECOVERY, INCLUDING ACCESSING COLLATERAL AND LOAN GUARANTORS .24
(II) A
QUALIFIED APPLICANT SHALL SUBMIT TO THE25
ADMINISTRATOR, WITH THE QUALIFIED APPLICANT'S APPLICATION FOR A26
REGISTERED LOAN LOSS CERTIFICATE , EVIDENCE OF THE QUALIFIED27
1325
-39- APPLICANT'S COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (8)(b)(I)1
OF THIS SECTION AND EVIDENCE OF THE AMOUNT OF THE LOSS INCURRED2
IN CONNECTION WITH ONE OR MORE REGISTERED LOANS , INCLUDING3
OUT-OF-POCKET EXPENSES INCURRED BY THE QUALIFIED APPLICANT IN4
PURSUING RECOVERY OF THE REGISTERED LOAN . THE APPLICANT SHALL5
ALSO PROVIDE DOCUMENTS TO THE ADMINISTRATOR DEMONSTRATING6
THAT THE QUALIFIED APPLICANT SATISFIED ANY ADDITI ONAL7
REQUIREMENTS IMPOSED BY THE ADMINISTRATOR PURSUANT TO8
SUBSECTION (12) OF THIS SECTION.9
(c) (I) W
ITHIN NINETY DAYS AFTER RECEIPT OF THE COMPLETE10
APPLICATION FROM THE QUALIFIED APPLICANT SUBMITTED PURSUANT TO11
SUBSECTION (8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL REVIEW12
THE QUALIFIED APPLICANT'S DOCUMENTATION OF THE LOSS INCURRED IN13
CONNECTION WITH A REGISTERED LOAN AND DETERMINE WHETHER THE14
DOCUMENTATION SATISFIES THE REQUIREMENTS OF SUBSECTION (8)(b) OF15
THIS SECTION. IF THE ADMINISTRATOR DETERMINES THAT A QUALIFIED16
APPLICANT HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF17
SUBSECTION (8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL18
PROMPTLY NOTIFY THE QUALIFIED APPLICANT IN WRITING AND SHALL NOT19
ISSUE A REGISTERED LOAN LOSS CERTIFICATE TO THE QUALIFIED20
APPLICANT.21
(II) I
F THE ADMINISTRATOR DETERMINES THAT THE22
DOCUMENTATION PROVIDED BY THE QUALIFIED APPLICANT SATISFIES THE23
REQUIREMENTS OF SUBSECTION (8)(b) OF THIS SECTION, THE24
ADMINISTRATOR SHALL DETERMINE THE TOTAL AMOUNT OF THE LOSS25
INCURRED IN CONNECTION WITH THE REGISTERED LOAN AND CERTIFY THE26
AMOUNT OF THE REGISTERED LOAN LOSS . THE AMOUNT OF THE CERTIFIED27
1325
-40- LOAN LOSS DETERMINED BY THE ADMINISTRATOR SHALL BE AN AMOUNT1
EQUAL TO THE TOTAL OF THE OUTSTANDING AND UNRECOVERED2
PRINCIPAL AND ACCRUED INTEREST ON THE REGISTERED LOAN OR LOANS3
AND THE AMOUNT OF REASONABLE OUT -OF-POCKET EXPENSES INCURRED4
BY THE QUALIFIED APPLICANT IN PURSUING RECOVERY UNDER THE5
REGISTERED LOAN OR LOANS ; EXCEPT THAT THE AMOUNT OF THE6
CERTIFIED LOAN LOSS DETERMINED BY THE ADMINISTRATOR SHALL NOT7
EXCEED THE ORIGINAL PRINCIPAL AMOUNT OF THE REGISTERED LOAN AS8
STATED IN THE DOCUMENTATION PROVIDED WHEN THE QUALIFIED9
APPLICANT REGISTERED THE ELIGIBLE LOAN . THE AMOUNT OF THE10
CERTIFIED LOAN LOSS SHALL NOT INCLUDE ANY AMOUNT ATTRIBUTABLE11
TO DAMAGES PAID BY THE QUALIFIED APPLICANT AS A RESULT OF A LEGAL12
CLAIM AGAINST THE QUALIFIED APPLICANT FOR NEGLIGENCE ,13
MISCONDUCT, OR ANY OTHER ALLEGATION OF WRONGDOING OR ANY14
AMOUNT OF LATE CHARGES OR UNPAID DEFAULT INTEREST CHARGES15
IMPOSED ON THE BORROWER BY THE QUALIFIED APPLICANT .16
(d) T
HE ADMINISTRATOR SHALL ISSUE A REGISTERED LOAN LOSS17
CERTIFICATE TO ANY QUALIFIED APPLICANT THAT HAS SATISFIED THE18
REQUIREMENTS OF SUBSECTION (8)(b) OF THIS SECTION IN THE AMOUNT OF19
THE CERTIFIED LOAN LOSS CALCULATED PURSUANT TO SUBSECTION (8)(c)20
OF THIS SECTION; EXCEPT THAT THE ADMINISTRATOR SHALL NOT ISSUE A21
REGISTERED LOAN LOSS CERTIFICATE THAT EXCEEDS THE TOTAL AMOUNT22
OF UNCLAIMED TAX CREDIT CERTIFICATES ISSUED TO THE QUALIFIED23
APPLICANT PURSUANT TO SUBSECTION (7) OF THIS SECTION. THE24
ADMINISTRATOR SHALL NOT ISSUE A REGISTERED LOAN LOSS CERTIFICATE25
BEFORE JANUARY 1, 2026, OR AFTER DECEMBER 31, 2045.26
(9) Filing tax credit certificate and registered loan loss27
1325
-41- certificate with income tax return. (a) T O CLAIM THE CREDIT1
AUTHORIZED BY THIS SECTION, A QUALIFIED APPLICANT SHALL FILE THE2
TAX CREDIT CERTIFICATE ISSUED BY THE ADMINISTRATOR PURSUANT TO3
SUBSECTION (7) OF THIS SECTION AND THE REGISTERED LOAN LOSS4
CERTIFICATE ISSUED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION5
(8)
OF THIS SECTION WITH THE QUALIFIED APPLICANT'S STATE INCOME TAX6
RETURN FOR THE INCOME TAX YEAR IN WHICH THE REGISTERED LOAN LOSS7
OCCURS. IF THE QUALIFIED APPLICANT IS EXEMPT FROM TAX PURSUANT TO8
SECTION 39-22-112 (1), THE QUALIFIED APPLICANT SHALL FILE A RETURN9
PURSUANT TO SECTION 39-22-601 (7)(b). THE AMOUNT OF THE TAX10
CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM PURSUANT TO THIS11
SECTION IS THE AMOUNT STATED ON THE REGISTERED LOAN LOSS12
CERTIFICATE.13
(b) A
QUALIFIED APPLICANT MAY NOT CLAIM A CREDIT PURSUANT14
TO THIS SECTION FOR ANY INCOME TAX YEAR COMMENCING BEFORE15
J
ANUARY 1, 2026, OR AFTER DECEMBER 31, 2045. ANY TAX CREDIT16
CERTIFICATES AND REGISTERED L OAN LOSS CERTIFICATES THAT THE17
ADMINISTRATOR ISSUED, BUT FOR WHICH A TAX CREDIT HAS NOT BEEN18
CLAIMED PURSUANT TO SUBSECTION (9)(a) OF THIS SECTION BEFORE THE19
TAX YEAR COMMENCING ON JANUARY 1, 2046, EXPIRE AND NO LONGER20
HAVE VALUE.21
(c) A
QUALIFIED APPLICANT MAY CLAIM AN INCOME TAX CREDIT22
ALLOWED PURSUANT TO THIS SECTION MORE THAN ONCE , SO LONG AS THE23
QUALIFIED APPLICANT HAS REMAINING TAX CREDIT CERTIFICATES THAT IT24
HAS NOT YET FILED WITH THE DEPARTMENT PURSUANT TO THIS25
SUBSECTION (9), INCURS AN ADDITIONAL LOSS IN CONNECTION WITH A26
REGISTERED LOAN, AND IS ISSUED A REGISTERED LOAN LOSS CERTIFICATE27
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-42- FOR THE ADDITIONAL LOSS PURSUANT TO SUBSECTION (8) OF THIS SECTION.1
(d) A
REGISTERED LOAN LOSS CERTIFICATE ISSUED TO A2
PARTNERSHIP, A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP ,3
OR MULTIPLE OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE4
PARTNERS, MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY5
THAT IS A PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA6
BASIS OR PURSUANT TO AN EXECUTED AGREEMENT AM ONG THE PARTNERS ,7
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION8
METHOD.9
(10) Refundability. T
HE ENTIRE TAX CREDIT TO BE ISSUED10
PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE QUALIFIED11
APPLICANT IN THE TAXABLE YEAR IN WHICH THE QUALIFIED APPLICANT12
INCURS A LOSS IN CONNECTION WITH A REGISTERED LOAN . IF THE AMOUNT13
OF THE CREDIT ALLOWED 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 NOT USED AS AN19
OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REF UNDED TO20
THE QUALIFIED APPLICANT.21
(11) Reporting. (a) N
O LATER THAN NOVEMBER 1, 2027, AND,22
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO23
LATER THAN NOVEMBER 1 OF EACH YEAR THEREAFTER THROUGH 2046,24
THE ADMINISTRATOR SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL25
ASSEMBLY ABOUT THE ACTIVITY IN CONNECTION WITH THE TAX CREDIT26
ALLOWED PURSUANT TO THIS SECTION IN THE PREVIOUS FISCAL YEAR AND27
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-43- SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC . IN1
CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS SECTION , THE2
REPORT MUST INCLUDE, BUT NEED NOT BE LIMITED TO:3
(I) T
HE NUMBER OF ELIGIBLE LOANS THAT HAVE BEEN REGISTERED4
PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION; 5
(II) T
HE NUMBER OF REGISTERED LOANS FOR WHICH A QUALIFIED6
APPLICANT NOTIFIED THE ADMINISTRATOR OF A LOAN LOSS PURSUANT TO7
SUBSECTION (8)(a) OF THIS SECTION;8
(III) A
LIST OF EACH QUANTUM BUSINESS IN THE STATE THAT IS A9
BORROWER PURSUANT TO THIS SECTION ; AND10
(IV) A
SUMMARY OF THE BORROWER 'S USE OR USES OF EACH11
REGISTERED LOAN AND THE IMPACT THAT THE LOANS HAVE HAD ON THE12
DEVELOPMENT OF QUANTUM BUSINESSES IN THIS STATE .13
(b) T
HE ADMINISTRATOR SHALL , IN A SUFFICIENTLY TIMELY14
MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING15
THE INCOME TAX CREDIT ALLOWED IN THIS SECTION , PROVIDE THE16
DEPARTMENT WITH AN ELECTRONIC REPORT OF EACH QUALIFIED17
APPLICANT TO WHICH THE OFFICE ISSUES A TAX CREDIT CERTIFICATE AND18
A REGISTERED LOAN LOSS CERTIFICATE FOR THE PRECEDING TAX YEAR19
THAT INCLUDES THE FOLLOWING INFORMATION :20
(I) T
HE QUALIFIED APPLICANT'S NAME;21
(II) T
HE AMOUNT OF THE CREDIT AS STATED IN THE REGISTERED22
LOAN LOSS CERTIFICATE; AND23
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR24
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL25
EMPLOYER IDENTIFICATION NUMBER .26
(12) Policies and procedures. (a) T
HE ADMINISTRATOR MAY27
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-44- CREATE AND MODIFY POLICIES , PROCEDURES, AND GUIDELINES AND1
SPECIFY ADDITIONAL REQUIREMENTS AS NECESSARY TO FURTHER2
IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR MAKING ELIGIBLE3
LOANS PURSUANT TO THIS SECTION AND SHALL SOLICIT ADVICE FROM THE4
DEPARTMENT AND FROM QUANTUM I NDUSTRY PARTICIPANTS IN CREATING5
AND MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.6
(b) T
HE ADMINISTRATOR SHALL DEVELOP STANDARDS TO : 7
(I) M
AKE THE DETERMINATION OF WHETHER A LOAN IS AN8
ELIGIBLE LOAN PURSUANT TO SUBSECTION (5)(c) OF THIS SECTION;9
(II) D
ETERMINE WHETHER AN ELIGIBLE LOAN MAY BE REGISTERED10
WITH THE ADMINISTRATOR AND WHETHER THE ADMINISTRATOR MAY ISSUE11
A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (7) OF THIS12
SECTION; AND13
(III)
DETERMINE THE AMOUNT OF A CERTIFIED LOAN LOSS14
PURSUANT TO SUBSECTION (8)(c)(II) OF THIS SECTION.15
(c) T
HE ADMINISTRATOR MAY CLARIFY THE DEFINITION OF16
QUANTUM COMPANY WHEN NEEDED BASED ON INPUT FROM QUANTUM17
INDUSTRY COMPANIES, RESEARCHERS, TRADE ASSOCIATIONS, AND OTHER18
SECTOR PARTICIPANTS. IN ADDITION, THE ADMINISTRATOR MAY WAIVE19
THE ANNUAL INCOME REQUIREMENT FOR A QUANTUM COMPANY TO BE A20
BORROWER IF THE ADMINISTRATOR DETERMINES THAT WAIVING THAT21
REQUIREMENT IS IN THE BEST INTEREST OF THIS STATE.22
(13) Quantum business loan loss reserve cash fund - creation.23
(a) T
HE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND IS CREATED24
IN THE STATE TREASURY. THE FUND CONSISTS OF MONEY CREDITED TO THE25
FUND PURSUANT TO SUBSECTION (6)(b) OF THIS SECTION AND ANY OTHER26
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER27
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-45- TO THE FUND.1
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND2
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE3
QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND TO THE FUND .4
(c) M
ONEY IN THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH5
FUND IS CONTINUOUSLY APPROPRIATED TO THE OFFICE FOR THE6
ADMINISTRATION OF THE QUANTUM BUSINESS LOAN LOSS RESERVE TAX7
CREDIT CREATED IN THIS SECTION.8
(d) T
HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED9
AND UNENCUMBERED MONEY IN THE FUND ON JANUARY 1, 2051, TO THE10
GENERAL FUND.11
(14) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER12
31,
2050.13
SECTION 3. In Colorado Revised Statutes, 24-75-402, amend14
(5)(ccc) and (5)(ddd); and add (5)(eee) as follows:15
24-75-402. Cash funds - limit on uncommitted reserves -16
reduction in the amount of fees - exclusions - definitions.17
(5) Notwithstanding any provision of this section to the contrary, the18
following cash funds are excluded from the limitations specified in this19
section:20
(ccc) The wildfire resiliency code board cash fund created in21
section 24-33.5-1236 (8); and
22
(ddd) The closed landfill remediation grant program fund created23
in section 30-20-124 (8);
AND24
(eee) T
HE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND25
CREATED IN SECTION 39-22-561 (13).26
SECTION 4. Appropriation. For the 2024-25 state fiscal year,27
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-46- $90,255 is appropriated to the office of the governor for use by economic1
development programs. This appropriation is from the general fund and2
is based on an assumption that the office will require an additional 0.63
FTE. To implement this act, the office may use this appropriation for4
economic development commission - general economic incentives and5
marketing.6
SECTION 5. Safety clause. The general assembly finds,7
determines, and declares that this act is necessary for the immediate8
preservation of the public peace, health, or safety or for appropriations for9
the support and maintenance of the departments of the state and state10
institutions.11
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