C.R.S.
Section 24-46-107
Temporary extension of carry-forward provisions
- Colorado job growth incentive tax credit
- enterprise zone tax credits
- definitions
- repeal
(1)
As used in this section, unless the context otherwise requires:(a)
“Office” means the Colorado office of economic development created in section 24-48.5-101.(b)
Intentionally left blank —Ed.(I)
“Taxpayer” means any person doing business in the state, including an affiliated group, that operates in a strategic industry that was disproportionally impacted by the COVID-19 pandemic and experienced significant financial hardship caused by the COVID-19 pandemic.(II)
“Strategic industry” and “significant financial hardship” for purposes of the definition of “taxpayer” in subsection (1)(b)(I) of this section shall be determined by the commission and the office. When determining significant financial hardship, any financial assistance or relief that the taxpayer may have received from other sources including federal, state, or local assistance may be considered but shall not be dispositive for purposes of eligibility.(2)
The commission may allow a taxpayer to carry forward for a period of five years the tax credits set forth in section 39-22-531 and in article 30 of title 39 that would otherwise expire between January 1, 2021, and December 31, 2025; except that the aggregate amount of all tax credits permitted to be carried forward pursuant to this subsection (2) is zero dollars for the first two years in the five-year period, ten million dollars for the third year in the five-year period, and fifteen million dollars for the fourth and fifth year in the five-year period and the tax credit set forth in section 39-30-103.5 is not eligible for the five-year carry-forward period set forth in this section. Taxpayers must apply to the commission and the office pursuant to subsection (3) of this section for approval to carry forward the tax credits as set forth in this subsection (2).(3)
Intentionally left blank —Ed.(a)
A taxpayer may apply for approval by the commission to carry forward a tax credit as set forth in subsection (2) of this section in accordance with timing, deadlines, policies, and procedures established by the commission, in consultation with the office, and as follows:(I)
A taxpayer shall apply one time to the commission for the extended carry-forward period set forth in subsection (2) of this section and must identify in the application all of the anticipated credits that the taxpayer requests to extend for each tax year that the extended period applies to;(II)
At a minimum, the application must include certification by the taxpayer’s president, chief executive officer, or chief financial officer that, based on the taxpayer’s current and expected financial results, it is anticipated that the taxpayer will not be able to use the tax credits before the credits expire as the result of losses experienced during tax years 2020 and 2021 due to the COVID-19 pandemic;(III)
The application must include documentation from the taxpayer demonstrating significant financial hardship caused by the COVID-19 pandemic; and(IV)
In consultation with potential applicants, the commission and the office shall determine additional appropriate policies, procedures, requirements, and deadlines to administer the application process and extension approvals pursuant to this section, which may include additional verification procedures to demonstrate that applicants are making bonafide requests for the five-year extension.(b)
In consultation with the office, the commission shall receive, review, and approve applications by taxpayers on a first come, first served, rolling basis. In addition to the application requirements set forth in subsection (3)(a) of this section, the commission may consider additional economic development commitments to the state by the taxpayer in determining approval of applications including:(I)
The size of the taxpayer’s current operation in the state relative to both the state as a whole and the region the taxpayer is based in;(II)
Any strategic economic development benefits that the taxpayer provides with existing operations to the state in terms of supply chain, benefits to other industries, or other spillover benefits that the applicant’s operations provide to the state or region; and(III)
Any additional forthcoming economic development benefits that the taxpayer may provide to the state or region based on commitments that the applicant has recently made or proposes that are outside the scope of the original incentive award.(c)
When an application is approved, the commission shall issue letters to the department of revenue and approved taxpayers that must specify the type and amount of credits eligible for the five-year extension and for what years in the period the extension is eligible.(4)
This section is repealed, effective July 1, 2035.
Source:
Section 24-46-107 — Temporary extension of carry-forward provisions - Colorado job growth incentive tax credit - enterprise zone tax credits - definitions - repeal, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-24.pdf (accessed Oct. 20, 2023).
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