HOUSE BILL 24-1325
BY REPRESENTATIVE(S) Valdez and Soper, Bacon, Bird, Boesenecker,
Brown, Clifford, Daugherty, Duran, English, Hamrick, Jodeh, Lindstedt,
Lukens, Mauro, McCormick, Ricks, Snyder, Titone, Woodrow, McCluskie;
also SENATOR(S) Bridges and Baisley, Cutter, Gardner, Hansen, Lundeen,
Michaelson Jenet, Priola, Roberts, Will, Fenberg.
C
ONCERNING THE CREATION OF TAX INCENTIVES TO SUPPORT THE QUANTUM
INDUSTRY
, AND, IN CONNECTION THEREWITH , MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) Under the federal "Creating Helpful Incentives to Produce
Semiconductors (CHIPS) and Science Act", enacted in 2022, the United
States Department of Commerce's Economic Development Administration
is overseeing the Regional Technology and Innovation Hubs, or "Tech
Hubs", program, a competitive process to select 5 to 10 federally designated
Tech Hubs across the country, with $500 million in appropriated funding
available in 2024 and up to $10 billion over 5 years;
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. (b) In October 2023, the federal government announced that
Colorado was successful in its bid pursuing a regional Phase 1 Tech Hub
designation, enabling the state to compete for new funds to develop the
quantum technology industry; the Tech Hub bid is led by a Colorado-led
nonprofit consisting of a consortium of over 70 member organizations
across Colorado, New Mexico, and Wyoming aiming to maintain the
Mountain West as the nation's leading quantum ecosystem;
(c) Colorado is currently competing nationally for the Tech Hubs
program's Phase 2 Tech Hub designation and accompanying grant for
quantum technology. If successful, Colorado will secure the federal funding
necessary to develop a global hub for the quantum technology ecosystem,
including quantum computing, sensing, networking, and enabling hardware.
(d) Colorado is deeply committed to ensuring that all residents of the
state have equitable access to high-quality careers, and maintains that the
state's economy and social well-being is greatly strengthened when
investments in industries assist to create and retain high-road,
family-sustaining jobs;
(e) The federal Tech Hubs program requires the development of
robust workforce development programs in partnership with training
providers, educational institutions, and labor and community organizations,
requires that programs align with the "Good Jobs Principles" established by
the United States department of labor and United States department of
commerce, and requires that programs demonstrate how workforce
development organizations and organizations representing workers,
including labor organizations and federations, will collaborate within the
Tech Hub to increase job quality and the quantity of good jobs in the
selected core technology areas;
(f) Colorado is internationally recognized for its contributions to
quantum physics and is home to 4 winners of the Nobel Prize in Physics for
quantum breakthroughs that shifted global understanding in the field;
(g) Colorado has more quantum startups, deployed quantum
technology, private sector investments in quantum technology employees
working for quantum companies, and overall economic output within the
quantum industry than any other state;
PAGE 2-HOUSE BILL 24-1325 (h) Colorado's quantum technology industry has fostered a 40%
increase in the number of patents secured in the state over the last 10 years
and a 545% increase in the total third-party funding amount directed to
quantum companies in the state over the last 15 years;
(i) Establishing Colorado as the global hub for quantum technology
will result in an economic impact of more than $1 billion statewide and over
10,000 high-quality jobs from the Phase 2 Tech Hub designation alone, but
state support will be essential in obtaining this federal money;
(j) Colorado's quantum technology industry has garnered
international recognition for its groundbreaking achievements, positioning
the state as a leader in quantum research, development, and innovation; and
(k) The collaborative efforts of higher education institutions,
industry, and government agencies have played a pivotal role in nurturing
Colorado's quantum technology ecosystem, fostering an environment
conducive to research advancements, technology deployment to improve the
quality of life, and economic prosperity for Colorado and our global
community.
(2) The general assembly further finds and declares that the tax
incentives provided in this act will strengthen the growing and competitive
position of Colorado as a Tech Hub for quantum technology and will enable
the state to continue its exemplary achievements and strategic initiatives in
quantum technology.
SECTION 2. In Colorado Revised Statutes, add 39-22-567 and
39-22-568 as follows:
39-22-567. Tax credit for investments in fixed capital assets for
a shared quantum facility - tax preference performance statement -
definitions - repeal. (1) Tax preference performance statement. I
N
ACCORDANCE WITH SECTION
39-21-304 (1), WHICH REQUIRES EACH BILL
THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE
DECLARATION
, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT
ALLOWED BY THIS SECTION ARE
:
PAGE 3-HOUSE BILL 24-1325 (I) TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ; AND
(II) TO IMPROVE INDUSTRY COMPETITIVENESS ;
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT
ALLOWED BY THIS SECTION IS TO INDUCE A QUALIFIED APPLICANT TO INVEST
IN FIXED CAPITAL ASSETS TO CREATE A HUB THAT IS A SHARED QUANTUM
FACILITY THAT ACCOMPLISHES TRANSLATIONAL RESEARCH AND
INCUBATION
, LOW-VOLUME MANUFACTURING AND FABRICATION AND RAPID
PROTOTYPING IN A LABORATORY ENVIRONMENT AND TO PROVIDE RELATED
SERVICES AND WORKFORCE DEVELOPMENT TO SUPPORT THE DEVELOPMENT
OF QUANTUM BUSINESSES AND THE QUANTUM ECOSYSTEM IN THE STATE
;
AND
(c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES
SPECIFIED IN SUBSECTIONS
(1)(a) AND (1)(b) OF THIS SECTION BASED ON THE
INFORMATION REPORTED BY THE OFFICE PURSUANT TO SUBSECTION
(11) OF
THIS SECTION
.
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT
OTHERWISE REQUIRES
:
(a) "C
ONSORTIUM" MEANS A GROUP OF NONPROFIT OR FOR -PROFIT
ENTITIES
, OR BOTH, THAT ARE JOINTLY MAKING QUALIFYING INVESTMENTS
IN AN ELIGIBLE PROJECT TO CREATE AND OPERATE A SHARED QUANTUM
FACILITY
. A CONSORTIUM MAY INCLUDE ONE OR MORE MEMBERS EXEMPT
FROM TAX PURSUANT TO SECTION
39-22-112.
(b) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .
(c) "E
LIGIBLE PROJECT" MEANS A CAPITAL PROJECT UNDERTAKEN IN
THE STATE TO CREATE A SHARED QUANTUM FACILITY FOR WHICH A
QUALIFIED APPLICANT MAKES QUALIFYING INVESTMENTS AND THAT IS
APPROVED BY THE OFFICE IN ACCORDANCE WITH THE POLICIES
, PROCEDURES,
AND GUIDELINES FOR THE IMPLEMENTATION AND ADMINISTRATION OF THE
TAX CREDIT ALLOWED BY THIS SECTION ADOPTED BY THE OFFICE PURSUANT
TO SUBSECTION
(12) OF THIS SECTION.
(d) "O
FFICE" MEANS THE COLORADO OFFICE OF EC ONOMIC
PAGE 4-HOUSE BILL 24-1325 DEVELOPMENT CREATED IN SECTION 24-48.5-101.
(e) (I) "Q
UALIFIED APPLICANT" MEANS A NONPROFIT OR FOR-PROFIT
ENTITY THAT SUBMITS AN APPLICATION FOR THE RESERVATION AND
ISSUANCE OF TAX CREDITS TO THE OFFICE PURSUANT TO THIS SECTION
. AN
APPLICANT MAY BE A CONSORTIUM AS SET FORTH IN SUBSECTION
(4) OF THIS
SECTION
.
(II) A
"QUALIFIED APPLICANT" INCLUDES A PERSON THAT IS EXEMPT
FROM TAXATION PURSUANT TO SECTION
39-22-112.
(f) (I) "Q
UALIFYING FIXED CAPITAL ASSETS" MEANS:
(A) L
AND IN THIS STATE;
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS
OF BUILDINGS IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION
167 OF
THE INTERNAL REVENUE CODE
, INCLUDING PURCHASING OR CONSTRUCTING
A FACILITY
, RENOVATING A FACILITY, MAKING TENANT IMPROVEMENTS ,
FUNDING A CAPITAL LEASE , CAPITALIZED LABOR, CONSTRUCTION, AND
INSTALLATION COSTS
;
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE
EXCLUSIVELY IN THIS STATE FOR WHICH THE QUALIFIED APPLICANT IS
ALLOWED A DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION
167 OF
THE INTERNAL REVENUE CODE
, INCLUDING FURNITURE, FIXTURES AND
EQUIPMENT SUCH AS OUTFITTING AN OFFICE
, LABORATORY MACHINES ,
REFRIGERATION, HVAC SYSTEMS, PIPING, MEASURING, MONITORING AND
INSTRUMENTATION EQUIPMENT
, FABRICATION MACHINES , TOOLS AND
EQUIPMENT
, AND ANY HARDWARE AND SOFTWARE DEVELOPED BY THIRD
PARTIES NECESSARY FOR QUANTUM TECHNOLOGY APPLICATIONS
; AND
(D) COMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN THIS
STATE FOR WHICH THE QUALIFIED APPLICANT IS ALLOWED A DEDUCTION FOR
DEPRECIATION PURSUANT TO SECTION
167 OF THE INTERNAL REVENUE CODE.
(II) "Q
UALIFYING FIXED CAPITAL ASSETS" IS LIMITED TO PROPERTY
ACQUIRED
, CONSTRUCTED, RECONSTRUCTED, OR ERECTED AS PART OF A
COORDINATED PLAN TO CREATE A SHARED QUANTUM FACILITY
.
PAGE 5-HOUSE BILL 24-1325 (III) FOR PURPOSES OF THIS SUBSECTION (2)(f), IF A QUALIFIED
APPLICANT IS NOT SUBJECT TO FEDERAL INCOME TAX
, THE QUALIFIED
APPLICANT IS DEEMED TO BE ALLOWED A DEDUCTION FOR DEPRECIATION IF
SUCH A DEDUCTION WOULD HAVE BEEN ALLOWED WERE THE QUALIFIED
APPLICANT SUBJECT TO FEDERAL INCOME TAX
.
(IV) "Q
UALIFYING FIXED CAPITAL ASSETS" SHALL BE ACQUIRED,
CONSTRUCTED, RECONSTRUCTED, OR ERECTED WHERE POSSIBLE BY A
CERTIFIED CONTRACTOR ON A CERTIFIED CONTRACTOR LIST THAT IS
OBTAINED FROM THE
COLORADO DEPARTMENT OF LABOR AND EMPLOYMENT
AND THAT CONTAINS THE INFORMATION SPECIFIED IN SECTION
40-3.2-105.6
(3)(a).
(g) "Q
UALIFYING INVESTMENT" MEANS THE AMOUNT PAID BY A
QUALIFIED APPLICANT TO ACQUIRE
, CONSTRUCT, RECONSTRUCT, OR ERECT
QUALIFYING FIXED CAPITAL ASSETS TO THE EXTENT SUCH AMOUNT IS
REQUIRED TO BE CAPITALIZED PURSUANT TO THE INTERNAL REVENUE CODE
OR SUCH AMOUNT IS ALLOWED TO BE DEDUCTED UNDER SECTION
179 OF THE
INTERNAL REVENUE CODE
. "QUALIFYING INVESTMENT" INCLUDES AN
AMOUNT CAPITALIZED BY A LESSEE OF QUALIFYING FIXED CAPITAL ASSETS
FOR A LEASE THAT IS TREATED AS A SALE FOR FEDERAL INCOME TAX
PURPOSES
.
(h) "Q
UANTUM BUSINESS" MEANS A PRIVATE FOR-PROFIT TRADE OR
BUSINESS OR NONPROFIT ORGANIZATION THAT HAS QUANTUM TECHNOLOGY
AS A KEY PART OF ITS BUSINESS MODEL OR ORGANIZATIONAL PURPOSE
,
INCLUDING BUT NOT LIMITED TO MANUFACTURING , TESTING, PRODUCTION,
RESEARCH AND DEVELOPMENT , OR ENHANCEMENT OF HARDWARE OR
SOFTWARE TO PERFORM OR USE QUANTUM TECHNOLOGY AS A KEY INPUT OR
OUTPUT OF ITS BUSINESS MODEL
, AND COMPANIES THAT PRODUCE GOODS OR
SERVICES THAT ARE KEY INPUTS FOR OTHER QUANTUM BUSINESS
.
(i) "S
HARED QUANTUM FACILITY " MEANS A PRIMARY PLACE IN THE
STATE WHERE AN APPLICANT PERFORMS ACTIVITIES AND PROVIDES
ECONOMIC BENEFITS RELATED TO SUPPORTING QUANTUM BUSINESSES AND
THE QUANTUM ECOSYSTEM
.
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF SUBSECTION
(3)(c) OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2025, BUT PRIOR TO JANUARY 1, 2033, A QUALIFIED APPLICANT
PAGE 6-HOUSE BILL 24-1325 IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS
ARTICLE
22 FOR PLACING AN ELIGIBLE PROJECT IN SERVICE IN AN AMOUNT
SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO
SUBSECTION
(7) OF THIS SECTION.
(b) T
O CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION , THE
QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION FOR A TAX CREDIT
RESERVATION AS SPECIFIED IN SUBSECTION
(5) OF THIS SECTION, PLACE THE
ELIGIBLE PROJECT IN SERVICE PRIOR TO
JANUARY 1, 2031, OBTAIN A TAX
CREDIT CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTION
(7) OF
THIS SECTION
, AND, ONCE ISSUED BY THE OFFICE, FILE THE TAX CREDIT
CERTIFICATE WITH THE QUALIFIED APPLICANT
'S INCOME TAX RETURN AS
SPECIFIED IN SUBSECTION
(8) OF THIS SECTION.
(c) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT 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 COMPAR ABLE FEDERAL GRANT PROGRAM
. THE
OFFICE SHALL NOTIFY THE DEPARTMENT IF A GRANT SPECIFIED IN THIS
SUBSECTION
(3)(c) IS RECEIVED.
(4) Consortium as qualified applicant - tax matters
representative. I
F A QUALIFIED APPLICANT IS A CONSORTIUM:
(a) T
HE BASIS OF THE CREDIT ALLOWED BY THIS SECTION INCLUDES
THE AGGREGATE QUALIFYING INVESTMENT BY ALL THE MEMBERS OF THE
CONSORTIUM AS DESCRIBED IN SUBSECTION
(7)(a)(II) OF THIS SECTION.
(b) W
HETHER THE APPLICANT PERFORMS THE ACTIVITIES AND
PROVIDES THE ECONOMIC BENEFITS RELATED TO QUANTUM BUSINESS IS
BASED UPON THE ACTIVITIES PERFORMED BY AND THE BENEFITS PROVIDED
BY ALL THE MEMBERS OF THE CONSORTIUM
.
(c) T
HE MEMBERS OF THE CONSORTIUM SHALL DESIGNATE ONE
MEMBER TO BE THE TAX MATTERS REPRESENTATIVE
. THE TAX MATTERS
REPRESENTATIVE SHALL DISCLOSE TO THE OFFICE THAT IT IS THE TAX
MATTERS REPRESENTATIVE ACTING ON BEHALF OF THE CONSORTIUM
. THE
TAX MATTERS REPRESENTATIVE SHALL ALSO DISCLOSE TO THE OFFICE THE
NAME AND TAXPAYER IDENTIFICATION NUMBER OF EACH MEMBER OF THE
PAGE 7-HOUSE BILL 24-1325 CONSORTIUM.
(d) T
HE TAX MATTERS REPRESENTATIVE IS RESPONSIBLE FOR
REPRESENTING AND BINDING THE CONSORTIUM WITH RESPECT TO ALL ISSUES
AFFECTING THE CREDIT
, INCLUDING SUBMITTING THE APPLICATION FOR A
TAX CREDIT RESERVATION
, REPRESENTING THE CONSORTIUM BEFORE THE
OFFICE WITH RESPECT TO THE APPLICATION
, NOTIFYING THE OFFICE THAT THE
ELIGIBLE PROJECT HAS BEEN PLACED IN SERVICE
, SUBMITTING PROOF OF
COMPLIANCE
, SUBMITTING ONGOING COMPLIANCE REPORTS , SUBMITTING
ANY OTHER REPORT OR DOCUMENT REQUIRED BY THE OFFICE OR THE
DEPARTMENT
, ADJUDICATING ANY DISPUTES , AND TAKING ANY OTHER
ACTION REQUIRED OF A QUALIFIED APPLICANT BY THIS SECTION
. THE ACTS
OF THE TAX MATTERS REPRESENTATIVE ARE BINDING UPON ALL MEMBERS OF
THE CONSORTIUM
.
(e) T
HE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE TO, AND IN
THE NAME OF
, THE TAX MATTERS REPRESENTATIVE . THE TAX MATTERS
REPRESENTATIVE SHALL FILE THE RETURN AND CLAIM THE FULL AMOUNT OF
THE TAX CREDIT PURSUANT TO SUBSECTION
(8) OF THIS SECTION. THE
DEPARTMENT SHALL PAY ANY AMOUNT REFUNDED PURSUANT TO
SUBSECTION
(9) OF THIS SECTION TO THE TAX MATTERS REPRESENTATIVE .
(f) I
F THE CREDIT ALLOWED BY THIS SECTION IS RECAPTURED
PURSUANT TO SUBSECTION
(10) OF THIS SECTION, THE TAX MATTERS
REPRESENTATIVE SHALL ADD THE RECAPTURED CREDIT
, PLUS ANY
APPLICABLE PENALTIES AND INTEREST
, TO ITS RETURN. NEVERTHELESS,
EVERY MEMBER OF THE CONSORTIUM IS JOINTLY AND SEVERALLY LIABLE FOR
ANY RESULTING DEFICIENCY
.
(5) Application submission and review for tax credit reservation.
(a) A
N APPLICANT MAY SUBMIT AN APPLICATION FOR A TAX CREDIT
RESERVATION TO THE OFFICE ON OR AFTER
JANUARY 1, 2024, BUT NO LATER
THAN
DECEMBER 31, 2025; EXCEPT THAT IF THE FEDERAL GOVERNMENT HAS
NOT ANNOUNCED THE GRANT RECIPIENT DESCRIBED IN SUBSECTION
(3)(c) OF
THIS SECTION BY
JUNE 30, 2025, THE OFFICE MAY EXTEND THE APPLICATION
DEADLINE TO NO MORE THAN SIX MONTHS AFTER AN ANNOUNCEMENT THAT
A
COLORADO-BASED ENTITY HAS RECEIVED THE GRANT DESCRIBED IN
SUBSECTION
(3)(c) OF THIS SECTION. THE APPLICATION SHALL INCLUDE A
PROJECT PLAN FOR A SHARED QUANTUM FACILITY
.
PAGE 8-HOUSE BILL 24-1325 (b) THE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS FOR A
TAX CREDIT RESERVATION TO
:
(I) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED APPLICANT ;
(II) D
ETERMINE WHETHER THE APPLICATION FOR A TAX CREDIT
RESERVATION IS COMPLETE AND INCLUDE S A PLAN TO MAKE INVESTMENTS
IN QUALIFYING FIXED CAPITAL ASSETS FOR THE CREATION OF A SHARED
QUANTUM FACILITY
;
(III) M
AKE A PRELIMINARY DETERMINATION WHETHER THE PROJECT
PLAN FOR A SHARED QUANTUM FACILITY IS FOR AN ELIGIBLE PROJECT BASED
ON THE POLICIES AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO
SUBSECTION
(12) OF THIS SECTION; AND
(IV) DETERMINE WHETHER THE ELIGIBLE PROJECT IS ENTITLED TO A
TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION
(6) OF THIS SECTION.
(c) T
HE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN
SUBSECTION
(5)(b) OF THIS SECTION WITHIN NINETY DAYS OF THE DATE THE
OFFICE RECEIVES THE COMPLETE APPLICATION FOR A TAX CREDIT
RESERVATION
.
(d) I
F THE OFFICE DETERMINES THAT AN APPLICATION FOR A TAX
CREDIT RESERVATION IS INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE
DETERMINATION SPECIFIED IN SUBSECTION
(5)(b) OF THIS SECTION, THE
OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE
'S DECISION
AND MAY REMOVE THE APPLICATION FOR A TAX CREDIT RESERVATION FROM
THE REVIEW PROCESS
.
(e) A
S PART OF THE APPLICATION REVIEW PROCESS REQUIRED
PURSUANT TO SUBSECTION
(5)(b) OF THIS SECTION, THE OFFICE MAY
REQUEST CLARIFICATIONS AND MODIFICATIONS TO THE APPLICATION
.
(f) T
HE OFFICE MAY INCLUDE PERFORMANCE REQUIREMENTS AND
CRITERIA THAT A QUALIFIED APPLICANT IS REQUIRED TO SATISFY BEFORE THE
OFFICE WILL ISSUE A TAX CREDIT RESERVATION PURSUANT TO SUBSECTION
(6) OF THIS SECTION OR A TAX CREDIT CERTIFICATE PURSUANT TO
SUBSECTION
(7) OF THIS SECTION. THE OFFICE MUST DOCUMENT IN WRITING
ANY REQUIREMENTS CREATED PURSUANT TO THIS SUBSECTION
(5)(f).
PAGE 9-HOUSE BILL 24-1325 (6) Tax credit reservation. (a) B ASED ON THE FACTORS SPECIFIED
IN SUBSECTION
(6)(d) OF THIS SECTION, THE OFFICE MAY DETERMINE THAT
A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN
ACCORDANCE WITH THE PROVISIONS OF THIS SECTION
. THE OFFICE SHALL
ISSUE TAX CREDIT RESERVATIONS SUBJECT TO THE LIMITATIONS SET FORTH
IN THIS SUBSECTION
(6) AND IN ACCORDANCE WITH THE POLICIES AND
PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION
(12) OF THIS SECTION.
(b) I
F THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A
QUALIFIED APPLICANT
, THE OFFICE SHALL NOTIFY THE QUALIFIED APPLICANT
IN WRITING OF THE RESERVATION AND THE AMOUNT RESERVED
. THE
RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED APPLICANT
DOES NOT ENTITLE THE QUALIFIED APPLICANT TO ISSUANCE OF A CREDIT
CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH ALL THE
OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE ISSUANCE OF THE
TAX CREDIT
. WHEN THE OFFICE APPROVES A TAX CREDIT RESERVATION , THE
OFFICE MAY ALSO IMPOSE ADDITIONAL REQUIREMENTS
, WHICH A QUALIFIED
APPLICANT SHALL SATISFY AS PART OF COMPLETING THE QUALIFYING
INVESTMENT
, BEFORE A TAX CREDIT CERTIFICATE IS ISSUED TO THE
QUALIFIED APPLICANT
.
(c) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (6)(c), IF
APPROVED
, THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A
QUALIFIED APPLICANT FOR AN ELIGIBLE PROJECT IN AN AMOUNT EQUAL TO
THE QUALIFIED APPLICANT
'S ESTIMATED QUALIFYING INVESTMENT .
(II) T
HE AGGREGATE AMOUNT OF ALL FIXED ASSET INVESTMENT TAX
CREDIT RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO THIS
SECTION MUST NOT EXCEED FORTY
-FOUR MILLION DOLLARS.
(III) T
HE OFFICE MAY ESTABLISH POLICIES AND PROCEDURES TO CAP
THE TOTAL AMOUNT OF ANY TAX CREDIT RESERVATION ISSUED TO A
QUALIFIED APPLICANT PURSUANT TO THIS SUBSECTION
(6).
(d) I
N MAKING THE FINAL DETERMINATION OF WHICH PROJECT PLAN
TO ISSUE TAX RESERVATIONS TO PURSUANT TO THIS SUBSECTION
(6), THE
OFFICE MAY PRIORITIZE A PROJECT PLAN THAT
:
(I) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT IS A CONSORTIUM
THAT INCLUDES THE FOLLOWING OR IS SUBMITTED BY A QUALIFIED
PAGE 10-HOUSE BILL 24-1325 APPLICANT THAT IS NOT A CONSORTIUM AND THAT COLLABORATES WITH THE
FOLLOWING
:
(A) A
NONPROFIT ENTITY CREATED BY INSTITUTIONS OF HIGHER
EDUCATION OF HIGH RESEARCH ACTIVITY
, CLASSIFIED AS R1 UNIVERSITIES,
LED BY A PUBLIC R1 UNIVERSITY WITH A DEMONSTRATED HISTORY OF
QUANTUM
-RELATED RESEARCH AND INVESTMENT IN COLORADO; AND
(B) A NONPROFIT ENTITY THAT HAS RECEIVED A SUBSTANTIAL
FEDERAL AWARD FOR THE PURPOSES OF CULTIVATING AND EXPANDING A
QUANTUM
-RELATED ECOSYSTEM WITHIN COLORADO;
(II) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT DEMONSTRATES
AN ABILITY TO MEET APPLICATION REQUIREMENTS DESIGNATED BY THE
OFFICE
, INCLUDING:
(A) T
HE SUBMISSION OF A BUDGET FOR THE PROJECT PLAN THAT
INCLUDES THE SOURCES OF FUNDING FOR THE PROJECT AND ANTICIPATED
USES OF THE FUNDING
;
(B) T
HE SUBMISSION OF AN EXPLANATION FOR THE WAYS IN WHICH
THE SHARED QUANTUM FACILITY WILL BE USED AND HOW IT WILL BENEFIT
THE QUANTUM INDUSTRY IN THIS STATE
; AND
(C) THE SUBMISSION OF A COMMUNITY BENEFITS PLAN DEVELOPED
BY A NONPROFIT ENTITY DESCRIBED IN SUBSECTION
(6)(d)(I)(B) OF THIS
SECTION
, THROUGH ENGAGEMENT WITH THE COMMUNITY SURR OUNDING THE
SHARED QUANTUM FACILITY AND LABOR ORGANIZATIONS
;
(III) I
S SUBMITTED BY A QUALIFIED APPLICANT THAT :
(A) D
EMONSTRATES THAT THE PROJECT PLAN IS AGREED UPON BY
THE ENTITIES DESCRIBED IN SUBSECTIONS
(6)(d)(I)(A) AND (6)(d)(I)(B) OF
THIS SECTION
;
(B) D
EMONSTRATES AN INTENT TO EQUITABLY AND EFFECTIVELY
DISTRIBUTE THE TAX CREDITS OR THE REFUND PROCEEDS OF THE TAX
CREDIT
;
(C) D
EMONSTRATES AN INTENT TO LEVERAGE THE PROCEEDS OF THE
PAGE 11-HOUSE BILL 24-1325 REFUNDABLE TAX CREDIT PURSUANT TO THIS SECTION FOR THE PURPOSE OF
CREATING AND FINANCING A SHARED QUANTUM FACILITY TO ACCOMPLISH
THE GOALS SPECIFIED IN SUBSECTION
(1)(b) OF THIS SECTION;
(D) I
NCLUDES A SUMMARY OF ANY THIRD -PARTY RESOURCES APART
FROM THE TAX CREDITS ALLOWED PURSUANT TO THIS SECTION THAT WILL BE
USED TO CREATE OR FINANCE THE SHARED QUANTUM FACILITY
; AND
(E) INCLUDES A PROPOSED COLLABORATION PLAN THAT OUTLINES
THE OPERATIONAL AND GOVERNANCE PLAN FOR THE SHARED QUANTUM
FACILITY
;
(IV) P
ROPOSES A SUITABLE LOCATION FOR THE SHARED QUANTUM
FACILITY
; AND
(V) IS MADE BY A QUALIFIED APPLICANT THAT IS A NEWLY-CREATED
NONPROFIT ORGANIZATION DEDICATED TO THE PURPOSE OF PROMOTING THE
QUANTUM ECOSYSTEM AND ITS COMMERCIAL GROWTH
.
(e) A
S PART OF THE TAX CREDIT RESERVATION PROCESS PURSUANT
TO THIS SUBSECTION
(6), THE OFFICE MAY REQUEST CLARIFICATIONS OR
MODIFICATIONS TO THE APPLICATION SUBMITTED PURSUANT TO SUBSECTION
(5) OF THIS SECTION.
(f) T
HE APPLICANT, AT THE APPLICANT'S OWN RISK, MAY BEGIN
MAKING INVESTMENTS IN QUALIFYING FIXED CAPITAL ASSETS BEFORE A TAX
CREDIT RESERVATION IS AWARDED TO THE QUALIFIED APPLICANT PURSUANT
TO THIS SUBSECTION
(6). IF A TAX CREDIT RESERVATION APPLICATION IS
APPROVED FOR A QUALIFIED APPLICANT
, INVESTMENTS IN QUALIFYING FIXED
CAPITAL ASSETS THAT THE QUALIFIED APPLICANT MADE UP TO TWELVE
MONTHS BEFORE THE DATE THE TAX CREDIT RESERVATION WAS SUBMITTED
MAY BE INCLUDED IN THE CALCULATION OF QUALIFYING FIXED CAPITAL
ASSETS FOR THE PURPOSE OF DETERMINING THE AMOUNT OF THE TAX CREDIT
CERTIFICATE ISSUED PURSUANT TO SUBSECTION
(7) OF THIS SECTION.
(7) Proof of compliance - audit of qualifying investments
certification - issuance of tax credit certificate. (a) (I) A
FTER A
QUALIFIED APPLICANT COMPLETES A PROJECT OR A PHASE OF A PROJECT
, THE
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE PROJECT OR
PHASE OF THE PROJECT HAS BEEN PLACED IN SERVICE AND SHALL CERTIFY
PAGE 12-HOUSE BILL 24-1325 THE TYPES AND AMOUNT OF THE QUALIFYING INVESTMENTS AND HOW THE
INVESTMENTS WERE USED IN AN ELIGIBLE PROJECT
, AFTER WHICH THE OFFICE
SHALL MAKE A FINAL DETERMINATION AS TO WHETHER THE PROJECT IS AN
ELIGIBLE PROJECT
. THE APPLICANT SHALL INCLUDE A REVIEW OF THE
CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT THAT IS NOT
AFFILIATED WITH THE QUALIFIED APPLICANT THAT ALIGNS WITH OFFICE
POLICIES FOR CERTIFICATION OF QUALIFYING INVESTMENTS
. THE APPLICANT
SHALL ALSO CERTIFY AND PROVIDE DOCUMENTS DEMONSTRATING THAT THE
APPLICANT SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE
OFFICE PURSUANT TO SUBSECTIONS
(6) AND (12) OF THIS SECTION.
(II) Q
UALIFYING INVESTMENT EXPENDITURES THAT ARE ELIGIBLE
FOR THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION MAY BE MADE
BY THE APPLICANT
, MEMBERS OF A CONSORTIUM, IF APPLICABLE, OR OTHER
ENTITIES CONTRACTED TO MAKE THE EXPENDITURES ON BEHALF OF THE
APPLICANT OR MEMBERS OF A CONSOR TIUM AS PART OF A COORDINATED
PLAN TO CREATE THE SHARED QUANTUM FACILITY
. THE SOURCE OF MONEY
FOR THE QUALIFYING INVESTMENT EXPENDITURES THAT ARE ELIGIBLE FOR
THE TAX CREDIT CAN BE FROM ANY SOURCE OF MONEY THAT THE APPLICANT
OR MEMBERS OF A CONSORTIUM OR OTHER ENTITIES HAVE AVAILABLE FOR
MAKING THE INVESTMENTS
.
(III) W
ITHIN NINETY DAYS AFTER RECEIPT OF THE COMPLETE
DOCUMENTATION REQUIRED IN SUBSECTION
(7)(a)(I) OF THIS SECTION FROM
THE QUALIFIED APPLICANT
, THE OFFICE SHALL REVIEW THE QUALIFIED
APPLICANT
'S DOCUMENTATION OF CERTIFIED QUALIFYING INVESTMENTS ,
DETERMINE WHETHER THE DOCUMENTATION SATISFIES THE PROJECT PLAN
AND OTHER REQUIREMENTS
, AND, IF THE OFFICE DETERMINES THAT THE
DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER REQUIREMENTS
,
THE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE FOR THE LESSER OF THE
AMOUNT SPECIFIED IN THE TAX CREDIT RESERVATION ISSUED TO THE
QUALIFIED APPLICANT PURSUANT TO SUBSECTION
(6) OF THIS SECTION OR
THE AMOUNT OF THE QUALIFYING INVESTMENT
.
(b) I
F THERE ARE ANY UNRESERVED AMOUNTS OF TAX CREDITS
AVAILABLE UNDER SUBSECTION
(6) OF THIS SECTION, AND IF THE AMOUNT OF
CERTIFIED QUALIFYING INVESTMENTS INCURRED BY THE QUALIFIED
APPLICANT WOULD HAVE RESULTED IN THE QUALIFIED APPLICANT BEING
ISSUED A TAX CREDIT CERTIFICATE THAT EXCEEDS THE AMOUNT OF THE TAX
CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT
, THE QUALIFIED
PAGE 13-HOUSE BILL 24-1325 APPLICANT MAY APPLY TO THE OFFICE FOR THE ISSUANCE OF AN ADDITIONAL
TAX CREDIT CERTIFICATE IN AN AMOUNT EQUAL TO THE DIFFERENCE
BETWEEN THE AMOUNT THAT WOULD HAVE BEEN ISSUED AS A RESULT OF
THE CERTIFIED QUALIFYING INVESTMENTS IF THAT AMOUNT WAS NOT
LIMITED TO THE AMOUNT OF THE TAX CREDIT RESERVATION PURSUANT TO
SUBSECTION
(7)(a)(III) OF THIS SECTION AND THE AMOUNT OF THE TAX
CREDIT RESERVATION BY SUBMITTING AN APPLICATION IN A FORM AND
MANNER DETERMINED BY THE OFFICE
. THE OFFICE SHALL REVIEW THE
APPLICATION AS SPECIFIED IN SUBSECTION
(5) OF THIS SECTION AND, IF
APPROVED
, SHALL ISSUE A SEPARATE TAX CREDIT CERTIFICATE AWARDING
THE QUALIFIED APPLICANT THE ADDITIONAL CREDIT
.
(c) T
HE FIRST APPLICATION FOR TAX CREDIT ISSUANCE MAY INCLUDE
QUALIFYING INVESTMENTS FOR THE ENTIRE ELIGIBLE PROJECT OR JUST THE
INITIAL PHASE AND MUST BE SUBMITTED BY THE QUALIFIED APPLICANT NO
LATER THAN
DECEMBER 31, 2028.
(d) A
QUALIFIED APPLICANT MAY SUBMIT ADDITIONAL APPLICATIONS
FOR TAX CREDIT ISSUANCE PURSUANT TO THIS SUBSECTION
(7) AS THE
QUALIFIED APPLICANT COMPLETES ADDITIONAL PHASES OF THE PROJECT
THAT ARE PLACED IN SERVICE
. THE QUALIFIED APPLICANT MAY SUBMIT SUCH
APPLICATIONS THROUGH
DECEMBER 31, 2030, AND UP TO THE AMOUNT OF
TAX CREDITS RESERVED BY THE APPLICANT
.
(8) Filing tax credit certificate with income tax return. (a) T
O
CLAIM THE CREDIT AUTHORIZED BY THIS SECTION
, A QUALIFIED APPLICANT
SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT
TO SUBSECTION
(7) OF THIS SECTION WITH THE QUALIFIED APPLICANT 'S
STATE INCOME TAX RETURN
. IF THE QUALIFIED APPLICANT IS EXEMPT FROM
TAX PURSUANT TO SECTION
39-22-112 (1), THE QUALIFIED APPLICANT SHALL
FILE A RETURN PURSUANT TO SECTION
39-22-601 (7)(b). THE AMOUNT OF
THE TAX CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM PURSUANT TO
THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT CERTIFICATE
.
(b) A
QUALIFIED APPLICANT MAY NOT USE A TAX CREDIT
CERTIFICATE ISSUED PURSUANT TO THIS SUBSECTION
(8) BEFORE THE INCOME
TAX YEAR THAT BEGINS ON OR AFTER
JANUARY 1, 2026, BUT MUST USE THE
TAX CREDIT CERTIFICATE BEFORE THE LAST INCOME TAX YEAR THAT
COMMENCES BEFORE
JANUARY 1, 2033.
PAGE 14-HOUSE BILL 24-1325 (c) A TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP, A LIMITED
LIABILITY COMPANY TAXED AS A PARTNERSHIP
, OR MULTIPLE OWNERS OF A
PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS
, MEMBERS, OR
OWNERS
, INCLUDING ANY NONPROFIT ENTITY THAT IS A PARTNER , MEMBER,
OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR PURSUANT TO AN
EXECUTED AGREEMENT AMONG THE PARTNERS
, MEMBERS, OR OWNERS
DOCUMENTING AN ALTERNATE DISTRIBUTION METHOD
.
(9) Refundability. (a) E
XCEPT AS OTHERWISE PROVIDED IN
SUBSECTION
(9)(b) OF THIS SECTION, NOT MORE THAN THE AGGREGATE OF
TWENTY
-FOUR MILLION DOLLARS OF CREDITS TO BE ISSUED TO ALL
QUALIFIED APPLICANTS PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE
QUALIFIED APPLICANTS IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE
PROJECT IS PLACED IN SERVICE
. IF THE QUALIFIED APPLICANTS ARE ISSUED
MORE THAN AN AGGREGATE OF TWENTY
-FOUR MILLION DOLLARS IN CREDITS
PURSUANT TO THIS SECTION
, NOT MORE THAN TWENTY MILLION DOLLARS OF
THE TOTAL AMOUNT OF CREDITS TO BE ISSUED MAY BE CLAIMED IN ANY
SINGLE FUTURE TAXABLE YEAR
; EXCEPT THAT CREDITS MAY NOT BE
CLAIMED FOR ANY INCOME TAX YEAR THAT BEGINS ON OR AFTER
JANUARY
1, 2033.
(b) I
F THE AMOUNT OF THE CREDIT ALLOWED TO BE CLAIMED IN THE
APPLICABLE TAXABLE YEAR PURSUANT TO THIS SECTION EXCEEDS THE
AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF THE
QUALIFIED APPLICANT IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS
BEING CLAIMED
, OR THE QUALIFIED APPLICANT IS A PERSON WHO IS EXEMPT
FROM TAXATION PURSUANT TO SECTION
39-22-112 (1), ONE HUNDRED
PERCENT OF THE AMOUNT OF THE CREDIT THAT IS ALLOWED TO BE CLAIMED
FOR THE APPLICABLE TAX YEAR THAT IS NOT USED AS AN OFFSET AGAINST
INCOME TAXES IN THE INCOME TAX YEAR IS REFUNDED TO THE QUALIFIED
APPLICANT
.
(10) Compliance monitoring and recapture. (a) E
XCEPT AS
PROVIDED IN SUBSECTION
(10)(b) OF THIS SECTION, IF, DURING THE
COMPLIANCE PERIOD
, THE QUALIFIED APPLICANT SELLS , TRANSFERS,
ABANDONS, OR REPURPOSES A SUBSTANTIAL PORTION OF THE QUALIFYING
FIXED CAPITAL ASSETS FOR WHICH THE QUALIFIED APPLICANT WAS ALLOWED
A CREDIT PURSUANT TO THIS SECTION
, OR OTHERWISE CEASES TO OPERATE
THE SHARED QUANTUM FACILITY IN THIS STATE
, THE OFFICE SHALL NOTIFY
THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT THE CREDIT
PAGE 15-HOUSE BILL 24-1325 ALLOWED IN THIS SECTION IS DISALLOWED . THE QUALIFIED APPLICANT
SHALL ADD THE FULL AMOUNT OF THE CREDIT THAT WAS ACTUALLY USED TO
OFFSET THE QUALIFIED APPLICANT
'S INCOME TAX OR REFUNDED TO THE
QUALIFIED APPLICANT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE
TAXABLE YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS
SUBSECTION
(10).
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO
SUBSECTION
(10)(a) OF THIS SECTION DOES NOT APPLY IF:
(I) A
LL OR PART OF THE SHARED QUANTUM FACILITY EXPERIENCES
A CASUALTY LOSS AND IF THE QUALIFYING FIXED CAPITAL ASSETS LOST ARE
RESTORED WITHIN A REASONABLE PERIOD ESTABLISHED BY THE OFFICE
;
(II) S
OLELY BY REASON OF THE DISPOSITION OF LAND , A BUILDING,
A STRUCTURE, OR A FACILITY, OR AN INTEREST THEREIN, THE SHARED
QUANTUM FACILITY IS RELOCATED WITHIN THIS STATE TO A PROPERTY
APPROVED BY THE OFFICE
; OR
(III) A QUALIFYING FIXED CAPITAL ASSET IS REPLACED OR UPGRADED
IN THE NORMAL COURSE OF ITS USE
.
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS TO
MONITOR COMPLIANCE WITH THIS SUBSECTION
(10), INCLUDING
REQUIREMENTS REGARDING THE REPORTING OF A DISPOSITION OF A
BUILDING
, STRUCTURE, OR FACILITY BY THE QUALIFIED APPLICANT.
(II) I
F A DISPUTE ARISES ABOUT WHETHER A BUILDING , STRUCTURE,
OR FACILITY IS A SHARED QUANTUM FACILITY , THE OFFICE SHALL
ADJUDICATE THE DISPUTE AND NOTIFY THE DEPARTMENT OF THE
RESOLUTION
.
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A BUILDING,
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IS DISPOSED OF DURING
ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD
, AND THEREAFTER
THE BUILDING
, STRUCTURE, OR FACILITY OR ANY REPLACEMENT FOR THE
BUILDING
, STRUCTURE, OR FACILITY IS NOT A SHARED QUANTUM FACILITY ,
THEN:
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE
PAGE 16-HOUSE BILL 24-1325 CREDIT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE YEAR IN
WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS SUBSECTION
(10)
NOTWITHSTANDING THE DISPOSITION OF THE BUILDING , STRUCTURE, OR
FACILITY
;
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY
DEFICIENCY WITH RESPECT TO THE DISALLOWED CREDIT MUST NOT EXPIRE
BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE OFFICE IS
NOTIFIED
, IN SUCH A MANNER AS THE OFFICE DETERMINES , THAT THE
PROJECT IS NOT AN ELIGIBLE PROJECT
; AND
(C) THE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE
EXPIRATION OF SUCH THREE
-YEAR PERIOD TOGETHER WITH ANY APPLICABLE
INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE
22.
(d) A
S USED IN THIS SUBSECTION (10), UNLESS THE CONTEXT
OTHERWISE REQUIRES
, "COMPLIANCE PERIOD" MEANS THE PERIOD OF FIFTEEN
YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED APPLICANT
PLACED THE ELIGIBLE PROJECT OR THE INITIAL PHASE OF THE ELIGIBLE
PROJECT IN SERVICE
.
(11) Reporting. (a) N
O LATER THAN DECEMBER 31, 2027, AND,
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO
LATER THAN
DECEMBER 31 OF EACH TWO YEARS THEREAFTER THROUGH
2033, THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE
PUBLIC
. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS
SECTION
, THE REPORT MUST INCLUDE:
(I) A
DESCRIPTION OF EACH ELIGIBLE PROJECT PLACED IN SERVICE ;
(II) A
DESCRIPTION OF THE USE OR USES OF THE ELIGIBLE PROJECT;
(III) T
HE NUMBER AND QUALITY OF JOBS SUPPORTED IN THE
QUANTUM INDUSTRY AS A RESULT OF THE ELIGIBLE PROJECT
;
(IV) T
HE NUMBER OF QUANTUM BUSINESSES THAT HAVE BEEN
SUPPORTED THROUGH THE ELIGIBLE PROJECT
;
(V) A
N OVERVIEW OF THE TYPES OF INTELLECTUAL PROPERTY THAT
PAGE 17-HOUSE BILL 24-1325 HAVE BEEN ADVANCED THROUGH THE ELIGIBLE PROJECT ; AND
(VI) THE AMOUNT OF FEDERAL MONEY THAT HAS BEEN AWARDED TO
THE ELIGIBLE FACILITY
.
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME TAX
CREDIT ALLOWED IN THIS SECTION
, PROVIDE THE DEPARTMENT WITH AN
ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE OFFICE
ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR THAT
INCLUDES THE FOLLOWING INFORMATION
:
(I) T
HE QUALIFIED APPLICANT'S NAME;
(II) T
HE AMOUNT OF THE CREDIT; AND
(III) THE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR THE
QUALIFIED APPLICANT
'S COLORADO ACCOUNT NUMBER AND FEDERAL
EMPLOYER IDENTIFICATION NUMBER
.
(12) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND
MODIFY POLICIES
, PROCEDURES, AND GUIDELINES AS NECESSARY TO
FURTHER IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR THE
COMPLETION OF ELIGIBLE PROJECTS PURSUANT TO THIS SECTION AND SHALL
SOLICIT ADVICE FROM THE DEPARTMENT AND QUANTUM INDUSTRY
PARTICIPANTS IN CREATING AND MODIFYING SUCH POLICIES
, PROCEDURES,
AND GUIDELINES.
(b) W
ITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION AS
TO WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT PURSUANT
TO SUBSECTION
(5)(b)(III) OF THIS SECTION, THE OFFICE SHALL DEVELOP
STANDARDS THAT INCLUDE
, BUT ARE NOT LIMITED TO:
(I) P
ERFORMANCE STANDARDS AND GUIDELINES FOR A SHARED
QUANTUM FACILITY
;
(II) A
DETAILED COST ESTIMATE FOR THE PROJECT PLAN ;
(III) E
VIDENCE OF SITE CONTROL OF THE SITE WHERE THE PROJECT
WILL OCCUR
; AND
PAGE 18-HOUSE BILL 24-1325 (IV) THE FINANCING OR FUNDING THAT IS AVAILABLE FOR THE
PROJECT PLAN
.
(c) W
ITH RESPECT TO MAKING THE PRELIMINARY DETERMINATION AS
TO WHETHER A PROJECT PLAN IS A PLAN FOR AN ELIGIBLE PROJECT PURSUANT
TO SUBSECTION
(5)(b)(III) OF THIS SECTION, THE OFFICE SHALL CONSIDER
JOB QUALITY STANDARDS AND GUIDELINES FOR THE SHARED QUANTUM
FACILITY THAT ADHERE TO THE
"GOOD JOBS PRINCIPLES" ESTABLISHED BY
THE
UNITED STATES DEPARTMENT OF LABOR AND UNITED STATES
DEPARTMENT OF COMMERCE
.
(13) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,
2050.
39-22-568. Quantum business loan loss reserve income tax credit
- tax preference performance statement - definitions - repeal. (1) Tax
preference performance statement. I
N ACCORDANCE WITH SECTION
39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT
AS PART OF A STATUTORY LEGISLATIVE DECLARATION
, THE GENERAL
ASSEMBLY FINDS AND DECLARES THAT
:
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT
ALLOWED BY THIS SECTION ARE
:
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ; AND
(II) TO IMPROVE INDUSTRY COMPETITIVENESS ;
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT
ALLOWED BY THIS SECTION IS TO SUPPORT AND FACILITATE THE
DEVELOPMENT OF THE QUANTUM BUSINESS ECOSYSTEM AND HIGH QUALITY
JOBS IN THE STATE BY ENCOURAGING QUALIFIED APPLICANTS TO MAKE
LOANS THAT THE QUALIFIED APPLICANTS MIGHT NOT OTHERWISE MAKE OR
AT MORE FAVORABLE TERMS THAN THEY WOULD OTHERWISE MAKE TO
BORROWERS THAT HAVE LIMITED ACCESS TO CAPITAL
; AND
(c) THE GENERAL ASSEMBLY AND STATE AUDITOR SHALL MEASURE
THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSES SPECIFIED
IN SUBSECTIONS
(1)(a) AND (1)(b) OF THIS SECTION BASED ON THE
PAGE 19-HOUSE BILL 24-1325 INFORMATION REPORTED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION
(11) OF THIS SECTION.
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT
OTHERWISE REQUIRES
:
(a) "A
DMINISTRATOR" MEANS THE OFFICE, A THIRD PARTY SELECTED
BY THE OFFICE
, OR THE THIRD PARTY WORKING IN COMBINATION WITH THE
OFFICE TO ADMINISTER THE TAX CREDIT CREATED IN THIS SECTION
.
(b) "B
ORROWER" MEANS A QUANTUM COMPANY DOING BUSINESS IN
COLORADO THAT IS AN EARLY-STAGE OR GROWTH-STAGE COMPANY AT THE
TIME A QUALIFIED APPLICANT MAKES A LOAN TO THE COMPANY AND THAT
,
EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (12)(c) OF THIS SECTION,
HAD AN ANNUAL REVENUE OF LESS THAN ONE HUNDRED MILLION DOLLARS
IN THE YEAR PRIOR TO THE YEAR IN WHICH A QUALIFIED APPLICANT MADE A
LOAN TO THE COMPANY
.
(c) "D
EPARTMENT" MEANS THE COLORADO DEPARTMENT OF
REVENUE
.
(d) "E
LIGIBLE LOAN" MEANS A LOAN MADE BY A QUALIFIED
APPLICANT TO A BORROWER
.
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF EC ONOMIC
DEVELOPMENT CREATED IN SECTION
24-48.5-101.
(f) "Q
UALIFIED APPLICANT" MEANS A COMMERCIAL BANK ,
DEPOSITORY INSTITUTION, PRIVATE LENDING FUND, OR OTHER ENTITY THAT
MAKES LOANS FOR COMMERCIAL PURPOSES AND MAKES A LOAN TO A
BORROWER
.
(g) "Q
UANTUM COMPANY " MEANS A PRIVATE FOR -PROFIT OR
NONPROFIT ORGANIZATION THAT HAS QUANTUM TECHNOL OGY AS A KEY
PART OF ITS BUSINESS MODEL
, INCLUDING BUT NOT LIMITED TO
MANUFACTURING
, TESTING, PRODUCTION, RESEARCH AND DEVELOPMENT, OR
ENHANCEMENT OF HARDWARE OR SOFTWARE TO PERFORM OR USE QUANTUM
TECHNOLOGY AS A KEY INPUT OR OUTPUT OF ITS BUSINESS MODEL
, AND
COMPANIES THAT PRODUCE GOODS OR SERVICES THAT ARE KEY INPUTS FOR
OTHER QUANTUM COMPANIES
.
PAGE 20-HOUSE BILL 24-1325 (h) "REGISTERED LOAN" MEANS AN ELIGIBLE LOAN MADE TO A
BORROWER THAT IS REGISTERED WITH THE ADMINISTRATOR PURSUANT TO
SUBSECTION
(7)(a) OF THIS SECTION.
(3) Credit allowed. (a) S
UBJECT TO THE PROVISIONS OF SUBSECTION
(3)(c) OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2026, BUT PRIOR TO JANUARY 1, 2046, A QUALIFIED APPLICANT
IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS
ARTICLE
22 TO OFFSET LOSSES INCURRED IN CONNECTION WITH ONE OR MORE
REGISTERED LOANS IN AN AMOUNT SPECIFIED ON THE REGISTERED LOAN
LOSS CERTIFICATE ISSUED BY THE ADMINISTRATOR PURSUANT TO
SUBSECTION
(8) OF THIS SECTION; EXCEPT THAT, IF A QUALIFIED TAXPAYER
CLAIMS MORE THAN ONE REGISTERED LOAN LOSS
, IN NO EVENT MAY THE
AGGREGATE REGISTERED LOAN LOSSES CLAIMED BY THE QUALIFIED
TAXPAYER EXCEED THE TOTAL AMOUNT SPECIFIED ON THE TAX CREDIT
CERTIFICATES ISSUED PURSUANT TO SUBSECTION
(7) OF THIS SECTION.
(b) T
O CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION , THE
QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS SPECIFIED IN
SUBSECTION
(5) OF THIS SECTION, MAKE AN ELIGIBLE LOAN AND REGISTER
THE ELIGIBLE LOAN PRIOR TO
JUNE 30, 2036, OBTAIN A TAX CREDIT
CERTIFICATE FROM THE ADMINISTRATOR AS SPECIFIED IN SUBSECTION
(7) OF
THIS SECTION
, INCUR A LOSS IN CONNECTION WITH A REGISTERED LOAN AND
OBTAIN A REGISTERED LOAN LOSS CERTIFICATE FROM THE ADMINISTRATOR
AS SPECIFIED IN SUBSECTION
(8) OF THIS SECTION PRIOR TO JANUARY 1,
2045,
AND, ONCE ISSUED BY THE ADMINISTRATOR , FILE THE TAX CREDIT
CERTIFICATE AND THE REGISTERED LOAN LOSS CERTIFICATE WITH THE
QUALIFIED APPLICANT
'S INCOME TAX RETURN AS SPECIFIED IN SUBSECTION
(9) OF THIS SECTION.
(c) T
HE ADMINISTRATOR SHALL DETERMINE THE METHOD IT WILL USE
TO DISTRIBUTE TAX CREDIT CERTIFICATES TO QUALIFIED APPLICANTS
PURSUANT TO SUBSECTION
(7) OF THIS SECTION. IN SELECTING THE
DISTRIBUTION METHOD USED TO DISTRIBUTE THE TAX CREDIT CERTIFICATES
,
THE ADMINISTRATOR MAY CONSULT WITH QUANTUM INDUSTRY
PARTICIPANTS
. THE DISTRIBUTION METHOD MAY BE :
(I) O
N A FIRST-COME, FIRST-SERVED BASIS TO QUALIFIED APPLICANTS
WHO APPLY TO THE ADMINISTRATOR FOR A TAX CREDIT PURSUANT TO
SUBSECTION
(5) OF THIS SECTION FOR ONE OR MORE ELIGIBLE LOANS EACH ,
PAGE 21-HOUSE BILL 24-1325 AFTER THE QUALIFIED APPLICANT HAS MADE THE LOAN ;
(II) B
ASED ON A COMPETITIVE LENDER SELECTION PROCESS WHERE
THE ADMINISTRATOR CHOOSES WHICH LENDERS ARE ELIGIBLE TO APPLY FOR
THE TAX CREDIT ALLOWED BY THIS SECTION IN ADVANCE OF ACCEPTING
APPLICATIONS AND REQUESTS TO REGISTER LOANS AND IN ADVANCE OF
ISSUING TAX CREDITS
. IN SELECTING LENDERS TO BE ALLOWED A TAX CREDIT
PURSUANT TO THIS SECTION
, THE ADMINISTRATOR MAY ALLOCATE SOME OR
ALL OF THE CREDITS SOLELY TO SELECTED LENDERS
. IF THE ADMINISTRATOR
USES THIS DISTRIBUTION METHOD
, THE SELECTED LENDERS ARE THE ONLY
QUALIFIED APPLICANTS THAT ARE ALLOWED TO APPLY TO THE
ADMINISTRATOR
, REQUEST REGISTRATION OF THE LOAN , AND BE ISSUED A
TAX CREDIT CERTIFICATE AND REGISTERED LOAN LOSS CERTIFICATE
PURSUANT TO THIS SECTION
.
(III) A
COMBINATION OF THE METHODS DESCRIBED IN SUBSECTIONS
(3)(c)(I) AND (3)(c)(II) OF THIS SECTION.
(d) T
HE TAX CREDIT CREATED IN THIS SECTION IS NOT 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 COMPAR ABLE FEDERAL GRANT PROGRAM
.
(4) Credit administration. (a) E
XCEPT AS OTHERWISE PROVIDED IN
SUBSECTION
(4)(b) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR OF
THE CREDIT ALLOWED PURSUANT TO THIS SECTION
. THE OFFICE MAY WORK
WITH A THIRD
-PARTY PROGRAM ADMINISTRATOR SELECTED BY THE OFFICE
TO ASSIST IN ADMINISTERING THE CREDIT
. IN ADDITION, THE OFFICE MAY
CONTRACT WITH THE
COLORADO HOUSING AND FINANCE AUTHORITY
CREATED IN SECTION
29-4-704 WITHOUT RECOURSE TO A COMPETITIVE
PROCESS TO PROVIDE SERVICES TO THE OFFICE IN ITS ROLE AS THE
ADMINISTRATOR
.
(b) I
N LIEU OF THE OFFICE SERVING AS THE ADMINISTRATOR
PURSUANT TO SUBSECTION
(4)(a) OF THIS SECTION, THE OFFICE MAY
CONTRACT WITH ANOTHER ENTITY TO BE THE ADMINISTRATOR
. HOWEVER,
IF THE OFFICE CONTRACTS WITH ANOTHER ENTITY TO BE THE
ADMINISTRATOR
, THEN THE OFFICE MUST SELECT THE THIRD -PARTY
ADMINISTRATOR USING A COMPETITIVE SELECTION PROCESS
.
PAGE 22-HOUSE BILL 24-1325 (5) Application submission and request for loan registration.
(a) A
N APPLICANT THAT HAS MADE A LOAN FOR THE PURPOSES OF THE TAX
CREDIT ALLOWED PURSUANT TO THIS SECTION MAY SUBMIT AN APPLICATION
FOR A TAX CREDIT CERTIFICATE DESCRIBED IN SUBSECTION
(7) OF THIS
SECTION AND REQUEST THAT THE ADMINISTRATOR REGISTER THE LOAN
PURSUANT TO THIS SUBSECTION
(5) ON OR AFTER JANUARY 1, 2025, BUT NO
LATER THAN
JUNE 30, 2036.
(b) (I) T
HE ADMINISTRATOR SHALL REVIEW ALL SUBMITTED
APPLICATIONS TO
:
(A) D
ETERMINE WHETHER THE APPLICANT IS A QUALIFIED
APPLICANT
;
(B) D
ETERMINE WHETHER THE QUANTUM COMPANY THAT IS THE
LOAN RECIPIENT IS A BORROWER
;
(C) D
ETERMINE WHETHER THE APPLICATION IS COMPL ETE AND
INCLUDES A DESCRIPTION OF THE LOAN THAT THE QUALIFIED APPLICANT
MADE OR WILL MAKE TO A BORROWER AND A DESCRIPTION OF THE PURPOSES
FOR WHICH THE BORROWER WILL USE THE LOAN
;
(D) M
AKE A DETERMINATION OF WHETHER THE LOAN IS AN ELIGIBLE
LOAN AND WHETHER THE ADMINISTRATOR MAY REGISTER THE LOAN
PURSUANT TO SUBSECTION
(5)(c) OF THIS SECTION; AND
(E) DETERMINE WHETHER, BASED ON THE ELIGIBLE LOAN , THE
QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT CERTIFICATE AS
SPECIFIED IN SUBSECTION
(7) OF THIS SECTION.
(II) I
F THE ADMINISTRATOR DETERMINES THAT AN APPLICATION IS
INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS
SPECIFIED IN SUBSECTION
(5)(b)(I) OF THIS SECTION, THE ADMINISTRATOR
SHALL NOTIFY THE APPLICANT IN WRITING OF THE ADMINISTRATOR
'S
DECISION AND SHALL NOT REVIEW ANY LOAN TO DETERMINE WHETHER THE
LOAN MAY BE REGISTERED PURSUANT TO SUBSECTION
(5)(c) OF THIS
SECTION
.
(c) (I) T
O BE ELIGIBLE TO RECEIVE A TAX CREDIT CERTIFICATE
PURSUANT TO SUBSECTION
(7) OF THIS SECTION, A QUALIFIED APPLICANT
PAGE 23-HOUSE BILL 24-1325 MUST REQUEST THAT THE ADMINISTRATOR REGISTER THE LOAN FOR WHICH
THE TAX CREDIT APPLICATION WA S SUBMITTED PURSUANT TO THIS
SUBSECTION
(5). TO REGISTER A LOAN, A QUALIFIED APPLICANT MUST
PROVIDE THE FOLLOWING INFORMATION TO THE ADMINISTRATOR
:
(A) T
HE NAME OF THE BORROWER AND THE LOCATION WHERE THE
BORROWER IS DOING BUSINESS
;
(B) T
HE AMOUNT AND TERMS OF THE L OAN ISSUED TO THE
BORROWER BY THE QUALIFIED APPLICANT
;
(C) T
HE PURPOSES FOR WHICH THE BORROWER WILL USE THE LOAN ;
(D) A
N AFFIDAVIT REGARDING HOW THE TAX CREDIT ALLOWED
PURSUANT TO THIS SECTION INDUCED THE QUALIFIED APPLICANT TO MAKE
THE LOAN TO THE BORROWER OR IMPROVE THE TERMS OF THE LOAN BEYOND
WHAT NORMAL MARKET CONDITIONS WOULD PROVIDE
;
(E) C
ERTIFICATION FROM THE BORROWER THAT THE BORROWER WILL
PRIMARILY USE THE PROCEEDS OF THE LOAN FROM THE QUALIFIED
APPLICANT TO CONTINUE OR EXPAND THE BORROWER
'S QUANTUM BUSINESS
OPERATIONS IN
COLORADO;
(F) A
N AFFIDAVIT FROM THE BORROWER CONFIRMING THAT THE
BORROWER WILL ADHERE TO EXISTING LABOR PROTECTION LAWS
; AND
(G) ANY OTHER INFORMATION THAT THE ADMINISTRATOR DEEMS
NECESSARY
.
(II) T
HE ADMINISTRATOR SHALL REVIEW THE INFORMATION
SUBMITTED PURSUANT TO SUBSECTION
(5)(c)(I) OF THIS SECTION AND
DETERMINE WHETHER THE LOAN IS AN ELIGIBLE LOAN
. IF THE
ADMINISTRATOR DETERMINES THAT THE LOAN THAT IS THE BASIS OF THE
APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION
(5) IS AN ELIGIBLE
LOAN
, THE ADMINISTRATOR SHALL DETERMINE THE AM OUNT OF THE
REGISTRATION AND ISSUANCE FEE DESCRIBED IN SUBSECTION
(6)(a) OF THIS
SECTION AS UP TO EIGHT PERCENT OF THE AMOUNT THAT WILL BE SPECIFIED
ON THE TAX CREDIT CERTIFICATE AS DESCRIBED IN SUBSECTION
(7)(d)(I) OF
THIS SECTION
, AND SHALL COLLECT THE FEE FROM THE QUALIFIED APPLICANT
OR THE BORROWER TO WHICH A QUALIFIED APPLICANT MADE AN ELIGIBLE
PAGE 24-HOUSE BILL 24-1325 LOAN. ONCE THE REGISTRATION AND ISSUANCE FEE IS COLLECTED , THE
ADMINISTRATOR SHALL REGISTER THE LOAN
, KEEP RECORDS OF THE LOAN
PURSUANT TO SUBSECTION
(8)(a) OF THIS SECTION, AND MAY ISSUE THE TAX
CREDIT CERTIFICATE AS SPECIFIED IN SUBSECTION
(7) OF THIS SECTION. IF
THE ADMINISTRATOR DETERMINES THAT THE L OAN THAT IS THE BASIS OF THE
APPLICATION SUBMITTED PURSUANT TO THIS SUBSECTION
(5) IS NOT AN
ELIGIBLE LOAN
, THE ADMINISTRATOR SHALL NOTIFY THE QUALIFIED
APPLICANT AND SHALL NOT REGISTER THE LOAN
.
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND
PROCEDURES THAT SPECIFY ADDITIONAL REQUIREMENTS FOR LOANS TO BE
DESIGNATED AS ELIGIBLE LOANS AND FOR LOANS TO BE REGISTERED
PURSUANT TO THIS SUBSECTION
(5)(c).
(d) T
HE ADMINISTRATOR SHALL MAKE THE DETERMINATIONS
SPECIFIED IN SUBSECTIONS
(5)(b) AND (5)(c) OF THIS SECTION WITHIN
NINETY DAYS OF THE DATE THE ADMINISTRATOR RECEIVES THE COMPLETE
APPLICATION AND REQUEST FOR LOAN REGISTRATION
.
(e) T
HE ADMINISTRATOR MAY DEVELOP A PROCESS THAT ALLOWS A
POTENTIAL APPLICANT FOR A TAX CREDIT PURSUANT TO THIS SECTION TO
PROVIDE INFORMATION TO THE ADMINISTRATOR REGARDING A LOAN THAT
IT PLANS TO MAKE TO A BORROWER AND TO REQUEST THAT THE
ADMINISTRATOR ADVISE THE POTENTIAL APPLICANT REGARDING WHETHER
THE LOAN
, IF MADE, IS AN ELIGIBLE LOAN THAT CAN BE REGISTERED
PURSUANT TO SUBSECTION
(5)(c) OF THIS SECTION. ANY POTENTIAL
APPLICANT THAT REQUESTS ADVICE FROM THE ADMINISTRATOR PURSUANT
TO THIS SUBSECTION
(5)(e) AND THEN MAKES A LOAN IS REQUIRED TO
SUBMIT AN APPLICATION AND REQUEST THAT THE LOAN BE REGISTERED
PURSUANT TO THIS SUBSECTION
(5) BEFORE THE ADMINISTRATOR ISSUES A
TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION
(7) OF THIS SECTION.
(6) Registration and issuance fee. (a) T
HE ADMINISTRATOR SHALL
IMPOSE ON AND COLLECT FROM A QUALIFIED APPLICANT OR THE BORROWER
TO WHICH A QUALIFIED APPLICANT MADE AN ELIGIBLE LOAN A REASONABLE
REGISTRATION AND ISSUANCE FEE PURSUANT TO SUBSECTION
(5)(c)(II) OF
THIS SECTION
.
(b) T
HE ADMINISTRATOR SHALL TRANSFER ANY FEE REVENUE
COLLECTED OR PAID TO THE OFFICE PURSUANT TO THIS SUBSECTION
(6) TO
PAGE 25-HOUSE BILL 24-1325 THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND CREATED IN
SUBSECTION
(13) OF THIS SECTION.
(7) Tax credit certificate - loan registration - pooled loan loss
reserve. (a) T
O RECEIVE A TAX CREDIT CERTIFICATE PURSUANT TO THIS
SUBSECTION
(7), A QUALIFIED APPLICANT MUST FIRST APPLY TO THE
ADMINISTRATOR FOR THE ISSUANCE OF A TAX CREDIT CERTIFICATE AND
REGISTER THE LOAN FOR WHICH THE TAX CREDIT APPLICATION WAS
SUBMITTED PURSUANT TO SUBSECTION
(5) OF THIS SECTION.
(b) (I) O
N THE BASIS OF ANY LOAN THAT IS REGISTERED PURSUANT
TO SUBSECTION
(5)(c) OF THIS SECTION, THE ADMINISTRATOR MAY
DETERMINE THAT A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT
CERTIFICATE IN ACCORDANCE WITH THE PROVISIONS OF THIS SECTION
. THE
ADMINISTRATOR SHALL ISSUE THE TAX CREDIT CERTIFICATE SUBJECT TO THE
LIMITATIONS SET FORTH IN THIS SUBSECTION
(7) AND IN ACCORDANCE WITH
THE POLICIES AND PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION
(12) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT ISSUE TAX CREDIT
CERTIFICATES AFTER
SEPTEMBER 30, 2036.
(II) T
HE ADMINISTRATOR MAY , BEFORE ISSUING A TAX CREDIT
CERTIFICATE PURSUANT TO THIS SUBSECTION
(7), ESTABLISH ADDITIONAL
POLICIES OR PROCEDURES FOR A QUALIFIED APPLICANT TO BE ELIGIBLE FOR
THE ISSUANCE OF A TAX CREDIT CERTIFICATE
.
(c) I
F THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE TO A
QUALIFIED APPLICANT
, THE ADMINISTRATOR SHALL NOTIFY THE QUALIFIED
APPLICANT IN WRITING OF THE CERTIFICATE AND THE AMOUNT OF THE
CERTIFICATE
. THE ISSUANCE OF A TAX CREDIT CERTIFICATE BY THE
ADMINISTRATOR FOR A QUALIFIED APPLICANT DOES NOT ENTITLE THE
QUALIFIED APPLICANT TO CLAIM THE CREDIT UNTIL THE QUALIFIED
APPLICANT HAS BEEN ISSUED A REGISTERED LOAN LOSS CERTIFICATE
PURSUANT TO SUBSECTION
(8) OF THIS SECTION.
(d) (I) S
UBJECT TO THE LIMITATIONS IN THIS SUBSECTION (7)(d), IF
APPROVED
, THE ADMINISTRATOR MAY ISSUE A TAX CREDIT CERTIFICATE TO
A QUALIFIED APPLICANT FOR ONE OR MORE ELIGIBLE LOANS IN AN AMOUNT
UP TO FIFTEEN CENTS FOR EVERY DOLLAR OF AN ELIGIBLE LOAN THAT THE
QUALIFIED APPLICANT HAS MADE OR WILL MAKE
.
PAGE 26-HOUSE BILL 24-1325 (II) THE AGGREGATE AM OUNT OF ALL TAX CREDIT CERTIFICATES
THAT THE ADMINISTRATOR MAY ISSUE PURSUANT TO THIS SECTION MUST
NOT EXCEED THIRTY MILLION DOLLARS
.
(III) T
HE ADMINISTRATOR MAY ESTABLISH POLICIES AND
PROCEDURES TO SET THE AMOUNT OF THE TAX CREDIT CERTIFICATE ISSUED
ON THE BASIS OF A REGISTERED LOAN AT OR BELOW FIFTEEN CENTS FOR
EVERY DOLLAR OF THE REGISTERED LOAN OR CHANGE THE AMOUNT OF THE
CREDIT ALLOWED FROM TIME TO TIME FOR CREDIT CERTIFICATES THAT HAVE
NOT YET BEEN ISSUED
. THE ADMINISTRATOR MAY ALSO CAP THE TOTAL
AMOUNT OF ANY TAX CREDIT CERTIFICATES ISSUED TO A QUALIFIED
APPLICANT PURSUANT TO THIS SUBSECTION
(7), DETERMINE A CAP ON THE
TOTAL AMOUNT OF A TAX CREDIT CERTIFICATE ALLOWED TO A QUALIFIED
APPLICANT FOR A SINGLE ELIGIBLE LOAN TO A SINGLE BORROWER OR IN THE
AGGREGATE FOR MULTIPLE ELIGIBLE LOANS TO ONE OR MORE BORROWERS
,
OR DETERMINE ANY OTHER CAPS DEEMED NECESSARY BY THE
ADMINISTRATOR
. THE ADMINISTRATOR SHALL MAKE THE POLICIES AND
PROCEDURES SPECIFIED IN THIS SUBSECTION
(7)(d)(III) BASED ON MARKET
CONDITIONS AND OTHER FACTORS DETERMINED TO BE RELEVANT BY THE
ADMINISTRATOR
. IF THE OFFICE IS NOT THE ADMINISTRATOR , THE OFFICE
SHALL APPROVE THE ADMINISTRATOR
'S FINAL DECISIONS ON POLICIES AND
PROCEDURES
.
(e) T
HE ADMINISTRATOR SHALL DISTRIBUTE THE TAX CREDIT
CERTIFICATES IN THE MANNER THAT THE ADMINISTRATOR DETERMINES
PURSUANT TO SUBSECTION
(3)(c) OF THIS SECTION.
(f) E
ACH QUALIFIED APPLICANT THAT IS ISSUED MORE THAN ONE TAX
CREDIT CERTIFICATE PURSUANT TO THIS SUBSECTION
(7) SHALL HOLD THE
CREDIT CERTIFICATES ISSUED TO THE QUALIFIED APPLICANT IN A POOLED
LOAN LOSS RESERVE OF ALL TAX CREDIT CERTIFICATES ISSUED TO THAT
QUALIFIED APPLICANT
. A QUALIFIED APPLICANT MAY USE ALL OR ANY
PORTION OF THE CREDIT CERTIFICATES ISSUED TO THAT QUALIFIED
APPLICANT TO OFFSET ANY LOSS INCURRED BY THAT QUALIFIED APPLICANT
IN CONNECTION WITH ONE OR MORE REGISTERED LOANS
, SUBJECT TO THE
PROVISIONS OF SUBSECTION
(8) OF THIS SECTION.
(g) T
HE ADMINISTRATOR MAY ALLOW A QUALIFIED APPLICANT TO
REGISTER AN ELIGIBLE LOAN PURSUANT TO SUBSECTION
(5)(c) OF THIS
SECTION AFTER THE ADMINISTRATOR HAS ISSUED THE TOTAL AMOUNT OF
PAGE 27-HOUSE BILL 24-1325 TAX CREDIT CERTIFICATES ALLOWED PURSUANT TO SUBSECTION (7)(d)(II)
OF THIS SECTION OR THE AMOUNT OF CREDITS ALLOWED PURSUANT TO ANY
OTHER CAP DETERMINED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION
(7)(d)(III) OF THIS SECTION. THE ADMINISTRATOR SHALL NOT ISSUE A CREDIT
CERTIFICATE FOR ANY LOAN REGISTERED PURSUANT TO THIS SUBSECTION
(7)(g), BUT THE QUALIFIED LENDER MAY USE ANY AMOUNT OF TAX CREDIT
CERTIFICATES ALREADY ISSUED TO THE QUALIFIED LENDER AND NOT
ALREADY CLAIMED PURSUANT TO SUBSECTION
(9) OF THIS SECTION TO
OFFSET ANY LOSS INCURRED IN CONNECTION WITH THE REGISTERED LOAN
PURSUANT TO SUBSECTION
(8) OF THIS SECTION.
(8) Status of registered loans - proof of registered loan loss -
issuance of registered loan loss certificate. (a) (I) A
QUALIFIED
APPLICANT THAT WAS ISSUED A TAX CREDIT CERTIFICATE PURSUANT TO
SUBSECTION
(7) OF THIS SECTION SHALL PROVIDE PERIODIC UPDATES TO THE
ADMINISTRATOR
, IN A FORM, MANNER, AND FREQUENCY TO BE DETERMINED
BY THE ADMINISTRATOR
, REGARDING THE STATUS OF THE REGISTERED LOAN
THAT IS THE BASIS OF THE CREDIT CERTIFICATE
. IN ADDITION TO PERIODIC
UPDATES
, THE QUALIFIED APPLICANT SHALL NOTIFY THE ADMINISTRATOR
WHEN ANY REGISTERED LOAN IS PAID OFF
, EXTENDED, RENEWED,
RESTRUCTURED OR REFINANCED , OR HAS BECOME PAST DUE OR
NON
-PERFORMING. A QUALIFIED APPLICANT THAT INCURS A LOSS
ASSOCIATED WITH A REGISTERED LOAN SHALL NOTIFY THE ADMINISTRATOR
AND COMPLY WITH THE REQUIREMENTS OF SUBSECTION
(8)(b) OF THIS
SECTION BEFORE THE QUALIFIED APPLICANT IS ELIGIBLE TO RECEIVE A LOAN
LOSS CERTIFICATE PURSUANT TO SUBSECTION
(8)(d) OF THIS SECTION.
(II) T
HE ADMINISTRATOR SHALL KEEP A RECORD OF THE STATUS OF
ALL REGISTERED LOANS MADE BY EACH QUALIFIED APPLICANT FOR WHICH
THE ADMINISTRATOR ISSUED A CREDIT CERTIFICATE PURSUANT TO
SUBSECTION
(7) OF THIS SECTION.
(b) (I) A
QUALIFIED APPLICANT THAT INCURS A LOSS IN CONNECTION
WITH ONE OR MORE REGISTERED LOANS MAY APPLY TO THE ADMINISTRATOR
FOR ISSUANCE OF A REGISTERED LOAN LOSS CERTIFICATE PURSUANT TO
SUBSECTION
(8)(d) OF THIS SECTION. BEFORE APPLYING FOR A REGISTERED
LOAN LOSS CERTIFICATE
, A QUALIFIED APPLICANT THAT HAS INCURRED A
LOSS ASSOCIATED WITH ONE OR MORE REGISTERED LOANS SHALL CHARGE
OFF ALL OR A PORTION OF THE OUTSTANDING BALANCE OF THE REGISTERED
LOAN IN ACCORDANCE WITH THE QUALIFIED APPLICANT
'S CUSTOMARY
PAGE 28-HOUSE BILL 24-1325 POLICIES AND PROCEDURES AND IN ACCORDANCE WITH THE REQUIREMENTS
OF FEDERAL OR STATE REGULATORY AGENCIES
. THE QUALIFIED APPLICANT
SHALL CEASE TO ASSESS INTEREST ON THE REGISTERED LOAN IN
ACCORDANCE WITH GENERALLY ACCEPTED ACC OUNTING PRINCIPLES AND AS
REQUIRED BY FEDERAL AND STATE REGULATORY AGENCIES AND SHALL TAKE
REASONABLE ACTIONS
, AS DETERMINED BY THE ADMINISTRATOR, TO OBTAIN
PARTIAL PAYMENTS AND RECOVERY
, INCLUDING ACCESSING COLLATERAL
AND LOAN GUARANTORS
.
(II) A
QUALIFIED APPLICANT SHALL SUBMIT TO THE ADMINISTRATOR ,
WITH THE QUALIFIED APPLICANT'S APPLICATION FOR A REGISTERED LOAN
LOSS CERTIFICATE
, EVIDENCE OF THE QUALIFIED APPLICANT'S COMPLIANCE
WITH THE PROVISIONS OF SUBSECTION
(8)(b)(I) OF THIS SECTION AND
EVIDENCE OF THE AMOUNT OF THE LOSS INCURRED IN CONNECTION WITH ONE
OR MORE REGISTERED LOANS
, INCLUDING OUT-OF-POCKET EXPENSES
INCURRED BY THE QUALIFIED APPLICANT IN PURSUING RECOVERY OF THE
REGISTERED LOAN
. THE APPLICANT SHALL ALSO PROVIDE DOCUMENTS TO
THE ADMINISTRATOR DEMONSTRATING THAT THE QUALIFIED APPLICANT
SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE
ADMINISTRATOR PURSUANT TO SUBSECTION
(12) OF THIS SECTION.
(c) (I) W
ITHIN NINETY DAYS AFTER RECEIPT OF THE COMPLETE
APPLICATION FROM THE QUALIFIED APPLICANT SUBMITTED PURSUANT TO
SUBSECTION
(8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL REVIEW
THE QUALIFIED APPLICANT
'S DOCUMENTATION OF THE LOSS INCURRED IN
CONNECTION WITH A REGISTERED LOAN AND DETERMINE WHETHER THE
DOCUMENTATION SATISFIES THE REQUIREMENTS OF SUBSECTION
(8)(b) OF
THIS SECTION
. IF THE ADMINISTRATOR DETERMINES THAT A QUALIFIED
APPLICANT HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF
SUBSECTION
(8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL PROMPTLY
NOTIFY THE QUALIFIED APPLICANT IN WRITING AND SHALL NOT ISSUE A
REGISTERED LOAN LOSS CERTIFICATE TO THE QUALIFIED APPLICANT
.
(II) I
F THE ADMINISTRATOR DETERMINES THAT THE DOCUMENTATION
PROVIDED BY THE QUALIFIED APPLICANT SATISFIES THE REQUIREMENTS OF
SUBSECTION
(8)(b) OF THIS SECTION, THE ADMINISTRATOR SHALL
DETERMINE THE TOTAL AMOUNT OF THE LOSS INCURRED IN CONNECTION
WITH THE REGISTERED LOAN AND CERTIFY THE AMOUNT OF THE REGISTERED
LOAN LOSS
. THE AMOUNT OF THE CERTIFIED LOAN LOSS DETERMINED BY THE
ADMINISTRATOR SHALL BE AN AMOUNT EQUAL TO THE TOTAL OF THE
PAGE 29-HOUSE BILL 24-1325 OUTSTANDING AND UNRECOVERED PRINCIPAL AND ACCRUED INTEREST ON
THE REGISTERED LOAN OR L OANS AND THE AMOUNT OF REASONABLE
OUT
-OF-POCKET EXPENSES INCURRED BY THE QUALIFIED APPLICANT IN
PURSUING RECOVERY UNDER THE REGISTERED LOAN OR LOANS
; EXCEPT
THAT THE AMOUNT OF THE CERTIFIED LOAN LOSS DETERMINED BY THE
ADMINISTRATOR SHALL NOT EXCEED THE ORIGINAL PRINCIPAL AMOUNT OF
THE REGISTERED LOAN AS STATED IN THE DOCUMENTATION PROVIDED WHEN
THE QUALIFIED APPLICANT REGISTERED THE ELIGIBLE LOAN
. THE AMOUNT
OF THE CERTIFIED LOAN LOSS SHALL NOT INCLUDE ANY AMOUNT
ATTRIBUTABLE TO DAMAGES PAID BY THE QUALIFIED APPLICANT AS A
RESULT OF A LEGAL CLAIM AGAINST THE QUALIFIED APPLICANT FOR
NEGLIGENCE
, MISCONDUCT, OR ANY OTHER ALLEGATION OF WRONGDOING
OR ANY AMOUNT OF LATE CHARGES OR UNPAID DEFAULT INTEREST CHARGES
IMPOSED ON THE BORROWER BY THE QUALIFIED APPLICANT
.
(d) T
HE ADMINISTRATOR SHALL ISSUE A REGISTERED LOAN LOSS
CERTIFICATE TO ANY QUALIFIED APPLICANT THAT HAS SATISFIED THE
REQUIREMENTS OF SUBSECTION
(8)(b) OF THIS SECTION IN THE AMOUNT OF
THE CERTIFIED LOAN LOSS CALCULATED PURS UANT TO SUBSECTION
(8)(c) OF
THIS SECTION
; EXCEPT THAT THE ADMINISTRATOR SHALL NOT ISSUE A
REGISTERED LOAN LOSS CERTIFICATE THAT EXCEEDS THE TOTAL AMOUNT OF
UNCLAIMED TAX CREDIT CERTIFICATES ISSUED TO THE QUALIFIED APPLICANT
PURSUANT TO SUBSECTION
(7) OF THIS SECTION. THE ADMINISTRATOR SHALL
NOT ISSUE A REGISTERED LOAN LOSS CERTIFICATE BEFORE
JANUARY 1, 2026,
OR AFTER DECEMBER 31, 2045.
(9) Filing tax credit certificate and registered loan loss certificate
with income tax return. (a) T
O CLAIM THE CREDIT AUTHORIZED BY THIS
SECTION
, A QUALIFIED APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE
ISSUED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION
(7) OF THIS
SECTION AND THE REGISTERED LOAN LOSS CERTIFICATE ISSUED BY THE
ADMINISTRATOR PURSUANT TO SUBSECTION
(8) OF THIS SECTION WITH THE
QUALIFIED APPLICANT
'S STATE INCOME TAX RETURN FOR THE INCOME TAX
YEAR IN WHICH THE REGISTERED LOAN LOSS OCCURS
. IF THE QUALIFIED
APPLICANT IS EXEMPT FROM TAX PURSUANT TO SECTION
39-22-112 (1), THE
QUALIFIED APPLICANT SHALL FILE A RETURN PURSUANT TO SECTION
39-22-601 (7)(b). THE AMOUNT OF THE TAX CREDIT THAT A QUALIFIED
APPLICANT MAY CLAIM PURSUANT TO THIS SECTION IS THE AMOUNT STATED
ON THE REGISTERED LOAN LOSS CERTIFICATE
.
PAGE 30-HOUSE BILL 24-1325 (b) A QUALIFIED APPLICANT MAY NOT CLAIM A CREDIT PURSUANT TO
THIS SECTION FOR ANY INCOME TAX YEAR COMMENCING BEFORE
JANUARY
1, 2026, OR AFTER DECEMBER 31, 2045. ANY TAX CREDIT CERTIFICATES AND
REGISTERED LOAN LOSS CERTIFICATES THAT THE ADMINISTRATOR ISSUED
,
BUT FOR WHICH A TAX CREDIT HAS NOT BEEN CLAIMED PURSUANT TO
SUBSECTION
(9)(a) OF THIS SECTION BEFORE THE TAX YEAR COMMENCING ON
JANUARY 1, 2046, EXPIRE AND NO LONGER HAVE VALUE .
(c) A
QUALIFIED APPLICANT MAY CLAIM AN INCOME TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION MORE THAN ONCE
, SO LONG AS THE
QUALIFIED APPLICANT HAS REMAINING TAX CREDIT CERTIFICATES THAT IT
HAS NOT YET FILED WITH THE DEPARTMENT PURSUANT TO THIS SUBSECTION
(9), INCURS AN ADDITIONAL LOSS IN CONNECTION WITH A REGISTERED LOAN ,
AND IS ISSUED A REGISTERED LOAN LOSS CERTIFICATE FOR THE ADDITIONAL
LOSS PURSUANT TO SUBSECTION
(8) OF THIS SECTION.
(d) A
REGISTERED LOAN LOSS CERTIFICATE ISSUED TO A
PARTNERSHIP
, A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR
MULTIPLE OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE
PARTNERS
, MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT
IS A PARTNER
, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR
PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS
, MEMBERS,
OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION METHOD .
(10) Refundability. T
HE ENTIRE TAX CREDIT TO BE ISSUED
PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE QUALIFIED APPLICANT
IN THE TAXABLE YEAR IN WHICH THE QUALIFIED APPLICANT INCURS A LOSS
IN CONNECTION WITH A REGISTERED LOAN
. IF THE AMOUNT OF THE CREDIT
ALLOWED PURSUANT TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME
TAXES OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE
INCOME TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED
, OR THE
QUALIFIED APPLICANT IS A PERSON WHO IS EXEMPT FROM TAXATION
PURSUANT TO SECTION
39-22-112 (1), ONE HUNDRED PERCENT OF THE
AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES IN
THE INCOME TAX YEAR IS REFUNDED TO THE QUALIFIED APPLICANT
.
(11) Reporting. (a) N
O LATER THAN NOVEMBER 1, 2027, AND,
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO
LATER THAN
NOVEMBER 1 OF EACH YEAR THEREAFTER THROUGH 2046, THE
ADMINISTRATOR SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL
PAGE 31-HOUSE BILL 24-1325 ASSEMBLY ABOUT THE ACTIVITY IN CONNECTION WITH THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION IN THE PREVIOUS FISCAL YEAR AND
SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC
. IN
CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS SECTION
, THE
REPORT MUST INCLUDE
, BUT NEED NOT BE LIMITED TO:
(I) T
HE NUMBER OF ELIGIBLE LOANS THAT HAVE BEEN REGISTERED
PURSUANT TO SUBSECTION
(7)(a) OF THIS SECTION;
(II) T
HE NUMBER OF REGISTERED LOANS FOR WHICH A QUALIFIED
APPLICANT NOTIFIED THE ADMINISTRATOR OF A LOAN LOSS PURSUANT TO
SUBSECTION
(8)(a) OF THIS SECTION;
(III) A
LIST OF EACH QUANTUM BUSINESS IN THE STATE THAT IS A
BORROWER PURSUANT TO THIS SECTION
; AND
(IV) A SUMMARY OF THE BORROWER 'S USE OR USES OF EACH
REGISTERED LOAN AND THE IMPACT THAT THE LOANS HAVE HAD ON THE
DEVELOPMENT OF QUANTUM BUSINESSES IN THIS STATE
.
(b) T
HE ADMINISTRATOR SHALL, IN A SUFFICIENTLY TIMELY MANNER
TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME
TAX CREDIT ALLOWED IN THIS SECTION
, PROVIDE THE DEPARTMENT WITH AN
ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE OFFICE
ISSUES A TAX CREDIT CERTIFICATE AND A REGISTERED LOAN LOSS
CERTIFICATE FOR THE PRECEDING TAX YEAR THAT INCLUDES THE FOLLOWING
INFORMATION
:
(I) T
HE QUALIFIED APPLICANT'S NAME;
(II) T
HE AMOUNT OF THE CREDIT AS STATED IN THE REGISTERED
LOAN LOSS CERTIFICATE
; AND
(III) THE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR THE
QUALIFIED APPLICANT
'S COLORADO ACCOUNT NUMBER AND FEDERAL
EMPLOYER IDENTIFICATION NUMBER
.
(12) Policies and procedures. (a) T
HE ADMINISTRATOR MAY
CREATE AND MODIFY POLICIES
, PROCEDURES, AND GUIDELINES AND SPECIFY
ADDITIONAL REQUIREMENTS AS NECESSARY TO FURTHER IMPLEMENT THE
PAGE 32-HOUSE BILL 24-1325 TAX CREDITS TO BE CLAIMED FOR MAKING ELIGIBLE LOANS PURSUANT TO
THIS SECTION AND SHALL SOLICIT ADVICE FROM THE DEPARTMENT AND FROM
QUANTUM INDUSTRY PARTICIPANTS IN CREATING AND MODIFYING SUCH
POLICIES
, PROCEDURES, AND GUIDELINES.
(b) T
HE ADMINISTRATOR SHALL DEVELOP STANDARDS TO :
(I) M
AKE THE DETERMINATION OF WHETHER A LOAN IS AN ELIGIBLE
LOAN PURSUANT TO SUBSECTION
(5)(c) OF THIS SECTION;
(II) D
ETERMINE WHETHER AN ELIGIBLE LOAN MAY BE REGISTERED
WITH THE ADMINISTRATOR AND WHETHER THE ADMINISTRATOR MAY ISSUE
A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION
(7) OF THIS SECTION;
AND
(III) DETERMINE THE AMOUNT OF A CERTIFIED LOAN LOSS PURS UANT
TO SUBSECTION
(8)(c)(II) OF THIS SECTION.
(c) T
HE ADMINISTRATOR MAY CLARIFY THE DEFINITION OF QUANTUM
COMPANY WHEN NEEDED BASED ON INPUT FROM QUANTUM INDUSTRY
COMPANIES
, RESEARCHERS, TRADE ASSOCIATIONS, AND OTHER SECTOR
PARTICIPANTS
. IN ADDITION, THE ADMINISTRATOR MAY WAIVE THE ANNUAL
INCOME REQUIREMENT FOR A QUANTUM COMPANY TO BE A BORROWER IF
THE ADMINISTRATOR DETERMINES THAT WAIVING THAT REQUIREMENT IS IN
THE BEST INTEREST OF THIS STATE
.
(13) Quantum business loan loss reserve cash fund - creation.
(a) T
HE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND IS CREATED
IN THE STATE TREASURY
. THE FUND CONSISTS OF MONEY CREDITED TO THE
FUND PURSUANT TO SUBSECTION
(6)(b) OF THIS SECTION AND ANY OTHER
MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO
THE FUND
.
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE QUANTUM
BUSINESS LOAN LOSS RESERVE CASH FUND TO THE FUND
.
(c) M
ONEY IN THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH
FUND IS CONTINUOUSLY APPROPRIATED TO THE OFFICE FOR THE
ADMINISTRATION OF THE QUANTUM BUSINESS LOAN LOSS RESERVE TAX
PAGE 33-HOUSE BILL 24-1325 CREDIT CREATED IN THIS SECTION.
(d) T
HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND
UNENCUMBERED MONEY IN THE FUND ON
JANUARY 1, 2051, TO THE GENERAL
FUND
.
(14) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,
2050.
SECTION 3. In Colorado Revised Statutes, 24-75-402, amend
(5)(ccc) and (5)(ddd); and add (5)(iii) as follows:
24-75-402. Cash funds - limit on uncommitted reserves -
reduction in the amount of fees - exclusions - definitions.
(5) Notwithstanding any provision of this section to the contrary, the
following cash funds are excluded from the limitations specified in this
section:
(ccc) The wildfire resiliency code board cash fund created in section
24-33.5-1236 (8); and
(ddd) The closed landfill remediation grant program fund created in
section 30-20-124 (8);
AND
(iii) THE QUANTUM BUSINESS LOAN LOSS RESERVE CASH FUND
CREATED IN SECTION
39-22-568 (13).
SECTION 4. Appropriation. For the 2024-25 state fiscal year,
$90,255 is appropriated to the office of the governor for use by economic
development programs. This appropriation is from the general fund and is
based on an assumption that the office will require an additional 0.6 FTE.
To implement this act, the office may use this appropriation for economic
development commission - general economic incentives and marketing.
SECTION 5. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 34-HOUSE BILL 24-1325 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 35-HOUSE BILL 24-1325