A Bill for an Act
Page 1, Line 101Concerning authorizing the department of the treasury to
Page 1, Line 102sell tax credits to qualified taxpayers, and, in
Page 1, Line 103connection therewith, transferring the proceeds to
Page 1, Line 104the general fund.
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.)
The bill authorizes the department of the treasury (department) to issue insurance premium tax credits to insurance companies that are authorized to do business in Colorado and incur premium tax liability, subject to procedures established by the department. The department may contract or consult with an independent third party to manage the bidding process. The department is required to issue an insurance premium tax credit certificate to each successful purchaser.
A qualified taxpayer may claim the insurance premium tax credit against its premium tax liability. The department, in consultation with the office of state planning and budgeting, prior to the sale of an insurance premium tax credit, may determine the calendar years in which the qualified taxpayer may claim the qualified taxpayer's tax credit against the qualified taxpayer's premium tax liability. The amount of the credit claimed cannot exceed the taxpayer's premium tax liability for a given year. The unused amount carries forward and may be claimed in subsequent years; except that a credit cannot be claimed for premium tax liability incurred in a taxable year that begins after December 31, 2033.
The proceeds from the issuance of insurance premium tax credits must be deposited in the general fund.
The bill also authorizes the department to issue income tax credits to C corporations that are authorized to do business in Colorado and incur income tax liability, subject to procedures established by the department. The department may contract or consult with an independent third party to manage the bidding process. The department is required to issue an income tax credit certificate to each successful purchaser.
A qualified taxpayer may claim the income tax credit against its income tax liability. The department, in consultation with the office of state planning and budgeting, prior to the sale of an income tax credit, may determine the calendar years in which the qualified taxpayer may claim the qualified taxpayer's tax credit against the qualified taxpayer's income tax liability. The amount of the credit claimed cannot exceed the taxpayer's income tax liability for a given year. The unused amount carries forward and may be claimed in subsequent years; except that a credit cannot be claimed for income tax liability incurred in a taxable year that begins after December 31, 2033.
The proceeds from the issuance of income tax credits must be deposited in the general fund.
The department is authorized to issue up to a total of $125 million in insurance premium tax credit certificates and income tax credit certificates in fiscal year 2025-26.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add part 4 to article 36 of title 24 as follows:
Page 2, Line 3PART 4
SALE OF INSURANCE PREMIUM TAX CREDITS
Page 3, Line 124-36-401. Legislative declaration - tax preference
Page 3, Line 2performance statement. (1) The general assembly finds and declares that:
Page 3, Line 3(a) The insurance premium tax credits authorized by this
Page 3, Line 4part 4 are not refundable and do not impose an obligation of payment in any future year on the state;
Page 3, Line 5(b) The use of proceeds from the sale of insurance premium
Page 3, Line 6tax credits does not require the state to borrow money, extend
Page 3, Line 7or pledge the state's credit, or obligate the state to make future payments from state revenue;
Page 3, Line 8(c) The sale and use of the tax credits shall not be deemed
Page 3, Line 9or construed as creating indebtedness or other financial
Page 3, Line 10obligation whatsoever within the meaning of any provision of
Page 3, Line 11the state constitution or the laws of the state concerning or
Page 3, Line 12limiting the creation of indebtedness or other financial obligation by the state;
Page 3, Line 13(d) The tax credits allow an insurance company with an
Page 3, Line 14insurance premium tax liability to prepay its tax liability for
Page 3, Line 15future years, which does not constitute a tax policy change under section 20 (4)(a) of article X of the state constitution; and
Page 3, Line 16(e) Any proceeds from the sale of the tax credits will be
Page 3, Line 17offset by decreases in future revenue resulting from the buyer's
Page 3, Line 18use of the tax credits and therefore will not cause a net tax
Page 3, Line 19revenue gain under section 20 (4)(a) of article X of the state constitution.
Page 3, Line 20(2) (a) In accordance with section 39-21-304 (1), which
Page 4, Line 1requires each bill that creates a new tax expenditure to include
Page 4, Line 2a tax preference performance statement as part of a statutory
Page 4, Line 3legislative declaration, the general assembly further finds and
Page 4, Line 4declares that the general purposes of the tax credits provided
Page 4, Line 5for in this part 4 are to induce certain designated behavior by
Page 4, Line 6taxpayers and provide a reduction in insurance premium tax
Page 4, Line 7liability for certain businesses. Specifically, this tax
Page 4, Line 8expenditure is intended to induce insurance companies to
Page 4, Line 9purchase tax credits that will reduce their future insurance
Page 4, Line 10premium tax liability in order to generate money for the general fund.
Page 4, Line 11(b) The general assembly and the state auditor shall
Page 4, Line 12measure the effectiveness of the tax credits in achieving the
Page 4, Line 13purposes specified in subsection (2)(a) of this section based on the
Page 4, Line 14number and value of the credits claimed and the total amount
Page 4, Line 15of general fund money generated. The department shall provide
Page 4, Line 16the state auditor with information regarding the total amount of credits claimed and the general fund money generated.
Page 4, Line 1724-36-402. Definitions.As used in this part 4, unless the context otherwise requires:
Page 4, Line 18(1) "Department" means the department of the treasury.
Page 4, Line 19(2) "Premium tax liability" means the liability imposed by
Page 4, Line 20section 10-3-209 or 10-6-128, or, in the case of a repeal or
Page 4, Line 21reduction by the state of the liability imposed by section
Page 4, Line 2210-3-209 or 10-6-128, any other tax liability imposed upon an insurance company by the state.
Page 4, Line 23(3) "Qualified taxpayer" means an insurance company
Page 5, Line 1authorized to do business in Colorado that has premium tax
Page 5, Line 2liability owing to the state and that purchases a tax credit
Page 5, Line 3under this part 4. "Qualified taxpayer" also includes an
Page 5, Line 4insurance company that receives or assumes a tax credit
Page 5, Line 5transferred in accordance with section 24-36-403 (7)(e) or 24-36-404 (5).
Page 5, Line 6(4) "Tax credit" means the tax credit created in section 24-36-403.
Page 5, Line 7(5) "Tax credit sale proceeds" or "sale proceeds" means
Page 5, Line 8the money or other liquid asset acceptable to the state
Page 5, Line 9treasurer that a qualified taxpayer pays to the department that is deposited in the general fund.
Page 5, Line 1024-36-403. Insurance premium tax credits - purchase -
Page 5, Line 11authorization to issue - terms - report. (1) A qualified taxpayer
Page 5, Line 12may purchase insurance premium tax credits from the
Page 5, Line 13department in accordance with this section and may apply the
Page 5, Line 14tax credits against its premium tax liability in accordance with section 24-36-404.
Page 5, Line 15(2) (a) The department is authorized to issue tax credit
Page 5, Line 16certificates to qualified taxpayers pursuant to this part 4 and
Page 5, Line 17part 5 of this article 36 equal to the lesser of a total face value
Page 5, Line 18of up to one hundred twenty-five million dollars or total sales proceeds of up to one hundred million dollars.
Page 5, Line 19(b) The department may contract with an independent
Page 5, Line 20third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.
Page 5, Line 21(c) The department shall consult with insurance
Page 6, Line 1companies in advance of issuing any tax credits in accordance with this section.
Page 6, Line 2(3) An insurance company authorized to do business in
Page 6, Line 3Colorado seeking to purchase tax credits must apply to the department in the manner prescribed by the department.
Page 6, Line 4(4) Using procedures adopted by the department or, if
Page 6, Line 5applicable, by an independent third party, each insurance
Page 6, Line 6company that submits an application shall make a timely and
Page 6, Line 7irrevocable offer, contingent only on the department's issuance
Page 6, Line 8to the insurance company of the tax credit certificates, to make
Page 6, Line 9a specified purchase payment amount to the department on dates
Page 6, Line 10specified by the department, which must not burden any single tax year. The offer must include:
Page 6, Line 11(a) The requested amount of tax credits, which must not
Page 6, Line 12be less than any minimum amount established in procedures by the department or, if applicable, the independent third party;
Page 6, Line 13(b) The qualified taxpayer's proposed tax credit purchase
Page 6, Line 14amount for each tax credit dollar requested. The minimum proposed tax credit purchase amount must be either:
Page 6, Line 15(I) The percentage of the requested dollar amount of tax
Page 6, Line 16credits that the department and, if applicable, the independent
Page 6, Line 17third party determines to be consistent with market conditions as of the offer date; or
Page 6, Line 18(II) If no amount is established by the department or
Page 6, Line 19independent third party pursuant to subsection (4)(b)(I) of this
Page 6, Line 20section, seventy-five percent of the requested dollar amount of
Page 6, Line 21tax credits; and
Page 7, Line 1(c) Any other information the department or, if applicable, the independent third party requires.
Page 7, Line 2(5) The department shall provide written notice to each
Page 7, Line 3insurance company that submits an application indicating
Page 7, Line 4whether the insurance company has been approved as a
Page 7, Line 5purchaser of tax credits and, if so, the amount of tax credits
Page 7, Line 6allocated and the date by which payment of the tax credit sale proceeds must be made.
Page 7, Line 7(6) On receipt of payment of the sale proceeds, the
Page 7, Line 8department shall issue to each qualified taxpayer a tax credit certificate. The tax credit certificate must state:
Page 7, Line 9(a) The total amount of premium tax credits that the qualified taxpayer may claim;
Page 7, Line 10(b) The amount that the qualified taxpayer has paid or
Page 7, Line 11agreed to pay in return for the issuance of the tax credit certificates and the date of the payment;
Page 7, Line 12(c) The dates on which the tax credits will be available for use by the qualified taxpayer;
Page 7, Line 13(d) Any penalties or other remedies for noncompliance;
Page 7, Line 14(e) The procedures to be used for transferring or
Page 7, Line 15assuming the tax credits in accordance with subsection (7)(e) of this section or section 24-36-404 (5);
Page 7, Line 16(f) The serial number of the tax credit certificate; and
Page 7, Line 17(g) Any other requirements deemed necessary by the department as a condition of issuing the tax credit certificate.
Page 7, Line 18(7) (a) The department shall not issue a tax credit
Page 7, Line 19certificate to any qualified taxpayer that fails to provide the
Page 8, Line 1tax credit sale proceeds within the time the department specifies.
Page 8, Line 2(b) A qualified taxpayer that fails to provide the tax
Page 8, Line 3credit sale proceeds within the time the department specifies is
Page 8, Line 4subject to a penalty equal to ten percent of the amount of the
Page 8, Line 5purchase price that remains unpaid. The penalty must be paid to the department within thirty days after demand.
Page 8, Line 6(c) The department may offer to reallocate the defaulted
Page 8, Line 7tax credits among other qualified taxpayers, so that the result
Page 8, Line 8after reallocation is the same as if the initial allocation had
Page 8, Line 9been performed without considering the tax credit allocation to the defaulting qualified taxpayer.
Page 8, Line 10(d) If the reallocation of tax credits under subsection
Page 8, Line 11(7)(c) of this section results in the payment by another qualified
Page 8, Line 12taxpayer of the amount of tax credit sale proceeds not paid by
Page 8, Line 13the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (7)(b) of this section.
Page 8, Line 14(e) A qualified taxpayer that fails to pay the tax credit
Page 8, Line 15sale proceeds within the time specified may avoid the imposition
Page 8, Line 16of the penalty by transferring the allocation of tax credits to
Page 8, Line 17a new or existing qualified taxpayer within thirty days after the
Page 8, Line 18due date of the defaulted installment. Any transferee of an
Page 8, Line 19allocation of tax credits of a defaulting qualified taxpayer
Page 8, Line 20under this subsection (7) shall agree to pay the tax credit sale proceeds within five days after the date of the transfer.
Page 8, Line 21(8) The tax credit sale proceeds provided by a qualifying
Page 8, Line 22taxpayer in return for a tax credit certificate must be deposited in the general fund.
Page 9, Line 1(9) (a) The department shall provide, within thirty days
Page 9, Line 2after the close of the fiscal year, a report to the division of
Page 9, Line 3insurance in the department of regulatory agencies and the
Page 9, Line 4department of revenue for each fiscal year in which it issues tax
Page 9, Line 5credit certificates pursuant to this part 4. The report must include:
Page 9, Line 6(I) The name and identifying number issued by the
Page 9, Line 7National Association of Insurance Commissioners, or any
Page 9, Line 8successor organization, of each qualified taxpayer to which the department issued a tax credit certificate;
Page 9, Line 9(II) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 9, Line 10(III) The serial number of the tax credit certificate issued to the qualified taxpayer.
Page 9, Line 11(b) The department shall maintain records of each tax
Page 9, Line 12credit certificate issued, transferred, or assumed that are
Page 9, Line 13sufficient to allow the department of revenue or the division of
Page 9, Line 14insurance in the department of regulatory agencies to verify
Page 9, Line 15the issuance and ownership of the credit. The department shall
Page 9, Line 16provide the records to the office of the state auditor upon
Page 9, Line 17request so that the state auditor can evaluate the
Page 9, Line 18effectiveness of the tax credits in accordance with sections 24-36-401 (2)(b) and 39-21-305.
Page 9, Line 19(10) The department may pay an independent third party
Page 9, Line 20and any consultants reasonable and necessary administrative,
Page 9, Line 21monitoring, and closing costs using the proceeds from the sale of tax credits.
Page 10, Line 124-36-404. Use of insurance premium tax credits - carry over.
Page 10, Line 2(1) For a tax credit certificate issued in fiscal year 2025-26, the
Page 10, Line 3department, in consultation with the office of state planning
Page 10, Line 4and budgeting, prior to the sale, may determine the calendar
Page 10, Line 5years in which the qualified taxpayer may claim the qualified
Page 10, Line 6taxpayer's tax credit against the qualified taxpayer's premium tax liability.
Page 10, Line 7(2) The total credit to be applied by a qualified taxpayer
Page 10, Line 8in any one year must not exceed the premium tax liability of the
Page 10, Line 9qualified taxpayer for the taxable year. If the qualified
Page 10, Line 10taxpayer cannot use the entire amount of the tax credit for the
Page 10, Line 11taxable year in which the taxpayer is eligible for the credit, the
Page 10, Line 12excess may be carried over to succeeding taxable years and
Page 10, Line 13used as a credit against the premium tax liability of the
Page 10, Line 14taxpayer for those taxable years; except that the credit may
Page 10, Line 15not be carried over to any taxable year that begins after
Page 10, Line 16December 31, 2033. Any amount of the credit that is not timely claimed expires and is not refundable.
Page 10, Line 17(3) A qualified taxpayer claiming a credit under this part 4 shall submit the tax credit certificate with its tax return.
Page 10, Line 18(4) A qualified taxpayer claiming a tax credit under this
Page 10, Line 19part 4 shall not be required to pay any additional or retaliatory tax as a result of claiming the credit.
Page 10, Line 20(5) If a qualified taxpayer holding an unclaimed tax
Page 10, Line 21credit is part of a merger, acquisition, or line of business
Page 10, Line 22divestiture transaction, the tax credit may be transferred to
Page 11, Line 1and assumed by the resulting entity if the resulting entity is an
Page 11, Line 2insurance company authorized to do business in Colorado that
Page 11, Line 3has premium tax liability. The qualified taxpayer that
Page 11, Line 4originally purchased the credit and the resulting entity shall
Page 11, Line 5notify the department in writing of the transfer or assumption
Page 11, Line 6of the credit in accordance with procedures adopted by the
Page 11, Line 7department. The transfer or assumption of the tax credit does
Page 11, Line 8not affect the time schedule for claiming the tax credit as provided in this section.
Page 11, Line 9(6) The department shall provide a report to the division
Page 11, Line 10of insurance in the department of regulatory agencies for each
Page 11, Line 11fiscal year in which it issues tax credit certificates pursuant to
Page 11, Line 12this part 4 within thirty days after the close of the fiscal year. The report must include:
Page 11, Line 13(a) The name and identifying number issued by the
Page 11, Line 14National Association of Insurance Commissioners, or any
Page 11, Line 15successor organization, of each qualified taxpayer to which the department issued a tax credit certificate;
Page 11, Line 16(b) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 11, Line 17(c) The serial number of the tax credit certificate issued,
Page 11, Line 18transferred, or assumed that is sufficient to allow the division
Page 11, Line 19of insurance in the department of regulatory agencies to verify the issuance and ownership of the tax credit.
Page 11, Line 2024-36-405. Repeal of part.This part 4 is repealed, effective December 31, 2040.
Page 11, Line 21SECTION 2. In Colorado Revised Statutes, add part 5 to article 36 of title 24 as follows:
Page 12, Line 1PART 5
SALE OF CORPORATE TAX CREDITS
Page 12, Line 224-36-501. Legislative declaration - tax preference
Page 12, Line 3performance statement. (1) The general assembly finds and declares that:
Page 12, Line 4(a) The corporate tax credits authorized by this part 5 are
Page 12, Line 5not refundable and do not impose an obligation of payment in any future year on the state;
Page 12, Line 6(b) The use of proceeds from the sale of corporate tax
Page 12, Line 7credits does not require the state to borrow money, extend or
Page 12, Line 8pledge the state's credit, or obligate the state to make future payments from state revenue;
Page 12, Line 9(c) The sale and use of the corporate tax credits shall
Page 12, Line 10not be deemed or construed as creating indebtedness or other
Page 12, Line 11financial obligation whatsoever within the meaning of any
Page 12, Line 12provision of the state constitution or the laws of the state
Page 12, Line 13concerning or limiting the creation of indebtedness or other financial obligation by the state;
Page 12, Line 14(d) The tax credits allow a corporation with an income
Page 12, Line 15tax liability to prepay its tax liability for future years, which
Page 12, Line 16does not constitute a tax policy change under section 20 (4)(a) of article X of the state constitution; and
Page 12, Line 17(e) Any proceeds from the sale of the tax credits will be
Page 12, Line 18offset by decreases in future revenue resulting from the buyer's
Page 12, Line 19use of the tax credits and therefore will not cause a net tax
Page 12, Line 20revenue gain under section 20 (4)(a) of article X of the state constitution.
Page 13, Line 1(2) (a) In accordance with section 39-21-304 (1), which
Page 13, Line 2requires each bill that creates a new tax expenditure to include
Page 13, Line 3a tax preference performance statement as part of a statutory
Page 13, Line 4legislative declaration, the general assembly further finds and
Page 13, Line 5declares that the general purposes of the tax credits provided
Page 13, Line 6for in this part 5 are to induce certain designated behavior by
Page 13, Line 7taxpayers and provide a reduction in income tax liability for
Page 13, Line 8certain businesses. Specifically, this tax expenditure is intended
Page 13, Line 9to induce C corporations to purchase tax credits that will
Page 13, Line 10reduce their future income tax liability in order to generate money for the general fund.
Page 13, Line 11(b) The general assembly and the state auditor shall
Page 13, Line 12measure the effectiveness of the tax credits in achieving the
Page 13, Line 13purposes specified in subsection (2)(a) of this section based on the
Page 13, Line 14number and value of the credits claimed and the total amount
Page 13, Line 15of general fund money generated. The department shall provide
Page 13, Line 16the state auditor with information regarding the total amount of credits claimed and the general fund money generated.
Page 13, Line 1724-36-502. Definitions.As used in this part 5, unless the context otherwise requires:
Page 13, Line 18(1) "Department" means the department of the treasury.
Page 13, Line 19(2) "Income tax liability" means the liability imposed by section 39-22-301.
Page 13, Line 20(3) "Qualified taxpayer" means a C corporation
Page 13, Line 21authorized to do business in Colorado that has income tax
Page 13, Line 22liability owing to the state and that purchases a tax credit
Page 14, Line 1under this part 5. "Qualified taxpayer" also includes a C
Page 14, Line 2corporation that receives or assumes a tax credit transferred in accordance with section 24-36-503 (7)(e) or 24-36-504 (5).
Page 14, Line 3(4) "Tax credit" means the tax credit created in section 24-36-503.
Page 14, Line 4(5) "Tax credit sale proceeds" or "sale proceeds" means
Page 14, Line 5the money or other liquid asset acceptable to the state
Page 14, Line 6treasurer that a qualified taxpayer pays to the department that is deposited in the general fund.
Page 14, Line 724-36-503. Corporate tax credits - purchase - authorization to
Page 14, Line 8issue - terms - report. (1) A qualified taxpayer may purchase
Page 14, Line 9income tax credits from the department in accordance with this
Page 14, Line 10section and may apply the tax credits against its income tax liability in accordance with section 24-36-504.
Page 14, Line 11(2) (a) The department is authorized to issue tax credit
Page 14, Line 12certificates to qualified taxpayers pursuant to this part 5 and
Page 14, Line 13part 4 of this article 36 equal to the lesser of a total face value
Page 14, Line 14of up to one hundred twenty-five million dollars or total sales proceeds of up to one hundred million dollars.
Page 14, Line 15(b) The department may contract with an independent
Page 14, Line 16third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.
Page 14, Line 17(c) The department shall consult with C corporations in
Page 14, Line 18advance of issuing any tax credits in accordance with this section.
Page 14, Line 19(3) A C corporation authorized to do business in Colorado
Page 14, Line 20seeking to purchase tax credits must apply to the department in the manner prescribed by the department.
Page 15, Line 1(4) Using procedures adopted by the department or, if
Page 15, Line 2applicable, by an independent third party, each C corporation
Page 15, Line 3that submits an application shall make a timely and irrevocable
Page 15, Line 4offer, contingent only on the department's issuance to the C
Page 15, Line 5corporation of the tax credit certificates, to make a specified
Page 15, Line 6purchase payment amount to the department on dates specified
Page 15, Line 7by the department, which must not burden any single tax year. The offer must include:
Page 15, Line 8(a) The requested amount of tax credits, which must not
Page 15, Line 9be less than any minimum amount established in procedures by the department or, if applicable, the independent third party;
Page 15, Line 10(b) The qualified taxpayer's proposed tax credit purchase
Page 15, Line 11amount for each tax credit dollar requested. The minimum proposed tax credit purchase amount must be either:
Page 15, Line 12(I) The percentage of the requested dollar amount of tax
Page 15, Line 13credits that the department and, if applicable, the independent
Page 15, Line 14third party determines to be consistent with market conditions as of the offer date; or
Page 15, Line 15(II) If no amount is established by the department or
Page 15, Line 16independent third party pursuant to subsection (4)(b)(I) of this
Page 15, Line 17section, seventy-five percent of the requested dollar amount of tax credits; and
Page 15, Line 18(c) Any other information the department or, if applicable, the independent third party requires.
Page 15, Line 19(5) The department shall provide written notice to each
Page 15, Line 20C corporation that submits an application indicating whether
Page 16, Line 1the C corporation has been approved as a purchaser of tax
Page 16, Line 2credits and, if so, the amount of tax credits allocated and the
Page 16, Line 3date by which payment of the tax credit sale proceeds must be made.
Page 16, Line 4(6) On receipt of payment of the sale proceeds, the
Page 16, Line 5department shall issue to each qualified taxpayer a tax credit certificate. The tax credit certificate must state:
Page 16, Line 6(a) The total amount of income tax credits that the qualified taxpayer may claim;
Page 16, Line 7(b) The amount that the qualified taxpayer has paid or
Page 16, Line 8agreed to pay in return for the issuance of the tax credit certificates and the date of the payment;
Page 16, Line 9(c) The dates on which the tax credits will be available for use by the qualified taxpayer;
Page 16, Line 10(d) Any penalties or other remedies for noncompliance;
Page 16, Line 11(e) The procedures to be used for transferring or
Page 16, Line 12assuming the tax credits in accordance with subsection (7)(e) of this section or section 24-36-504 (5);
Page 16, Line 13(f) The serial number of the tax credit certificate; and
Page 16, Line 14(g) Any other requirements deemed necessary by the department as a condition of issuing the tax credit certificate.
Page 16, Line 15(7) (a) The department shall not issue a tax credit
Page 16, Line 16certificate to any qualified taxpayer that fails to provide the
Page 16, Line 17tax credit sale proceeds within the time the department specifies.
Page 16, Line 18(b) A qualified taxpayer that fails to provide the tax
Page 16, Line 19credit sale proceeds within the time the department specifies is
Page 17, Line 1subject to a penalty equal to ten percent of the amount of the
Page 17, Line 2purchase price that remains unpaid. The penalty must be paid to the department within thirty days after demand.
Page 17, Line 3(c) The department may offer to reallocate the defaulted
Page 17, Line 4tax credits among other qualified taxpayers so that the result
Page 17, Line 5after reallocation is the same as if the initial allocation had
Page 17, Line 6been performed without considering the tax credit allocation to the defaulting qualified taxpayer.
Page 17, Line 7(d) If the reallocation of tax credits under subsection
Page 17, Line 8(7)(c) of this section results in the payment by another qualified
Page 17, Line 9taxpayer of the amount of tax credit sale proceeds not paid by
Page 17, Line 10the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (7)(b) of this section.
Page 17, Line 11(e) A qualified taxpayer that fails to pay the tax credit
Page 17, Line 12sale proceeds within the time specified may avoid the imposition
Page 17, Line 13of the penalty by transferring the allocation of tax credits to
Page 17, Line 14a new or existing qualified taxpayer within thirty days after the
Page 17, Line 15due date of the defaulted installment. Any transferee of an
Page 17, Line 16allocation of tax credits of a defaulting qualified taxpayer
Page 17, Line 17under this subsection (7) shall agree to pay the tax credit sale proceeds within five days after the date of the transfer.
Page 17, Line 18(8) The tax credit sale proceeds provided by a qualifying
Page 17, Line 19taxpayer in return for a tax credit certificate must be deposited in the general fund.
Page 17, Line 20(9) (a) The department shall provide, within thirty days
Page 17, Line 21after the close of the fiscal year, a report to the department of
Page 17, Line 22revenue for each fiscal year in which it issues tax credit certificates pursuant to this part 5. The report must include:
Page 18, Line 1(I) The name and federal tax identification number of
Page 18, Line 2each qualified taxpayer to which the department issued a tax credit certificate;
Page 18, Line 3(II) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 18, Line 4(III) The serial number of the tax credit certificate issued to the qualified taxpayer.
Page 18, Line 5(b) The department shall maintain records of each tax
Page 18, Line 6credit certificate issued, transferred, or assumed that are
Page 18, Line 7sufficient to allow the department of revenue to verify the
Page 18, Line 8issuance and ownership of the credit. The department shall
Page 18, Line 9provide the records to the office of the state auditor upon
Page 18, Line 10request so that the state auditor can evaluate the
Page 18, Line 11effectiveness of the tax credits in accordance with sections 24-36-501 (2)(b) and 39-21-305.
Page 18, Line 12(10) The department may pay an independent third party
Page 18, Line 13and any consultants reasonable and necessary administrative,
Page 18, Line 14monitoring, and closing costs using the proceeds from the sale of tax credits.
Page 18, Line 1524-36-504. Use of corporate income tax credits - carry over.
Page 18, Line 16(1) For a tax credit certificate issued in fiscal year 2025-26, the
Page 18, Line 17department, in consultation with the office of state planning
Page 18, Line 18and budgeting, prior to the sale, may determine the calendar
Page 18, Line 19years in which the qualified taxpayer may claim the qualified
Page 18, Line 20taxpayer's tax credit against the qualified taxpayer's premium
Page 18, Line 21tax liability.
Page 19, Line 1(2) The total credit to be applied by a qualified taxpayer
Page 19, Line 2in any one year must not exceed the premium tax liability of the
Page 19, Line 3qualified taxpayer for the taxable year. If the qualified
Page 19, Line 4taxpayer cannot use the entire amount of the tax credit for the
Page 19, Line 5taxable year in which the taxpayer is eligible for the credit, the
Page 19, Line 6excess may be carried over to succeeding taxable years and
Page 19, Line 7used as a credit against the premium tax liability of the
Page 19, Line 8taxpayer for those taxable years; except that the credit may
Page 19, Line 9not be carried over to any taxable year that begins after
Page 19, Line 10December 31, 2033. Any amount of the credit that is not timely claimed expires and is not refundable.
Page 19, Line 11(3) A qualified taxpayer claiming a credit under this part 5 shall submit the tax credit certificate with its tax return.
Page 19, Line 12(4) A qualified taxpayer claiming a tax credit under this
Page 19, Line 13part 5 shall not be required to pay any additional or retaliatory tax as a result of claiming the credit.
Page 19, Line 14(5) If a qualified taxpayer holding an unclaimed tax
Page 19, Line 15credit is part of a merger, acquisition, or line of business
Page 19, Line 16divestiture transaction, the tax credit may be transferred to
Page 19, Line 17and assumed by the resulting entity if the resulting entity is a
Page 19, Line 18C corporation authorized to do business in Colorado that has
Page 19, Line 19income tax liability. The qualified taxpayer that originally
Page 19, Line 20purchased the credit and the resulting entity shall notify the
Page 19, Line 21department in writing of the transfer or assumption of the
Page 19, Line 22credit in accordance with procedures adopted by the
Page 19, Line 23department. The transfer or assumption of the tax credit does
Page 19, Line 24not affect the time schedule for claiming the tax credit as provided in this section.
Page 20, Line 1(6) The department shall provide a report to the
Page 20, Line 2department of revenue for each fiscal year in which it issues tax
Page 20, Line 3credit certificates pursuant to this part 5 within thirty days after the close of the fiscal year. The report must include:
Page 20, Line 4(a) The name and federal tax identification number of
Page 20, Line 5each qualified taxpayer to which the department issued a tax credit certificate;
Page 20, Line 6(b) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 20, Line 7(c) The serial number of the tax credit certificate issued,
Page 20, Line 8transferred, or assumed that is sufficient to allow the
Page 20, Line 9department of revenue to verify the issuance and ownership of the tax credit.
Page 20, Line 1024-36-505. Repeal of part.This part 5 is repealed, effective December 31, 2040.
Page 20, Line 11SECTION 3. Safety clause. The general assembly finds,
Page 20, Line 12determines, and declares that this act is necessary for the immediate
Page 20, Line 13preservation of the public peace, health, or safety or for appropriations for
Page 20, Line 14the support and maintenance of the departments of the state and state institutions.