C.R.S.
Section 11-59.7-105
Federal tax credits
- federal direct payments
(1)
Any federal tax credit that may be claimed by an owner of a stimulus obligation or any other person in connection with a stimulus obligation shall not be treated as revenue of any public entity and shall not be considered in determining any amount payable by any public entity on or with respect to any stimulus obligation.(2)
A public entity that issues or enters into a stimulus obligation may elect in accordance with federal law to receive a federal direct payment and may use any federal direct payment to make payments to the owners of the stimulus obligation or other persons or for any other lawful purpose for which the public entity may spend money and may deposit any federal direct payment in any fund or account pending such use.(3)
For purposes of section 20 of article X of the state constitution, federal direct payments are federal funds, federal direct payments are not included in fiscal year spending of any public entity, and the receipt of federal direct payments is not a grant from any Colorado state or local government.(4)
A public entity may pledge any federal direct payments expected to be received in connection with bonds that qualify as stimulus obligations to make payments to the owners of the bonds or other persons. Any portion of the debt service on any stimulus obligation may be payable in amounts corresponding to expected federal direct payments, may be payable solely from expected federal direct payments, or may have a priority claim on expected federal direct payments. If, and to the extent that, a public entity pledges federal direct payments expected to be received in connection with bonds to make payments to the owners of the bonds or other persons, the federal direct payments that the public entity expects to receive with respect to the bonds shall be netted against and shall reduce the amount of interest on the bonds and all other amounts payable by the public entity on or with respect to the bonds for purposes of any notice delivered pursuant to section 20 (3)(b) of article X of the state constitution and for purposes of applying any limitation or restriction under the state constitution, any law of the state, any ballot question or ballot issue, any ancillary agreement, or any ordinance or resolution of the governing body of the public entity relating to the bonds, including but not limited to any limitation on:(a)
Interest or any other amount payable on or with respect to the bonds;(b)
The net effective interest rate and net interest cost on the bonds;(c)
The repayment cost of the bonds; and(d)
The amount of debt the public entity may incur.(5)
A public entity may identify federal direct payments expected to be received in connection with a financed purchase of an asset or certificate of participation agreement that qualifies as a stimulus obligation as the intended source for payment of any portion of the payments under the financed purchase of an asset or certificate of participation agreement. Any portion of the payments payable under any financed purchase of an asset or certificate of participation agreement that qualifies as a stimulus obligation may be payable in amounts corresponding to expected federal direct payments, and federal direct payments may be identified as the intended sole source or intended priority source for payment of any portion of the payments payable under any financed purchase of an asset or certificate of participation agreement that qualifies as a stimulus obligation. If, and to the extent that, a public entity identifies federal direct payments expected to be received in connection with a financed purchase of an asset or certificate of participation agreement as an intended source of payment, the federal direct payments that the public entity expects to receive with respect to the financed purchase of an asset or certificate of participation agreement shall be netted against and shall reduce the amount of payments under the financed purchase of an asset or certificate of participation agreement representing interest, and all other amounts payable by the public entity under or with respect to the financed purchase of an asset or certificate of participation agreement, for purposes of applying any limitation or restriction under the state constitution, any state law, any ballot question or ballot issue, any ancillary agreement, or any ordinance or resolution of the governing body of the public entity relating to the financed purchase of an asset or certificate of participation agreement, including but not limited to any limitation on interest or any other amount payable under the financed purchase of an asset or certificate of participation agreement and any determination as to the reasonableness of the payments under the financed purchase of an asset or certificate of participation agreement.(6)
The governing body of a public institution of higher education may designate and treat any federal direct payment as revenues of an auxiliary facility or an institutional enterprise for purposes of sections 23-5-101.5 to 23-5-105.5, C.R.S., and section 23-5-139, C.R.S.
Source:
Section 11-59.7-105 — Federal tax credits - federal direct payments, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-11.pdf (accessed Oct. 20, 2023).
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