Colorado 2024 Regular Session

Colorado Senate Bill SB016 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0543.01 Jason Gelender x4330
1	8		SENATE BILL 24-016
2		-	BY SENATOR(S) Zenzinger and Smallwood, Buckner, Cutter, Exum,
3		-	Ginal, Gonzales, Hinrichsen, Marchman, Michaelson Jenet, Priola,
4		-	Sullivan, Winter F.;
5		-	also REPRESENTATIVE(S) Snyder and Taggart, Bird, Daugherty, Lieder,
6		-	Ortiz, Ricks, Soper, Woodrow.
	9	+	Senate Committees House Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
7	13		C
8		-	ONCERNING QUALIFICATION FOR STATE INCOME TAX CREDITS FOR
9		-	CHARITABLE CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS
10		-	, AND,
11		-	IN CONNECTION THEREWITH, AUTHORIZING A TAXPAYER TO MAKE A
12		-	CHARITABLE CONTRIBUTION FOR WHICH THE TAXPAYER MAY CLAIM
13		-	A STATE INCOME TAX CREDIT TO A CHARITABLE RECIPIENT
14		-	ORGANIZATION THROUGH A QUALIFIED INTERMEDIARY THAT
15		-	FORWARDS THE CONTRIBUTION TO THE CHARITABLE RECIPIENT
16		-	ORGANIZATION
17		-	, ALLOWING A TAX CREDIT CERTIFICATE FOR THE
18		-	COLORADO HOMELESS CONTRIBUTION TAX CREDIT TO INCLUDE ONLY
19		-	THE LAST FOUR DIGITS
20		-	, RATHER THAN ALL DIGITS, OF A TAXPAYER'S
21		-	SOCIAL SECURITY NUMBER
22		-	, AND MAKING AN APPROPRIATION .
23		-
24		-	Be it enacted by the General Assembly of the State of Colorado:
25		-	SECTION 1. In Colorado Revised Statutes, 39-22-548, amend
26		-	(3)(c) and (5)(f)(I) as follows:
27		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
28		-	officers and the Governor. To determine whether the Governor has signed the bill
29		-	or taken other action on it, please consult the legislative status sheet, the legislative
30		-	history, or the Session Laws.
31		-	________
32		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
33		-	through words or numbers indicate deletions from existing law and such material is not part of
34		-	the act. 39-22-548. Colorado homeless contribution tax credit -
35		-	legislative declaration - definitions - repeal. (3) (c) The approved
36		-	nonprofit organization that receives the allowable contribution shall issue
37		-	a tax credit certificate to each taxpayer that makes an allowable contribution
38		-	pursuant to subsections (3)(a) or (3)(b) of this section; except that the
39		-	approved nonprofit organization shall not issue tax credit certificates that
40		-	total more than seven hundred fifty thousand dollars per income tax year,
41		-	and if the approved nonprofit organization administers one or more
42		-	approved projects, in addition to providing a qualifying service, then the
43		-	approved nonprofit organization shall not issue tax credit certificates for
44		-	allowable contributions to one or more approved projects that total more
45		-	than an additional seven hundred fifty thousand dollars per income tax year.
46		-	The tax credit certificate must state
47		-	A UNIQUE CERTIFICATE IDENTIFICATION
48		-	NUMBER
49		-	, the amount of the allowable contribution, the taxpayer's name, the
50		-	LAST FOUR DIGITS OF THE taxpayer's social security number or THE
51		-	TAXPAYER
52		-	'S FULL federal employer identification number, the type of the
53		-	contribution, the date the taxpayer made the contribution, the amount of the
54		-	tax credit that is authorized for that taxpayer, and any other information that
55		-	the executive director of the department of revenue may require. Tax credit
56		-	certificates shall be issued in the order of received allowable contributions.
57		-	(5) (f) (I) No later than February 15, 2023
58		-	JUNE 30, 2025, the
59		-	division shall complete a review of every organization and project deemed
60		-	approved under subsection (5)(a)(II) of this section, and no later than
61		-	February 15, 2024
62		-	JUNE 30, 2026, and February 15 JUNE 30 of each year
63		-	thereafter, the division shall complete a review of every other approved
64		-	nonprofit organization and approved project to evaluate performance and
65		-	compliance with the requirements of this section. The division must review
66		-	the qualifying activities being provided and determine how the activities are
67		-	addressing current and emerging needs of individuals and families
68		-	experiencing homelessness in each approved nonprofit organization's
69		-	community, or, if applicable, each approved project's community.
70		-	SECTION 2. In Colorado Revised Statutes, add 39-22-630 as
71		-	follows:
72		-	39-22-630. Charitable contributions made through qualified
73		-	intermediaries - eligibility for income tax credits maintained -
	14	+	ONCERNING QUALIFICATION FOR ST ATE INCOME TAX CREDITS FOR101
	15	+	CHARITABLE CONTRIBUTIONS TO NONPROFIT ORGANIZATIONS ,102
	16	+	AND, IN CONNECTION THEREWITH , AUTHORIZING A TAXPAYER103
	17	+	TO MAKE A CHARITABLE CONTRIBUTION FOR WHICH THE104
	18	+	TAXPAYER MAY CLAIM A STATE INCOME TAX CREDIT TO A105
	19	+	CHARITABLE RECIPIENT ORGANIZATION THROUGH A QUALIFIED106
	20	+	INTERMEDIARY THAT FORWARDS TH E CONTRIBUTION TO THE107
	21	+	CHARITABLE RECIPIENT ORGANIZATION ,
	22	+	ALLOWING A TAX108
	23	+	CREDIT CERTIFICATE FOR THE COLORADO HOM ELESS109
	24	+	CONTRIBUTION TAX CREDIT TO INCLUDE ONLY THE LAST FOUR110
	25	+	DIGITS, RATHER THAN ALL DIGITS , OF A TAXPAYER'S SOCIAL111
	26	+	SECURITY NUMBER, AND MAKING AN APPROPRIATION .112
	27	+	HOUSE
	28	+	3rd Reading Unamended
	29	+	May 7, 2024
	30	+	HOUSE
	31	+	Amended 2nd Reading
	32	+	May 6, 2024
	33	+	SENATE
	34	+	3rd Reading Unamended
	35	+	March 13, 2024
	36	+	SENATE
	37	+	Amended 2nd Reading
	38	+	March 12, 2024
	39	+	SENATE SPONSORSHIP
	40	+	Zenzinger and Smallwood, Buckner, Cutter, Exum, Ginal, Hinrichsen, Marchman,
	41	+	Michaelson Jenet, Priola, Winter F.
	42	+	HOUSE SPONSORSHIP
	43	+	Snyder and Taggart, Bird, Daugherty, Lieder, Ortiz, Ricks, Soper, Woodrow
	44	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	45	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	46	+	Dashes through the words or numbers indicate deletions from existing law. Bill Summary
	47	+	(Note: This summary applies to this bill as introduced and does
	48	+	not reflect any amendments that may be subsequently adopted. If this bill
	49	+	passes third reading in the house of introduction, a bill summary that
	50	+	applies to the reengrossed version of this bill will be available at
	51	+	http://leg.colorado.gov
	52	+	.)
	53	+	A qualified intermediary is a charitable organization that collects
	54	+	charitable contributions from donors and forwards the contributions to
	55	+	charitable recipient organizations. The bill authorizes a taxpayer to make
	56	+	a charitable contribution for which the taxpayer may claim a state income
	57	+	tax credit to a charitable recipient organization through a qualified
	58	+	intermediary that forwards the contribution to the charitable recipient
	59	+	organization, rather than making the contribution directly to the charitable
	60	+	recipient organization, without losing the right to claim the credit.
	61	+	Be it enacted by the General Assembly of the State of Colorado:1
	62	+	SECTION 1. In Colorado Revised Statutes, 39-22-548, amend2
	63	+	(3)(c)
	64	+	and (5)(f)(I) as follows:3
	65	+	39-22-548. Colorado homeless contribution tax credit -4
	66	+	legislative declaration - definitions - repeal. (3) (c) The approved5
	67	+	nonprofit organization that receives the allowable contribution shall issue6
	68	+	a tax credit certificate to each taxpayer that makes an allowable7
	69	+	contribution pursuant to subsections (3)(a) or (3)(b) of this section; except8
	70	+	that the approved nonprofit organization shall not issue tax credit9
	71	+	certificates that total more than seven hundred fifty thousand dollars per10
	72	+	income tax year, and if the approved nonprofit organization administers11
	73	+	one or more approved projects, in addition to providing a qualifying12
	74	+	service, then the approved nonprofit organization shall not issue tax credit13
	75	+	certificates for allowable contributions to one or more approved projects14
	76	+	that total more than an additional seven hundred fifty thousand dollars per15
	77	+	income tax year. The tax credit certificate must state A UNIQUE16
	78	+	016-2- CERTIFICATE IDENTIFICATION NUMBER, the amount of the allowable1
	79	+	contribution, the taxpayer's name, the
	80	+	LAST FOUR DIGITS OF THE taxpayer's2
	81	+	social security number or
	82	+	THE TAXPAYER'S FULL federal employer3
	83	+	identification number, the type of the contribution, the date the taxpayer4
	84	+	made the contribution, the amount of the tax credit that is authorized for5
	85	+	that taxpayer, and any other information that the executive director of the6
	86	+	department of revenue may require. Tax credit certificates shall be issued7
	87	+	in the order of received allowable contributions.8
	88	+	(5) (f) (I) No later than February 15, 2023 JUNE 30, 2025, the9
	89	+	division shall complete a review of every organization and project10
	90	+	deemed approved under subsection (5)(a)(II) of this section, and no later11
	91	+	than February 15, 2024 JUNE 30, 2026, and February 15 JUNE 30 of each12
	92	+	year thereafter, the division shall complete a review of every other13
	93	+	approved nonprofit organization and approved project to evaluate14
	94	+	performance and compliance with the requirements of this section. The15
	95	+	division must review the qualifying activities being provided and16
	96	+	determine how the activities are addressing current and emerging needs17
	97	+	of individuals and families experiencing homelessness in each approved18
	98	+	nonprofit organization's community, or, if applicable, each approved19
	99	+	project's community.20
	100	+	SECTION 2. In Colorado Revised Statutes, add 39-22-630 as21
	101	+	follows:22
	102	+	39-22-630. Charitable contributions made through qualified23
	103	+	intermediaries - eligibility for income tax credits maintained -24
74	104		definitions. (1) F
75		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER
76		-	PAGE 2-SENATE BILL 24-016 JANUARY 1, 2024, A TAXPAYER MAY CLAIM A CREDIT FOR MAKING A
77		-	CONTRIBUTION TO A QUALIFIED INTERMEDIARY TO THE SAME EXTENT THAT
78		-	THE TAXPAYER COULD CLAIM A CREDIT FOR MAKING THE CONTRIBUTION
79		-	DIRECTLY TO A RECIPIENT ORGANIZATION SO LONG AS THE RECIPIENT
80		-	ORGANIZATION IS APPROVED OR CERTIFIED
81		-	, TO THE EXTENT REQUIRED AND
82		-	IN ACCORDANCE WITH THE PROCESS REQUIRED BY THE LAW AUTHORIZING
83		-	THE CREDIT
84		-	, AS MEETING THE CRITERIA REQUIRED TO RECEIVE SUCH A
85		-	DIRECT CONTRIBUTION
86		-	. NOTHING IN THIS SUBSECTION (1) MODIFIES OR
87		-	ELIMINATES ANY OBLIGATION OF A RECIPIENT ORGANIZATION
88		-	, AS SET FORTH
89		-	IN A STATE LAW
90		-	, RULE, OR AGENCY GUIDELINE , TO ISSUE TAX CREDIT
91		-	CERTIFICATES
92		-	, COLLECT INFORMATION FROM DONORS , PROVIDE
93		-	INFORMATION TO THE DEPARTMENT OF REVENUE OR ANY OTHER STATE
94		-	AGENCY
95		-	, OR TAKE ANY OTHER ACTION NECESSARY FOR THE PROPER
96		-	ADMINISTRATION OF A CREDIT
97		-	.
	105	+	OR INCOME TAX YEARS COMMENCING ON OR AFTER25
	106	+	J
	107	+	ANUARY 1, 2024, A TAXPAYER MAY CLAIM A CREDIT FOR MAKING A26
	108	+	CONTRIBUTION TO A QUALIFIED INTERMEDIARY TO THE SAME EXTENT27
	109	+	016
	110	+	-3- THAT THE TAXPAYER COULD CLAIM A CREDIT FOR MAKING THE1
	111	+	CONTRIBUTION DIRECTLY TO A RECIPIENT ORGANIZATION SO LONG AS THE2
	112	+	RECIPIENT ORGANIZATION IS APPROVED OR CERTIFIED , TO THE EXTENT3
	113	+	REQUIRED AND IN ACCORDANCE WITH THE PROCESS REQUIRED BY THE LAW4
	114	+	AUTHORIZING THE CREDIT , AS MEETING THE CRITERIA REQUIRED TO5
	115	+	RECEIVE SUCH A DIRECT CONTRIBUTION. NOTHING IN THIS SUBSECTION (1)6
	116	+	MODIFIES OR ELIMINATES ANY OBLIGATION OF A RECIPIENT7
	117	+	ORGANIZATION, AS SET FORTH IN A STATE LAW , RULE, OR AGENCY8
	118	+	GUIDELINE, TO ISSUE TAX CREDIT CERTIFICATES, COLLECT INFORMATION9
	119	+	FROM DONORS, PROVIDE INFORMATION TO THE DEPARTMENT OF REVENUE10
	120	+	OR ANY OTHER STATE AGENCY , OR TAKE ANY OTHER ACTION NECESSARY11
	121	+	FOR THE PROPER ADMINISTRATION OF A CREDIT .12
98	122		(2) A
99		-	S USED IN THIS SECTION:
	123	+	S USED IN THIS SECTION:13
100	124		(a) "C
101		-	REDIT" MEANS ANY CREDIT AGAINST THE TAXES IMPOSED
102		-	PURSUANT TO THIS ARTICLE
103		-	22 OR ARTICLE 30 OF THIS TITLE THAT IS
104		-	AUTHORIZED BY LAW
105		-	.
	125	+	REDIT" MEANS ANY CREDIT AGAINST THE TAXES IMPOSED14
	126	+	PURSUANT TO THIS ARTICLE 22 OR ARTICLE 30 OF THIS TITLE THAT IS15
	127	+	AUTHORIZED BY LAW.16
106	128		(b) "Q
107		-	UALIFIED INTERMEDIARY" MEANS AN ORGANIZATION THAT HAS
108		-	ATTAINED TAX EXEMPT STATUS UNDER SECTION
109		-	501 (c)(3) OF THE INTERNAL
110		-	REVENUE CODE IF THE ORGANIZATION IS OBLIGATED
111		-	, EXCEPT WHEN
112		-	EXERCISING VARIANCE POWER AS REQUIRED OR AUTHORIZED BY LAW OR
113		-	FEDERAL REGULATIONS
114		-	, TO DISBURSE CONTRIBUTIONS RECEIVED FROM A
115		-	TAXPAYER TO A RECIPIENT ORGANIZATION AS DIRECTED BY THE TAXPAYER
116		-	.
	129	+	UALIFIED INTERMEDIARY" MEANS AN ORGANIZATION THAT17
	130	+	HAS ATTAINED TAX EXEMPT STATUS UNDER SECTION 501 (c)(3) OF THE18
	131	+	INTERNAL REVENUE CODE.
	132	+	IF THE ORGANIZATION IS OBLIGATED, EXCEPT19
	133	+	WHEN EXERCISING VARIANCE POWER AS REQUIRED OR AUTHORIZED BY20
	134	+	LAW OR FEDERAL REGULATIONS , TO DISBURSE CONTRIBUTIONS RECEIVED21
	135	+	FROM A TAXPAYER TO A RECIPIENT ORGANIZATION AS DIRECTED BY THE22
	136	+	TAXPAYER.23
117	137		(c) "R
118		-	ECIPIENT ORGANIZATION" MEANS AN ORGANIZATION THAT HAS
119		-	ATTAINED TAX EXEMPT STATUS UNDER SECTION
120		-	501 (c)(3) OF THE INTERNAL
121		-	REVENUE CODE AND INCLUDES ANY PROGRAM OR PROJECT OF THE
122		-	ORGANIZATION TO WHICH A TAXPAYER MAY MAKE A CONTRIBUTION FOR
123		-	WHICH THE TAXPAYER MAY CLAIM A CREDIT
124		-	.
125		-	SECTION 3. In Colorado Revised Statutes, 39-30-103.5, repeal
126		-	(5)(b) as follows:
127		-	39-30-103.5. Credit against tax - contributions to enterprise zone
128		-	administrators to implement economic development plans - repeal.
129		-	(5) (b) For income tax years commencing on and after January 1, 2013,
130		-	PAGE 3-SENATE BILL 24-016 contributions pursuant to this section may be made directly to an
131		-	organization that has attained tax exempt status under section 501 (c)(3) of
132		-	the federal "Internal Revenue Code of 1986", as amended, if such
133		-	organization is obligated to disburse the contribution as directed by the
134		-	taxpayer to a recipient organization that has attained tax exempt status
135		-	under section 501 (c)(3) of the federal "Internal Revenue Code of 1986", as
136		-	amended, or to such recipient organization's program or project, so long as
137		-	either the recipient organization, program, or project is certified by the
138		-	enterprise zone administrator as meeting the criteria set forth in this section
139		-	for the purpose of receiving direct contributions as allowed in paragraph (a)
140		-	of this subsection (5).
141		-	SECTION 4. Appropriation. (1) For the 2024-25 state fiscal year,
142		-	$41,769 is appropriated to the department of revenue. This appropriation is
143		-	from the general fund. To implement this act, the department may use this
144		-	appropriation as follows:
145		-	(a) $22,029 for use by the taxation business group for personal
146		-	services related to taxation services, which amount is based on an
147		-	assumption that the division will require an additional 0.4 FTE;
148		-	(b) $7,182 for use by the taxation business group for operating
149		-	expenses related to taxation services;
150		-	(c) $7,416 for tax administration IT system (GenTax) support;
151		-	(d) $2,590 for use by the executive director's office for personal
152		-	services related to administration and support; and
153		-	(e) $2,552 for the purchase of document management.
154		-	(2) For the 2024-25 state fiscal year, $2,552 is appropriated to the
155		-	department of personnel. This appropriation is from reappropriated funds
156		-	received from the department of revenue under subsection (1)(e) of this
157		-	section. To implement this act, the department of personnel may use this
158		-	appropriation to provide document management services for the department
159		-	of revenue.
160		-	(3) For the 2024-25 state fiscal year, $5,000 is appropriated to the
161		-	department of local affairs. This appropriation is from the general fund. To
162		-	PAGE 4-SENATE BILL 24-016 implement this act, the department may use this appropriation for payments
163		-	to OIT.
164		-	SECTION 5. Act subject to petition - effective date. This act
165		-	takes effect at 12:01 a.m. on the day following the expiration of the
166		-	ninety-day period after final adjournment of the general assembly; except
167		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
168		-	of the state constitution against this act or an item, section, or part of this act
169		-	within such period, then the act, item, section, or part will not take effect
170		-	unless approved by the people at the general election to be held in
171		-	PAGE 5-SENATE BILL 24-016 November 2024 and, in such case, will take effect on the date of the official
172		-	declaration of the vote thereon by the governor.
173		-	____________________________ ____________________________
174		-	Steve Fenberg Julie McCluskie
175		-	PRESIDENT OF SPEAKER OF THE HOUSE
176		-	THE SENATE OF REPRESENTATIVES
177		-	____________________________ ____________________________
178		-	Cindi L. Markwell Robin Jones
179		-	SECRETARY OF CHIEF CLERK OF THE HOUSE
180		-	THE SENATE OF REPRESENTATIVES
181		-	APPROVED________________________________________
182		-	(Date and Time)
183		-	_________________________________________
184		-	Jared S. Polis
185		-	GOVERNOR OF THE STATE OF COLORADO
186		-	PAGE 6-SENATE BILL 24-016
	138	+	ECIPIENT ORGANIZATION" MEANS AN ORGANIZATION THAT24
	139	+	HAS ATTAINED TAX EXEMPT STATUS UNDER SECTION 501 (c)(3) OF THE25
	140	+	INTERNAL REVENUE CODE.
	141	+	AND INCLUDES ANY PROGRAM OR PROJECT OF26
	142	+	THE ORGANIZATION TO WHICH A TAXPAYER MAY MAKE A CONTRIBUTION27
	143	+	016
	144	+	-4- FOR WHICH THE TAXPAYER MAY CLAIM A CREDIT .1
	145	+	SECTION 3. In Colorado Revised Statutes, 39-30-103.5, repeal2
	146	+	(5)(b) as follows:3
	147	+	39-30-103.5. Credit against tax - contributions to enterprise4
	148	+	zone administrators to implement economic development plans -5
	149	+	repeal. (5) (b) For income tax years commencing on and after January6
	150	+	1, 2013, contributions pursuant to this section may be made directly to an7
	151	+	organization that has attained tax exempt status under section 501 (c)(3)8
	152	+	of the federal "Internal Revenue Code of 1986", as amended, if such9
	153	+	organization is obligated to disburse the contribution as directed by the10
	154	+	taxpayer to a recipient organization that has attained tax exempt status11
	155	+	under section 501 (c)(3) of the federal "Internal Revenue Code of 1986",12
	156	+	as amended, or to such recipient organization's program or project, so13
	157	+	long as either the recipient organization, program, or project is certified14
	158	+	by the enterprise zone administrator as meeting the criteria set forth in15
	159	+	this section for the purpose of receiving direct contributions as allowed16
	160	+	in paragraph (a) of this subsection (5).17
	161	+	SECTION 4. Appropriation. (1) For the 2024-25 state fiscal18
	162	+	year, $41,769 is appropriated to the department of revenue. This19
	163	+	appropriation is from the general fund. To implement this act, the20
	164	+	department may use this appropriation as follows:21
	165	+	(a) $22,029 for use by the taxation business group for personal22
	166	+	services related to taxation services, which amount is based on an23
	167	+	assumption that the division will require an additional 0.4 FTE;24
	168	+	(b) $7,182 for use by the taxation business group for operating25
	169	+	expenses related to taxation services;26
	170	+	(c) $7,416 for tax administration IT system (GenTax) support;27
	171	+	016
	172	+	-5- (d) $2,590 for use by the executive director's office for personal1
	173	+	services related to administration and support; and2
	174	+	(e) $2,552 for the purchase of document management.3
	175	+	(2) For the 2024-25 state fiscal year, $2,552 is appropriated to the4
	176	+	department of personnel. This appropriation is from reappropriated funds5
	177	+	received from the department of revenue under subsection (1)(e) of this6
	178	+	section. To implement this act, the department of personnel may use this7
	179	+	appropriation to provide document management services for the8
	180	+	department of revenue.9
	181	+	(3) For the 2024-25 state fiscal year, $5,000 is appropriated to the10
	182	+	department of local affairs. This appropriation is from the general fund.11
	183	+	To implement this act, the department may use this appropriation for12
	184	+	payments to OIT.13
	185	+	SECTION 5. Act subject to petition - effective date. This act14
	186	+	takes effect at 12:01 a.m. on the day following the expiration of the15
	187	+	ninety-day period after final adjournment of the general assembly; except16
	188	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V17
	189	+	of the state constitution against this act or an item, section, or part of this18
	190	+	act within such period, then the act, item, section, or part will not take19
	191	+	effect unless approved by the people at the general election to be held in20
	192	+	November 2024 and, in such case, will take effect on the date of the21
	193	+	official declaration of the vote thereon by the governor.22
	194	+	016
	195	+	-6-