SecondHB1298_H_FIN.001 RegularNOT SessionAMENDED Seventy-secondHOUSE GeneralCOMMITTEE AssemblyOF STATEREFERENCE OFREPORT COLORADO_______________________________ INTRODUCEDMay LLS28, NO.2020 Chair of Committee Date Committee on Finance .

20-1009.01After Estherconsideration vanon Mourikthe x4215merits, HOUSEthe BILLCommittee 20-1298recommends HOUSEthe SPONSORSHIPfollowing: Kraft-Tharp, SENATE SPONSORSHIP Garcia and Tate, House Committees Senate Committees Business Affairs & Labor Appropriations A BILL FOR AN ACT CONCERNING THE EXTENSION OF A PROGRAM THAT GRANTS TEMPORARY AUTHORITY TO THE COLORADO ECONOMIC DEVELOPMENTCOMMISSIONTOALLOWCERTAINBUSINESSESTO TREAT SPECIFIC EXISTING INCOME TAXCREDITS DIFFERENTLY .

BillHB20-1298 Summarybe (Note:postponed indefinitely.

This** summary*** applies** to*** this** bill*HB1298_H_FIN.001* as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill 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.) Current law allows the Colorado economic development commission to allow, subject to an annual maximum program amount, certain businesses that make a $100 million strategic capital investment Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

in the state, and subject to the requirements of the specified income tax credits, to treat any of the following income tax credits allowed to the business as either carry forwardable for a 5-year period or transferable:

! Colorado job growth incentive tax credit;

! Enterprisezoneincometax creditforinvestmentincertain property;

! Income tax credit for new enterprise zone business employees;

and ! Enterprise zone income tax credit for expenditures for research and experimental activities.

This bill extends this program for another 3 years.

Be it enacted by the General Assembly of the State of Colorado:

SECTION1.

InColoradoRevisedStatutes,24-46-104.3,amend (1)(h) and (2)(a)(I) introductory portion as follows:

24-46-104.3.

Transferable income tax credits for certain businesseslocatedinthestate-definitions.(1) Asusedinthissection, unless the context otherwise requires:

(h) "Twelve-month interval" means each twelve-month interval from July 1, 2017, through June 30, 2020UNE 30, 2023, during which the commission may issue precertifications.

(2) (a) (I) Subject to the limitations specified in subsection (2)(b) ofthissection,commencingJuly1,2017,throughJune30,2020 UNE 30, 2023, if a business intends to make a strategic capital investment in the state, the commission mayissue awrittenprecertification to the business to grant the business the authority to treat its allowed income tax credits during the business' period differently as specified in this section.

The strategic capital investment must be initiated after the issuance of the precertification and completed before the end of the business' period;

except that, if a business makes a strategic capital investment that could result in allowed income tax credits with a total value greater than the -2- HB20-1298 precertification limitations set forth in subsection (2)(b) of this section, thecommissionmayissueasecondorthirdwrittenprecertificationtothe same business in the following twelve-month intervals for the same strategic capital investment, even if the strategic capital investment has already been initiated or completed.

If, after precertification and during the business' period, the business meets the requirements of one or more of the income tax credits as set forth in the statutory sections pertaining to each credit, then once the income tax credits are allowed, the business mayelect,byfilingawrittenelectionasspecifiedinsubsection(2)(a)(III) of this section, to:

SECTION 2.

Safety clause.

The general assemblyherebyfinds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, or safety.

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