SENATE BILL 24-016
BY SENATOR(S) Zenzinger and Smallwood, Buckner, Cutter, Exum,
Ginal, Gonzales, Hinrichsen, Marchman, Michaelson Jenet, Priola,
Sullivan, Winter F.;
also REPRESENTATIVE(S) Snyder and Taggart, Bird, Daugherty, Lieder,
Ortiz, Ricks, Soper, Woodrow.
C
ONCERNING QUALIFICATION FOR STATE INCOME TAX CREDITS FOR
CHARITABLE CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS
, AND,
IN CONNECTION THEREWITH, AUTHORIZING 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
, ALLOWING A TAX CREDIT CERTIFICATE FOR THE
COLORADO HOMELESS CONTRIBUTION TAX CREDIT TO INCLUDE ONLY
THE LAST FOUR DIGITS
, RATHER THAN ALL DIGITS, OF A TAXPAYER'S
SOCIAL SECURITY NUMBER
, AND MAKING AN APPROPRIATION .
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 39-22-548, amend
(3)(c) and (5)(f)(I) as follows:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. 39-22-548. Colorado homeless contribution tax credit -
legislative declaration - definitions - repeal. (3) (c) The approved
nonprofit organization that receives the allowable contribution shall issue
a tax credit certificate to each taxpayer that makes an allowable contribution
pursuant to subsections (3)(a) or (3)(b) of this section; except that the
approved nonprofit organization shall not issue tax credit certificates that
total more than seven hundred fifty thousand dollars per income tax year,
and if the approved nonprofit organization administers one or more
approved projects, in addition to providing a qualifying service, then the
approved nonprofit organization shall not issue tax credit certificates for
allowable contributions to one or more approved projects that total more
than an additional seven hundred fifty thousand dollars per income tax year.
The tax credit certificate must state
A UNIQUE CERTIFICATE IDENTIFICATION
NUMBER
, the amount of the allowable contribution, the taxpayer's name, the
LAST FOUR DIGITS OF THE taxpayer's social security number or THE
TAXPAYER
'S FULL federal employer identification number, the type of the
contribution, the date the taxpayer made the contribution, the amount of the
tax credit that is authorized for that taxpayer, and any other information that
the executive director of the department of revenue may require. Tax credit
certificates shall be issued in the order of received allowable contributions.
(5) (f) (I) No later than February 15, 2023
JUNE 30, 2025, the
division shall complete a review of every organization and project deemed
approved under subsection (5)(a)(II) of this section, and no later than
February 15, 2024
JUNE 30, 2026, and February 15 JUNE 30 of each year
thereafter, the division shall complete a review of every other approved
nonprofit organization and approved project to evaluate performance and
compliance with the requirements of this section. The division must review
the qualifying activities being provided and determine how the activities are
addressing current and emerging needs of individuals and families
experiencing homelessness in each approved nonprofit organization's
community, or, if applicable, each approved project's community.
SECTION 2. In Colorado Revised Statutes, add 39-22-630 as
follows:
39-22-630. Charitable contributions made through qualified
intermediaries - eligibility for income tax credits maintained -
definitions. (1) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER
PAGE 2-SENATE BILL 24-016 JANUARY 1, 2024, A TAXPAYER MAY CLAIM A CREDIT FOR MAKING A
CONTRIBUTION TO A QUALIFIED INTERMEDIARY TO THE SAME EXTENT THAT
THE TAXPAYER COULD CLAIM A CREDIT FOR MAKING THE CONTRIBUTION
DIRECTLY TO A RECIPIENT ORGANIZATION SO LONG AS THE RECIPIENT
ORGANIZATION IS APPROVED OR CERTIFIED
, TO THE EXTENT REQUIRED AND
IN ACCORDANCE WITH THE PROCESS REQUIRED BY THE LAW AUTHORIZING
THE CREDIT
, AS MEETING THE CRITERIA REQUIRED TO RECEIVE SUCH A
DIRECT CONTRIBUTION
. NOTHING IN THIS SUBSECTION (1) MODIFIES OR
ELIMINATES ANY OBLIGATION OF A RECIPIENT ORGANIZATION
, AS SET FORTH
IN A STATE LAW
, RULE, OR AGENCY GUIDELINE , TO ISSUE TAX CREDIT
CERTIFICATES
, COLLECT INFORMATION FROM DONORS , PROVIDE
INFORMATION TO THE DEPARTMENT OF REVENUE OR ANY OTHER STATE
AGENCY
, OR TAKE ANY OTHER ACTION NECESSARY FOR THE PROPER
ADMINISTRATION OF A CREDIT
.
(2) A
S USED IN THIS SECTION:
(a) "C
REDIT" MEANS ANY CREDIT AGAINST THE TAXES IMPOSED
PURSUANT TO THIS ARTICLE
22 OR ARTICLE 30 OF THIS TITLE THAT IS
AUTHORIZED BY LAW
.
(b) "Q
UALIFIED INTERMEDIARY" MEANS AN ORGANIZATION THAT HAS
ATTAINED TAX EXEMPT STATUS UNDER SECTION
501 (c)(3) OF THE INTERNAL
REVENUE CODE IF THE ORGANIZATION IS OBLIGATED
, EXCEPT WHEN
EXERCISING VARIANCE POWER AS REQUIRED OR AUTHORIZED BY LAW OR
FEDERAL REGULATIONS
, TO DISBURSE CONTRIBUTIONS RECEIVED FROM A
TAXPAYER TO A RECIPIENT ORGANIZATION AS DIRECTED BY THE TAXPAYER
.
(c) "R
ECIPIENT ORGANIZATION" MEANS AN ORGANIZATION THAT HAS
ATTAINED TAX EXEMPT STATUS UNDER SECTION
501 (c)(3) OF THE INTERNAL
REVENUE CODE AND INCLUDES ANY PROGRAM OR PROJECT OF THE
ORGANIZATION TO WHICH A TAXPAYER MAY MAKE A CONTRIBUTION FOR
WHICH THE TAXPAYER MAY CLAIM A CREDIT
.
SECTION 3. In Colorado Revised Statutes, 39-30-103.5, repeal
(5)(b) as follows:
39-30-103.5. Credit against tax - contributions to enterprise zone
administrators to implement economic development plans - repeal.
(5) (b) For income tax years commencing on and after January 1, 2013,
PAGE 3-SENATE BILL 24-016 contributions pursuant to this section may be made directly to an
organization that has attained tax exempt status under section 501 (c)(3) of
the federal "Internal Revenue Code of 1986", as amended, if such
organization is obligated to disburse the contribution as directed by the
taxpayer to a recipient organization that has attained tax exempt status
under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", as
amended, or to such recipient organization's program or project, so long as
either the recipient organization, program, or project is certified by the
enterprise zone administrator as meeting the criteria set forth in this section
for the purpose of receiving direct contributions as allowed in paragraph (a)
of this subsection (5).
SECTION 4. Appropriation. (1) For the 2024-25 state fiscal year,
$41,769 is appropriated to the department of revenue. This appropriation is
from the general fund. To implement this act, the department may use this
appropriation as follows:
(a) $22,029 for use by the taxation business group for personal
services related to taxation services, which amount is based on an
assumption that the division will require an additional 0.4 FTE;
(b) $7,182 for use by the taxation business group for operating
expenses related to taxation services;
(c) $7,416 for tax administration IT system (GenTax) support;
(d) $2,590 for use by the executive director's office for personal
services related to administration and support; and
(e) $2,552 for the purchase of document management.
(2) For the 2024-25 state fiscal year, $2,552 is appropriated to the
department of personnel. This appropriation is from reappropriated funds
received from the department of revenue under subsection (1)(e) of this
section. To implement this act, the department of personnel may use this
appropriation to provide document management services for the department
of revenue.
(3) For the 2024-25 state fiscal year, $5,000 is appropriated to the
department of local affairs. This appropriation is from the general fund. To
PAGE 4-SENATE BILL 24-016 implement this act, the department may use this appropriation for payments
to OIT.
SECTION 5. 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 5-SENATE BILL 24-016 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 6-SENATE BILL 24-016