Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0727.03 Jed Franklin x5484
HOUSE BILL 24-1365
House Committees Senate Committees
Business Affairs & Labor
A BILL FOR AN ACT
C
ONCERNING REGIONAL TALENT DEVELOPMENT INITIATIVES , AND, IN101
CONNECTION THEREWITH , CREATING THE REGIONAL TALENT102
SUMMIT GRANT PROGRAM AND AN INCOME TAX CREDIT FOR103
FACILITY IMPROVEMENT AND EQ UIPMENT ACQUISITION COSTS104
ASSOCIATED WITH TRAINING PROGRAMS DESIGNED TO105
ALLEVIATE WORKFORCE SHORTAGES .106
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
.)
On July 1, 2024, the bill requires a one-time $3.8 million transfer
HOUSE SPONSORSHIP
Lukens and Soper,
SENATE SPONSORSHIP
Bridges and Will,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. from the general fund to the regional talent development initiative grant
program fund to address workforce shortages in infrastructure and
building trades. Of this amount, not more than 7% may be used for the
administrative costs incurred to administer the regional talent
development initiative grant program.
The regional talent summit grant program (grant program) is
created and is to be administered by the governor's office of economic
development and international trade (office). The grant program, through
a selection committee, will award grants to and contract with a program
facilitator to develop regional summits across the state. The program
facilitator will understand workforce development needs in identified
regions of the state, generate a landscape analysis for each identified
region that includes job projections and an overview of educational
pathways, gather insight from employers about critical workforce and
training needs, create regional goals for addressing talent needs, and
develop comprehensive tactical plans. Beginning January 1, 2026, any
modified or new local workforce development plan must incorporate the
tactical plans. The program facilitator must complete all regional talent
summits on or before July 1, 2025, and submit workforce plans as a result
of the regional talent summits by December 1, 2025.
The grant program, through a selection committee, will also award
grants to one or more regional hosts to secure facilities to host regional
talent summits, determine community partners to attend the summits, and
gather insight from regional employers about critical workforce and
training needs.
The regional talent summit development initiative grant program
fund (fund) is created in the state treasury. On July 1, 2024, the state
treasurer shall transfer $200,000 from the general fund to the fund. The
money in the fund is continuously appropriated to the office.
The bill establishes a state income tax credit (tax credit) for the
costs of facility improvement and equipment acquisition associated with
training programs designed to alleviate workforce shortages beginning
January 1, 2026. A qualified taxpayer in a qualified industry may earn a
tax credit equal to up to 50% of the costs incurred by the qualified
taxpayer to improve its facilities and acquire equipment. The tax credit is
refundable and may not be carried forward.
To claim the tax credit, a qualified taxpayer must first reserve the
tax credit by applying to be in the evaluation pool established by the
office. A selection committee will consider the merits of each application
to determine which taxpayers are qualified to reserve the tax credit. If a
taxpayer is qualified and approved, the taxpayer is required to incur
facility improvements and equipment acquisition costs to claim the tax
credit. If the applicant submits evidence that the costs were incurred
during the income tax year for which the applicant applied, and those
costs are certified by a certified public accountant, the applicant may be
HB24-1365
-2- awarded a tax credit. The aggregate amount of tax credits reserved in one
calendar year cannot exceed $15 million.
The executive director of the department of revenue may require
a person or organization not subject to tax or a person or organization
exempt from taxes to make and file a return containing information
prescribed by the executive director to claim the tax credit.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative Declaration. (1) The general assembly2
hereby finds and declares that:3
(a) House Bill 22-1350, enacted in 2022, established the regional4
talent development initiative act to invest in regional partnerships that5
encourage workforce development and respond to regional talent needs.6
The grant program, opportunity now, granted twenty-seven million7
dollars to forty-six grantees and created over two hundred thirty industry8
and educational partnerships with the first round of funding. The second9
and third rounds of investment demonstrate Colorado's ongoing10
commitment to innovation, regional planning, economic development,11
and collaboration.12
(b) However, Colorado continues to experience workforce13
shortages due to the mismatch of jobs available and the skilled talent14
needed to fill them. This challenge is heightened by recent federal15
investment in programs like the federal "Infrastructure Investment and16
Jobs Act", Pub.L. 117-58, the federal "Inflation Reduction Act of 2022",17
Pub.L. 117-169, and the federal "CHIPS and Science Act of 2022",18
Pub.L. 117-167, which create additional demands for skilled talent.19
(c) Data shows that Colorado currently needs thirty-three thousand20
five hundred infrastructure and construction workers, and is projected to21
need an additional fifty thousand construction workers by the end of the22
HB24-1365-3- decade, including an additional twenty thousand clean energy1
construction jobs. Colorado is projected to need six thousand ninety-eight2
construction laborers alone to respond to "Infrastructure Investment and3
Jobs Act" project needs.4
(d) More skilled talent in infrastructure, advanced manufacturing,5
and clean energy is needed for Colorado to take full advantage of federal6
investments and achieve Colorado's ambitious housing, climate,7
broadband, and infrastructure goals. By investing an additional round of8
general fund funding into the opportunity now program, with a focus on9
infrastructure and building trades, Colorado makes an important10
investment in the workforce needed to build more housing now.11
(e) Expanding the opportunity now program with a refundable tax12
credit expands the scope of this work for years to come. This refundable13
tax credit will support qualified applicants in increasing their training14
capacity and capabilities so that Colorado has the workforce needed to15
respond to federal investments as they break ground and achieve16
statewide priorities.17
(f) The workforce shortage tax credit is intended to continue the18
opportunity now program by seeding investments that benefit the19
education and training system broadly;20
(g) The regional talent summit grant program is also created to21
affirm Colorado's collaborative, locally-driven, and state-supported22
approach to regional talent planning. These summits will allow for23
industry, business associations, community-based organizations, talent24
development practitioners, local workforce centers, local education25
providers, institutions of higher education, and state agencies to identify26
the workforce needs and resources of their areas. By seeding new27
HB24-1365
-4- partnerships to develop shared workforce and economic development1
goals, these summits will allow Colorado's regions to plan for and2
leverage local and state resources to achieve them.3
(2) Therefore, the regional talent summit grant program and the4
workforce shortage tax credit are important tools for Colorado to address5
the need for talent acquisition and retention.6
SECTION 2. In Colorado Revised Statutes, 24-48.5-405, amend7
(1)(c)(II) and (1)(c)(III); and add (1)(c)(IV) as follows:8
24-48.5-405. Regional talent development initiative grant9
program - creation - administration - eligibility - application review10
- report. (1) (c) In prioritizing grant applications and awarding grants,11
the office, in collaboration with the departments and the selection12
committee, shall strive to meet the following grant program goals:13
(II) To create intentional pathways between kindergarten through14
twelfth grade education, higher education, and employment that allow15
learners and earners to transition more easily into and out of each system16
and that ensure a highly skilled and well-educated workforce; and17
(III) To provide more opportunities for regional learners and18
earners to be more economically mobile and earn a living wage in an19
in-demand, high-skill, high-wage occupation;
AND20
(IV) T
O ADDRESS WORKFORCE SHORTAGES IN INFRASTRUCTURE21
AND BUILDING TRADES BY CREATING MORE OPPORTUNITIES FOR22
WORKFORCE DEVELOPMENT PROJECTS IN THESE TRADES .23
SECTION 3. In Colorado Revised Statutes, 24-48.5-406, add24
(1)(a.5) as follows:25
24-48.5-406. Regional talent development initiative grant26
program fund - repeal. (1) (a.5) (I) O
N JULY 1, 2024, THE STATE27
HB24-1365
-5- TREASURER SHALL TRANSFER THREE MILLION EIGHT HUNDRED THOUSAND1
DOLLARS FROM THE GENERAL FUND TO THE FUND FOR USE FOR ACHIEVING2
THE GOAL SET FORTH IN SECTION 24-48.5-405 (1)(c)(IV).3
(II) O
F THE AMOUNT TRANSFERRED TO THE FUND PURSUANT TO4
SUBSECTION (1)(a.5)(I) OF THIS SECTION, NOT MORE THAN SEVEN PERCENT5
MAY BE USED FOR THE ADMINISTRATIVE COSTS INCURRED BY THE OFFICE6
AND THE SELECTION COMMITTEE IN ADMINISTERING THE REGIONAL7
TALENT DEVELOPMENT INITIATIVE GRANT PROGRAM .8
(III) T
HIS SUBSECTION (1)(a.5) IS REPEALED, EFFECTIVE JULY 1,9
2028.10
SECTION 4. In Colorado Revised Statutes, add part 6 to article11
48.5 of title 24 as follows:12
PART 613
REGIONAL TALENT SUMMIT ACT14
24-48.5-601. Short title. T
HE SHORT TITLE OF THIS PART 6 IS THE15
"R
EGIONAL TALENT SUMMIT ACT".16
24-48.5-602. Legislative declaration. (1) T
HE GENERAL17
ASSEMBLY FINDS AND DECLARES THAT :18
(a) T
HIS PART 6 IS INTENDED TO STRENGTHEN REGIONAL TALENT19
DEVELOPMENT PIPELINES TO MEET WORKFORCE DEMAND ;20
(b) T
HE STATE HAS AN OPPORTUNITY TO FULFILL DEMAND FOR21
WORKERS, WHICH WILL ALLOW THE STATE TO MEET ITS STRATEGIC GOALS22
AND GENERATE HIGH-QUALITY CAREERS; AND23
(c) T
HE GRANT PROGRAM AND RELATED SERVICES DESCRIBED IN24
THIS PART 6 ARE IMPORTANT GOVERNMENT SERVICES .25
(2) T
HEREFORE, THE GENERAL ASSEMBLY CREATES THE REGIONAL26
TALENT SUMMIT GRANT PROGRAM TO ADDRESS THESE NEEDS .27
HB24-1365
-6- 24-48.5-603. Definitions. A S USED IN THIS PART 6, UNLESS THE1
CONTEXT OTHERWISE REQUIRES :2
(1) "A
PPLICANT" MEANS AN ENTITY THAT:3
(a) H
AS THE CAPACITY TO HOST REGIONAL TALENT SUMMITS4
ACROSS THE STATE THAT CONVENE TO UNDERSTAND REGIONAL LABOR5
MARKET NEEDS IN EACH REGION OF THE STATE OR HAS THE CAPACITY TO6
CONVENE, FACILITATE, AND REPORT ON REGI ONAL TALENT SUMMIT7
FINDINGS; AND8
(b) A
PPLIES FOR A GRANT FROM THE GRANT PROGRAM .9
(2) "F
UND" MEANS THE REGIONAL TALENT SUMMIT GRANT10
PROGRAM FUND CREATED IN SECTION 24-48.5-605.11
(3) "G
RANT PROGRAM" MEANS THE REGIONAL TALENT SUMMIT12
GRANT PROGRAM CREATED IN SECTION 24-48.5-604.13
(4) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC14
DEVELOPMENT CREATED IN SECTION 24-48.5-101.15
(5) "P
ROGRAM FACILITATOR" MEANS AN APPLICANT TO WHICH THE16
OFFICE AWARDS A GRANT AND WITH WHICH THE OFFICE CONTRACTS17
PURSUANT TO SECTION 24-48.5-604 (2)(a).18
(6) "R
EGIONAL HOST" MEANS AN APPLICANT THAT HAS BEEN19
GRANTED AN AWARD TO SUPPORT THE COSTS OF HOSTING A REGIONAL20
TALENT SUMMIT.21
(7) "R
EGIONAL TALENT SUMMIT" MEANS A CONVENING OF STATE22
AND REGIONAL STAKEHOLDERS TO DISCUSS THE ECONOMIC AND23
WORKFORCE NEEDS OF THEIR REGION AND THE PROGRAMS AND RESOURCES24
THAT MIGHT ADDRESS THOSE NEEDS .25
(8) "S
ELECTION COMMITTEE" MEANS THE SELECTION COMMITTEE26
APPOINTED PURSUANT TO SECTION 24-48.5-604 (4)(a) TO REVIEW AND27
HB24-1365
-7- MAKE RECOMMENDATIONS ABOUT APPLICANTS , TO SELECT AND AWARD A1
GRANT TO THE REGIONAL HOST, AND TO SELECT AND AWARD A GRANT TO2
THE PROGRAM FACILITATOR.3
24-48.5-604. Regional talent summit grant program - creation4
- administration - eligibility - application review - report.5
(1) (a) T
HERE IS CREATED IN THE OFFICE THE REGIONAL TALENT SUMMIT6
GRANT PROGRAM. THE OFFICE SHALL ADMINISTER THE GRANT PROGRAM .7
T
HE SELECTION COMMITTEE APPOINTED PURSUANT TO SUBSECTION (4) OF8
THIS SECTION IS RESPONSIBLE FOR MAKING GRANT AWARD DECISIONS IN9
ACCORDANCE WITH THIS SECTION .10
(b) (I) T
HE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE11
GRANTS TO THE PROGRAM FACILITATOR TO USE TO CONVENE AND12
FACILITATE REGIONAL SUMMITS AND DEVELOP A REPORT ON THE FINDINGS13
OF THE REGIONAL TALENT SUMMITS AND TO ONE OR MORE REGIONAL14
HOSTS TO USE TO SUPPORT SEVEN REGIONAL TALENT SUMMITS .15
(II) T
HE OFFICE SHALL REQUIRE THE REGIONAL HOSTS AND THE16
PROGRAM FACILITATOR TO COMPLETE ALL REGIONAL TALENT SUMMITS ON17
OR BEFORE JULY 1, 2025.18
(III) T
HE OFFICE SHALL REQUIRE THE PROGRAM FACILITATOR TO19
SUBMIT ITS COMPREHENSIVE TACTICAL PLAN TO THE OFFICE ON OR BEFORE20
D
ECEMBER 1, 2025.21
(c) I
N PRIORITIZING GRANT APPLICATIONS AND AWARDING GRANTS ,22
THE OFFICE, IN COLLABORATION WITH THE SELECTION COMMITTEE , SHALL23
STRIVE TO MEET THE FOLLOWING GRANT PROGRAM GOALS :24
(I) F
OR A GRANT FOR A PROGRAM FACILITATOR :25
(A)
TO UNDERSTAND WORKFORCE DEVELOPMENT NEEDS IN26
REGIONS OF THE STATE;27
HB24-1365
-8- (B) TO GENERATE A LANDSCAPE ANALYSIS FOR EACH IDENTIFIED1
REGION THAT INCLUDES JOB PROJECTIONS AND AN OVERVIEW OF2
EDUCATIONAL PATHWAYS ;3
(C) T
O GATHER INSIGHT FROM EMPLOYERS ABOUT CRITICAL4
WORKFORCE AND TRAINING NEEDS ;5
(D) T
O CREATE REGIONAL GOALS FOR ADDRESSING TALENT NEEDS ;6
(E) T
O DEVELOP COMPREHENSIVE TACTICAL PLANS ; AND7
(F) T
O SUBMIT THE WORKFORCE PLANS GENERATED BY THE8
PROGRAM FACILITATOR AS A RESULT OF THE REGIONAL TALENT SUMMITS9
BY DECEMBER 1, 2025, TO THE OFFICE. THE OFFICE SHALL PROVIDE THE10
WORKFORCE PLANS TO THE STATE WORKFORCE DEVELOPMENT COUNCIL11
FOR INCLUSION FOR PUBLICATION IN THE COLORADO TALENT REPORT12
PREPARED PURSUANT TO SECTION 24-46.3-103 (3).13
(II) F
OR A GRANT FOR A REGIONAL HOST:14
(A) T
O SECURE A FACILITY TO HOST THE REGIONAL SUMMIT ;15
(B) T
O DETERMINE RELEVANT PARTNERS TO ATTEND THE16
REGIONAL SUMMIT; AND17
(C) T
O GATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT18
WORKFORCE TRAINING NEEDS .19
(2) T
HE OFFICE, THROUGH THE SELECTION COMMITTEE , SHALL:20
(a) A
WARD A GRANT TO AND EXECUTE A CONTRACT WITH A21
PROGRAM FACILITATOR . THE OFFICE SHALL REQUIRE THE PROGRAM22
FACILITATOR TO:23
(I) W
ORK WITH THE OFFICE, THE DEPARTMENT OF LABOR AND24
EMPLOYMENT, THE DEPARTMENT OF EDUCATION , LOCAL DATA EXPERTS,25
AND THE DEPARTMENT OF HIGHER EDUCATION TO GENERATE A LANDSCAPE26
ANALYSIS FOR EACH IDENTIFIED REGION THAT INCLUDES JOB PROTECTIONS27
HB24-1365
-9- AND AN OVERVIEW OF EDUCATIONAL PATHWAYS ;1
(II) W
ORK WITH REGIONAL HOSTS TO PLAN REGIONAL TALENT2
SUMMITS;3
(III) F
ACILITATE A SUMMIT FOR REGIONAL ATTENDEES TO4
IDENTIFY REGIONAL ECONOMIC GOALS AND WORKFORCE DEVELOPMENT5
NEEDS;6
(IV) C
REATE ALIGNMENT BETWEEN BUSINESS , EDUCATION,7
WORKFORCE, AND COMMUNITY PARTNERS FOR WORKFORCE8
DEVELOPMENT; AND9
(V) D
EVELOP COMPREHENSIVE TACTICAL PLANS INFORMED BY THE10
RESOURCES AND NEEDS OF EACH REGION THAT SET TWO -YEAR GOALS AND11
FIVE-YEAR GOALS FOR DEVELOPING MORE CAREER PATHWAYS IN12
HIGH-NEED FIELDS IN EACH REGION INCLUDING A LANDSCAPE ANALYSIS13
FOR EACH REGION OF THE STATE THAT IDENTIFIES REGIONAL WORKFORCE14
NEEDS, OPPORTUNITIES, AND CHALLENGES.15
(b) A
WARD A GRANT TO ONE OR MORE REGIONAL HOSTS . THE16
OFFICE SHALL REQUIRE THE REGIONAL HOSTS TO :17
(I) S
ECURE A FACILITY TO HOST EACH REGIONAL SUMMIT ;18
(II) D
ETERMINE RELEVANT BUSINESS , EDUCATION, WORKFORCE,19
AND COMMUNITY PARTNERS TO PARTICIPATE IN EACH REGIONAL SUMMIT ;20
AND21
(III) G
ATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT22
CRITICAL WORKFORCE AND TRAINING NEEDS .23
(c) E
STABLISH A PROCESS FOR AN APPLICANT TO APPLY FOR A24
GRANT TO FUND THE DEVELOPMENT OF REGIONAL TALENT SUMMITS ,25
WHICH APPLICATION PROCESS MUST BE COMPLETED NO LATER THAN26
N
OVEMBER 1, 2024; AND27
HB24-1365
-10- (d) ESTABLISH POLICIES SETTING FORTH THE PARAMETERS AND1
ELIGIBILITY FOR THE GRANT PROGRAM .2
(3) T
O BE ELIGIBLE FOR A GRANT, AN APPLICANT MUST, AT A3
MINIMUM, INCLUDE WITH ITS GRANT APPLICATION:4
(a) A
DETAILED PROPOSAL AND OPERATIONS PLAN THAT MEETS5
THE GOALS SPECIFIED IN SUBSECTION (1)(c) OF THIS SECTION; AND6
(b) I
NFORMATION ABOUT HOW THE PROPOSED REGIONAL TALENT7
SUMMIT WILL ADDRESS THE ECONOMIC DEVELOPMENT GOALS OF EACH8
REGION.9
(4) (a) T
HE OFFICE SHALL APPOINT A SELECTION COMMITTEE10
CONSISTING OF MEMBERS WHO REPRESENT THE OFFICE , THE COLORADO11
WORKFORCE DEVELOPMENT COUNCIL , LOCAL WORKFORCE DEVELOPMENT12
PRACTITIONERS, LOCAL EDUCATION PROVIDERS, INSTITUTIONS OF HIGHER13
EDUCATION, EDUCATION-RELATED COMMUNITY-BASED ORGANIZATIONS,14
AND THE STATEWIDE CHAMBER OF COMMERCE .15
(b) T
HE SELECTION COMMITTEE SHALL REVIEW GRANT16
APPLICATIONS IN ACCORDANCE WITH THE PROCESSES AND CRITERIA17
SPECIFIED IN AND DEVELOPED PURSUANT TO THIS SECTION AND SHALL18
MAKE FINAL DETERMINATIONS AND AWARD GRANTS BASED ON THESE19
PROCESSES AND CRITERIA.20
(c) (I) T
HE SELECTION COMMITTEE SHALL CONSIDER REGIONAL21
DIVERSITY, COMMUNITY ENGAGEMENT , LOCAL PARTNERSHIPS, AND EVENT22
CAPACITY WHEN SELECTING ONE OR MORE REGIONAL HOSTS .23
(II) M
EMBERS OF THE SELECTION COMMITTEE SERVE WITHOUT24
COMPENSATION BUT ARE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND25
NECESSARY EXPENSES INCURRED IN THE DISCHARGE OF THE MEMBERS '26
DUTIES.27
HB24-1365
-11- 24-48.5-605. Regional talent summit grant program fund.1
(1) (a) T
HERE IS CREATED IN THE STATE TREASURY THE REGIONAL TALENT2
SUMMIT GRANT PROGRAM FUND .3
(b) O
N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER TWO4
HUNDRED THOUSAND DOLLARS FROM THE GENERAL FUND TO THE FUND5
FOR GRANTS TO A PROGRAM FACILITATOR AND ONE OR MORE REGIONAL6
HOSTS.7
(c) T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO8
THE OFFICE FOR USE IN ACCORDANCE WITH THIS PART 6.9
(2) T
HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,10
OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF11
THIS PART 6.12
24-48.5-606. Repeal of part. T
HIS PART 6 IS REPEALED, EFFECTIVE13
J
ULY 1, 2029.14
SECTION 5. In Colorado Revised Statutes, 8-83-208, add (1)(d)15
as follows:16
8-83-208. Implementation - local plans. (1) (d) B
EGINNING17
J
ANUARY 1, 2026, ANY MODIFIED OR NEW LOCAL PLAN MUST18
INCORPORATE THE TACTICAL PLANS CREATED PURSUANT TO SECTION19
24-48.5-604 (2)(a)(V).20
SECTION 6. In Colorado Revised Statutes, add 39-22-560 as21
follows:22
39-22-560. Workforce shortage tax credit - tax preference23
performance statement - report - definitions - repeal. (1) Tax24
preference performance statement. I
N ACCORDANCE WITH SECTION25
39-21-304
(1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX26
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT27
HB24-1365
-12- AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL1
ASSEMBLY FINDS AND DECLARES THAT :2
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT3
ALLOWED BY THIS SECTION ARE:4
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;5
AND6
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR7
INDIVIDUALS.8
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT9
ALLOWED BY THIS SECTION IS TO ENCOURAGE WORKFORCE DEVELOPMENT10
IN INDUSTRIES THAT ARE FACING WORKER SHORTAGES BY PROVIDING11
FINANCIAL ASSISTANCE FOR FACILITY IMPROVEMENT AND EQUIPMENT12
ACQUISITION COSTS ASSOCIATED WITH TRAINING PROGRAMS DESIGNED TO13
ALLEVIATE WORKER SHORTAGES .14
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL15
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE16
PURPOSES SPECIFIED IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION17
BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED18
BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.19
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT20
OTHERWISE REQUIRES:21
(a) "A
PPLICANT" MEANS A PERSON SUBJECT TO TAX PURSUANT TO22
THIS ARTICLE 22, AN ENTITY THAT IS EXEMPT FROM TAXATION PURSUANT23
TO SECTION 39-22-112 (1), OR A POLITICAL SUBDIVISION OF THE STATE.24
(b) "A
PPLICATION" MEANS AN APPLICATION IN THE FORM AND25
MANNER APPROVED BY THE OFFICE FOR THE TAX CREDIT ALLOWED IN THIS26
SECTION.27
HB24-1365
-13- (c) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE .1
(d) "F
EDERAL INVESTMENTS " MEANS THE FEDERAL2
"I
NFRASTRUCTURE INVESTMENT AND JOBS ACT", PUB.L. 117-58, THE3
FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, AND4
THE FEDERAL "CHIPS AND SCIENCE ACT OF 2022", PUB.L. 117-167.5
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC6
DEVELOPMENT CREATED IN SECTION 24-48.5-101.7
(f) "P
OTENTIAL QUALIFIED ASSET" MEANS AN ASSET THAT MAY BE8
A QUALIFIED ASSET UPON THE DETERMINATION OF THE OFFICE .9
(g) "Q
UALIFIED APPLICANT" MEANS AN APPLICANT THAT MAKES10
A QUALIFIED INVESTMENT TO TRAIN INDIVIDUALS IN A QUALIFIED11
INDUSTRY AND THAT IS SELECTED PURSUANT TO SUBSECTION (5) OF THIS12
SECTION.13
(h) (I) "Q
UALIFIED ASSET" MEANS:14
(A) L
AND IN THIS STATE;15
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS16
OF BUILDINGS IN THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A17
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE18
INTERNAL REVENUE CODE, INCLUDING PURCHASING OR CONSTRUCTING A19
FACILITY, RENOVATING A FACILITY, MAKING TENANT IMPROVEMENTS , AND20
FUNDING A CAPITAL LEASE WITH CAPITALIZED LABOR , CONSTRUCTION,21
AND INSTALLATION COSTS;22
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE23
EXCLUSIVELY IN THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A24
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE25
INTERNAL REVENUE CODE; AND26
(D) C
OMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN27
HB24-1365
-14- THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A DEDUCTION FOR1
DEPRECIATION UNDER SECTION 167 OF THE INTERNAL REVENUE CODE.2
(II) F
OR PURPOSES OF THIS SUBSECTION (2)(h), IF AN APPLICANT IS3
NOT SUBJECT TO FEDERAL INCOME TAX , THE APPLICANT IS DEEMED TO BE4
ALLOWED A DEDUCTION FOR DEPRECIATION IF SUCH A DEDUCTION WOULD5
HAVE BEEN ALLOWED WERE THE APPLICANT SUBJECT TO FEDERAL INCOME6
TAX.7
(i) "Q
UALIFIED INDUSTRY" MEANS AN INDUSTRY AFFECTED BY8
FEDERAL INVESTMENTS THAT HAS A DEMONSTRATED WORKFORCE9
SHORTAGE, AS DETERMINED BY THE OFFICE AS SPECIFIED IN THE POLICIES10
AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION11
(13)
OF THIS SECTION.12
(j) "Q
UALIFIED INVESTMENT" MEANS THE AMOUNT PAID BY A13
QUALIFIED APPLICANT TO ACQUIRE, CONSTRUCT, RECONSTRUCT, OR ERECT14
A QUALIFIED ASSET TO THE EXTENT THE AMOUNT PAID REFLECTS NEW15
ACTIVITY AND TO THE EXTENT THE AMOUNT IS REQUIRED TO BE16
CAPITALIZED PURSUANT TO THE INTERNAL REVENUE CODE OR THE17
AMOUNT IS ALLOWED TO BE DEDUCTED UNDER SECTION 179 OF THE18
INTERNAL REVENUE CODE.19
(k) "S
ELECTION COMMITTEE" MEANS A SELECTION COMMITTEE20
APPOINTED BY THE OFFICE CONSISTING OF MEMBERS WHO HAVE EXPERTISE21
AND EXPERIENCE AS EMPLOYERS , IN EDUCATION, OR IN OTHER RELEVANT22
AREAS.23
(3) Tax credit allowed. (a) A
QUALIFIED APPLICANT IS ALLOWED24
TO USE A TAX CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO25
SUBSECTION (8) OF THIS SECTION AGAINST THE INCOME TAXES IMPOSED BY26
THIS ARTICLE 22 IN THE INCOME TAX YEAR THAT THE QUALIFIED27
HB24-1365
-15- APPLICANT PLACES A QUALIFIED ASSET IN SERVICE IN THE AMOUNT1
SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY THE OFFICE; EXCEPT2
THAT THE TAX CREDIT CERTIFICATE MAY NOT BE USED IN AN INCOME TAX3
YEAR COMMENCING BEFORE JANUARY 1, 2026, AND MAY NOT BE USED IN4
AN INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2033.5
(b) I
N ORDER TO CLAIM THE TAX CREDIT ALLOWED PURSUANT TO6
THIS SECTION, THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION7
AS SPECIFIED IN SUBSECTION (5) OF THIS SECTION, PLACE THE QUALIFIED8
ASSET INTO SERVICE BEFORE JANUARY 1, 2033, OBTAIN A TAX CREDIT9
CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTION (8) OF THIS10
SECTION, AND, ONCE ISSUED BY THE OFFICE , FILE THE TAX CREDIT11
CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME TAX RETURN AS12
SPECIFIED IN SUBSECTION (9) OF THIS SECTION.13
(c) A
TAX CREDIT ALLOWED PURSUANT TO THIS SECTION IS14
SUBJECT TO RECAPTURE UNDER SUBSECTION (11) OF THIS SECTION IF:15
(I)
THE AMOUNT REFUNDED PURSUANT TO SUBSECTION (10) OF16
THIS SECTION IS USED TO SUPPLANT LOCAL, STATE, OR FEDERAL MONEY17
THAT WOULD OTHERWISE BE APPROPRIATED ; OR18
(II) T
HE QUALIFIED APPLICANT EXPENDS MONEY RECEIVED FROM19
THE STATE TO OFFSET AT LEAST HALF OF A QUALIFIED INVESTMENT , NOT20
INCLUDING THE AMOUNT REFUNDED PURSUANT TO SUBSECTION (10) OF21
THIS SECTION.22
(4) Tax credit administration. E
XCEPT AS OTHERWISE PROVIDED23
IN SUBSECTION (7) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR24
OF THE TAX CREDIT ALLOWED BY THIS SECTION .25
(5) Application submission and review. (a) A
N APPLICANT THAT26
INTENDS TO CLAIM A TAX CREDIT PURSUANT TO THIS SECTION SHALL27
HB24-1365
-16- SUBMIT AN APPLICATION TO THE OFFICE.1
(b) T
HE OFFICE SHALL ACCEPT APPLICATIONS FOR ANNUAL2
APPLICATION PERIODS BY DEADLINES ESTABLISHED IN THE POLICIES AND3
PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION (13)4
OF THIS SECTION; EXCEPT THAT THE OFFICE MAY ONLY RECEIVE5
APPLICATIONS BETWEEN JANUARY 1, 2025, AND DECEMBER 31, 2029.6
(c) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS TO7
DETERMINE WHETHER:8
(I) T
HE APPLICANT IS A QUALIFIED APPLICANT; AND9
(II) T
HE APPLICATION IS COMPLETE AND INCLUDES A DESCRIPTION10
OF A POTENTIAL QUALIFIED ASSET AND THE ESTIMATED QUALIFIED11
INVESTMENT.12
(d) I
F THE OFFICE DETERMINES THAT THE APPLICATION IS13
COMPLETE AND IN COMPLIANCE, THE OFFICE SHALL ADD THE APPLICATION14
TO AN EVALUATION POOL FOR THE APPLICATION PERIOD . WITHIN A15
REASONABLE PERIOD AFTER THE END OF THE APPLICATION PERIOD , THE16
OFFICE SHALL FORWARD THE EVALUATION POOL TO THE SELECTION17
COMMITTEE FOR THE MERIT-BASED REVIEW DESCRIBED IN SUBSECTION (7)18
OF THIS SECTION.19
(e) I
F THE OFFICE DETERMINES THAT THE APPLICATION IS20
INCOMPLETE OR THAT IT DOES NOT COMPLY WITH THE REQUIREMENTS OF21
THIS SECTION OR THE POLICIES AND PROCEDURES DEVELOPED BY THE22
OFFICE PURSUANT TO SUBSECTION (13) OF THIS SECTION, THE OFFICE23
SHALL REMOVE THE APPLICATION FROM THE REVIEW PROCESS AND NOTIFY24
THE APPLICANT IN WRITING OF ITS DECISION . AN APPLICANT MAY25
RESUBMIT A DISAPPROVED APPLICATION TO BE EVALUATED IN A FUTURE26
APPLICATION PERIOD.27
HB24-1365
-17- (6) Application and issuance fees. (a) (I) F OR AN APPLICATION1
FOR WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN2
APPLICANT PURSUANT TO THIS SECTION IS TWO HUNDRED FIFTY THOUSAND3
DOLLARS OR MORE, THE OFFICE MAY IMPOSE A REASONABLE APPLICATION4
FEE ON AN APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS .5
(II)
FOR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX6
CREDIT REQUESTED BY AN APPLICANT PURSUANT TO THIS SECTION IS LESS7
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS , THE OFFICE MAY IMPOSE8
A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT9
EXCEED TWO HUNDRED DOLLARS .10
(b) T
HE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A11
REASONABLE ISSUANCE FEE OF UP TO THREE PERCENT OF THE AMOUNT OF12
THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY13
THE OFFICE AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION, WHICH MUST14
BE PAID BEFORE THE TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED15
APPLICANT.16
(c) A
NY FEE REVENUE COLLECTED PURSUANT TO THIS SUBSECTION17
(6)
MUST BE APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT18
CREATED BY THIS SECTION.19
(7) Merit-based review and tax credit reservation. (a) (I) F
OR20
EACH APPLICATION PERIOD, THE SELECTION COMMITTEE SHALL CONDUCT21
A MERIT-BASED REVIEW OF THE APPLICATIONS THAT HAVE BEEN PLACED22
IN THE EVALUATION POOL PURSUANT TO SUBSECTION (5)(d) OF THIS23
SECTION. THE SELECTION COMMITTEE SHALL COMPLETE ITS REVIEW AND24
AWARD RESERVATIONS WITHIN A REASONABLE PERIOD AFTER THE END OF25
THE APPLICATION PERIOD, NOT TO EXCEED NINETY DAYS.26
(II) E
XCEPT AS PROVIDED IN SUBSECTION (7)(a)(IV) OF THIS27
HB24-1365
-18- SECTION, BASED UPON THE TOTALITY OF THE FACTORS SET FORTH IN1
SUBSECTION (7)(c) OF THIS SECTION, THE SELECTION COMMITTEE MAY2
RESERVE FOR THE BENEFIT OF A QUALIFIED APPLICANT A TAX CREDIT IN AN3
AMOUNT TO BE DETERMINED BY THE SELECTION COMMITTEE NOT TO4
EXCEED FIFTY PERCENT OF THE ESTIMATED QUALIFIED INVESTMENT ;5
EXCEPT THAT THE AGGREGATE AMOUNT OF TAX CREDITS RESERVED FOR6
ALL QUALIFIED APPLICANTS IN AN ANNUAL APPLICATION PERIOD MAY NOT7
EXCEED FIFTEEN MILLION DOLLARS.8
(III) T
HE SELECTION COMMITTEE MAY RESERVE TAX CREDITS TO9
BE USED BY A QUALIFIED APPLICANT FOR INCOME TAX YEARS10
COMMENCING ON OR AFTER JANUARY 1, 2026, BUT BEFORE JANUARY 1,11
2033,
BASED UPON THE ANTICIPATED DATE THE QUALIFIED ASSET IS12
PLACED INTO SERVICE.13
(IV) I
F THE JUNE 2026 REVENUE FORECAST, AND EACH JUNE14
REVENUE FORECAST THROUGH THE JUNE 2030 REVENUE FORECAST AS15
PREPARED BY EITHER LEGISLATIVE COUNCIL STAFF OR THE OFFICE OF16
STATE PLANNING AND BUDGETING , PROJECTS THAT STATE REVENUES, AS17
DEFINED IN SECTION 24-77-201 (4), WILL NOT INCREASE BY AT LEAST FOUR18
PERCENT FOR THE NEXT FISCAL YEAR , THE AMOUNT OF THE TAX CREDIT19
RESERVATION ALLOWED PURSUANT TO THIS SUBSECTION (7) FOR ANY TAX20
YEAR COMMENCING IN THE CALENDAR YEAR THAT BEGINS DURING THE21
NEXT FISCAL YEAR IS REDUCED BY FIFTY PERCENT ; EXCEPT THAT IF THE22
AMOUNT OF A REDUCED TAX CREDIT RESERVATION IS EQUAL TO OR LESS23
THAN FIVE HUNDRED DOLLARS , THEN THE SELECTION COMMITTEE SHALL24
NOT ISSUE A TAX CREDIT RESERVATION.25
(b) (I) I
F THE SELECTION COMMITTEE RESERVES TAX CREDITS FOR26
THE BENEFIT OF A QUALIFIED APPLICANT UNDER SUBSECTION (7)(a) OF27
HB24-1365
-19- THIS SECTION, THE SELECTION COMMITTEE SHALL NOTIFY THE OFFICE OF1
THE RESERVATION AND THE AMOUNT OF TAX CREDITS RESERVED . THE2
OFFICE SHALL NOTIFY THE QUALIFIED APPLICANT OF THE TAX CREDIT3
RESERVATION. THE RESERVATION OF A TAX CREDIT DOES NOT ENTITLE THE4
QUALIFIED APPLICANT TO AN ISSUANCE OF A TAX CREDIT CERTIFICATE5
UNTIL THE QUALIFIED APPLICANT COMPLIES WITH ALL THE REQUIREMENTS6
SPECIFIED IN THIS SECTION, BY THE SELECTION COMMITTEE , OR BY THE7
OFFICE, FOR THE ISSUANCE OF A TAX CREDIT CERTIFICATE PURSUANT TO8
SUBSECTION (8) OF THIS SECTION.9
(II) T
HE OFFICE SHALL NOTIFY ANY QUALIFIED APPLICANT IN10
WRITING FOR WHICH THE SELECTION COMMITTEE RESERVED NO TAX11
CREDIT UNDER SUBSECTION (7)(a) OF THIS SECTION.12
(c) (I) I
N CONDUCTING THE MERIT-BASED REVIEW PURSUANT TO13
SUBSECTION (7)(a) OF THIS SECTION, THE SELECTION COMMITTEE SHALL14
CONSIDER THE FACTORS SET FORTH IN THIS SUBSECTION (7)(c) IN15
ADDITION TO ANY OTHER FACTORS THE SELECTION COMMITTEE MAY16
REQUEST THE OFFICE TO INCLUDE IN ITS POLICIES AND PROCEDURES17
DEVELOPED PURSUANT TO SUBSECTION (13) OF THIS SECTION. THE18
SELECTION COMMITTEE MAY WEIGH THE FACTORS EQUALLY OR19
DIFFERENTLY.20
(II) T
HE SELECTION COMMITTEE SHALL CONSIDER :21
(A) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED22
INVESTMENT WILL INFLUENCE COMPETITIVENESS IN A QUALIFIED23
INDUSTRY;24
(B) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED25
INVESTMENT WILL RESULT IN INCREASED JOB PLACEMENTS IN QUALIFIED26
INDUSTRIES OR INCREASED JOB PLACEMENTS WITH A LIVING WAGE IN27
HB24-1365
-20- QUALIFIED INDUSTRIES;1
(C) T
HE TYPE, SCOPE, AND QUALITY OF THE QUALIFIED2
APPLICANT'S QUALIFIED ASSET AND THE RESULTING TRAINING OF3
INDIVIDUALS IN A QUALIFIED INDUSTRY; AND4
(D) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED5
INVESTMENT WILL RESULT IN INCREASED TRAINING AND WORKFORCE6
DEVELOPMENT IN A QUALIFIED INDUSTRY .7
(d) T
HE SELECTION COMMITTEE MAY IMPOSE ADDITIONAL8
REQUIREMENTS ON THE QUALIFIED APPLICANT AS A CONDITION OF9
AWARDING THE TAX CREDIT RESERVATION PURSUANT TO THIS SUBSECTION10
(7).11
(8) Proof of compliance - audit of eligible expenditure12
certification - issuance of tax credit certificate. A
FTER A QUALIFIED13
APPLICANT PLACES A POTENTIAL QUALIFIED ASSET IN SERVICE , THE14
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE POTENTIAL15
QUALIFIED ASSET HAS BEEN PLACED IN SERVICE AND SHALL CERTIFY THE16
QUALIFIED INVESTMENT, AFTER WHICH THE OFFICE SHALL MAKE A FINAL17
DETERMINATION WHETHER THE POTENTIAL QUALIFIED ASSET IS A18
QUALIFIED ASSET. THE QUALIFIED APPLICANT SHALL INCLUDE A REVIEW19
OF THE CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT20
THAT IS NOT AFFILIATED WITH THE QUALIFIED APPLICANT AND THAT21
ALIGNS WITH OFFICE POLICIES FOR CERTIFICATION OF A QUALIFIED22
INVESTMENT. THE QUALIFIED APPLICANT SHALL ALSO CERTIFY AND23
PROVIDE DOCUMENTS DEMONSTRATING THAT THE QUALIFIED APPLICANT24
SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE SELECTION25
COMMITTEE PURSUANT TO SUBSECTION (7) OF THIS SECTION. WITHIN A26
REASONABLE TIME AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE27
HB24-1365
-21- QUALIFIED APPLICANT, THE OFFICE SHALL REVIEW THE QUALIFIED1
APPLICANT'S DOCUMENTATION OF CERTIFIED QUALIFIED INVESTMENT ,2
DETERMINE WHETHER THE DOCUMENTATION SATISFIES THE3
REQUIREMENTS OF THE OFFICE, AND, IF THE OFFICE DETERMINES THAT THE4
DOCUMENTATION SATISFIES THE REQUIREMENTS OF THE OFFICE , THE5
OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE IN THE AMOUNT SPECIFIED6
IN THE TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT7
PURSUANT TO SUBSECTION (7) OF THIS SECTION; EXCEPT THAT A TAX8
CREDIT CERTIFICATE MAY NOT BE ISSUED FOR AN INCOME TAX YEAR9
COMMENCING BEFORE JANUARY 1, 2026, OR FOR AN INCOME TAX YEAR10
COMMENCING ON OR AFTER JANUARY 1, 2033.11
(9) Filing tax credit certificate with income tax return. (a) I
N12
ORDER TO CLAIM THE TAX CREDIT AUTHORIZED BY THIS SECTION , A13
QUALIFIED APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY14
THE OFFICE PURSUANT TO SUBSECTION (8) OF THIS SECTION WITH THE15
QUALIFIED APPLICANT'S STATE INCOME TAX RETURN . IF THE QUALIFIED16
APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR IS EXEMPT FROM17
TAX PURSUANT TO SECTION 39-22-112 (1), THE QUALIFIED APPLICANT18
SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b). THE19
AMOUNT OF THE TAX CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM20
PURSUANT TO THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT21
CERTIFICATE.22
(b) A
TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A23
LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR MULTIPLE24
OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS ,25
MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT IS A26
PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR27
HB24-1365
-22- PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS ,1
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION2
METHOD.3
(10) Refundability. I
F THE AMOUNT OF THE TAX CREDIT ALLOWED4
PURSUANT TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES5
OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE6
INCOME TAX YEAR FOR WHICH THE TAX CREDIT IS BEING CLAIMED , OR THE7
QUALIFIED APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR A8
PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO SECTION9
39-22-112
(1), THE AMOUNT OF THE TAX CREDIT NOT USED AS AN OFFSET10
AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REFUNDED TO THE11
QUALIFIED APPLICANT.12
(11) Compliance monitoring and recapture. (a) E
XCEPT AS13
PROVIDED IN SUBSECTION (11)(b) OF THIS SECTION, IF, AS OF THE LAST14
DAY OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , THE15
EQUIPMENT, BUILDING, STRUCTURE, OR FACILITY THAT WAS DEEMED A16
QUALIFIED ASSET IS NOT BEING USED AS A QUALIFIED ASSET , THE OFFICE17
SHALL NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT18
THE TAX CREDIT ALLOWED IN THIS SECTION IS DISALLOWED . THE19
QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE TAX CREDIT20
THAT WAS ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT 'S21
INCOME TAX OR REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN22
AS A RECAPTURED TAX CREDIT FOR THE TAXABLE YEAR IN WHICH THE TAX23
CREDIT IS DISALLOWED PURSUANT TO THIS SUBSECTION (11).24
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO25
SUBSECTION (11)(a) OF THIS SECTION DOES NOT APPLY:26
(I) I
F A BUILDING, STRUCTURE, OR FACILITY IS NOT A QUALIFIED27
HB24-1365
-23- ASSET AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY1
RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD2
ESTABLISHED BY THE OFFICE; OR3
(II) S
OLELY BY REASON OF THE DISPOSITION OF A BUILDING ,4
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IF IT IS REASONABLY5
EXPECTED THAT THE BUILDING, STRUCTURE, OR FACILITY WILL CONTINUE6
TO BE OPERATED AS A QUALIFIED ASSET FOR THE REMAINDER OF THE7
COMPLIANCE PERIOD.8
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS9
TO MONITOR COMPLIANCE WITH THIS SUBSECTION (11) THAT SHALL10
INCLUDE:11
(A) A
DISPOSITION OF A QUALIFIED ASSET BY THE QUALIFIED12
APPLICANT;13
(B) T
HE NUMBER OF ANNUAL TRAINEES WHO HAVE USED A14
QUALIFIED ASSET;15
(C) T
HE GEOGRAPHIC DISTRIBUTION OF TRAINEES WHO HAVE USED16
A QUALIFIED ASSET;17
(D) D
EMOGRAPHIC INFORMATION ABOUT THE TRAINEES WHO HAVE18
USED A QUALIFIED ASSET;19
(E) T
HE LOCATION AND DISPOSITION OF ASSETS DISPLACED BY A20
QUALIFIED ASSET, IF ANY; AND21
(F) T
O THE EXTENT A QUALIFIED ASSET IS USED TO EXPAND OR22
CREATE A TRAINING FACILITY, AN ASSESSMENT OF TRAINING CAPACITY23
PRIOR TO IMPLEMENTATION OF THE QUALIFIED ASSET .24
(II) I
F A DISPUTE ARISES ABOUT WHETHER A POTENTIAL QUALIFIED25
ASSET IS A QUALIFIED ASSET, THE OFFICE SHALL ADJUDICATE THE DISPUTE26
AND NOTIFY THE DEPARTMENT OF THE RESOLUTION .27
HB24-1365
-24- (III) NOTWITHSTANDING SECTION 39-21-107 (2), IF A QUALIFIED1
ASSET IS DISPOSED OF DURING ANY TAXABLE YEAR DURING THE2
COMPLIANCE PERIOD, AND THEREAFTER THE ASSET IS NOT A QUALIFIED3
ASSET:4
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF5
THE TAX CREDIT TO ITS RETURN AS A RECAPTURED TAX CREDIT FOR THE6
TAXABLE YEAR IN WHICH THE TAX CREDIT IS DISALLOWED PURSUANT TO7
THIS SUBSECTION (11) NOTWITHSTANDING THE DISPOSITION OF THE8
QUALIFIED ASSET;9
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY10
DEFICIENCY WITH RESPECT TO THE DISALLOWED TAX CREDIT MUST NOT11
EXPIRE BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE12
OFFICE IS NOTIFIED, IN SUCH A MANNER AS THE OFFICE DETERMINES, THAT13
THE STRUCTURE IS NOT A QUALIFIED ASSET; AND14
(C) T
HE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE15
EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY16
APPLICABLE INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE17
22.18
(d) A
S USED IN THIS SUBSECTION (11), UNLESS THE CONTEXT19
OTHERWISE REQUIRES, "COMPLIANCE PERIOD" MEANS THE PERIOD OF20
FIFTEEN YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED21
APPLICANT PLACED THE QUALIFIED ASSET IN SERVICE .22
(12) Reporting. (a) N
O LATER THAN DECEMBER 31, 2025, AND,23
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO24
LATER THAN DECEMBER 31 OF EACH YEAR THEREAFTER THROUGH 2033,25
THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL26
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE27
HB24-1365
-25- PUBLIC. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS1
SECTION, THE REPORT MUST INCLUDE:2
(I) T
HE NUMBER OF QUALIFIED ASSETS PLACED IN SERVICE ;3
(II) A
DESCRIPTION OF THE USE OR USES OF EACH QUALIFIED ASSET4
AND A STATEWIDE SUMMARY OF THE NUMBER OF QUALIFIED ASSETS FOR5
EACH USE; AND6
(III) T
HE AMOUNT OF ANY DISALLOWED TAX CREDIT RECAPTURED7
PURSUANT TO SUBSECTION (11) OF THIS SECTION.8
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO9
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME10
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH11
AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE12
OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR13
THAT INCLUDES THE FOLLOWING INFORMATION :14
(I) T
HE QUALIFIED APPLICANT'S NAME;15
(II) T
HE AMOUNT OF THE TAX CREDIT; AND16
(III) T
HE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR17
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL18
EMPLOYER IDENTIFICATION NUMBER .19
(c) T
HE OFFICE, THE OFFICE OF THE STATE AUDITOR, OR THE OFFICE20
OF THE STATE CONTROLLER MAY REVIEW THE QUALIFIED APPLICANT 'S21
FINANCES, EXPENSES, EQUIPMENT, EMPLOYMENT, AND TRAINING22
DOCUMENTATION RELATING TO A QUALIFIED INVESTMENT IN A QUALIFIED23
ASSET.24
(13) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND25
MODIFY POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO26
FURTHER ADMINISTER THE TAX CREDITS ALLOWED PURSUANT TO THIS27
HB24-1365
-26- SECTION AND SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING1
AND MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.2
(b) T
HE OFFICE SHALL DEVELOP STANDARDS FOR DETERMINING3
WHICH INDUSTRIES ARE INCLUDED AS A QUALIFIED INDUSTRY FOR WHICH4
A TAX CREDIT UNDER THIS SECTION IS ALLOWED TO A QUALIFIED5
APPLICANT.6
(c) A
NY STANDARDS DEVELOPED BY THE OFFICE PURS UANT TO7
THIS SUBSECTION (13) MUST BE POSTED ON THE OFFICE'S WEBSITE. THE8
OFFICE MAY ANNUALLY REVIEW AND UPDATE AS NECESSARY STANDARDS9
DEVELOPED PURSUANT TO THIS SUBSECTION (13).10
(d) T
HE OFFICE SHALL DETERMINE THE ANNUAL APPLICATION11
PERIOD.12
(14) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER13
31,
2050.14
SECTION 7. In Colorado Revised Statutes, 39-22-601, amend15
(7)(b) as follows:16
39-22-601. Returns - repeal. (7) (b) The executive director may17
require a person or organization
NOT SUBJECT TO TAX UNDER THIS18
ARTICLE 22 OR A PERSON OR ORGANIZATION exempt from taxes pursuant19
to section 39-22-112 to make and file a return containing such20
information as the executive director may prescribe to claim a credit21
allowed under this article 22 even if the person or organization does not22
have unrelated business income.23
SECTION 8. Act subject to petition - effective date. This act24
takes effect at 12:01 a.m. on the day following the expiration of the25
ninety-day period after final adjournment of the general assembly; except26
that, if a referendum petition is filed pursuant to section 1 (3) of article V27
HB24-1365
-27- of the state constitution against this act or an item, section, or part of this1
act within such period, then the act, item, section, or part will not take2
effect unless approved by the people at the general election to be held in3
November 2024 and, in such case, will take effect on the date of the4
official declaration of the vote thereon by the governor.5
HB24-1365
-28-