HOUSE BILL 24-1365
BY REPRESENTATIVE(S) Lukens and Soper, Amabile, Bacon, Bird,
Boesenecker, Brown, Daugherty, English, Jodeh, Lieder, Lindstedt, Mauro,
Titone, Woodrow, McCluskie;
also SENATOR(S) Bridges and Will, Buckner, Cutter, Michaelson Jenet,
Priola.
C
ONCERNING REGIONAL TALENT DEVELOPMENT INITIATIVES , AND, IN
CONNECTION THEREWITH
, CREATING THE REGIONAL TALENT SUMMIT
GRANT PROGRAM AND AN INCOME TAX CREDIT FOR FACILITY
IMPROVEMENT AND EQUIPMENT ACQUISITION COSTS ASSOCIATED
WITH TRAINING PROGRAMS DESIGNED TO ALLEVIATE WORKFORCE
SHORTAGES AND MAKING AN APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) House Bill 22-1350, enacted in 2022, established the regional
talent development initiative act to invest in regional partnerships that
encourage workforce development and respond to regional talent needs.
The grant program, opportunity now, granted twenty-seven million dollars
________
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. to forty-six grantees and created over two hundred thirty industry and
educational partnerships with the first round of funding. The second and
third rounds of investment demonstrate Colorado's ongoing commitment to
innovation, regional planning, economic development, and collaboration.
(b) However, Colorado continues to experience workforce shortages
due to the mismatch of jobs available and the skilled talent needed to fill
them. This challenge is heightened by recent federal investment in programs
like the federal "Infrastructure Investment and Jobs Act", Pub.L. 117-58,
the federal "Inflation Reduction Act of 2022", Pub.L. 117-169, and the
federal "CHIPS and Science Act of 2022", Pub.L. 117-167, which create
additional demands for skilled talent.
(c) Data shows that Colorado currently needs thirty-three thousand
five hundred infrastructure and construction workers, and is projected to
need an additional fifty thousand construction workers by the end of the
decade, including an additional twenty thousand clean energy construction
jobs. Colorado is projected to need six thousand ninety-eight construction
laborers alone to respond to "Infrastructure Investment and Jobs Act"
project needs.
(d) More skilled talent in infrastructure, advanced manufacturing,
and clean energy is needed for Colorado to take full advantage of federal
investments and achieve Colorado's ambitious housing, climate, broadband,
and infrastructure goals. By investing an additional round of general fund
funding into the opportunity now program, with a focus on infrastructure
and building trades, Colorado makes an important investment in the
workforce needed to build more housing now.
(e) Expanding the opportunity now program with a refundable tax
credit expands the scope of this work for years to come. This refundable tax
credit will support qualified applicants in increasing their training capacity
and capabilities so that Colorado has the workforce needed to respond to
federal investments as they break ground and achieve statewide priorities.
(f) The workforce shortage tax credit is intended to continue the
opportunity now program by seeding investments that benefit the education
and training system broadly;
(g) The regional talent summit grant program is also created to
PAGE 2-HOUSE BILL 24-1365 affirm Colorado's collaborative, locally-driven, and state-supported
approach to regional talent planning. These summits will allow for industry,
business associations, community-based organizations, talent development
practitioners, local workforce centers, local education providers, institutions
of higher education, and state agencies to identify the workforce needs and
resources of their areas. By seeding new partnerships to develop shared
workforce and economic development goals, these summits will allow
Colorado's regions to plan for and leverage local and state resources to
achieve them.
(2) Therefore, the regional talent summit grant program and the
workforce shortage tax credit are important tools for Colorado to address
the need for talent acquisition and retention.
SECTION 2. In Colorado Revised Statutes, 24-48.5-405, amend
(1)(c)(II) and (1)(c)(III); and add (1)(c)(IV) and (1)(c)(V) as follows:
24-48.5-405. Regional talent development initiative grant
program - creation - administration - eligibility - application review -
report. (1) (c) In prioritizing grant applications and awarding grants, the
office, in collaboration with the departments and the selection committee,
shall strive to meet the following grant program goals:
(II) To create intentional pathways between kindergarten through
twelfth grade education, higher education, and employment that allow
learners and earners to transition more easily into and out of each system
and that ensure a highly skilled and well-educated workforce; and
(III) To provide more opportunities for regional learners and earners
to be more economically mobile and earn a living wage in an in-demand,
high-skill, high-wage occupation;
(IV) T
O ADDRESS WORKFORCE SHORTAGES IN INFRASTRUCTURE AND
BUILDING TRADES BY CREATING MORE OPPORTUNITIES FOR WORKFORCE
DEVELOPMENT PROJECTS IN THESE TRADES
; AND
(V) TO ELEVATE EVIDENCE-BASED WORKFORCE TRAINING AND
RELEVANT PROGRAMS OR SERVICES WHERE PARTICIPANTS FROM
COMMUNITIES THAT HAVE BEEN HISTORICALLY UNDERREPRESENTED
,
UNDERSERVED, OR UNDERRESOURCED IN COLORADO ARE ABLE TO EARN A
PAGE 3-HOUSE BILL 24-1365 LIVING WAGE AND ARE CONNECTED TO EMPLOYMENT OPPORTUNITIES .
SECTION 3. In Colorado Revised Statutes, 24-48.5-406, add
(1)(a.5) as follows:
24-48.5-406. Regional talent development initiative grant
program fund - repeal. (1) (a.5) (I) O
N JULY 1, 2024, THE STATE
TREASURER SHALL TRANSFER THREE MILLION EIGHT HUNDRED THOUSAND
DOLLARS FROM THE GENERAL FUND TO THE FUND FOR USE FOR ACHIEVING
THE GOAL SET FORTH IN SECTION
24-48.5-405 (1)(c)(IV).
(II) O
F THE AMOUNT TRANSFERRED TO THE FUND PURSUANT TO
SUBSECTION
(1)(a.5)(I) OF THIS SECTION, NOT MORE THAN SEVEN PERCENT
MAY BE USED FOR THE ADMINISTRATIVE COSTS INCURRED BY THE OFFICE
AND THE SELECTION COMMITTEE IN ADMINISTERING THE REGIONAL TALENT
DEVELOPMENT INITIATIVE GRANT PROGRAM
.
(III) T
HIS SUBSECTION (1)(a.5) IS REPEALED, EFFECTIVE JULY 1,
2028.
SECTION 4. In Colorado Revised Statutes, 24-48.5-502, amend
(1)(b)(V), (4)(a), (4)(b), and (5)(b); and repeal (4)(c) as follows:
24-48.5-502. Universal high school scholarship program -
established - administration - cash fund - eligibility. (1) (b) The office
shall administer the program or may contract with one or more vendors to
administer the program. The office or vendor shall:
(V) Audit
MONITOR, or contract with a vendor to audit MONITOR,
service providers to ensure that service providers comply with all program
rules and requirements.
(4) A student is eligible for a scholarship if the student:
(a) During the 2023-24 academic year, graduated from a Colorado
high school or was awarded a high school equivalency credential awarded
by the Colorado department of education;
(b) I
S A DEGREE-SEEKING STUDENT WHO completes the free
application for federal student aid or the Colorado application for state
PAGE 4-HOUSE BILL 24-1365 financial aid; EXCEPT THAT THE OFFICE SHALL WAIVE THE REQUIREMENT OF
COMPLETING THE FREE APPLICATION FOR FEDERAL STUDENT AID OR THE
COLORADO APPLICATION FOR STATE FINANCIAL AID IF THE DEGREE -SEEKING
STUDENT ATTESTS THAT THE ST UDENT IS UNABLE TO MEET THIS
REQUIREMENT
; AND
(c) Did not receive a grant or scholarship pursuant to part 10 of
article 3.3 of title 23 for the 2024-25 academic year; and
(5) (b) A service provider shall comply with the program policies
and procedures and with all reporting requirements described in this section.
A service provider shall submit to an audit
MONITORING by the office or
vendor conducted pursuant to subsection (1)(b) of this section.
SECTION 5. In Colorado Revised Statutes, add part 7 to article
48.5 of title 24 as follows:
PART 7
REGIONAL TALENT SUMMIT ACT
24-48.5-701. Short title. T
HE SHORT TITLE OF THIS PART 7 IS THE
"REGIONAL TALENT SUMMIT ACT".
24-48.5-702. Legislative declaration. (1) T
HE GENERAL ASSEMBLY
FINDS AND DECLARES THAT
:
(a) T
HIS PART 7 IS INTENDED TO STRENGTHEN REGIONAL TALENT
DEVELOPMENT PIPELINES TO MEET WORKFORCE DEMAND
;
(b) T
HE STATE HAS AN OPPORTUNITY TO FULFILL DEMAND FOR
WORKERS
, WHICH WILL ALLOW THE STATE TO MEET ITS STRATEGIC GOALS
AND GENERATE HIGH
-QUALITY CAREERS; AND
(c) THE GRANT PROGRAM AND RELATED SERVICES DESCRIBED IN THIS
PART
7 ARE IMPORTANT GOVERNMENT SERVICES .
(2) T
HEREFORE, THE GENERAL ASSEMBLY CREATES THE REGIONAL
TALENT SUMMIT GRANT PROGRAM TO ADDRESS THESE NEEDS
.
24-48.5-703. Definitions. A
S USED IN THIS PART 7, UNLESS THE
PAGE 5-HOUSE BILL 24-1365 CONTEXT OTHERWISE REQUIRES :
(1) "A
PPLICANT" MEANS AN ENTITY THAT:
(a) H
AS THE CAPACITY TO HOST REGIONAL TALENT SUMMITS ACROSS
THE STATE THAT CONVENE TO UNDERSTAND REGIONAL LABOR MARKET
NEEDS IN EACH REGION OF THE STATE OR HAS THE CAPACITY TO CONVENE
,
FACILITATE, AND REPORT ON REGIONAL TALENT SUMMIT FINDINGS ; AND
(b) APPLIES FOR A GRANT FROM THE GRANT PROGRAM .
(2) "F
UND" MEANS THE REGIONAL TALENT SUMMIT GRANT PROGRAM
FUND CREATED IN SECTION
24-48.5-705.
(3) "G
RANT PROGRAM" MEANS THE REGIONAL TALENT SUMMIT
GRANT PROGRAM CREATED IN SECTION
24-48.5-704.
(4) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC
DEVELOPMENT CREATED IN SECTION
24-48.5-101.
(5) "P
ROGRAM FACILITATOR" MEANS AN APPLICANT TO WHICH THE
OFFICE AWARDS A GRANT AND WITH WHICH THE OFFICE CONTRACTS
PURSUANT TO SECTION
24-48.5-704 (2)(a).
(6) "R
EGIONAL HOST" MEANS AN APPLICANT THAT HAS BEEN
GRANTED AN AWARD TO SUPPORT THE COSTS OF HOSTING A REGIONAL
TALENT SUMMIT
.
(7) "R
EGIONAL TALENT SUMMIT" MEANS A CONVENING OF STATE
AND REGIONAL STAKEHOLDERS TO DISCUSS THE EC ONOMIC AND WORKFORCE
NEEDS OF THEIR REGION AND THE PROGRAMS AND RESOURCES THAT MIGHT
ADDRESS THOSE NEEDS
.
(8) "S
ELECTION COMMITTEE" MEANS THE SELECTION COMMITTEE
APPOINTED PURSUANT TO SECTION
24-48.5-704 (4)(a) TO REVIEW AND MAKE
RECOMMENDATIONS ABOUT APPLICANTS
, TO SELECT AND AWARD A GRANT
TO THE REGIONAL HOST
, AND TO SELECT AND AWARD A GRANT TO THE
PROGRAM FACILITATOR
.
24-48.5-704. Regional talent summit grant program - creation
PAGE 6-HOUSE BILL 24-1365 - administration - eligibility - application review - report. (1) (a) T HERE
IS CREATED IN THE OFFICE THE REGIONAL TALENT SUMMIT GRANT PROGRAM
.
T
HE OFFICE SHALL ADMINISTER THE GRANT PROGRAM . THE SELECTION
COMMITTEE APPOINTED PURSUANT TO SUBSECTION
(4) OF THIS SECTION IS
RESPONSIBLE FOR MAKING GRANT AWARD DECISIONS IN ACCORDANCE WITH
THIS SECTION
.
(b) (I) T
HE PURPOSE OF THE GRANT PROGRAM IS TO PROVIDE GRANTS
TO THE PROGRAM FACILITATOR TO USE TO CONVENE AND FACILITATE
REGIONAL SUMMITS AND DEVELOP A REPORT ON THE FINDINGS OF THE
REGIONAL TALENT SUMMITS AND TO ONE OR MORE REGIONAL HOSTS TO USE
TO SUPPORT SEVEN REGIONAL TALENT SUMMITS
.
(II) T
HE OFFICE SHALL REQUIRE THE REGIONAL HOSTS AND THE
PROGRAM FACILITATOR TO COMPLETE ALL REGIONAL TALENT SUMMITS ON
OR BEFORE
JULY 1, 2025.
(III) T
HE OFFICE SHALL REQUIRE THE PROGRAM FACILITATOR TO
SUBMIT ITS COMPREHENSIVE TACTICAL PLAN TO THE OFFICE ON OR BEFORE
DECEMBER 1, 2025.
(c) I
N PRIORITIZING GRANT APPLICATIONS AND AWARDING GRANTS ,
THE OFFICE, IN COLLABORATION WITH THE SELECTION COMMITTEE , SHALL
STRIVE TO MEET THE FOLLOWING GRANT PROGRAM GOALS
:
(I) F
OR A GRANT FOR A PROGRAM FACILITATOR :
(A) T
O UNDERSTAND WORKFORCE DEVELOPMENT NEEDS IN REGIONS
OF THE STATE
;
(B) T
O GENERATE A LANDSCAPE ANALYSIS FOR EACH IDENTIFIED
REGION THAT INCLUDES JOB PROJECTIONS AND AN OVERVIEW OF
EDUCATIONAL PATHWAYS
;
(C) T
O GATHER INSIGHT FROM EMPLOYERS ABOUT CRITICAL
WORKFORCE AND TRAINING NEEDS
;
(D) T
O CREATE REGIONAL GOALS FOR ADDRESSING TALENT NEEDS ;
(E) T
O DEVELOP COMPREHENSIVE TACTICAL PLANS ; AND
PAGE 7-HOUSE BILL 24-1365 (F) TO SUBMIT THE WORKFORCE PLANS GENERATED BY THE
PROGRAM FACILITATOR AS A RESULT OF THE REGIONAL TALENT SUMMITS BY
DECEMBER 1, 2025, TO THE OFFICE. THE OFFICE SHALL PROVIDE THE
WORKFORCE PLANS TO THE STATE WORKFORCE DEVELOPMENT COUNCIL
WHICH SHALL PUBLISH THE PLANS IN THE
COLORADO TALENT REPORT
PREPARED PURSUANT TO SECTION
24-46.3-103 (3) AND SHALL COORDINATE
WITH LOCAL ENTITIES AND ACROSS STATE AGENCIES TO SUPPORT REGIONAL
GOALS
.
(II) F
OR A GRANT FOR A REGIONAL HOST:
(A) T
O SECURE A FACILITY TO HOST THE REGIONAL SUMMIT ;
(B) T
O DETERMINE RELEVANT PARTNERS TO ATTEND THE REGIONAL
SUMMIT
; AND
(C) TO GATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT
WORKFORCE TRAINING NEEDS
.
(2) T
HE OFFICE, THROUGH THE SELECTION COMMITTEE , SHALL:
(a) A
WARD A GRANT TO AND EXECUTE A CONTRACT WITH A
PROGRAM FACILITATOR
. THE OFFICE SHALL REQUIRE THE PROGRAM
FACILITATOR TO
:
(I) W
ORK WITH THE OFFICE, THE DEPARTMENT OF LABOR AND
EMPLOYMENT
, THE DEPARTMENT OF EDUCATION, LOCAL DATA EXPERTS, AND
THE DEPARTMENT OF HIGHER EDUCATION TO GENERATE A LANDSCAPE
ANALYSIS FOR EACH IDENTIFIED REGION THAT INCLUDES JOB PROTECTIONS
AND AN OVERVIEW OF EDUCATIONAL PATHWAYS
;
(II) W
ORK WITH REGIONAL HOSTS TO PLAN REGIONAL TALENT
SUMMITS
;
(III) F
ACILITATE A SUMMIT FOR REGIONAL ATTENDEES TO IDENTIFY
REGIONAL ECONOMIC GOALS AND WORKFORCE DEVELOPMENT NEEDS
;
(IV) C
REATE ALIGNMENT BETWEEN BUSINESS , EDUCATION,
WORKFORCE, AND COMMUNITY PARTNERS FOR WORKFORCE DEVELOPMENT ;
AND
PAGE 8-HOUSE BILL 24-1365 (V) DEVELOP COMPREHENSIVE TACTICAL PLANS INFORMED BY THE
RESOURCES AND NEEDS OF EACH REGION THAT SET TWO
-YEAR GOALS AND
FIVE
-YEAR GOALS FOR DEVELOPING MORE CAREER PATHWAYS IN HIGH -NEED
FIELDS IN EACH REGION INCLUDING A LANDSCAPE ANALYSIS FOR EACH
REGION OF THE STATE THAT IDENTIFIES REGIONAL WORKFORCE NEEDS
,
OPPORTUNITIES, AND CHALLENGES.
(b) A
WARD A GRANT TO ONE OR MORE REGIONAL HOSTS . THE OFFICE
SHALL REQUIRE THE REGIONAL HOSTS TO
:
(I) S
ECURE A FACILITY TO HOST EACH REGIONAL SUMMIT ;
(II) D
ETERMINE RELEVANT BUSINESS , EDUCATION, WORKFORCE, AND
COMMUNITY PARTNERS TO PARTICIPATE IN EACH REGIONAL SUMMIT
; AND
(III) GATHER INSIGHT FROM REGIONAL EMPLOYERS ABOUT CRITICAL
WORKFORCE AND TRAINING NEEDS
.
(c) E
STABLISH A PROCESS FOR AN APPLICANT TO APPLY FOR A GRANT
TO FUND THE DEVELOPMENT OF REGIONAL TALENT SUMMITS
, WHICH
APPLICATION PROCESS MUST BE COMPLETED NO LATER THAN
NOVEMBER 1,
2024;
AND
(d) ESTABLISH POLICIES SETTING FORTH THE PARAMETERS AND
ELIGIBILITY FOR THE GRANT PROGRAM
.
(3) T
O BE ELIGIBLE FOR A GRANT , AN APPLICANT MUST, AT A
MINIMUM
, INCLUDE WITH ITS GRANT APPLICATION:
(a) A
DETAILED PROPOSAL AND OPERATIONS PLAN THAT MEETS THE
GOALS SPECIFIED IN SUBSECTION
(1)(c) OF THIS SECTION; AND
(b) INFORMATION ABOUT HOW THE PROPOSED REGIONAL TALENT
SUMMIT WILL ADDRESS THE ECONOMIC DEVELOPMENT GOALS OF EACH
REGION
.
(4) (a) T
HE OFFICE SHALL APPOINT A SELECTION COMMITTEE
CONSISTING OF MEMBERS WHO REPRESENT THE OFFICE
, THE COLORADO
WORKFORCE DEVELOPMENT COUNCIL
, LOCAL WORKFORCE DEVELOPMENT
PRACTITIONERS
, LOCAL EDUCATION PROVIDERS , INSTITUTIONS OF HIGHER
PAGE 9-HOUSE BILL 24-1365 EDUCATION, EDUCATION-RELATED COMMUNITY -BASED ORGANIZATIONS,
AND THE STATEWIDE CHAMBER OF COMMERCE .
(b) T
HE SELECTION COMMITTEE SHALL REVIEW GRANT APPLICATIONS
IN ACCORDANCE WITH THE PROCESSES AND CRITERIA SPECIFIED IN AND
DEVELOPED PURSUANT TO THIS SECTION AND SHALL MAKE FINAL
DETERMINATIONS AND AWARD GRANTS BASED ON THESE PROCESSES AND
CRITERIA
.
(c) (I) T
HE SELECTION COMMITTEE S HALL CONSIDER REGIONAL
DIVERSITY
, COMMUNITY ENGAGEMENT , LOCAL PARTNERSHIPS, AND EVENT
CAPACITY WHEN SELECTING ONE OR MORE REGIONAL HOSTS
.
(II) M
EMBERS OF THE SELECTION COMMITTEE SERVE WITHOUT
COMPENSATION BUT ARE ENTITLED TO REIMBURSEMENT FOR ACTUAL AND
NECESSARY EXPENSES INCURRED IN THE DISCHARGE OF THE MEMBERS
'
DUTIES.
24-48.5-705. Regional talent summit grant program fund.
(1) (a) T
HERE IS CREATED IN THE STATE TREASURY THE REGIONAL TALENT
SUMMIT GRANT PROGRAM FUND
.
(b) O
N JULY 1, 2024, THE STATE TREASURER SHALL TRANSFER TWO
HUNDRED THOUSAND DOLLARS FROM THE GENERAL FUND TO THE FUND FOR
GRANTS TO A PROGRAM FACILITATOR AND ONE OR MORE REGIONAL HOSTS
.
(c) T
HE MONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO
THE OFFICE FOR USE IN ACCORDANCE WITH THIS PART
7.
(2) T
HE OFFICE MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR
DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS
PART
7.
24-48.5-706. Repeal of part. T
HIS PART 7 IS REPEALED, EFFECTIVE
JULY 1, 2030.
SECTION 6. In Colorado Revised Statutes, 8-83-208, add (1)(d)
as follows:
8-83-208. Implementation - local plans. (1) (d) B
EGINNING
PAGE 10-HOUSE BILL 24-1365 JANUARY 1, 2026, ANY MODIFIED OR NEW LOCAL PLAN MUST INCORPORATE
THE TACTICAL PLANS CREATED PURSUANT TO SECTION
24-48.5-704
(2)(a)(V).
SECTION 7. In Colorado Revised Statutes, add 39-22-565 as
follows:
39-22-565. Workforce shortage tax credit - tax preference
performance statement - report - 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 PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR
INDIVIDUALS
.
(b) T
HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT
ALLOWED BY THIS SECTION IS TO ENCOURAGE WORKFORCE DEVELOPMENT
IN INDUSTRIES THAT ARE FACING WORKER SHORTAGES BY PROVIDING
FINANCIAL ASSISTANCE FOR FACILITY IMPROVEMENT AND EQUIPMENT
ACQUISITION COSTS ASSOCIATED WITH TRAINING PROGRAMS DESIGNED TO
ALLEVIATE WORKER SHORTAGES
.
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE
PURPOSES SPECIFIED IN SUBSECTIONS
(1)(a) AND (1)(b) OF THIS SECTION
BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED
BY THE OFFICE PURSUANT TO SUBSECTION
(12) OF THIS SECTION.
(2) Definitions. A
S USED IN THIS SECTION, UNLESS THE CONTEXT
OTHERWISE REQUIRES
:
(a) "A
PPLICANT" MEANS A PERSON SUBJECT TO TAX PURSUANT TO
PAGE 11-HOUSE BILL 24-1365 THIS ARTICLE 22, AN ENTITY THAT IS EXEMPT FROM TAXATION PURSUANT TO
SECTION
39-22-112 (1), OR A POLITICAL SUBDIVISION OF THE STATE.
(b) "A
PPLICATION" MEANS AN APPLICATION IN THE FORM AND
MANNER APPROVED BY THE OFFICE FOR THE TAX CREDIT ALLOWED IN THIS
SECTION
.
(c) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .
(d) "F
EDERAL INVESTMENTS " MEANS THE FEDERAL
"INFRASTRUCTURE INVESTMENT AND JOBS ACT", PUB.L. 117-58, THE
FEDERAL
"INFLATION REDUCTION ACT OF 2022", PUB.L. 117-169, AND THE
FEDERAL
"CHIPS AND SCIENCE ACT OF 2022", PUB.L. 117-167.
(e) "O
FFICE" MEANS THE COLORADO OFFICE OF ECONOMIC
DEVELOPMENT CREATED IN SECTION
24-48.5-101.
(f) "P
OTENTIAL QUALIFIED ASSET" MEANS AN ASSET THAT MAY BE
A QUALIFIED ASSET UPON THE DETERMINATION OF THE OFFICE
.
(g) "Q
UALIFIED APPLICANT" MEANS AN APPLICANT THAT MAKES A
QUALIFIED INVESTMENT TO TRAIN INDIVIDUALS IN A QUALIFIED INDUSTRY
AND THAT IS SELECTED PURSUANT TO SUBSECTION
(5) OF THIS SECTION.
(h) (I) "Q
UALIFIED ASSET" MEANS:
(A) L
AND IN THIS STATE;
(B) B
UILDINGS, FIXTURES, AND OTHER STRUCTURAL COMPONENTS
OF BUILDINGS IN THIS STATE FOR WHICH THE 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 , AND FUNDING
A CAPITAL LEASE WITH CAPITALIZED LABOR
, CONSTRUCTION, AND
INSTALLATION COSTS
;
(C) T
ANGIBLE PERSONAL PROPERTY ACQUIRED FOR USE
EXCLUSIVELY IN THIS STATE FOR WHICH THE APPLICANT IS ALLOWED A
DEDUCTION FOR DEPRECIATION PURSUANT TO SECTION
167 OF THE INTERNAL
REVENUE CODE
; AND
PAGE 12-HOUSE BILL 24-1365 (D) COMPUTER SOFTWARE ACQUIRED FOR USE EXCLUSIVELY IN THIS
STATE FOR WHICH THE APPLICANT IS ALLOWED A DEDUCTION FOR
DEPRECIATION UNDER SECTION
167 OF THE INTERNAL REVENUE CODE.
(II) F
OR PURPOSES OF THIS SUBSECTION (2)(h), IF AN APPLICANT IS
NOT SUBJECT TO FEDERAL INCOME TAX
, THE APPLICANT IS DEEMED TO BE
ALLOWED A DEDUCTION FOR DEPRECIATION IF SUCH A DEDUCTION WOULD
HAVE BEEN ALLOWED WERE THE APPLICANT SUBJECT TO FEDERAL INCOME
TAX
.
(i) "Q
UALIFIED INDUSTRY" MEANS AN INDUSTRY AFFECTED BY
FEDERAL INVESTMENTS THAT HAS A DEMONSTRATED WORKFORCE
SHORTAGE
, AS DETERMINED BY THE OFFICE AS SPECIFIED IN THE POLICIES
AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION
(13) OF THIS SECTION.
(j) "Q
UALIFIED INVESTMENT" MEANS THE AMOUNT PAID BY A
QUALIFIED APPLICANT TO ACQUIRE
, CONSTRUCT, RECONSTRUCT, OR ERECT
A QUALIFIED ASSET TO THE EXTENT THE AMOUNT PAID REFLECTS NEW
ACTIVITY AND TO THE EXTENT THE AMOUNT IS REQUIRED TO BE CAPITALIZED
PURSUANT TO THE INTERNAL REVENUE CODE OR THE AMOUNT IS ALLOWED
TO BE DEDUCTED UNDER SECTION
179 OF THE INTERNAL REVENUE CODE.
(k) "S
ELECTION COMMITTEE" MEANS A SELECTION COMMITTEE
APPOINTED BY THE OFFICE CONSISTING OF MEMBERS WHO HAVE EXPERTISE
AND EXPERIENCE AS EMPLOYERS
, IN EDUCATION, OR IN OTHER RELEVANT
AREAS
.
(3) Tax credit allowed. (a) E
XCEPT AS PROVIDED IN SUBSECTION
(3)(c) OF THIS SECTION, A QUALIFIED APPLICANT IS ALLOWED TO USE A TAX
CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO SUBSECTION
(8)
OF THIS SECTION AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22
IN THE INCOME TAX YEAR THAT THE QUALIFIED APPLICANT PLACES A
QUALIFIED ASSET IN SERVICE IN THE AMOUNT SPECIFIED ON THE TAX CREDIT
CERTIFICATE ISSUED BY THE OFFICE
; EXCEPT THAT THE TAX CREDIT
CERTIFICATE MAY NOT BE USED IN AN INCOME TAX YEAR COMMENCING
BEFORE
JANUARY 1, 2026, AND MAY NOT BE USED IN AN INCOME TAX YEAR
COMMENCING ON OR AFTER
JANUARY 1, 2033.
(b) I
N ORDER TO CLAIM THE TAX CREDIT ALLOWED PURSUANT TO
PAGE 13-HOUSE BILL 24-1365 THIS SECTION, THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS
SPECIFIED IN SUBSECTION
(5) OF THIS SECTION, PLACE THE QUALIFIED ASSET
INTO SERVICE BEFORE
JANUARY 1, 2033, OBTAIN A TAX CREDIT CERTIFICATE
FROM THE OFFICE AS SPECIFIED IN SUBSECTION
(8) 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
(9) OF THIS SECTION.
(c) A
TAX CREDIT IS NOT ALLOWED PURSUANT TO THIS SECTION IF :
(I)
THE AMOUNT REFUNDED PURSUANT TO SUBSECTION (10) OF THIS
SECTION IS USED TO SUPPLANT LOCAL
, STATE, OR FEDERAL MONEY THAT
WOULD OTHERWISE BE APPROPRIATED
; OR
(II) THE QUALIFIED APPLICANT EXPENDS MONEY RECEIVED FROM THE
STATE TO OFFSET AT LEAST HALF OF A QUALIFIED INVESTMENT
, NOT
INCLUDING THE AMOUNT REFUNDED PURSUANT TO SUBSECTION
(10) OF THIS
SECTION
.
(4) Tax credit administration. E
XCEPT AS OTHERWISE PROVIDED
IN SUBSECTION
(7) OF THIS SECTION, THE OFFICE IS THE ADMINISTRATOR OF
THE TAX CREDIT ALLOWED BY THIS SECTION
.
(5) Application submission and review. (a) A
N APPLICANT THAT
INTENDS TO CLAIM A TAX CREDIT PURSUANT TO THIS SECTION SHALL SUBMIT
AN APPLICATION TO THE OFFICE
.
(b) T
HE OFFICE SHALL ACCEPT APPLICATIONS FOR ANNUAL
APPLICATION PERIODS BY DEADLINES ESTABLISHED IN THE POLICIES AND
PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION
(13) OF
THIS SECTION
; EXCEPT THAT THE OFFICE MAY ONLY RECEIVE APPLICATIONS
BETWEEN
JANUARY 1, 2025, AND DECEMBER 31, 2029.
(c) T
HE OFFICE SHALL REVIEW ALL SUBMITTED APPLICATIONS TO
DETERMINE WHETHER
:
(I) T
HE APPLICANT IS A QUALIFIED APPLICANT; AND
(II) THE APPLICATION IS COMPLETE AND INCLUDES A DESCRIPTION OF
A POTENTIAL QUALIFIED ASSET AND THE ESTIMATED QUALIFIED INVESTMENT
.
PAGE 14-HOUSE BILL 24-1365 (d) IF THE OFFICE DETERMINES THAT THE APPLICATION IS COMPLETE
AND IN COMPLIANCE
, THE OFFICE SHALL ADD THE APPLICATION TO AN
EVALUATION POOL FOR THE APPLICATION PERIOD
. WITHIN A REASONABLE
PERIOD AFTER THE END OF THE APPLICATION PERIOD
, THE OFFICE SHALL
FORWARD THE EVALUATION POOL TO THE SELECTION COMMITTEE FOR THE
MERIT
-BASED REVIEW DESCRIBED IN SUBSECTION (7) OF THIS SECTION.
(e) I
F THE OFFICE DETERMINES THAT THE APPLICATION IS
INCOMPLETE OR THAT IT DOES NOT COMPLY WITH THE REQUIREMENTS OF
THIS SECTION OR THE POLICIES AND PROCEDURES DEVELOPED BY THE OFFICE
PURSUANT TO SUBSECTION
(13) OF THIS SECTION, THE OFFICE SHALL REMOVE
THE APPLICATION FROM THE REVIEW PROCESS AND NOTIFY THE APPLICANT
IN WRITING OF ITS DECISION
. AN APPLICANT MAY RESUBMIT A DISAPPROVED
APPLICATION TO BE EVALUATED IN A FUTURE APPLICATION PERIOD
.
(6) Application and issuance fees. (a) (I) F
OR AN APPLICATION FOR
WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN APPLICANT
PURSUANT TO THIS SECTION IS TWO HUNDRED FIFTY THOUSAND DOLLARS OR
MORE
, THE OFFICE MAY IMPOSE A REASONABLE APPLICATION FEE ON AN
APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS
.
(II)
FOR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX
CREDIT REQUESTED BY AN APPLICANT PURSUANT TO THIS SECTION IS LESS
THAN TWO HUNDRED FIFTY THOUSAND DOLLARS
, THE OFFICE MAY IMPOSE
A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT EXCEED
TWO HUNDRED DOLLARS
.
(b) T
HE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A
REASONABLE ISSUANCE FEE OF UP TO THREE PERCENT OF THE AMOUNT OF
THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY THE
OFFICE AS SPECIFIED IN SUBSECTION
(8) OF THIS SECTION, WHICH MUST BE
PAID BEFORE THE TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED
APPLICANT
.
(c) A
NY FEE REVENUE COLLECTED PURSUANT TO THIS SUBSECTION
(6) MUST BE APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT CREATED
BY THIS SECTION
.
(7) Merit-based review and tax credit reservation. (a) (I) F
OR
EACH APPLICATION PERIOD
, THE SELECTION COMMITTEE SHALL CONDUCT A
PAGE 15-HOUSE BILL 24-1365 MERIT-BASED REVIEW OF THE APPLICATIONS THAT HAVE BEEN PLACED IN
THE EVALUATION POOL PURSUANT TO SUBSECTION
(5)(d) OF THIS SECTION.
T
HE SELECTION COMMITTEE SHALL COMPLETE ITS REVIEW AND AWARD
RESERVATIONS WITHIN A REASONABLE PERIOD AFTER THE END OF THE
APPLICATION PERIOD
, NOT TO EXCEED NINETY DAYS.
(II) E
XCEPT AS PROVIDED IN SUBSECTION (7)(a)(IV) OF THIS
SECTION
, BASED UPON THE TOTALITY OF THE FACTORS SET FORTH IN
SUBSECTION
(7)(c) OF THIS SECTION, THE SELECTION COMMITTEE MAY
RESERVE FOR THE BENEFIT OF A QUALIFIED APPLICANT A TAX CREDIT IN AN
AMOUNT TO BE DETERMINED BY THE SELECTION COMMITTEE NOT TO EXCEED
FIFTY PERCENT OF THE ESTIMATED QUALIFIED INVESTMENT
; EXCEPT THAT
THE AGGREGATE AMOUNT OF TAX CREDITS RESERVED FOR ALL QUALIFIED
APPLICANTS IN AN ANNUAL APPLICATION PERIOD MAY NOT EXCEED FIFTEEN
MILLION DOLLARS
.
(III) T
HE SELECTION COMMITTEE MAY RESERVE TAX CREDITS TO BE
USED BY A QUALIFIED APPLICANT FOR INCOME TAX YEARS COMMENCING ON
OR AFTER
JANUARY 1, 2026, BUT BEFORE JANUARY 1, 2033, BASED UPON
THE ANTICIPATED DATE THE QUALIFIED ASSET IS PLACED INTO SERVICE
.
(IV) I
F THE SEPTEMBER 2025 REVENUE FORECAST, AND EACH
SEPTEMBER REVENUE FORECAST THROUGH THE SEPTEMBER 2028 REVENUE
FORECAST AS PREPARED BY EITHER LEGISLATIVE COUNCIL STAFF OR THE
OFFICE OF STATE PLANNING AND BUDGETING
, PROJECTS THAT STATE
REVENUES
, AS DEFINED IN SECTION 24-77-201 (4), WILL NOT INCREASE BY AT
LEAST FOUR PERCENT FOR THE CURRENT FISCAL YEAR
, THE AGGREGATE
AMOUNT OF TAX CREDITS RESERVED FOR ALL QUALIFIED APPLICANTS IN THE
APPLICATION PERIOD COMMENCING IN THE CALENDAR YEAR THAT BEGINS
DURING THE CURRENT FISCAL YEAR IS REDUCED BY FIFTY PERCENT
; EXCEPT
THAT IF THE AMOUNT OF A REDUCED TAX CREDIT RESERVATION IS EQUAL TO
OR LESS THAN FIVE HUNDRED DOLLARS
, THEN THE SELECTION COMMITTEE
SHALL NOT ISSUE A TAX CREDIT RESERVATION
.
(b) (I) I
F THE SELECTION COMMITTEE RESERVES TAX CREDITS FOR
THE BENEFIT OF A QUALIFIED APPLICANT UNDER SUBSECTION
(7)(a) OF THIS
SECTION
, THE SELECTION COMMITTEE SHALL NOTIFY THE OFFICE OF THE
RESERVATION AND THE AMOUNT OF TAX CREDITS RESERVED
. THE OFFICE
SHALL NOTIFY THE QUALIFIED APPLICANT OF THE TAX CREDIT RESERVATION
.
T
HE RESERVATION OF A TAX CREDIT DOES NOT ENTITLE THE QUALIFIED
PAGE 16-HOUSE BILL 24-1365 APPLICANT TO AN ISSUANCE OF A TAX CREDIT CERTIFICATE UNTIL THE
QUALIFIED APPLICANT COMPLIES WITH ALL THE REQUIREMENTS SPECIFIED IN
THIS SECTION
, BY THE SELECTION COMMITTEE, OR BY THE OFFICE, FOR THE
ISSUANCE OF A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION
(8) OF
THIS SECTION
.
(II) T
HE OFFICE SHALL NOTIFY ANY QUALIFIED APPLICANT IN
WRITING FOR WHICH THE SELECTION COMMITTEE RESERVED NO TAX CREDIT
UNDER SUBSECTION
(7)(a) OF THIS SECTION.
(c) (I) I
N CONDUCTING THE MERIT -BASED REVIEW PURSUANT TO
SUBSECTION
(7)(a) OF THIS SECTION, THE SELECTION COMMITTEE SHALL
CONSIDER THE FACTORS SET FORTH IN THIS SUBSECTION
(7)(c) IN ADDITION
TO ANY OTHER FACTORS THE SELECTION COMMITTEE MAY REQUEST THE
OFFICE TO INCLUDE IN ITS POLICIES AND PROCEDURES DEVELOPED PURSUANT
TO SUBSECTION
(13) OF THIS SECTION. THE SELECTION COMMITTEE MAY
WEIGH THE FACTORS EQUALLY OR DIFFERENTLY
.
(II) T
HE SELECTION COMMITTEE SHALL CONSIDER :
(A) W
HETHER THE QUALIFIED APPLICANT'S QUALIFIED INVESTMENT
WILL INFLUENCE COMPETITIVENESS IN A QUALIFIED INDUSTRY
;
(B) W
HETHER THE QUALIFIED APPLICANT'S QUALIFIED INVESTMENT
WILL RESULT IN INCREASED JOB PLACEMENTS IN QUALIFIED INDUSTRIES OR
INCREASED JOB PLACEMENTS WITH A LIVING WAGE IN QUALIFIED
INDUSTRIES
;
(C) T
HE TYPE, SCOPE, AND QUALITY OF THE QUALIFIED APPLICANT'S
QUALIFIED ASSET AND THE RESULTING TRAINING OF INDIVIDUALS IN A
QUALIFIED INDUSTRY
; AND
(D) WHETHER THE QUALIFIED APPLICANT'S QUALIFIED INVESTMENT
WILL RESULT IN INCREASED TRAINING AND WORKFORCE DEVELOPMENT IN A
QUALIFIED INDUSTRY
.
(d) T
HE SELECTION COMMITTEE MAY IMPOSE ADDITIONAL
REQUIREMENTS ON THE QUALIFIED APPLICANT AS A CONDITION OF
AWARDING THE TAX CREDIT RESERVATION PURSUANT TO THIS SUBSECTION
(7).
PAGE 17-HOUSE BILL 24-1365 (8) Proof of compliance - audit of eligible expenditure
certification - issuance of tax credit certificate. A
FTER A QUALIFIED
APPLICANT PLACES A POTENTIAL QUALIFIED ASSET IN SERVICE
, THE
QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE POTENTIAL
QUALIFIED ASSET HAS BEEN PLACED IN SERVICE AND SHALL CERTIFY THE
QUALIFIED INVESTMENT
, AFTER WHICH THE OFFICE SHALL MAKE A FINAL
DETERMINATION WHETHER THE POTENTIAL QUALIFIED ASSET IS A QUALIFIED
ASSET
. THE QUALIFIED APPLICANT SHALL INCLUDE A REVIEW OF THE
CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT THAT IS NOT
AFFILIATED WITH THE QUALIFIED APPLICANT AND THAT ALIGNS WITH OFFICE
POLICIES FOR CERTIFICATION OF A QUALIFIED INVESTMENT
. THE QUALIFIED
APPLICANT SHALL ALSO CERTIFY AND PROVIDE DOCUMENTS
DEMONSTRATING THAT THE QUALIFIED APPLICANT SATISFIED ANY
ADDITIONAL REQUIREMENTS IMPOSED BY THE SELECTION COMMITTEE
PURSUANT TO SUBSECTION
(7) OF THIS SECTION. WITHIN A REASONABLE
TIME AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE QUALIFIED
APPLICANT
, THE OFFICE SHALL REVIEW THE QUALIFIED APPLICANT 'S
DOCUMENTATION OF CERTIFIED QUALIFIED INVESTMENT
, DETERMINE
WHETHER THE DOCUMENTATION SATISFIES THE REQUIREMENTS OF THE
OFFICE
, AND, IF THE OFFICE DETERMINES THAT THE DOCUMENTATION
SATISFIES THE REQUIREMENTS OF THE OFFICE
, THE OFFICE SHALL ISSUE A TAX
CREDIT CERTIFICATE IN THE AMOUNT SPECIFIED IN THE TAX CREDIT
RESERVATION
, NOT TO EXCEED FIFTY PERCENT OF THE CERTIFIED QUALIFIED
INVESTMENT
, ISSUED TO THE QUALIFIED APPLICANT PURS UANT TO
SUBSECTION
(7) OF THIS SECTION; EXCEPT THAT A TAX CREDIT CERTIFICATE
MAY NOT BE ISSUED FOR AN INCOME TAX YEAR COMMENCING BEFORE
JANUARY 1, 2026, OR FOR AN INCOME TAX YEAR COMMENCING ON OR AFTER
JANUARY 1, 2033.
(9) Filing tax credit certificate with income tax return. (a) I
N
ORDER TO CLAIM THE TAX CREDIT AUTHORIZED BY THIS SECTION
, A
QUALIFIED APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY
THE OFFICE PURSUANT TO SUBSECTION
(8) OF THIS SECTION WITH THE
QUALIFIED APPLICANT
'S STATE INCOME TAX RETURN . IF THE QUALIFIED
APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR 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
.
PAGE 18-HOUSE BILL 24-1365 (b) 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
.
(10) Refundability. I
F THE AMOUNT OF THE TAX 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 TAX CREDIT IS BEING CLAIMED
, OR THE
QUALIFIED APPLICANT IS A POLITICAL SUBDIVISION OF THE STATE OR A
PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO SECTION
39-22-112
(1),
THE AMOUNT OF THE TAX CREDIT NOT USED AS AN OFFSET AGAINST
INCOME TAXES IN THE INCOME TAX YEAR IS REFUNDED TO THE QUALIFIED
APPLICANT
.
(11) Compliance monitoring and recapture. (a) E
XCEPT AS
PROVIDED IN SUBSECTION
(11)(b) OF THIS SECTION, IF, AS OF THE LAST DAY
OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD
, THE EQUIPMENT,
BUILDING, STRUCTURE, OR FACILITY THAT WAS DEEMED A QUALIFIED ASSET
IS NOT BEING USED AS A QUALIFIED ASSET
, THE OFFICE SHALL NOTIFY THE
QUALIFIED APPLICANT AND THE DEPARTMENT THAT THE TAX CREDIT
ALLOWED IN THIS SECTION IS DISALLOWED
. THE QUALIFIED APPLICANT
SHALL ADD THE FULL AMOUNT OF THE TAX 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 TAX CREDIT
FOR THE TAXABLE YEAR IN WHICH THE TAX CREDIT IS DISALLOWED
PURSUANT TO THIS SUBSECTION
(11).
(b) T
HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO
SUBSECTION
(11)(a) OF THIS SECTION DOES NOT APPLY:
(I) I
F A BUILDING, STRUCTURE, OR FACILITY IS NOT A QUALIFIED
ASSET AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY
RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD
ESTABLISHED BY THE OFFICE
;
(II) S
OLELY BY REASON OF THE DISPOSITION OF A BUILDING ,
PAGE 19-HOUSE BILL 24-1365 STRUCTURE, OR FACILITY, OR AN INTEREST THEREIN, IF IT IS REASONABLY
EXPECTED THAT THE BUILDING
, STRUCTURE, OR FACILITY WILL CONTINUE TO
BE OPERATED AS A QUALIFIED ASSET FOR THE REMAINDER OF THE
COMPLIANCE PERIOD
; OR
(III) IF A QUALIFYING 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
(11) THAT SHALL INCLUDE:
(A) A
DISPOSITION OF A QUALIFIED ASSET BY THE QUALIFIED
APPLICANT
;
(B) T
HE NUMBER OF ANNUAL TRAINEES WHO HAVE USED A
QUALIFIED ASSET
;
(C) T
HE GEOGRAPHIC DISTRIBUTION OF TRAINEES WHO HAVE USED
A QUALIFIED ASSET
;
(D) D
EMOGRAPHIC INFORMATION ABOUT THE TRAINEES WHO HAVE
USED A QUALIFIED ASSET
;
(E) T
HE LOCATION AND DISPOSITION OF ASSETS DISPLACED BY A
QUALIFIED ASSET
, IF ANY; AND
(F) TO THE EXTENT A QUALIFIED ASSET IS USED TO EXPAND OR
CREATE A TRAINING FACILITY
, AN ASSESSMENT OF TRAINING CAPACITY PRIOR
TO IMPLEMENTATION OF THE QUALIFIED ASSET
.
(II) I
F A DISPUTE ARISES ABOUT WHETHER A POTENTIAL QUALIFIED
ASSET IS A QUALIFIED ASSET
, THE OFFICE SHALL ADJUDICATE THE DISPUTE
AND NOTIFY THE DEPARTMENT OF THE RESOLUTION
.
(III) N
OTWITHSTANDING SECTION 39-21-107 (2), IF A QUALIFIED
ASSET IS DISPOSED OF DURING ANY TAXABLE YEAR DURING THE COMPLIANCE
PERIOD
, AND THEREAFTER THE ASSET IS NOT A QUALIFIED ASSET :
(A) T
HE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE
TAX CREDIT TO ITS RETURN AS A RECAPTURED TAX CREDIT FOR THE TAXABLE
PAGE 20-HOUSE BILL 24-1365 YEAR IN WHICH THE TAX CREDIT IS DISALLOWED PURSUANT TO THIS
SUBSECTION
(11) NOTWITHSTANDING THE DISPOSITION OF THE QUALIFIED
ASSET
;
(B) T
HE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY
DEFICIENCY WITH RESPECT TO THE DISALLOWED TAX 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 STRUCTURE IS NOT A QUALIFIED ASSET
; 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 (11), UNLESS THE CONTEXT
OTHERWISE REQUIRES
, "COMPLIANCE PERIOD" MEANS THE PERIOD OF FIFTEEN
YEARS FOLLOWING THE TAXABLE YEAR IN WHICH THE QUALIFIED APPLICANT
PLACED THE QUALIFIED ASSET IN SERVICE
.
(12) Reporting. (a) N
O LATER THAN DECEMBER 31, 2025, AND,
NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO
LATER THAN
DECEMBER 31 OF EACH YEAR 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) T
HE NUMBER OF QUALIFIED ASSETS PLACED IN SERVICE ;
(II) A
DESCRIPTION OF THE USE OR USES OF EACH QUALIFIED ASSET
AND A STATEWIDE SUMMARY OF THE NUMBER OF QUALIFIED ASSETS FOR
EACH USE
; AND
(III) THE AMOUNT OF ANY DISALLOWED TAX CREDIT RECAPTURED
PURSUANT TO SUBSECTION
(11) OF THIS SECTION.
(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
PAGE 21-HOUSE BILL 24-1365 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 TAX CREDIT; AND
(III) THE QUALIFIED APPLICANT'S SOCIAL SECURITY NUMBER OR THE
QUALIFIED APPLICANT
'S COLORADO ACCOUNT NUMBER AND FEDERAL
EMPLOYER IDENTIFICATION NUMBER
.
(c) T
HE OFFICE, THE OFFICE OF THE STATE AUDITOR, OR THE OFFICE
OF THE STATE CONTROLLER MAY REVIEW THE QUALIFIED APPLICANT
'S
FINANCES
, EXPENSES, EQUIPMENT, EMPLOYMENT , AND TRAINING
DOCUMENTATION RELATING TO A QUALIFIED INVESTMENT IN A QUALIFIED
ASSET
.
(13) Policies and procedures. (a) T
HE OFFICE MAY CREATE AND
MODIFY POLICIES
, PROCEDURES, AND GUIDELINES AS NECESSARY TO
FURTHER ADMINISTER THE TAX CREDITS ALLOWED PURSUANT TO THIS
SECTION AND SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING
AND MODIFYING SUCH POLICIES
, PROCEDURES, AND GUIDELINES.
(b) T
HE OFFICE SHALL DEVELOP STANDARDS FOR D ETERMINING
WHICH INDUSTRIES ARE INCLUDED AS A QUALIFIED INDUSTRY FOR WHICH A
TAX CREDIT UNDER THIS SECTION IS ALLOWED TO A QUALIFIED APPLICANT
.
(c) A
NY STANDARDS DEVELOPED BY THE OFFICE PURSUANT TO THIS
SUBSECTION
(13) MUST BE POSTED ON THE OFFICE'S WEBSITE. THE OFFICE
MAY ANNUALLY REVIEW AND UPDATE AS NECESSARY STANDARDS
DEVELOPED PURSUANT TO THIS SUBSECTION
(13).
(d) T
HE OFFICE SHALL DETERMINE THE ANNUAL APPLICATION
PERIOD
.
(14) Workforce development tax credit program cash fund.
(a) T
HE WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH FUND IS
CREATED IN THE STATE TREASURY
. THE FUND CONSISTS OF GIFTS, GRANTS,
DONATIONS, AND FEE REVENUE CREDITED TO THE FUND PURSUANT TO
SUBSECTION
(6) OF THIS SECTION AND ANY OTHER MONEY THAT THE
PAGE 22-HOUSE BILL 24-1365 GENERAL ASSEMBLY MAY APPROPRIATE , TRANSFER, OR REQUIRE BY LAW TO
BE CREDITED TO THE FUND
.
(b) T
HE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME
DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE
WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH FUND TO THE FUND
.
(c) M
ONEY IN THE FUND IS CONTINUOUSLY APPROPRIATED TO THE
OFFICE FOR THE PURPOSE OF ADMINISTERING THE TAX CREDIT ISSUED
PURSUANT TO THIS SECTION
.
(d) T
HE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND
UNENCUMBERED MONEY IN THE FUND ON
DECEMBER 31, 2050, TO THE
GENERAL FUND
.
(15) Repeal. T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,
2050.
SECTION 8. In Colorado Revised Statutes, 24-75-402, add
(5)(ggg) 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:
(ggg) T
HE WORKFORCE DEVELOPMENT TAX CREDIT PROGRAM CASH
FUND CREATED IN SECTION
39-22-565 (14).
SECTION 9. In Colorado Revised Statutes, 39-22-601, amend
(7)(b) as follows:
39-22-601. Returns - repeal. (7) (b) The executive director may
require a person or organization
NOT SUBJECT TO TAX UNDER THIS ARTICLE
22 OR A PERSON OR ORGANIZATION exempt from taxes pursuant to section
39-22-112 to make and file a return containing such information as the
executive director may prescribe to claim a credit allowed under this article
22 even if the person or organization does not have unrelated business
income.
PAGE 23-HOUSE BILL 24-1365 SECTION 10. Appropriation. For the 2024-25 state fiscal year,
$109,603 is appropriated to the office of the governor for use by the
economic development programs. This appropriation is from the general
fund and is based on an assumption that the office will require an additional
0.8 FTE. To implement this act, the office may use this appropriation for
opportunity now grant administration.
SECTION 11. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 24-HOUSE BILL 24-1365 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
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 25-HOUSE BILL 24-1365