Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0543.01 Jason Gelender x4330
SENATE BILL 24-016
Senate Committees House Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING QUALIFICATION FOR ST ATE INCOME TAX CREDITS FOR101
CHARITABLE CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS ,102
AND, IN CONNECTION THEREWITH , AUTHORIZING A TAXPAYER103
TO MAKE A CHARITABLE CONTRIBUTION FOR WHICH THE104
TAXPAYER MAY CLAIM A STATE INCOME TAX CREDIT TO A105
CHARITABLE RECIPIENT ORGANIZATION THROUGH A QUALIFIED106
INTERMEDIARY THAT FORWARDS TH E CONTRIBUTION TO THE107
CHARITABLE RECIPIENT ORGANIZATION ,
ALLOWING A TAX108
CREDIT CERTIFICATE FOR THE COLORADO HOM ELESS109
CONTRIBUTION TAX CREDIT TO INCLUDE ONLY THE LAST FOUR110
DIGITS, RATHER THAN ALL DIGITS , OF A TAXPAYER'S SOCIAL111
SECURITY NUMBER, AND MAKING AN APPROPRIATION .112
HOUSE
Amended 2nd Reading
May 6, 2024
SENATE
3rd Reading Unamended
March 13, 2024
SENATE
Amended 2nd Reading
March 12, 2024
SENATE SPONSORSHIP
Zenzinger and Smallwood, Buckner, Cutter, Exum, Ginal, Hinrichsen, Marchman,
Michaelson Jenet, Priola, Winter F.
HOUSE SPONSORSHIP
Snyder and Taggart,
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. 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
.)
A qualified intermediary is a charitable organization that collects
charitable contributions from donors and forwards the contributions to
charitable recipient organizations. The bill authorizes a taxpayer to make
a charitable contribution for which the taxpayer may claim a state income
tax credit to a charitable recipient organization through a qualified
intermediary that forwards the contribution to the charitable recipient
organization, rather than making the contribution directly to the charitable
recipient organization, without losing the right to claim the credit.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 39-22-548, amend2
(3)(c)
and (5)(f)(I) as follows:3
39-22-548. Colorado homeless contribution tax credit -4
legislative declaration - definitions - repeal. (3) (c) The approved5
nonprofit organization that receives the allowable contribution shall issue6
a tax credit certificate to each taxpayer that makes an allowable7
contribution pursuant to subsections (3)(a) or (3)(b) of this section; except8
that the approved nonprofit organization shall not issue tax credit9
certificates that total more than seven hundred fifty thousand dollars per10
income tax year, and if the approved nonprofit organization administers11
one or more approved projects, in addition to providing a qualifying12
service, then the approved nonprofit organization shall not issue tax credit13
certificates for allowable contributions to one or more approved projects14
that total more than an additional seven hundred fifty thousand dollars per15
income tax year. The tax credit certificate must state A UNIQUE16
016-2- CERTIFICATE IDENTIFICATION NUMBER, the amount of the allowable1
contribution, the taxpayer's name, the
LAST FOUR DIGITS OF THE taxpayer's2
social security number or
THE TAXPAYER'S FULL federal employer3
identification number, the type of the contribution, the date the taxpayer4
made the contribution, the amount of the tax credit that is authorized for5
that taxpayer, and any other information that the executive director of the6
department of revenue may require. Tax credit certificates shall be issued7
in the order of received allowable contributions.8
(5) (f) (I) No later than February 15, 2023 JUNE 30, 2025, the9
division shall complete a review of every organization and project10
deemed approved under subsection (5)(a)(II) of this section, and no later11
than February 15, 2024 JUNE 30, 2026, and February 15 JUNE 30 of each12
year thereafter, the division shall complete a review of every other13
approved nonprofit organization and approved project to evaluate14
performance and compliance with the requirements of this section. The15
division must review the qualifying activities being provided and16
determine how the activities are addressing current and emerging needs17
of individuals and families experiencing homelessness in each approved18
nonprofit organization's community, or, if applicable, each approved19
project's community.20
SECTION 2. In Colorado Revised Statutes, add 39-22-630 as21
follows:22
39-22-630. Charitable contributions made through qualified23
intermediaries - eligibility for income tax credits maintained -24
definitions. (1) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER25
J
ANUARY 1, 2024, A TAXPAYER MAY CLAIM A CREDIT FOR MAKING A26
CONTRIBUTION TO A QUALIFIED INTERMEDIARY TO THE SAME EXTENT27
016
-3- THAT THE TAXPAYER COULD CLAIM A CREDIT FOR MAKING THE1
CONTRIBUTION DIRECTLY TO A RECIPIENT ORGANIZATION SO LONG AS THE2
RECIPIENT ORGANIZATION IS APPROVED OR CERTIFIED , TO THE EXTENT3
REQUIRED AND IN ACCORDANCE WITH THE PROCESS REQUIRED BY THE LAW4
AUTHORIZING THE CREDIT , AS MEETING THE CRITERIA REQUIRED TO5
RECEIVE SUCH A DIRECT CONTRIBUTION. NOTHING IN THIS SUBSECTION (1)6
MODIFIES OR ELIMINATES ANY OBLIGATION OF A RECIPIENT7
ORGANIZATION, AS SET FORTH IN A STATE LAW , RULE, OR AGENCY8
GUIDELINE, TO ISSUE TAX CREDIT CERTIFICATES, COLLECT INFORMATION9
FROM DONORS, PROVIDE INFORMATION TO THE DEPARTMENT OF REVENUE10
OR ANY OTHER STATE AGENCY , OR TAKE ANY OTHER ACTION NECESSARY11
FOR THE PROPER ADMINISTRATION OF A CREDIT .12
(2) A
S USED IN THIS SECTION:13
(a) "C
REDIT" MEANS ANY CREDIT AGAINST THE TAXES IMPOSED14
PURSUANT TO THIS ARTICLE 22 OR ARTICLE 30 OF THIS TITLE THAT IS15
AUTHORIZED BY LAW.16
(b) "Q
UALIFIED INTERMEDIARY" MEANS AN ORGANIZATION THAT17
HAS ATTAINED TAX EXEMPT STATUS UNDER SECTION 501 (c)(3) OF THE18
INTERNAL REVENUE CODE.
IF THE ORGANIZATION IS OBLIGATED, EXCEPT19
WHEN EXERCISING VARIANCE POWER AS REQUIRED OR AUTHORIZED BY20
LAW OR FEDERAL REGULATIONS , TO DISBURSE CONTRIBUTIONS RECEIVED21
FROM A TAXPAYER TO A RECIPIENT ORGANIZATION AS DIRECTED BY THE22
TAXPAYER.23
(c) "R
ECIPIENT ORGANIZATION" MEANS AN ORGANIZATION THAT24
HAS ATTAINED TAX EXEMPT STATUS UNDER SECTION 501 (c)(3) OF THE25
INTERNAL REVENUE CODE.
AND INCLUDES ANY PROGRAM OR PROJECT OF26
THE ORGANIZATION TO WHICH A TAXPAYER MAY MAKE A CONTRIBUTION27
016
-4- FOR WHICH THE TAXPAYER MAY CLAIM A CREDIT .1
SECTION 3. In Colorado Revised Statutes, 39-30-103.5, repeal2
(5)(b) as follows:3
39-30-103.5. Credit against tax - contributions to enterprise4
zone administrators to implement economic development plans -5
repeal. (5) (b) For income tax years commencing on and after January6
1, 2013, contributions pursuant to this section may be made directly to an7
organization that has attained tax exempt status under section 501 (c)(3)8
of the federal "Internal Revenue Code of 1986", as amended, if such9
organization is obligated to disburse the contribution as directed by the10
taxpayer to a recipient organization that has attained tax exempt status11
under section 501 (c)(3) of the federal "Internal Revenue Code of 1986",12
as amended, or to such recipient organization's program or project, so13
long as either the recipient organization, program, or project is certified14
by the enterprise zone administrator as meeting the criteria set forth in15
this section for the purpose of receiving direct contributions as allowed16
in paragraph (a) of this subsection (5).17
SECTION 4. Appropriation. (1) For the 2024-25 state fiscal18
year, $41,769 is appropriated to the department of revenue. This19
appropriation is from the general fund. To implement this act, the20
department may use this appropriation as follows:21
(a) $22,029 for use by the taxation business group for personal22
services related to taxation services, which amount is based on an23
assumption that the division will require an additional 0.4 FTE;24
(b) $7,182 for use by the taxation business group for operating25
expenses related to taxation services;26
(c) $7,416 for tax administration IT system (GenTax) support;27
016
-5- (d) $2,590 for use by the executive director's office for personal1
services related to administration and support; and2
(e) $2,552 for the purchase of document management.3
(2) For the 2024-25 state fiscal year, $2,552 is appropriated to the4
department of personnel. This appropriation is from reappropriated funds5
received from the department of revenue under subsection (1)(e) of this6
section. To implement this act, the department of personnel may use this7
appropriation to provide document management services for the8
department of revenue.9
(3) For the 2024-25 state fiscal year, $5,000 is appropriated to the10
department of local affairs. This appropriation is from the general fund.11
To implement this act, the department may use this appropriation for12
payments to OIT.13
SECTION 5. Act subject to petition - effective date. This act14
takes effect at 12:01 a.m. on the day following the expiration of the15
ninety-day period after final adjournment of the general assembly; except16
that, if a referendum petition is filed pursuant to section 1 (3) of article V17
of the state constitution against this act or an item, section, or part of this18
act within such period, then the act, item, section, or part will not take19
effect unless approved by the people at the general election to be held in20
November 2024 and, in such case, will take effect on the date of the21
official declaration of the vote thereon by the governor.22
016
-6-