Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 24-0727.03 Jed Franklin x5484
HOUSE BILL 24-1365
House Committees Senate Committees
Business Affairs & Labor
Finance
Appropriations
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 AND MAKING AN106
APPROPRIATION.107
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
.)
HOUSE
Amended 2nd Reading
April 25, 2024
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. On July 1, 2024, the bill requires a one-time $3.8 million transfer
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
1365
-2- during the income tax year for which the applicant applied, and those
costs are certified by a certified public accountant, the applicant may be
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
1365-3- need an additional fifty thousand construction workers by the end of the1
decade, including an additional twenty thousand clean energy2
construction jobs. Colorado is projected to need six thousand ninety-eight3
construction laborers alone to respond to "Infrastructure Investment and4
Jobs Act" project needs.5
(d) More skilled talent in infrastructure, advanced manufacturing,6
and clean energy is needed for Colorado to take full advantage of federal7
investments and achieve Colorado's ambitious housing, climate,8
broadband, and infrastructure goals. By investing an additional round of9
general fund funding into the opportunity now program, with a focus on10
infrastructure and building trades, Colorado makes an important11
investment in the workforce needed to build more housing now.12
(e) Expanding the opportunity now program with a refundable tax13
credit expands the scope of this work for years to come. This refundable14
tax credit will support qualified applicants in increasing their training15
capacity and capabilities so that Colorado has the workforce needed to16
respond to federal investments as they break ground and achieve17
statewide priorities.18
(f) The workforce shortage tax credit is intended to continue the19
opportunity now program by seeding investments that benefit the20
education and training system broadly;21
(g) The regional talent summit grant program is also created to22
affirm Colorado's collaborative, locally-driven, and state-supported23
approach to regional talent planning. These summits will allow for24
industry, business associations, community-based organizations, talent25
development practitioners, local workforce centers, local education26
providers, institutions of higher education, and state agencies to identify27
1365
-4- the workforce needs and resources of their areas. By seeding new1
partnerships to develop shared workforce and economic development2
goals, these summits will allow Colorado's regions to plan for and3
leverage local and state resources to achieve them.4
(2) Therefore, the regional talent summit grant program and the5
workforce shortage tax credit are important tools for Colorado to address6
the need for talent acquisition and retention.7
SECTION 2. In Colorado Revised Statutes, 24-48.5-405, amend8
(1)(c)(II) and (1)(c)(III); and add (1)(c)(IV) and (1)(c)(V) as follows:9
24-48.5-405. Regional talent development initiative grant10
program - creation - administration - eligibility - application review11
- report. (1) (c) In prioritizing grant applications and awarding grants,12
the office, in collaboration with the departments and the selection13
committee, shall strive to meet the following grant program goals:14
(II) To create intentional pathways between kindergarten through15
twelfth grade education, higher education, and employment that allow16
learners and earners to transition more easily into and out of each system17
and that ensure a highly skilled and well-educated workforce; and18
(III) To provide more opportunities for regional learners and19
earners to be more economically mobile and earn a living wage in an20
in-demand, high-skill, high-wage occupation; 21
(IV) T
O ADDRESS WORKFORCE SHORTAGES IN INFRASTRUCTURE22
AND BUILDING TRADES BY CREATING MORE OPPORTUNITIES FOR23
WORKFORCE DEVELOPMENT PROJECTS IN THESE
TRADES; AND24
(V) TO ELEVATE EVIDENCE-BASED WORKFORCE TRAINING AND25
RELEVANT PROGRAMS OR SERVICES WHERE PARTICIPANTS FROM26
COMMUNITIES THAT HAVE BEEN HISTORICALLY UNDERREPRESENTED ,27
1365
-5- UNDERSERVED, OR UNDERRESOURCED IN COLORADO ARE ABLE TO EARN1
A LIVING WAGE AND ARE CONNECTED TO EMPLOYMENT OPPORTUNITIES .2
SECTION 3. In Colorado Revised Statutes, 24-48.5-406, add3
(1)(a.5) as follows:4
24-48.5-406. Regional talent development initiative grant5
program fund - repeal. (1) (a.5) (I) O
N JULY 1, 2024, THE STATE6
TREASURER SHALL TRANSFER THREE MILLION EIGHT HUNDRED THOUSAND7
DOLLARS FROM THE GENERAL FUND TO THE FUND FOR USE FOR ACHIEVING8
THE GOAL SET FORTH IN SECTION 24-48.5-405 (1)(c)(IV).9
(II) O
F THE AMOUNT TRANSFERRED TO THE FUND PURSUANT TO10
SUBSECTION (1)(a.5)(I) OF THIS SECTION, NOT MORE THAN SEVEN PERCENT11
MAY BE USED FOR THE ADMINISTRATIVE COSTS INCURRED BY THE OFFICE12
AND THE SELECTION COMMITTEE IN ADMINISTERING THE REGIONAL13
TALENT DEVELOPMENT INITIATIVE GRANT PROGRAM .14
(III) T
HIS SUBSECTION (1)(a.5) IS REPEALED, EFFECTIVE JULY 1,15
2028.16
SECTION 4. In Colorado Revised Statutes, 24-48.5-502, amend17
(1)(b)(V), (4)(a), (4)(b), and (5)(b); and repeal (4)(c) as follows:18
24-48.5-502. Universal high school scholarship program -19
established - administration - cash fund - eligibility. (1) (b) The office20
shall administer the program or may contract with one or more vendors21
to administer the program. The office or vendor shall:22
(V) Audit MONITOR, or contract with a vendor to audit MONITOR,23
service providers to ensure that service providers comply with all24
program rules and requirements. 25
(4) A student is eligible for a scholarship if the student:26
(a) During the 2023-24 academic year, graduated from a Colorado27
1365
-6- high school or was awarded a high school equivalency credential awarded1
by the Colorado department of education;2
(b) IS A DEGREE-SEEKING STUDENT WHO completes the free3
application for federal student aid or the Colorado application for state4
financial aid; EXCEPT THAT THE OFFICE SHALL WAIVE THE REQUIREMENT5
OF COMPLETING THE FREE APPLICATION FOR FEDERAL STUDENT AID OR THE6
COLORADO APPLICATION FOR STATE FI NANCIAL AID IF THE7
DEGREE-SEEKING STUDENT ATTESTS THAT THE STUDENT IS UNABLE TO8
MEET THIS REQUIREMENT; AND9
(c) Did not receive a grant or scholarship pursuant to part 10 of10
article 3.3 of title 23 for the 2024-25 academic year; and11
(5) (b) A service provider shall comply with the program policies12
and procedures and with all reporting requirements described in this13
section. A service provider shall submit to an audit MONITORING by the14
office or vendor conducted pursuant to subsection (1)(b) of this section.15
SECTION 5. In Colorado Revised Statutes, add part 6 to article16
48.5 of title 24 as follows:17
PART 618
REGIONAL TALENT SUMMIT ACT19
24-48.5-601. Short title. T
HE SHORT TITLE OF THIS PART 6 IS THE20
"R
EGIONAL TALENT SUMMIT ACT".21
24-48.5-602. Legislative declaration. (1) T
HE GENERAL22
ASSEMBLY FINDS AND DECLARES THAT :23
(a) T
HIS PART 6 IS INTENDED TO STRENGTHEN REGIONAL TALENT24
DEVELOPMENT PIPELINES TO MEET WORKFORCE DEMAND ;25
(b) T
HE STATE HAS AN OPPORTUNITY TO FULFILL DEMAND FOR26
WORKERS, WHICH WILL ALLOW THE STATE TO MEET ITS STRATEGIC GOALS27
1365
-7- AND GENERATE HIGH-QUALITY CAREERS; AND1
(c) T
HE GRANT PROGRAM AND RELATED SERVICES DESCRIBED IN2
THIS PART 6 ARE IMPORTANT GOVERNMENT SERVICES .3
(2) T
HEREFORE, THE GENERAL ASSEMBLY CREATES THE REGIONAL4
TALENT SUMMIT GRANT PROGRAM TO ADDRESS THESE NEEDS .5
24-48.5-603. Definitions. A
S USED IN THIS PART 6, UNLESS THE6
CONTEXT OTHERWISE REQUIRES :7
(1) "A
PPLICANT" MEANS AN ENTITY THAT:8
(a) H
AS THE CAPACITY TO HOST REGIONAL TALENT SUMMITS9
ACROSS THE STATE THAT CONVENE TO UNDERSTAND REGI ONAL LABOR10
MARKET NEEDS IN EACH REGION OF THE STATE OR HAS THE CAPACITY TO11
CONVENE, FACILITATE, AND REPORT ON REGIONAL TALENT SUMMIT12
FINDINGS; AND13
(b) A
PPLIES FOR A GRANT FROM THE GRANT PROGRAM .14
(2) "F
UND" MEANS THE REGIONAL TALENT SUMMIT GRANT15
PROGRAM FUND CREATED IN SECTION 24-48.5-605.16
(3) "G
RANT PROGRAM" MEANS THE REGIONAL TALENT SUMMIT17
GRANT PROGRAM CREATED IN SECTION 24-48.5-604.18
(4) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC19
DEVELOPMENT CREATED IN SECTION 24-48.5-101.20
(5) "P
ROGRAM FACILITATOR" MEANS AN APPLICANT TO WHICH THE21
OFFICE AWARDS A GRANT AND WITH WHICH THE OFFICE CONTRACTS22
PURSUANT TO SECTION 24-48.5-604 (2)(a).23
(6) "R
EGIONAL HOST" MEANS AN APPLICANT THAT HAS BEEN24
GRANTED AN AWARD TO SUPPORT THE COSTS OF HOSTING A REGIONAL25
TALENT SUMMIT.26
(7) "R
EGIONAL TALENT SUMMIT" MEANS A CONVENING OF STATE27
1365
-8- AND REGIONAL STAKEHOLDERS TO DISCUSS THE ECONOMIC AND1
WORKFORCE NEEDS OF THEIR REGION AND THE PROGRAMS AND RESOURCES2
THAT MIGHT ADDRESS THOSE NEEDS .3
(8) "S
ELECTION COMMITTEE" MEANS THE SELECTION COMMITTEE4
APPOINTED PURSUANT TO SECTION 24-48.5-604 (4)(a) TO REVIEW AND5
MAKE RECOMMENDATIONS ABOUT APPLICANTS , TO SELECT AND AWARD A6
GRANT TO THE REGIONAL HOST, AND TO SELECT AND AWARD A GRANT TO7
THE PROGRAM FACILITATOR.8
24-48.5-604. Regional talent summit grant program - creation9
- administration - eligibility - application review - report.10
(1) (a) T
HERE IS CREATED IN THE OFFICE THE REGIONAL TALENT SUMMIT11
GRANT PROGRAM. THE OFFICE SHALL ADMINISTER THE GRANT PROGRAM .12
T
HE SELECTION COMMITTEE APPOINTED PURSUANT TO SUBSECTION (4) OF13
THIS SECTION IS RESPONSIBLE FOR MAKING GRANT AWARD DECISIONS IN14
ACCORDANCE WITH THIS SECTION .15
(b) (I) T
HE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE16
GRANTS TO THE PROGRAM FACILITATOR TO USE TO CONVENE AND17
FACILITATE REGIONAL SUMMITS AND DEVELOP A REPORT ON THE FINDINGS18
OF THE REGIONAL TALENT SUMMITS AND TO ONE OR MORE REGIONAL19
HOSTS TO USE TO SUPPORT SEVEN REGIONAL TALENT SUMMITS .20
(II) T
HE OFFICE SHALL REQUIRE THE REGIONAL HOSTS AND THE21
PROGRAM FACILITATOR TO COMPLETE ALL REGI ONAL TALENT SUMMITS ON22
OR BEFORE JULY 1, 2025.23
(III) T
HE OFFICE SHALL REQUIRE THE PROGRAM FACILITATOR TO24
SUBMIT ITS COMPREHENSIVE TACTICAL PLAN TO THE OFFICE ON OR BEFORE25
D
ECEMBER 1, 2025.26
(c) I
N PRIORITIZING GRANT APPLICATIONS AND AWARDING GRANTS ,27
1365
-9- THE OFFICE, IN COLLABORATION WITH THE SELECTION COMMITTEE , SHALL1
STRIVE TO MEET THE FOLLOWING GRANT PROGRAM GOALS :2
(I) F
OR A GRANT FOR A PROGRAM FACILITATOR :3
(A)
TO UNDERSTAND WORKFORCE DEVELOPMENT NEEDS IN4
REGIONS OF THE STATE;5
(B) T
O GENERATE A LANDSCAPE ANALYSIS FOR EACH IDENTIFIED6
REGION THAT INCLUDES JOB PROJECTIONS AND AN OVERVIEW OF7
EDUCATIONAL PATHWAYS ;8
(C) T
O GATHER INSIGHT FROM EMPLOYERS ABOUT CRITICAL9
WORKFORCE AND TRAINING NEEDS ;10
(D) T
O CREATE REGIONAL GOALS FOR ADDRESSING TALENT NEEDS ;11
(E) T
O DEVELOP COMPREHENSIVE TACTICAL PLANS ; AND12
(F) T
O SUBMIT THE WORKFORCE PLANS GENERATED BY THE13
PROGRAM FACILITATOR AS A RESULT OF THE REGIONAL TALENT SUMMITS14
BY DECEMBER 1, 2025, TO THE OFFICE. THE OFFICE SHALL PROVIDE THE15
WORKFORCE PLANS TO THE STATE WORKFORCE DEVELOPMENT COUNCIL16
WHICH SHALL PUBLISH THE PLANS IN THE COLORADO TALENT REPORT17
PREPARED PURSUANT TO SECTION 24-46.3-103 (3) AND SHALL18
COORDINATE WITH LOCAL ENTITIES AND ACROSS STATE AGENCIES TO19
SUPPORT REGIONAL GOALS.20
(II) F
OR A GRANT FOR A REGIONAL HOST:21
(A) T
O SECURE A FACILITY TO HOST THE REGIONAL SUMMIT ;22
(B) T
O DETERMINE RELEVANT PARTNERS TO ATTEND THE23
REGIONAL SUMMIT; AND24
(C) T
O GATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT25
WORKFORCE TRAINING NEEDS .26
(2) T
HE OFFICE, THROUGH THE SELECTION COMMITTEE , SHALL:27
1365
-10- (a) AWARD A GRANT TO AND EXECUTE A CONTRACT WITH A1
PROGRAM FACILITATOR . THE OFFICE SHALL REQUIRE THE PROGRAM2
FACILITATOR TO:3
(I) W
ORK WITH THE OFFICE, THE DEPARTMENT OF LABOR AND4
EMPLOYMENT, THE DEPARTMENT OF EDUCATION , LOCAL DATA EXPERTS,5
AND THE DEPARTMENT OF HIGHER EDUCATION TO GENERATE A L ANDSCAPE6
ANALYSIS FOR EACH IDENTIFIED REGION THAT INCLUDES JOB PROTECTIONS7
AND AN OVERVIEW OF EDUCATIONAL PATHWAYS ;8
(II) W
ORK WITH REGIONAL HOSTS TO PLAN REGIONAL TALENT9
SUMMITS;10
(III) F
ACILITATE A SUMMIT FOR REGIONAL ATTENDEES TO11
IDENTIFY REGIONAL ECONOMIC GOALS AND WORKFORCE DEVELOPMENT12
NEEDS;13
(IV) C
REATE ALIGNMENT BETWEEN BUSINESS , EDUCATION,14
WORKFORCE, AND COMMUNITY PARTNERS FOR WORKFORCE15
DEVELOPMENT; AND16
(V) D
EVELOP COMPREHENSIVE TACTICAL PLANS INFORMED BY THE17
RESOURCES AND NEEDS OF EACH REGION THAT SET TWO -YEAR GOALS AND18
FIVE-YEAR GOALS FOR DEVELOPING MORE CAREER PATHWAYS IN19
HIGH-NEED FIELDS IN EACH REGION INCLUDING A LANDSCAPE ANALYSIS20
FOR EACH REGION OF THE STATE THAT IDENTIFIES REGIONAL WORKFORCE21
NEEDS, OPPORTUNITIES, AND CHALLENGES.22
(b) A
WARD A GRANT TO ONE OR MORE REGIONAL HOSTS . THE23
OFFICE SHALL REQUIRE THE REGIONAL HOSTS TO :24
(I) S
ECURE A FACILITY TO HOST EACH REGIONAL SUMMIT ;25
(II) D
ETERMINE RELEVANT BUSINESS , EDUCATION, WORKFORCE,26
AND COMMUNITY PARTNERS TO PARTICIPATE IN EACH REGIONAL SUMMIT ;27
1365
-11- AND1
(III) G
ATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT2
CRITICAL WORKFORCE AND TRAINING NEEDS .3
(c) E
STABLISH A PROCESS FOR AN APPLICANT TO APPLY FOR A4
GRANT TO FUND THE DEVELOPMENT OF REGIONAL TALENT SUMMITS ,5
WHICH APPLICATION PROCESS MUST BE COMPLETED NO LATER THAN6
N
OVEMBER 1, 2024; AND7
(d) E
STABLISH POLICIES SETTING FORTH THE PARAMETERS AND8
ELIGIBILITY FOR THE GRANT PROGRAM .9
(3) T
O BE ELIGIBLE FOR A GRANT, AN APPLICANT MUST, AT A10
MINIMUM, INCLUDE WITH ITS GRANT APPLICATION:11
(a) A
DETAILED PROPOSAL AND OPERATIONS PLAN THAT MEETS12
THE GOALS SPECIFIED IN SUBSECTION (1)(c) OF THIS SECTION; AND13
(b) I
NFORMATION ABOUT HOW THE PROPOSED REGIONAL TALENT14
SUMMIT WILL ADDRESS THE ECONOMIC DEVELOPMENT GOALS OF EACH15
REGION.16
(4) (a) T
HE OFFICE SHALL APPOINT A SELECTION COMMITTEE17
CONSISTING OF MEMBERS WHO REPRESENT THE OFFICE , THE COLORADO18
WORKFORCE DEVELOPMENT COUNCIL , LOCAL WORKFORCE DEVELOPMENT19
PRACTITIONERS, LOCAL EDUCATION PROVIDERS, INSTITUTIONS OF HIGHER20
EDUCATION, EDUCATION-RELATED COMMUNITY-BASED ORGANIZATIONS,21
AND THE STATEWIDE CHAMBER OF COMMERCE .22
(b) T
HE SELECTION COMMITTEE SHALL REVIEW GRANT23
APPLICATIONS IN ACCORDANCE WITH THE PROCESSES AND CRITERIA24
SPECIFIED IN AND DEVELOPED PURSUANT TO THIS SECTION AND SHALL25
MAKE FINAL DETERMINATIONS AND AWARD GRANTS BASED ON THESE26
PROCESSES AND CRITERIA.27
1365
-12- (c) (I) THE SELECTION COMMITTEE SHALL CONSIDER REGIONAL1
DIVERSITY, COMMUNITY ENGAGEMENT , LOCAL PARTNERSHIPS, AND EVENT2
CAPACITY WHEN SELECTING ONE OR MORE REGIONAL HOSTS .3
(II) M
EMBERS OF THE SELECTION COMMITTEE SERVE WITHOUT4
COMPENSATION BUT ARE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND5
NECESSARY EXPENSES INCURRED IN THE DISCHARGE OF THE MEMBERS '6
DUTIES.7
24-48.5-605. Regional talent summit grant program fund.8
(1) (a) T
HERE IS CREATED IN THE STATE TREASURY THE REGIONAL TALENT9
SUMMIT GRANT PROGRAM FUND .10
(b) O
N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER TWO11
HUNDRED THOUSAND DOLLARS FROM THE GENERAL FUND TO THE FUND12
FOR GRANTS TO A PROGRAM FACILITATOR AND ONE OR MORE REGIONAL13
HOSTS.14
(c) T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO15
THE OFFICE FOR USE IN ACCORDANCE WITH THIS PART 6.16
(2) T
HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS,17
OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF18
THIS PART 6.19
24-48.5-606. Repeal of part. T
HIS PART 6 IS REPEALED, EFFECTIVE20
J
ULY 1,
2030.21
SECTION 6. In Colorado Revised Statutes, 8-83-208, add (1)(d)22
as follows:23
8-83-208. Implementation - local plans. (1) (d) B
EGINNING24
J
ANUARY 1, 2026, ANY MODIFIED OR NEW LOCAL PLAN MUST25
INCORPORATE THE TACTICAL PLANS CREATED PURSUANT TO SECTION26
24-48.5-604 (2)(a)(V).27
1365
-13- SECTION 7. In Colorado Revised Statutes, add 39-22-560 as1
follows:2
39-22-560. Workforce shortage tax credit - tax preference3
performance statement - report - definitions - repeal. (1) Tax4
preference performance statement. I
N ACCORDANCE WITH SECTION5
39-21-304
(1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX6
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT7
AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL8
ASSEMBLY FINDS AND DECLARES THAT :9
(a) T
HE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT10
ALLOWED BY THIS SECTION ARE:11
(I) T
O INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ;12
AND13
(II) T
O PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR14
INDIVIDUALS.15
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT16
ALLOWED BY THIS SECTION IS TO ENCOURAGE WORKFORCE DEVELOPMENT17
IN INDUSTRIES THAT ARE FACING WORKER SHORTAGES BY PROVIDING18
FINANCIAL ASSISTANCE FOR FACILITY IMPROVEMENT AND EQUIPMENT19
ACQUISITION COSTS ASSOCIATED WITH TRAINING PROGRAMS DESIGNED TO20
ALLEVIATE WORKER SHORTAGES .21
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL22
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE23
PURPOSES SPECIFIED IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION24
BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED25
BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTION.26
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT27
1365
-14- OTHERWISE REQUIRES:1
(a) "A
PPLICANT" MEANS A PERSON SUBJECT TO TAX PURSUANT TO2
THIS ARTICLE 22, AN ENTITY THAT IS EXEMPT FROM TAXATION PURSUANT3
TO SECTION 39-22-112 (1), OR A POLITICAL SUBDIVISION OF THE STATE.4
(b) "A
PPLICATION" MEANS AN APPLICATION IN THE FORM AND5
MANNER APPROVED BY THE OFFICE FOR THE TAX CREDIT ALLOWED IN THIS6
SECTION.7
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .8
(d) "F
EDERAL INVESTMENTS " MEANS THE FEDERAL9
"I
NFRASTRUCTURE INVESTMENT AND JOBS ACT", PUB.L. 117-58, THE10
FEDERAL "INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, AND11
THE FEDERAL "CHIPS AND SCIENCE ACT OF 2022", PUB.L. 117-167.12
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF EC ONOMIC13
DEVELOPMENT CREATED IN SECTION 24-48.5-101.14
(f) "P
OTENTIAL QUALIFIED ASSET" MEANS AN ASSET THAT MAY BE15
A QUALIFIED ASSET UPON THE DETERMINATION OF THE OFFICE .16
(g) "Q
UALIFIED APPLICANT" MEANS AN APPLICANT THAT MAKES17
A QUALIFIED INVESTMENT TO TRAIN INDIVIDUALS IN A QUALIFIED18
INDUSTRY AND THAT IS SELECTED PURSUANT TO SUBSECTION (5) OF THIS19
SECTION.20
(h) (I) "Q
UALIFIED ASSET" MEANS:21
(A) L
AND IN THIS STATE;22
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS23
OF BUILDINGS IN THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A24
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE25
INTERNAL REVENUE CODE, INCLUDING PURCHASING OR CONSTRUCTING A26
FACILITY, RENOVATING A FACILITY, MAKING TENANT IMPROVEMENTS , AND27
1365
-15- FUNDING A CAPITAL LEASE WITH CAPITALIZED LABOR , CONSTRUCTION,1
AND INSTALLATION COSTS;2
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE3
EXCLUSIVELY IN THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A4
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION 167 OF THE5
INTERNAL REVENUE CODE; AND6
(D) C
OMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN7
THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A DEDUCTION FOR8
DEPRECIATION UNDER SECTION 167 OF THE INTERNAL REVENUE CODE.9
(II) F
OR PURPOSES OF THIS SUBSECTION (2)(h), IF AN APPLICANT IS10
NOT SUBJECT TO FEDERAL INCOME TAX , THE APPLICANT IS DEEMED TO BE11
ALLOWED A DEDUCTION FOR DEPRECIATION IF SUCH A DEDUCTION WOULD12
HAVE BEEN ALLOWED WERE THE APPLICANT SUBJECT TO FEDERAL INCOME13
TAX.14
(i) "Q
UALIFIED INDUSTRY" MEANS AN INDUSTRY AFFECTED BY15
FEDERAL INVESTMENTS THAT HAS A DEMONSTRATED WORKFORCE16
SHORTAGE, AS DETERMINED BY THE OFFICE AS SPECIFIED IN THE POLICIES17
AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION18
(13)
OF THIS SECTION.19
(j) "Q
UALIFIED INVESTMENT" MEANS THE AMOUNT PAID BY A20
QUALIFIED APPLICANT TO ACQUIRE, CONSTRUCT, RECONSTRUCT, OR ERECT21
A QUALIFIED ASSET TO THE EXTENT THE AMOUNT PAID REFLECTS NEW22
ACTIVITY AND TO THE EXTENT THE AMOUNT IS REQUIRED TO BE23
CAPITALIZED PURSUANT TO THE INTERNAL REVENUE CODE OR THE24
AMOUNT IS ALLOWED TO BE DEDUCTED UNDER SECTION 179 OF THE25
INTERNAL REVENUE CODE.26
(k) "S
ELECTION COMMITTEE" MEANS A SELECTION COMMITTEE27
1365
-16- APPOINTED BY THE OFFICE CONSISTING OF MEMBERS WHO HAVE EXPERTISE1
AND EXPERIENCE AS EMPLOYERS , IN EDUCATION, OR IN OTHER RELEVANT2
AREAS.3
(3) Tax credit allowed. (a) EXCEPT AS PROVIDED IN SUBSECTION4
(3)(c) OF THIS SECTION, A QUALIFIED APPLICANT IS ALLOWED TO USE A TAX5
CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO SUBSECTION (8)6
OF THIS SECTION AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE7
22
IN THE INCOME TAX YEAR THAT THE QUALIFIED APPLICANT PLACES A8
QUALIFIED ASSET IN SERVICE IN THE AMOUNT SPECIFIED ON THE TAX9
CREDIT CERTIFICATE ISSUED BY THE OFFICE; EXCEPT THAT THE TAX CREDIT10
CERTIFICATE MAY NOT BE USED IN AN INCOME TAX YEAR COMMENCING11
BEFORE JANUARY 1, 2026, AND MAY NOT BE USED IN AN INCOME TAX YEAR12
COMMENCING ON OR AFTER JANUARY 1, 2033.13
(b) I
N ORDER TO CLAIM THE TAX CREDIT ALLOWED PURSUANT TO14
THIS SECTION, THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION15
AS SPECIFIED IN SUBSECTION (5) OF THIS SECTION, PLACE THE QUALIFIED16
ASSET INTO SERVICE BEFORE JANUARY 1, 2033, OBTAIN A TAX CREDIT17
CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTION (8) OF THIS18
SECTION, AND, ONCE ISSUED BY THE OFFICE , FILE THE TAX CREDIT19
CERTIFICATE WITH THE QUALIFIED APPLICANT 'S INCOME TAX RETURN AS20
SPECIFIED IN SUBSECTION (9) OF THIS SECTION.21
(c) A
TAX CREDIT
IS NOT ALLOWED PURSUANT TO THIS SECTION 22
IF:23
(I)
THE AMOUNT REFUNDED PURSUANT TO SUBSECTION (10) OF24
THIS SECTION IS USED TO SUPPLANT LOCAL, STATE, OR FEDERAL MONEY25
THAT WOULD OTHERWISE BE APPROPRIATED ; OR26
(II) T
HE QUALIFIED APPLICANT EXPENDS MONEY RECEIVED FROM27
1365
-17- THE STATE TO OFFSET AT LEAST HALF OF A QUALIFIED INVESTMENT , NOT1
INCLUDING THE AMOUNT REFUNDED PURSUANT TO SUBSECTION (10) OF2
THIS SECTION.3
(4) Tax credit administration. E
XCEPT AS OTHERWISE PROVIDED4
IN SUBSECTION (7) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR5
OF THE TAX CREDIT ALLOWED BY THIS SECTION .6
(5) Application submission and review. (a) A
N APPLICANT THAT7
INTENDS TO CLAIM A TAX CREDIT PURSUANT TO THIS SECTION SHALL8
SUBMIT AN APPLICATION TO THE OFFICE.9
(b) T
HE OFFICE SHALL ACCEPT APPLICATIONS FOR ANNUAL10
APPLICATION PERIODS BY DEADLINES ESTABLISHED IN THE POLICIES AND11
PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION (13)12
OF THIS SECTION; EXCEPT THAT THE OFFICE MAY ONLY RECEIVE13
APPLICATIONS BETWEEN JANUARY 1, 2025, AND DECEMBER 31, 2029.14
(c) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS TO15
DETERMINE WHETHER:16
(I) T
HE APPLICANT IS A QUALIFIED APPLICANT; AND17
(II) T
HE APPLICATION IS COMPLETE AND INCLUDES A DESCRIPTION18
OF A POTENTIAL QUALIFIED ASSET AND THE ESTIMATED QUALIFIED19
INVESTMENT.20
(d) I
F THE OFFICE DETERMINES THAT THE APPLICATION IS21
COMPLETE AND IN COMPLIANCE, THE OFFICE SHALL ADD THE APPLICATION22
TO AN EVALUATION POOL FOR THE APPLICATION PERIOD . WITHIN A23
REASONABLE PERIOD AFTER THE END OF THE APPLICATION PERIOD , THE24
OFFICE SHALL FORWARD THE EVALUATION POOL TO THE SELECTION25
COMMITTEE FOR THE MERIT-BASED REVIEW DESCRIBED IN SUBSECTION (7)26
OF THIS SECTION.27
1365
-18- (e) IF THE OFFICE DETERMINES THAT THE APPLICATION IS1
INCOMPLETE OR THAT IT DOES NOT COMPLY WITH THE REQUIREMENTS OF2
THIS SECTION OR THE POLICIES AND PROCEDURES DEVELOPED BY THE3
OFFICE PURSUANT TO SUBSECTION (13) OF THIS SECTION, THE OFFICE4
SHALL REMOVE THE APPLICATION FROM THE REVIEW PROCESS AND NOTIFY5
THE APPLICANT IN WRITING OF ITS DECISION . AN APPLICANT MAY6
RESUBMIT A DISAPPROVED APPLICATION TO BE EVALUATED IN A FUTURE7
APPLICATION PERIOD.8
(6) Application and issuance fees. (a) (I) F
OR AN APPLICATION9
FOR WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN10
APPLICANT PURSUANT TO THIS SECTION IS TWO HUNDRED FIFTY THOUSAND11
DOLLARS OR MORE, THE OFFICE MAY IMPOSE A REASONABLE APPLICATION12
FEE ON AN APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS .13
(II)
FOR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX14
CREDIT REQUESTED BY AN APPLICANT PURSUANT TO THIS SECTION IS LESS15
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS , THE OFFICE MAY IMPOSE16
A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT17
EXCEED TWO HUNDRED DOLLARS .18
(b) T
HE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A19
REASONABLE ISSUANCE FEE OF UP TO THREE PERCENT OF THE AMOUNT OF20
THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY21
THE OFFICE AS SPECIFIED IN SUBSECTION (8) OF THIS SECTION, WHICH MUST22
BE PAID BEFORE THE TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED23
APPLICANT.24
(c) A
NY FEE REVENUE COLLECTED PURSUANT TO THIS SUBSECTION25
(6)
MUST BE APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT26
CREATED BY THIS SECTION.27
1365
-19- (7) Merit-based review and tax credit reservation. (a) (I) F OR1
EACH APPLICATION PERIOD, THE SELECTION COMMITTEE SHALL CONDUCT2
A MERIT-BASED REVIEW OF THE APPLICATIONS THAT HAVE BEEN PLACED3
IN THE EVALUATION POOL PURSUANT TO SUBSECTION (5)(d) OF THIS4
SECTION. THE SELECTION COMMITTEE SHALL COMPLETE ITS REVIEW AND5
AWARD RESERVATIONS WITHIN A REASONABLE PERIOD AFTER THE END OF6
THE APPLICATION PERIOD, NOT TO EXCEED NINETY DAYS.7
(II) E
XCEPT AS PROVIDED IN SUBSECTION (7)(a)(IV) OF THIS8
SECTION, BASED UPON THE TOTALITY OF THE FACTORS SET FORTH IN9
SUBSECTION (7)(c) OF THIS SECTION, THE SELECTION COMMITTEE MAY10
RESERVE FOR THE BENEFIT OF A QUALIFIED APPLICANT A TAX CREDIT IN AN11
AMOUNT TO BE DETERMINED BY THE SELECTION COMMITTEE NOT TO12
EXCEED FIFTY PERCENT OF THE ESTIMATED QUALIFIED INVESTMENT ;13
EXCEPT THAT THE AGGREGATE AMOUNT OF TAX CREDITS RESERVED FOR14
ALL QUALIFIED APPLICANTS IN AN ANNUAL APPLICATION PERIOD MAY NOT15
EXCEED FIFTEEN MILLION DOLLARS.16
(III) T
HE SELECTION COMMITTEE MAY RESERVE TAX CREDITS TO17
BE USED BY A QUALIFIED APPLICANT FOR INCOME TAX YEARS18
COMMENCING ON OR AFTER JANUARY 1, 2026, BUT BEFORE JANUARY 1,19
2033,
BASED UPON THE ANTICIPATED DATE THE QUALIFIED ASSET IS20
PLACED INTO SERVICE.21
(IV) I
F THE
SEPTEMBER 2025 REVENUE FORECAST, AND EACH22
SEPTEMBER REVENUE FORECAST THROUGH THE SEPTEMBER 202823
REVENUE FORECAST AS PREPARED BY EITHER LEGISLATIVE COUNCIL STAFF24
OR THE OFFICE OF STATE PLANNING AND BUDGETING , PROJECTS THAT25
STATE REVENUES, AS DEFINED IN SECTION 24-77-201 (4), WILL NOT26
INCREASE BY AT LEAST FOUR PERCENT FOR THE CURRENT FISCAL YEAR,27
1365
-20- THE AGGREGATE AMOUNT OF TAX CREDITS RESERVED FOR ALL QUALIFIED1
APPLICANTS IN THE APPLICATION PERIOD COMMENCING IN THE CALENDAR2
YEAR THAT BEGINS DURING THE CURRENT FISCAL YEAR IS REDUCED BY3
FIFTY PERCENT; EXCEPT THAT IF THE AMOUNT OF A REDUCED TAX CREDIT4
RESERVATION IS EQUAL TO OR LESS THAN FIVE HUNDRED DOLLARS , THEN5
THE SELECTION COMMITTEE SHALL NOT ISSUE A TAX CREDIT RESERVATION .6
(b) (I) I
F THE SELECTION COMMITTEE RESERVES TAX CREDITS FOR7
THE BENEFIT OF A QUALIFIED APPLICANT UNDER SUBSECTION (7)(a) OF8
THIS SECTION, THE SELECTION COMMITTEE SHALL NOTIFY THE OFFICE OF9
THE RESERVATION AND THE AMOUNT OF TAX CREDITS RESERVED . THE10
OFFICE SHALL NOTIFY THE QUALIFIED APPLICANT OF THE TAX CREDIT11
RESERVATION. THE RESERVATION OF A TAX CREDIT DOES NOT ENTITLE THE12
QUALIFIED APPLICANT TO AN ISSUANCE OF A TAX CREDIT CERTIFICATE13
UNTIL THE QUALIFIED APPLICANT COMPLIES WITH ALL THE REQUIREMENTS14
SPECIFIED IN THIS SECTION, BY THE SELECTION COMMITTEE , OR BY THE15
OFFICE, FOR THE ISSUANCE OF A TAX CREDIT CERTIFICATE PURSUANT TO16
SUBSECTION (8) OF THIS SECTION.17
(II) T
HE OFFICE SHALL NOTIFY ANY QUALIFIED APPLICANT IN18
WRITING FOR WHICH THE SELECTION COMMITTEE RESERVED NO TAX19
CREDIT UNDER SUBSECTION (7)(a) OF THIS SECTION.20
(c) (I) I
N CONDUCTING THE MERIT-BASED REVIEW PURSUANT TO21
SUBSECTION (7)(a) OF THIS SECTION, THE SELECTION COMMITTEE SHALL22
CONSIDER THE FACTORS SET FORTH IN THIS SUBSECTION (7)(c) IN23
ADDITION TO ANY OTHER FACTORS THE SELECTION COMMITTEE MAY24
REQUEST THE OFFICE TO INCLUDE IN ITS POLICIES AND PROCEDURES25
DEVELOPED PURSUANT TO SUBSECTION (13) OF THIS SECTION. THE26
SELECTION COMMITTEE MAY WEIGH THE FACTORS EQUALLY OR27
1365
-21- DIFFERENTLY.1
(II) T
HE SELECTION COMMITTEE SHALL CONSIDER :2
(A) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED3
INVESTMENT WILL INFLUENCE COMPETITIVENESS IN A QUALIFIED4
INDUSTRY;5
(B) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED6
INVESTMENT WILL RESULT IN INCREASED JOB PLACEMENTS IN QUALIFIED7
INDUSTRIES OR INCREASED JOB PLACEMENTS WITH A LIVING WAGE IN8
QUALIFIED INDUSTRIES;9
(C) T
HE TYPE, SCOPE, AND QUALITY OF THE QUALIFIED10
APPLICANT'S QUALIFIED ASSET AND THE RESULTING TRAINING OF11
INDIVIDUALS IN A QUALIFIED INDUSTRY; AND12
(D) W
HETHER THE QUALIFIED APPLICANT 'S QUALIFIED13
INVESTMENT WILL RESULT IN INCREASED TRAINING AND WORKFORCE14
DEVELOPMENT IN A QUALIFIED INDUSTRY .15
(d) T
HE SELECTION COMMITTEE MAY IMPOSE ADDITIONAL16
REQUIREMENTS ON THE QUALIFIED APPLICANT AS A CONDITION OF17
AWARDING THE TAX CREDIT RESERVATION PURSUANT TO THIS SUBSECTION18
(7).19
(8) Proof of compliance - audit of eligible expenditure20
certification - issuance of tax credit certificate. A
FTER A QUALIFIED21
APPLICANT PLACES A POTENTIAL QUALIFIED ASSET IN SERVICE , THE22
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE POTENTIAL23
QUALIFIED ASSET HAS BEEN PLACED IN SERVICE AND SHALL CERTIFY THE24
QUALIFIED INVESTMENT, AFTER WHICH THE OFFICE SHALL MAKE A FINAL25
DETERMINATION WHETHER THE POTENTIAL QUALIFIED ASSET IS A26
QUALIFIED ASSET. THE QUALIFIED APPLICANT SHALL INCLUDE A REVIEW27
1365
-22- OF THE CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT1
THAT IS NOT AFFILIATED WITH THE QUALIFIED APPLICANT AND THAT2
ALIGNS WITH OFFICE POLICIES FOR CERTIFICATION OF A QUALIFIED3
INVESTMENT. THE QUALIFIED APPLICANT SHALL ALSO CERTIFY AND4
PROVIDE DOCUMENTS DEMONSTRATING THAT THE QUALIFIED APPLICANT5
SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE SELECTION6
COMMITTEE PURSUANT TO SUBSECTION (7) OF THIS SECTION. WITHIN A7
REASONABLE TIME AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE8
QUALIFIED APPLICANT, THE OFFICE SHALL REVIEW THE QUALIFIED9
APPLICANT'S DOCUMENTATION OF CERTIFIED QUALIFIED INVESTMENT ,10
DETERMINE WHETHER THE DOCUMENTATION SATISFIES THE11
REQUIREMENTS OF THE OFFICE, AND, IF THE OFFICE DETERMINES THAT THE12
DOCUMENTATION SATISFIES THE REQUIREMENTS OF THE OFFICE , THE13
OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE IN THE AMOUNT SPECIFIED14
IN THE TAX CREDIT RESERVATION, NOT TO EXCEED FIFTY PERCENT OF THE15
CERTIFIED QUALIFIED INVESTMENT, ISSUED TO THE QUALIFIED APPLICANT16
PURSUANT TO SUBSECTION (7) OF THIS SECTION; EXCEPT THAT A TAX17
CREDIT CERTIFICATE MAY NOT BE ISSUED FOR AN INCOME TAX YEAR18
COMMENCING BEFORE JANUARY 1, 2026, OR FOR AN INCOME TAX YEAR19
COMMENCING ON OR AFTER JANUARY 1, 2033.20
(9) Filing tax credit certificate with income tax return. (a) I
N21
ORDER TO CLAIM THE TAX CREDIT AUTHORIZED BY THIS SECTION , A22
QUALIFIED APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY23
THE OFFICE PURSUANT TO SUBSECTION (8) OF THIS SECTION WITH THE24
QUALIFIED APPLICANT'S STATE INCOME TAX RETURN . IF THE QUALIFIED25
APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR IS EXEMPT FROM26
TAX PURSUANT TO SECTION 39-22-112 (1), THE QUALIFIED APPLICANT27
1365
-23- SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b). THE1
AMOUNT OF THE TAX CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM2
PURSUANT TO THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT3
CERTIFICATE.4
(b) A
TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A5
LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP , OR MULTIPLE6
OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS ,7
MEMBERS, OR OWNERS, INCLUDING ANY NONPROFIT ENTITY THAT IS A8
PARTNER, MEMBER, OR OWNER, RESPECTIVELY, ON A PRO RATA BASIS OR9
PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS ,10
MEMBERS, OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION11
METHOD.12
(10) Refundability. I
F THE AMOUNT OF THE TAX CREDIT ALLOWED13
PURSUANT TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES14
OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE15
INCOME TAX YEAR FOR WHICH THE TAX CREDIT IS BEING CLAIMED , OR THE16
QUALIFIED APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR A17
PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO SECTION18
39-22-112
(1), THE AMOUNT OF THE TAX CREDIT NOT USED AS AN OFFSET19
AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REFUNDED TO THE20
QUALIFIED APPLICANT.21
(11) Compliance monitoring and recapture. (a) E
XCEPT AS22
PROVIDED IN SUBSECTION (11)(b) OF THIS SECTION, IF, AS OF THE LAST23
DAY OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD , THE24
EQUIPMENT, BUILDING, STRUCTURE, OR FACILITY THAT WAS DEEMED A25
QUALIFIED ASSET IS NOT BEING USED AS A QUALIFIED ASSET , THE OFFICE26
SHALL NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT27
1365
-24- THE TAX CREDIT ALLOWED IN THIS SECTION IS DISALLOWED . THE1
QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE TAX CREDIT2
THAT WAS ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT 'S3
INCOME TAX OR REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN4
AS A RECAPTURED TAX CREDIT FOR THE TAXABLE YEAR IN WHICH THE TAX5
CREDIT IS DISALLOWED PURSUANT TO THIS SUBSECTION (11).6
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO7
SUBSECTION (11)(a) OF THIS SECTION DOES NOT APPLY:8
(I) I
F A BUILDING, STRUCTURE, OR FACILITY IS NOT A QUALIFIED9
ASSET AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY10
RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD11
ESTABLISHED BY THE OFFICE;
12
(II) S
OLELY BY REASON OF THE DISPOSITION OF A BUILDING ,13
STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IF IT IS REASONABLY14
EXPECTED THAT THE BUILDING, STRUCTURE, OR FACILITY WILL CONTINUE15
TO BE OPERATED AS A QUALIFIED ASSET FOR THE REMAINDER OF THE16
COMPLIANCE
PERIOD; OR17
(III) IF A QUALIFYING ASSET IS REPLACED OR UPGRADED IN THE18
NORMAL COURSE OF ITS USE.19
(c) (I) T
HE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS20
TO MONITOR COMPLIANCE WITH THIS SUBSECTION (11) THAT SHALL21
INCLUDE:22
(A) A
DISPOSITION OF A QUALIFIED ASSET BY THE QUALIFIED23
APPLICANT;24
(B) T
HE NUMBER OF ANNUAL TRAINEES WHO HAVE USED A25
QUALIFIED ASSET;26
(C) T
HE GEOGRAPHIC DISTRIBUTION OF TRAINEES WHO HAVE USED27
1365
-25- A QUALIFIED ASSET;1
(D) D
EMOGRAPHIC INFORMATION ABOUT THE TRAINEES WHO HAVE2
USED A QUALIFIED ASSET;3
(E) T
HE LOCATION AND DISPOSITION OF ASSETS DISPLACED BY A4
QUALIFIED ASSET, IF ANY; AND5
(F) T
O THE EXTENT A QUALIFIED ASSET IS USED TO EXPAND OR6
CREATE A TRAINING FACILITY, AN ASSESSMENT OF TRAINING CAPACITY7
PRIOR TO IMPLEMENTATION OF THE QUALIFIED ASSET .8
(II) I
F A DISPUTE ARISES ABOUT WHETHER A POTENTIAL QUALIFIED9
ASSET IS A QUALIFIED ASSET, THE OFFICE SHALL ADJUDICATE THE DISPUTE10
AND NOTIFY THE DEPARTMENT OF THE RESOLUTION .11
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A QUALIFIED12
ASSET IS DISPOSED OF DURING ANY TAXABLE YEAR DURING THE13
COMPLIANCE PERIOD, AND THEREAFTER THE ASSET IS NOT A QUALIFIED14
ASSET:15
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF16
THE TAX CREDIT TO ITS RETURN AS A RECAPTURED TAX CREDIT FOR THE17
TAXABLE YEAR IN WHICH THE TAX CREDIT IS DISALLOWED PURSUANT TO18
THIS SUBSECTION (11) NOTWITHSTANDING THE DISPOSITION OF THE19
QUALIFIED ASSET;20
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY21
DEFICIENCY WITH RESPECT TO THE DISALLOWED TAX CREDIT MUST NOT22
EXPIRE BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE23
OFFICE IS NOTIFIED, IN SUCH A MANNER AS THE OFFICE DETERMINES, THAT24
THE STRUCTURE IS NOT A QUALIFIED ASSET; AND25
(C) T
HE DEPARTMENT SHALL ASSESS ANY DEFICIENCY BEFORE THE26
EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY27
1365
-26- APPLICABLE INTEREST AND PENALTY IMPOSED PURSUANT TO THIS ARTICLE1
22.2
(d) A
S USED IN THIS SUBSECTION (11), UNLESS THE CONTEXT3
OTHERWISE REQUIRES, "COMPLIANCE PERIOD" MEANS THE PERIOD OF4
FIFTEEN YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED5
APPLICANT PLACED THE QUALIFIED ASSET IN SERVICE .6
(12) Reporting. (a) N
O LATER THAN DECEMBER 31, 2025, AND,7
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO8
LATER THAN DECEMBER 31 OF EACH YEAR THEREAFTER THROUGH 2033,9
THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL10
ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE11
PUBLIC. IN CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS12
SECTION, THE REPORT MUST INCLUDE:13
(I) T
HE NUMBER OF QUALIFIED ASSETS PLACED IN SERVICE ;14
(II) A
DESCRIPTION OF THE USE OR USES OF EACH QUALIFIED ASSET15
AND A STATEWIDE SUMMARY OF THE NUMBER OF QUALIFIED ASSETS FOR16
EACH USE; AND17
(III) T
HE AMOUNT OF ANY DISALLOWED TAX CREDIT RECAPTURED18
PURSUANT TO SUBSECTION (11) OF THIS SECTION.19
(b) T
HE OFFICE SHALL, IN A SUFFICIENTLY TIMELY MANNER TO20
ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME21
TAX CREDIT ALLOWED IN THIS SECTION, PROVIDE THE DEPARTMENT WITH22
AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE23
OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR24
THAT INCLUDES THE FOLLOWING INFORMATION :25
(I) T
HE QUALIFIED APPLICANT'S NAME;26
(II) T
HE AMOUNT OF THE TAX CREDIT; AND27
1365
-27- (III) THE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR1
THE QUALIFIED APPLICANT'S COLORADO ACCOUNT NUMBER AND FEDERAL2
EMPLOYER IDENTIFICATION NUMBER .3
(c) T
HE OFFICE, THE OFFICE OF THE STATE AUDITOR, OR THE OFFICE4
OF THE STATE CONTROLLER MAY REVIEW THE QUALIFIED APPLICANT 'S5
FINANCES, EXPENSES, EQUIPMENT, EMPLOYMENT, AND TRAINING6
DOCUMENTATION RELATING TO A QUALIFIED INVESTMENT IN A QUALIFIED7
ASSET.8
(13) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND9
MODIFY POLICIES, PROCEDURES, AND GUIDELINES AS NECESSARY TO10
FURTHER ADMINISTER THE TAX CREDITS ALLOWED PURSUANT TO THIS11
SECTION AND SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING12
AND MODIFYING SUCH POLICIES, PROCEDURES, AND GUIDELINES.13
(b) T
HE OFFICE SHALL DEVELOP STANDARDS FOR DETERMINING14
WHICH INDUSTRIES ARE INCLUDED AS A QUALIFIED INDUSTRY FOR WHICH15
A TAX CREDIT UNDER THIS SECTION IS ALLOWED TO A QUALIFIED16
APPLICANT.17
(c) A
NY STANDARDS DEVELOPED BY THE OFFICE PURSUANT TO18
THIS SUBSECTION (13) MUST BE POSTED ON THE OFFICE'S WEBSITE. THE19
OFFICE MAY ANNUALLY REVIEW AND UPDATE AS NECESSARY STANDARDS20
DEVELOPED PURSUANT TO THIS SUBSECTION (13).21
(d) T
HE OFFICE SHALL DETERMINE THE ANNUAL APPLICATION22
PERIOD.23
(14) Workforce development tax credit program cash fund.24
(a) THE WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH FUND IS25
CREATED IN THE STATE TREASURY. THE FUND CONSISTS OF GIFTS, GRANTS,26
DONATIONS, AND FEE REVENUE CREDITED TO THE FUND PURSUANT TO27
1365
-28- SUBSECTION (6) OF THIS SECTION AND ANY OTHER MONEY THAT THE1
GENERAL ASSEMBLY MAY APPROPRIATE, TRANSFER, OR REQUIRE BY LAW2
TO BE CREDITED TO THE FUND.3
(b) THE STATE TREASURER SHALL CREDIT ALL INTEREST AND4
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE5
WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH FUND TO THE6
FUND.7
(c) MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE8
OFFICE FOR THE PURPOSE OF ADMINISTERING THE TAX CREDIT ISSUED9
PURSUANT TO THIS SECTION.10
(d) THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED11
AND UNENCUMBERED MONEY IN THE FUND ON DECEMBER 31, 2050, TO12
THE GENERAL FUND.13
(15) Repeal. T HIS SECTION IS REPEALED, EFFECTIVE DECEMBER14
31,
2050.15SECTION 8. In Colorado Revised Statutes, 24-75-402, add16
(5)(eee) as follows:17
24-75-402. Cash funds - limit on uncommitted reserves -18
reduction in the amount of fees - exclusions - definitions.19
(5) Notwithstanding any provision of this section to the contrary, the20
following cash funds are excluded from the limitations specified in this21
section:22
(eee) THE WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH23
FUND CREATED IN SECTION 39-22-560 (14).24
SECTION 9. In Colorado Revised Statutes, 39-22-601, amend25
(7)(b) as follows:26
39-22-601. Returns - repeal. (7) (b) The executive director may27
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ARTICLE 22 OR A PERSON OR ORGANIZATION exempt from taxes pursuant2
to section 39-22-112 to make and file a return containing such3
information as the executive director may prescribe to claim a credit4
allowed under this article 22 even if the person or organization does not5
have unrelated business income.6
SECTION 10. Appropriation. For the 2024-25 state fiscal year,7
$109,603 is appropriated to the office of the governor for use by the8
economic development programs. This appropriation is from the general9
fund and is based on an assumption that the office will require an10
additional 0.8 FTE. To implement this act, the office may use this11
appropriation for opportunity now grant administration.12
SECTION 11. Act subject to petition - effective date. This act13
takes effect at 12:01 a.m. on the day following the expiration of the14
ninety-day period after final adjournment of the general assembly; except15
that, if a referendum petition is filed pursuant to section 1 (3) of article V16
of the state constitution against this act or an item, section, or part of this17
act within such period, then the act, item, section, or part will not take18
effect unless approved by the people at the general election to be held in19
November 2024 and, in such case, will take effect on the date of the20
official declaration of the vote thereon by the governor.21
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