HB 1014 — Extend Colorado Job Growth Incentive Tax Credit

SecondNOTE: Regular Session Seventy-fifth General Assembly STATE OF COLORADO REREVISED This Version Includes All Amendments Adopted in the Second House LLS NO.

26-0532.01This Stephaniebill Schrabhas x4330been HOUSEprepared BILLfor 26-1014the HOUSEsignatures SPONSORSHIPof Taggartthe andappropriate Boesenecker,legislative Bacon,officers Brown, Clifford, Duran, Froelich, Gonzalez R., Hamrick, Jackson, Joseph, Lieder, Lindsay, Lukens, McCluskie, Nguyen, Paschal, Rutinel, Rydin, Soper, Titone SENATE SPONSORSHIP Frizell and Ball,the Amabile,Governor. Carson, Coleman, Cutter, Exum, Gonzales J., Jodeh, Kipp, Kolker, Lindstedt, Pelton B., Pelton R., Roberts, Simpson, Wallace e n e 6 E a 2 A U 2 N g 8 S d a House Committees Senate Committees e M Finance Finance R Appropriations Appropriations r g A BILL FOR AN ACT d e 6 C ONCERNING AN EXTENSION OF THE C OLORADO JOB GROWTH E R 0 A n , INCENTIVE TAX CREDIT THROUGH STATE INCOME TAX YEAR E 2 7y S e a 2034.

nTo Mdetermine mwhether Athe BillGovernor Summaryhas dsigned (Note:the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.

ThisHOUSE summaryBILL applies26-1014 toBY thisREPRESENTATIVE(S) billTaggart as introduced and doesBoesenecker, dBacon, eBrown, notreflectanyamendmentsthatmaybesubsequentlyadopted.IfthisbillClifford, aDuran, 2Froelich, passesGonzalez thirdR., readingHamrick, inJackson, theJoseph, houseLieder, ofLindsay, introduction,Lukens, aNguyen, billPaschal, summaryRutinel, thatRydin, SSoper, UTitone, 2McCluskie, UCaldwell, gCamacho, 4English; applies to the reengrossed version of this bill will be available at H d a http://leg.colorado.gov.) e M d Under current law, the Colorado job growth incentive tax credit (credit) may only be allowed by the economic development commission (commission) through state income tax year 2026.

Thealso billSENATOR(S) amendsFrizell theand gBall, ColoradoAmabile, jobCarson, growthCutter, incentiveExum, taxGonzales creditJ., toJodeh, authorizeKipp, theKolker, commissionLindstedt, toPelton iB., aPelton 2R., allowRoberts, newSimpson, creditWallace, awardsColeman. through state income tax year 2034.

SCONCERNING RAN 2EXTENSION UOF dTHE 1COLORADO HJOB 2GROWTH aINCENTIVE ShadingTAX denotesCREDIT HOUSETHROUGH amendment.STATE INCOME TAX YEAR 2034.

DoubleBe underliningit denotesenacted SENATEby amendment.the General Assembly of the State of Colorado:

eSECTION1. M Capital letters or bold & italic numbers indicate new material to be added to existing law.d Dashes through the words or numbers indicate deletions from existing law.

eInColoradoRevisedStatutes,39-22-531,amend(2), A(10) Beintroductory itportion, enactedand by(13); the General Assembly of the State of Colorado:

SECTION 1.

In Colorado Revised Statutes, 39-22-531, amend (2), (10), and (13);

ColoradoColoradojobgrowthincentivetaxcredit-definitions job-taxpreferenceperformancestatement-legislativedeclaration-rules growth incentive tax credit - definitions - tax preference performance statement - legislative declaration - rules - repeal.

(a)________ INCapital ACCORDANCEletters WITHor SECTIONbold 39-21-304& (1),italic WHICHnumbers REQUIRESindicate EACHnew BILLmaterial THATadded EXTENDSto ANexisting EXPIRINGlaw; TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION,THE GENERAL ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THE CREDIT PROVIDED FOR IN THIS SECTIONISTOCREATEORRETAINJOBSBYALLOWINGCERTAINEMPLOYERS TORECEIVEACREDITAGAINSTINCOMETAXIFCERTAINCRITERIAAREMET .

SPECIFICALLY,THISdashes TAXthrough EXPENDITUREwords ISor INTENDEDnumbers TOindicate INCENTIVIZEdeletions THEfrom CREATIONexisting OFlaw NEWand JOBSsuch INmaterial THEis STATEnot CFOLORADOpart .of the act.

(b)(a) THEN GENERALACCORDANCE ASSEMBLYWITH ANDSECTION THE39-21-304(1), STATEWHICH AUDITORREQUIRES SHALLEACH MEASURETHEEFFECTIVENESSOFTHECREDITINACHIEVINGTHEPURPOSESBILL SPECIFIEDINSUBSECTION(1.5)(aOFTHISSECTIONBASEDONTHENUMBERTHAT EXTENDS AN EXPIRING TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF NEWA JOBSSTATUTORY CREATEDLEGISLATIVEDECLARATION AND,THEGENERALASSEMBLYFINDSANDDECLARES THAT THE VALUEPURPOSE OF THE CREDITSCREDIT ALLOWEDPROVIDED ANDFOR MADEIN AVAILABLETHIS ANNUALLYSECTION IS TO TAXPAYERSCREATE OR RETAIN JOBS BY ALLOWING CERTAIN EMPLOYERS TO RECEIVE A CREDITAGAINSTINCOMETAXIFCERTAINCRITERIAAREMET .SPECIFICALLY , THISTAXEXPENDITUREISINTENDEDTOINCENTIVIZETHECREATIONOFNEW JOBS IN THE STATE OF C OLORADO .

(2)(b) ForincometaxyearscommencingonorafterJanuary1,2009,T butHE priorGENERAL toASSEMBLY JanuaryAND 1,THE 2027UARYSTATE 1,AUDITOR 2035,SHALL atMEASURE theTHE discretionEFFECTIVENESS ofOF theTHE commissionCREDIT asIN specifiedACHIEVING inTHE subsectionPURPOSES (3)SPECIFIED ofIN thisSUBSECTION section,(1.5)(aOF thereTHIS maySECTION beBASED allowedON toTHE anyNUMBER taxpayerOF anNEW annualJOBS jobCREATED growthAND incentiveTHE taxVALUE creditOF withTHE respectCREDITS toALLOWED theAND incomeMADE taxesAVAILABLE imposedANNUALLY byTO thisTAXPAYERS article. that a taxpayer may -2- 1014 claim for a credit period in an amount determined by the commission pursuant to subsection (5) of this section.

(10)(2) NolaterthanSeptember1,2010,andnolaterthanSeptemberFor 1ofincome eachyearthereafterthroughSeptember1,2024tax EPTEMBERyears 1,2042,commencing theon commissionor shallafter provideJanuary the1, departmentwithan2009, electronicbut reportprior ofto January 1, 2027 JANUARY 1, 2035, at the taxpayersdiscretion receivingof athe creditcommission allowedas specified in subsection (3) of this sectionsection, forthere themay precedingbe calendaryearoranyfiscalyearendingintheprecedingcalendaryear,andallowed to any creditstaxpayer disallowedan pursuantannual tojob subparagraphgrowth (II)incentive oftax paragraphcredit (a)with ofrespect subsectionto (4)the ofincome taxes imposed by this sectionarticle that a taxpayer may claim for anya year,credit thatperiod includesin an amount determined by the followingcommission information:pursuant to subsection (5) of this section.

(13)(10) ThisNo later than September 1, 2010, and no later than September of each year thereafter through September 1, 2024SEPTEMBER 1, 2042, thecommissionshallprovidethedepartmentwithanelectronicreportofthe taxpayers receiving a credit allowed in this section isfor repealed,effectiveJuly1,20422059.the preceding calendar year or any fiscal year ending in the preceding calendar year, and any credits disallowed pursuant to subparagraph (II) of paragraph (a) of subsection (4) of this section for any year, that includes the following information:

(13) This section is repealed, effective July 1, 2042Y 1, 2059.

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(Augustninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026);

except that, if a referendumreferendumpetitionisfiledpursuanttosection1(3)ofarticleVofthestate petitionPAGE is2-HOUSE filedBILL pursuant26-1014 to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approvedapprovedbythepeopleatthegeneralelectiontobeheldinNovember2026 by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

-3-____________________________ 1014____________________________ Julie McCluskie James Rashad Coleman, Sr.

SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________ (Date and Time) _________________________________________ Jared S.

Polis GOVERNOR OF THE STATE OF COLORADO PAGE 3-HOUSE BILL 26-1014