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 and making an appropriation.
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.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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 division of insurance
Page 4, Line 16shall provide the state auditor with information regarding the
Page 4, Line 17total amount of credits claimed and the general fund money generated.
Page 4, Line 1824-36-402. Definitions.As used in this part 4, unless the context otherwise requires:
Page 4, Line 19(1) "Department" means the department of the treasury.
Page 4, Line 20(2) "Premium tax liability" means the liability imposed by
Page 4, Line 21section 10-3-209 or 10-6-128, or, in the case of a repeal or
Page 4, Line 22reduction by the state of the liability imposed by section
Page 4, Line 2310-3-209 or 10-6-128, any other tax liability imposed upon an
Page 4, Line 24insurance company by the state.
Page 5, Line 1(3) "Qualified taxpayer" means an insurance company
Page 5, Line 2authorized to do business in Colorado that has premium tax
Page 5, Line 3liability owing to the state and that purchases a tax credit
Page 5, Line 4under this part 4. "Qualified taxpayer" also includes an
Page 5, Line 5insurance company that receives or assumes a tax credit
Page 5, Line 6transferred in accordance with section 24-36-403 (7)(e) or 24-36-404 (5).
Page 5, Line 7(4) "Tax credit" means the tax credit created in section 24-36-403.
Page 5, Line 8(5) "Tax credit sale proceeds" or "sale proceeds" means
Page 5, Line 9the money or other liquid asset acceptable to the state
Page 5, Line 10treasurer that a qualified taxpayer pays to the department that is deposited in the general fund.
Page 5, Line 1124-36-403. Insurance premium tax credits - purchase -
Page 5, Line 12authorization to issue - terms - report. (1) A qualified taxpayer
Page 5, Line 13may purchase insurance premium tax credits from the
Page 5, Line 14department in accordance with this section and may apply the
Page 5, Line 15tax credits against its premium tax liability in accordance with section 24-36-404.
Page 5, Line 16(2) (a) The department is authorized to issue tax credit
Page 5, Line 17certificates to qualified taxpayers pursuant to this part 4 and
Page 5, Line 18part 5 of this article 36 equal to the lesser of a total face value
Page 5, Line 19of up to one hundred twenty-five million dollars and any
Page 5, Line 20reasonable and necessary administrative, monitoring, and
Page 5, Line 21closing costs using proceeds from the sale of tax credits or total sales proceeds of up to one hundred million dollars.
Page 5, Line 22(b) The department may contract with an independent
Page 6, Line 1third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.
Page 6, Line 2(c) The department shall consult with insurance
Page 6, Line 3companies in advance of issuing any tax credits in accordance with this section.
Page 6, Line 4(3) An insurance company authorized to do business in
Page 6, Line 5Colorado seeking to purchase tax credits must apply to the department in the manner prescribed by the department.
Page 6, Line 6(4) Using procedures adopted by the department or, if
Page 6, Line 7applicable, by an independent third party, each insurance
Page 6, Line 8company that submits an application shall make a timely and
Page 6, Line 9irrevocable offer, contingent only on the department's issuance
Page 6, Line 10to the insurance company of the tax credit certificates, to make
Page 6, Line 11a specified purchase payment amount to the department on dates
Page 6, Line 12specified by the department, which must not burden any single tax year. The offer must include:
Page 6, Line 13(a) The requested amount of tax credits, which must not
Page 6, Line 14be less than any minimum amount established in procedures by the department or, if applicable, the independent third party;
Page 6, Line 15(b) The qualified taxpayer's proposed tax credit purchase
Page 6, Line 16amount for each tax credit dollar requested. The minimum
Page 6, Line 17proposed tax credit purchase amount must be the greater of either:
Page 6, Line 18(I) The percentage of the requested dollar amount of tax
Page 6, Line 19credits that the department and, if applicable, the independent
Page 6, Line 20third party determines to be consistent with market conditions
Page 6, Line 21as of the offer date; or
Page 7, Line 1(II) Seventy-five percent of the requested dollar amount of tax credits; and
Page 7, Line 2(c) Any other information the department or, if applicable, the independent third party requires.
Page 7, Line 3(5) The department shall provide written notice to each
Page 7, Line 4insurance company that submits an application indicating
Page 7, Line 5whether the insurance company has been approved as a
Page 7, Line 6purchaser of tax credits and, if so, the amount of tax credits
Page 7, Line 7allocated and the date by which payment of the tax credit sale proceeds must be made.
Page 7, Line 8(6) On receipt of payment of the sale proceeds, the
Page 7, Line 9department shall issue to each qualified taxpayer a tax credit certificate. The tax credit certificate must state:
Page 7, Line 10(a) The total amount of premium tax credits that the qualified taxpayer may claim;
Page 7, Line 11(b) The amount that the qualified taxpayer has paid or
Page 7, Line 12agreed to pay in return for the issuance of the tax credit certificates and the date of the payment;
Page 7, Line 13(c) The dates on which the tax credits will be available for use by the qualified taxpayer;
Page 7, Line 14(d) Any penalties or other remedies for noncompliance;
Page 7, Line 15(e) The procedures to be used for transferring or
Page 7, Line 16assuming the tax credits in accordance with subsection (7)(e) of this section or section 24-36-404 (5);
Page 7, Line 17(f) The serial number of the tax credit certificate; and
Page 7, Line 18(g) Any other requirements deemed necessary by the
Page 7, Line 19department as a condition of issuing the tax credit certificate.
Page 8, Line 1(7) (a) The department shall not issue a tax credit
Page 8, Line 2certificate to any qualified taxpayer that fails to provide the
Page 8, Line 3tax credit sale proceeds within the time the department specifies.
Page 8, Line 4(b) A qualified taxpayer that fails to provide the tax
Page 8, Line 5credit sale proceeds within the time the department specifies is
Page 8, Line 6subject to a penalty equal to ten percent of the amount of the
Page 8, Line 7purchase price that remains unpaid. The penalty must be paid to the department within thirty days after demand.
Page 8, Line 8(c) The department may offer to reallocate the defaulted
Page 8, Line 9tax credits among other qualified taxpayers, so that the result
Page 8, Line 10after reallocation is the same as if the initial allocation had
Page 8, Line 11been performed without considering the tax credit allocation to the defaulting qualified taxpayer.
Page 8, Line 12(d) If the reallocation of tax credits under subsection
Page 8, Line 13(7)(c) of this section results in the payment by another qualified
Page 8, Line 14taxpayer of the amount of tax credit sale proceeds not paid by
Page 8, Line 15the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (7)(b) of this section.
Page 8, Line 16(e) A qualified taxpayer that fails to pay the tax credit
Page 8, Line 17sale proceeds within the time specified may avoid the imposition
Page 8, Line 18of the penalty by transferring the allocation of tax credits to
Page 8, Line 19a new or existing qualified taxpayer within thirty days after the
Page 8, Line 20due date of the defaulted installment. Any transferee of an
Page 8, Line 21allocation of tax credits of a defaulting qualified taxpayer
Page 8, Line 22under this subsection (7) shall agree to pay the tax credit sale
Page 8, Line 23proceeds within five days after the date of the transfer.
Page 9, Line 1(8) The tax credit sale proceeds provided by a qualifying
Page 9, Line 2taxpayer in return for a tax credit certificate must be deposited in the general fund.
Page 9, Line 3(9) (a) The department shall provide, within thirty days
Page 9, Line 4after the close of the fiscal year, a data file to the division of
Page 9, Line 5insurance in the department of regulatory agencies and the
Page 9, Line 6department of revenue for each fiscal year in which it issues tax
Page 9, Line 7credit certificates pursuant to this part 4. The data file must include:
Page 9, Line 8(I) The name and identifying number issued by the
Page 9, Line 9National Association of Insurance Commissioners, or any
Page 9, Line 10successor organization, of each qualified taxpayer to which the department issued a tax credit certificate;
Page 9, Line 11(II) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 9, Line 12(III) The serial number of the tax credit certificate issued to the qualified taxpayer.
Page 9, Line 13(b) The department shall maintain records of each tax
Page 9, Line 14credit certificate issued, transferred, or assumed that are
Page 9, Line 15sufficient to allow the department of revenue or the division of
Page 9, Line 16insurance in the department of regulatory agencies to verify
Page 9, Line 17the issuance and ownership of the credit. The department shall
Page 9, Line 18provide the records to the office of the state auditor upon
Page 9, Line 19request so that the state auditor can evaluate the
Page 9, Line 20effectiveness of the tax credits in accordance with sections 24-36-401 (2)(b) and 39-21-305.
Page 9, Line 21(10) The department may pay an independent third party
Page 10, Line 1and any consultants reasonable and necessary administrative,
Page 10, Line 2monitoring, and closing costs using the proceeds from the sale of tax credits.
Page 10, Line 324-36-404. Use of insurance premium tax credits - carry over.
Page 10, Line 4(1) For a tax credit certificate issued in fiscal year 2025-26, the
Page 10, Line 5department, in consultation with the office of state planning
Page 10, Line 6and budgeting, prior to the sale, may determine the calendar
Page 10, Line 7years in which the qualified taxpayer may claim the qualified
Page 10, Line 8taxpayer's tax credit against the qualified taxpayer's premium tax liability.
Page 10, Line 9(2) The total credit to be applied by a qualified taxpayer
Page 10, Line 10in any one year must not exceed the premium tax liability of the
Page 10, Line 11qualified taxpayer for the taxable year. If the qualified
Page 10, Line 12taxpayer cannot use the entire amount of the tax credit for the
Page 10, Line 13taxable year in which the taxpayer is eligible for the credit, the
Page 10, Line 14excess may be carried over to succeeding taxable years and
Page 10, Line 15used as a credit against the premium tax liability of the
Page 10, Line 16taxpayer for those taxable years; except that the credit may
Page 10, Line 17not be carried over to any taxable year that begins after
Page 10, Line 18December 31, 2033. Any amount of the credit that is not timely claimed expires and is not refundable.
Page 10, Line 19(3) A qualified taxpayer claiming a credit under this part 4 shall submit the tax credit certificate with its tax return.
Page 10, Line 20(4) A qualified taxpayer claiming a tax credit under this
Page 10, Line 21part 4 shall not be required to pay any additional or retaliatory tax as a result of claiming the credit.
Page 10, Line 22(5) If a qualified taxpayer holding an unclaimed tax
Page 11, Line 1credit is part of a merger, acquisition, or line of business
Page 11, Line 2divestiture transaction, the tax credit may be transferred to
Page 11, Line 3and assumed by the resulting entity if the resulting entity is an
Page 11, Line 4insurance company authorized to do business in Colorado that
Page 11, Line 5has premium tax liability. The qualified taxpayer that
Page 11, Line 6originally purchased the credit and the resulting entity shall
Page 11, Line 7notify the department in writing of the transfer or assumption
Page 11, Line 8of the credit in accordance with procedures adopted by the
Page 11, Line 9department. The transfer or assumption of the tax credit does
Page 11, Line 10not affect the time schedule for claiming the tax credit as provided in this section.
Page 11, Line 11(6) The department shall provide a report to the division
Page 11, Line 12of insurance in the department of regulatory agencies for each
Page 11, Line 13fiscal year in which it issues tax credit certificates pursuant to
Page 11, Line 14this part 4 within thirty days after the close of the fiscal year. The report must include:
Page 11, Line 15(a) The name and identifying number issued by the
Page 11, Line 16National Association of Insurance Commissioners, or any
Page 11, Line 17successor organization, of each qualified taxpayer to which the department issued a tax credit certificate;
Page 11, Line 18(b) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 11, Line 19(c) The serial number of the tax credit certificate issued,
Page 11, Line 20transferred, or assumed that is sufficient to allow the division
Page 11, Line 21of insurance in the department of regulatory agencies to verify the issuance and ownership of the tax credit.
Page 11, Line 2224-36-405. Repeal of part.This part 4 is repealed, effective December 31, 2040.
Page 12, Line 1SECTION 2. In Colorado Revised Statutes, add part 5 to article 36 of title 24 as follows:
Page 12, Line 2PART 5
SALE OF CORPORATE TAX CREDITS
Page 12, Line 324-36-501. Legislative declaration - tax preference
Page 12, Line 4performance statement. (1) The general assembly finds and declares that:
Page 12, Line 5(a) The corporate tax credits authorized by this part 5 are
Page 12, Line 6not refundable and do not impose an obligation of payment in any future year on the state;
Page 12, Line 7(b) The use of proceeds from the sale of corporate tax
Page 12, Line 8credits does not require the state to borrow money, extend or
Page 12, Line 9pledge the state's credit, or obligate the state to make future payments from state revenue;
Page 12, Line 10(c) The sale and use of the corporate tax credits shall
Page 12, Line 11not be deemed or construed as creating indebtedness or other
Page 12, Line 12financial obligation whatsoever within the meaning of any
Page 12, Line 13provision of the state constitution or the laws of the state
Page 12, Line 14concerning or limiting the creation of indebtedness or other financial obligation by the state;
Page 12, Line 15(d) The tax credits allow a corporation with an income
Page 12, Line 16tax liability to prepay its tax liability for future years, which
Page 12, Line 17does not constitute a tax policy change under section 20 (4)(a) of article X of the state constitution; and
Page 12, Line 18(e) Any proceeds from the sale of the tax credits will be
Page 12, Line 19offset by decreases in future revenue resulting from the buyer's
Page 13, Line 1use of the tax credits and therefore will not cause a net tax
Page 13, Line 2revenue gain under section 20 (4)(a) of article X of the state constitution.
Page 13, Line 3(2) (a) In accordance with section 39-21-304 (1), which
Page 13, Line 4requires each bill that creates a new tax expenditure to include
Page 13, Line 5a tax preference performance statement as part of a statutory
Page 13, Line 6legislative declaration, the general assembly further finds and
Page 13, Line 7declares that the general purposes of the tax credits provided
Page 13, Line 8for in this part 5 are to induce certain designated behavior by
Page 13, Line 9taxpayers and provide a reduction in income tax liability for
Page 13, Line 10certain businesses. Specifically, this tax expenditure is intended
Page 13, Line 11to induce C corporations to purchase tax credits that will
Page 13, Line 12reduce their future income tax liability in order to generate money for the general fund.
Page 13, Line 13(b) The general assembly and the state auditor shall
Page 13, Line 14measure the effectiveness of the tax credits in achieving the
Page 13, Line 15purposes specified in subsection (2)(a) of this section based on the
Page 13, Line 16number and value of the credits claimed and the total amount
Page 13, Line 17of general fund money generated. The department of revenue
Page 13, Line 18shall provide the state auditor with information regarding the
Page 13, Line 19total amount of credits claimed and the general fund money generated.
Page 13, Line 2024-36-502. Definitions.As used in this part 5, unless the context otherwise requires:
Page 13, Line 21(1) "C corporation" has the same meaning as in section 39-22-104 (2.5).
Page 13, Line 22(2) "Department" means the department of the treasury.
Page 14, Line 1(3) "Income tax liability" means the liability imposed by section 39-22-301.
Page 14, Line 2(4) "Qualified taxpayer" means a C corporation
Page 14, Line 3authorized to do business in Colorado that has or will have an
Page 14, Line 4income tax liability owing to the state. "Qualified taxpayer"
Page 14, Line 5also includes a C corporation that receives or assumes a tax credit transferred in accordance with section 26-36-503 (7)(e).
Page 14, Line 6(5) "Tax credit" means the tax credit created in section 24-36-503.
Page 14, Line 7(6) "Tax credit sale proceeds" or "sale proceeds" means
Page 14, Line 8the money or other liquid asset acceptable to the state
Page 14, Line 9treasurer that a qualified taxpayer pays to the department that is deposited in the general fund.
Page 14, Line 1024-36-503. Corporate tax credits - purchase - authorization to
Page 14, Line 11issue - terms - report. (1) A qualified taxpayer may purchase
Page 14, Line 12income tax credits from the department in accordance with this
Page 14, Line 13section and may apply the tax credits against its income tax liability in accordance with section 24-36-504.
Page 14, Line 14(2) (a) The department is authorized to issue tax credit
Page 14, Line 15certificates to qualified taxpayers pursuant to this part 5 and
Page 14, Line 16part 4 of this article 36 equal to the lesser of a total face value
Page 14, Line 17of up to one hundred twenty-five million dollars and any
Page 14, Line 18reasonable and necessary administrative, monitoring, and
Page 14, Line 19closing costs using proceeds from the sale of tax credits or total sales proceeds of up to one hundred million dollars.
Page 14, Line 20(b) The department may contract with an independent
Page 14, Line 21third party to conduct or consult on a bidding process among qualified taxpayers to purchase the tax credits.
Page 15, Line 1(c) The department shall consult with C corporations in
Page 15, Line 2advance of issuing any tax credits in accordance with this section.
Page 15, Line 3(3) A C corporation authorized to do business in Colorado
Page 15, Line 4seeking to purchase tax credits must apply to the department in the manner prescribed by the department.
Page 15, Line 5(4) Using procedures adopted by the department or, if
Page 15, Line 6applicable, by an independent third party, each C corporation
Page 15, Line 7that submits an application shall make a timely and irrevocable
Page 15, Line 8offer, contingent only on the department's issuance to the C
Page 15, Line 9corporation of the tax credit certificates, to make a specified
Page 15, Line 10purchase payment amount to the department on dates specified
Page 15, Line 11by the department, which must not burden any single tax year. The offer must include:
Page 15, Line 12(a) The requested amount of tax credits, which must not
Page 15, Line 13be less than any minimum amount established in procedures by the department or, if applicable, the independent third party;
Page 15, Line 14(b) The qualified taxpayer's proposed tax credit purchase
Page 15, Line 15amount for each tax credit dollar requested. The minimum
Page 15, Line 16proposed tax credit purchase amount must be the greater of either:
Page 15, Line 17(I) The percentage of the requested dollar amount of tax
Page 15, Line 18credits that the department and, if applicable, the independent
Page 15, Line 19third party determines to be consistent with market conditions as of the offer date; or
Page 15, Line 20(II) Seventy-five percent of the requested dollar amount of tax credits; and
Page 16, Line 1(c) Any other information the department or, if applicable, the independent third party requires.
Page 16, Line 2(5) The department shall provide written notice to each
Page 16, Line 3C corporation that submits an application indicating whether
Page 16, Line 4the C corporation has been approved as a purchaser of tax
Page 16, Line 5credits and, if so, the amount of tax credits allocated and the
Page 16, Line 6date by which payment of the tax credit sale proceeds must be made.
Page 16, Line 7(6) On receipt of payment of the sale proceeds, the
Page 16, Line 8department shall issue to each qualified taxpayer a tax credit certificate. The tax credit certificate must state:
Page 16, Line 9(a) The total amount of income tax credits that the qualified taxpayer may claim;
Page 16, Line 10(b) The amount that the qualified taxpayer has paid for
Page 16, Line 11the issuance of the tax credit certificates and the date of the payment;
Page 16, Line 12(c) The dates on which the tax credits will be available for use by the qualified taxpayer;
Page 16, Line 13(d) Any penalties or other remedies for noncompliance;
Page 16, Line 14(e) The procedures to be used for transferring or
Page 16, Line 15assuming the tax credits in accordance with subsection (7)(e) of this section;
Page 16, Line 16(f) The serial number of the tax credit certificate; and
Page 16, Line 17(g) Any other requirements deemed necessary by the department as a condition of issuing the tax credit certificate.
Page 16, Line 18(7) (a) The department shall not issue a tax credit
Page 17, Line 1certificate to any qualified taxpayer that fails to provide the
Page 17, Line 2tax credit sale proceeds within the time the department specifies.
Page 17, Line 3(b) A qualified taxpayer that fails to provide the tax
Page 17, Line 4credit sale proceeds within the time the department specifies is
Page 17, Line 5subject to a penalty equal to ten percent of the amount of the
Page 17, Line 6purchase price that remains unpaid. The penalty must be paid to the department within thirty days after demand.
Page 17, Line 7(c) The department may offer to reallocate the defaulted
Page 17, Line 8tax credits among other qualified taxpayers so that the result
Page 17, Line 9after reallocation is the same as if the initial allocation had
Page 17, Line 10been performed without considering the tax credit allocation to the defaulting qualified taxpayer.
Page 17, Line 11(d) If the reallocation of tax credits under subsection
Page 17, Line 12(7)(c) of this section results in the payment by another qualified
Page 17, Line 13taxpayer of the amount of tax credit sale proceeds not paid by
Page 17, Line 14the defaulting qualified taxpayer, the department may waive the penalty imposed under subsection (7)(b) of this section.
Page 17, Line 15(e) A qualified taxpayer that fails to pay the tax credit
Page 17, Line 16sale proceeds within the time specified may avoid the imposition
Page 17, Line 17of the penalty by transferring the allocation of tax credits to
Page 17, Line 18a new or existing qualified taxpayer within thirty days after the
Page 17, Line 19due date of the defaulted installment. Any transferee of an
Page 17, Line 20allocation of tax credits of a defaulting qualified taxpayer
Page 17, Line 21under this subsection (7) shall agree to pay the tax credit sale proceeds within five days after the date of the transfer.
Page 17, Line 22(8) The tax credit sale proceeds provided by a qualifying
Page 18, Line 1taxpayer in return for a tax credit certificate must be deposited in the general fund.
Page 18, Line 2(9) (a) The department shall provide, within thirty days
Page 18, Line 3after the close of the fiscal year, a data file to the department
Page 18, Line 4of revenue for each fiscal year in which it issues tax credit certificates pursuant to this part 5. The data file must include:
Page 18, Line 5(I) The name and federal employer identification number
Page 18, Line 6of each qualified taxpayer to which the department issued a tax credit certificate;
Page 18, Line 7(II) The total amount of the tax credit allocated to the qualified taxpayer; and
Page 18, Line 8(III) The serial number of the tax credit certificate issued to the qualified taxpayer.
Page 18, Line 9(b) The department shall maintain records of each tax
Page 18, Line 10credit certificate issued, transferred, or assumed that are
Page 18, Line 11sufficient to allow the department of revenue to verify the
Page 18, Line 12issuance and ownership of the credit. The department shall
Page 18, Line 13provide the records to the office of the state auditor upon
Page 18, Line 14request so that the state auditor can evaluate the
Page 18, Line 15effectiveness of the tax credits in accordance with sections 24-36-501 (2)(b) and 39-21-305.
Page 18, Line 16(10) The department may pay an independent third party
Page 18, Line 17and any consultants reasonable and necessary administrative,
Page 18, Line 18monitoring, and closing costs using the proceeds from the sale of tax credits.
Page 18, Line 1924-36-504. Use of corporate income tax credits - carry over.
Page 18, Line 20(1) For a tax credit certificate issued in fiscal year 2025-26, the
Page 19, Line 1department, in consultation with the office of state planning
Page 19, Line 2and budgeting, prior to the sale, may determine the tax years in
Page 19, Line 3which the qualified taxpayer may claim the qualified taxpayer's tax credit against the qualified taxpayer's income tax liability.
Page 19, Line 4(2) For the tax year specified in the tax credit certificate
Page 19, Line 5issued pursuant to section 24-34-503 (6), the qualified taxpayer
Page 19, Line 6may claim the amount of the tax credit against the qualified
Page 19, Line 7taxpayer's income tax liability. If the amount of the tax credit
Page 19, Line 8exceeds the qualified taxpayer's actual tax liability for that
Page 19, Line 9tax year, the excess is not refunded to the qualified taxpayer.
Page 19, Line 10The qualified taxpayer may carry forward and apply the unused
Page 19, Line 11tax credit against the income tax liability for any succeeding
Page 19, Line 12tax year; except that the tax credit may not be carried forward
Page 19, Line 13to a tax year that begins after December 31, 2033. The taxpayer
Page 19, Line 14shall apply the carry forward credit against the income tax
Page 19, Line 15liability for the earliest of the income tax years possible. Any
Page 19, Line 16amount of the tax credit that is not used after this period is not refundable.
Page 19, Line 17(3) A qualified taxpayer claiming a credit under this part 5 shall submit the tax credit certificate with its tax return.
Page 19, Line 1924-36-505. Repeal of part.This part 5 is repealed, effective December 31, 2040.
Page 19, Line 20SECTION 3. Appropriation. For the 2025-26 state fiscal year,
Page 19, Line 21$448,500 is appropriated to the department of treasury. This appropriation
Page 19, Line 22is from the general fund. To implement this act, the department may use
Page 19, Line 23this appropriation for tax credit administration.
Page 20, Line 1SECTION 4. Safety clause. The general assembly finds,
Page 20, Line 2determines, and declares that this act is necessary for the immediate
Page 20, Line 3preservation of the public peace, health, or safety or for appropriations for
Page 20, Line 4the support and maintenance of the departments of the state and state institutions.