(e) "STATE AVERAGE PER PUPIL REVENUES " HAS THE SAME MEANING AS SET FORTH IN SECTIO22-54-103 (12).

(f) "TXPAYER " MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC ORFOREIGNCORPORATIONSUBJECTTOTHEPROVISIONSOFPART 3OFTHIS ARTICLE 22, A PARTNERSHIP, LIMITED LIABILITY COMPANY , S CORPORATION ,OR OTHER SIMILAR PASSTHROUGH ENTITY ,ESTATE ,OR TRUST,AND A PARTNER MEMBER ,AND SUBCHAPTER SSHAREHOLDER OF SUCH A PASSTHROUGH ENTITY .

(3) (a) (I)N OTWITHSTANDING THE PROVISIONS OF SECTION 39-21-304 (4),FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,2024,APRIVATESCHOOLSHALLISSUEACREDITCERTIFICATE TO ANY TAXPAYER THAT ENROLLS A QUALIFIED CHILD IN THE PRIVATE SCHOOL OR THAT PROVIDES A SCHOLARSHIP TO A QUALIFIED CHILD FOR ENROLLMENTINTHEPRIVATESCHOOL .THECREDITCERTIFICATEALLOWS THE TAXPAYER TO CLAIM AN INCOME TAX CREDIT WITH RESPECT TO THE -5- HB23-1079 INCOME TAXES IMPOSED BY THIS ARTICL22.

(II) AAXPAYERTHAT ENROLLS A QUALIFIED CHILD IN A PRIVATE SCHOOL OR THAT PROVIDES A SCHOLARSHIP TO A QUALIFIED CHILD FOR ENROLLMENT IN A PRIVATE SCHOOL DURING THE2023-24 STATE FISCAL YEAR IS ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN SUBSECTION (3)(a)(I)F THIS SECTION FOR THE INCOME TAX YEAR COMMENCING DURING THE STATE FISCAL YEAR IN WHICH THE QUALIFIED CHILD IS ENROLLED OR IN WHICH THE SCHOLARSHIP IS PROVID;EXCEPT THAT A QUALIFIED CHILD SHALL NOT GENERATE AN INCOME TAX CREDIT IN THE SAME INCOME TAX YEAR FOR BOTH A TAXPAYER THAT ENROLLS THE QUALIFIEDCHILDINAPRIVATE SCHOOLANDATAXPAYERTHATPROVIDES A SCHOLARSHIP TO THE QUALIFIED CHILD FOR ENROLLMENT IN A PRIVATE SCHOOL .

(b) A PRIVATE SCHOOL SHALL ISSUE ANY CREDIT CERTIFICATES PURSUANTTOSUBSECTION (3)(aOFTHISSECTIONUPONAPPLICATIONFOR A CREDIT BY A TAXPAYER.

(c) (I) (A) FR ANY QUALIFIED CHILD ATTENDING A PRIVATE SCHOOL ON A FULL -TIME BASIS AS DESCRIBED IN STATE BOARD OF EDUCATION RULES ,THE AMOUNT OF THE CREDIT AUTHORIZED IN THIS SECTION EQUALS EITHER THE AMOUNT OF TUITION PAID FOR THE QUALIFIED CHILD OR THE AMOUNT OF THE SCHOLARSHIP PROVIDED TO A QUALIFIED CHILD,AS APPLICABL,OR SIXTY PERCENT OF THE PREVIOUS FISCALYEAR SSTATEAVERAGEPERPUPILREVENUES ,WHICHEVERISLESS .

(B) FORANYQUALIFIEDCHILDATTENDINGAPRIVATESCHOOLON AHALF -TIMEBASISASDESCRIBEDINSTATEBOARDOFEDUCATIONRULES , THEAMOUNTOFTHECREDITAUTHORIZEDINTHISSECTIONEQUALSEITHER THEAMOUNTOFTUITIONPAIDFORTHEQUALIFIEDCHILDORTHEAMOUNT -6- HB23-1079 OFTHESCHOLARSHIPPROVIDEDTOAQUALIFIEDCHILD ,ASAPPLICABLE,OR THIRTY PERCENT OF THE PREVIOUS FISCAL YEAS STATE AVERAGE PER PUPIL REVENUES,WHICHEVER IS LES.

(II) O N JANUARY 15, 2024, AND ON EVERY JANUARY 15 THEREAFTER ,THEDEPARTMENTOFEDUCATIONSHALLPROVIDETHESTATE AVERAGE PER PUPIL REVENUES FOR THE PREVIOUS FISCAL YEAR TO THE DEPARTMENT .

(d) HETAXPAYERSHALLSUBMITTHECREDITCERTIFICATETOTHE DEPARTMENT WITH THE TAXPAYER 'S INCOME TAX RETURN FOR THE TAX YEAR FOR WHICH A CREDIT IS CLAIM.D (4) ITHECREDITALLOWEDINTHISSECTIONEXCEEDSTHEINCOME TAXESOTHERWISEDUEONTHETAXPAYER SINCOME THEAMOUNTOFTHE CREDITNOTUSEDASANOFFSETAGAINSTINCOMETAXESMAYBECARRIED FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT YEARS 'INCOME TAX LIABILITY FOR A PERIOD NOT EXCEEDING THREE YEARS AND SHALL BE APPLIEDFIRSTTOTHEEARLIESTYEARSPOSSIBLE .A NYCREDITREMAINING THEREAFTER SHALL NOT BE REFUNDED OR CREDITED TO THE TAXPAYE.

(5) A TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX CREDIT GRANTED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO ANOTHER TAXPAYER FOR THE OTHER TAXPAYER ,AS TRANSFEREE ,TO APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICL22 SUBJECT TO THE FOLLOWING LIMITATION:

(a) THE TAXPAYER MAY ONLY TRANSFER A PORTION OF THE TAX CREDIT THAT THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICL22;

(b) THE TAXPAYER MAY NOT TRANSFER PORTIONS OF THE TAX CREDIT TO MORE THAN ONE TRANSFEREE;

-7- HB23-1079 (c) A TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED CREDIT REFUNDED ;

(d) FOR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED PURSUANT TO THIS SUBSECTION (5),BOTH THE TAXPAYER AND THE TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN TRANSFERRED .

ATRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED PURSUANT TO THIS SUBSECTION (5)UNLESS THE TAXPAYER S WRITTEN STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE TRANSFEREE .

(e) TO THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO THE TRANSFEREE ,THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE CREDIT TO PAY ,IN WHOLE OR IN PART,THE INCOME TAX OBLIGATION IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH EXTENT THE TRANSFEREE 'S USE OF A TAX CREDIT FROM A TRANSFEROR UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE 22 ON THE TRANSFEREE;

(f) I A TRANSFEREE PAID VALUE FOR THE TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO THE TRANSFEREE , THE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT TO THE DEPARTMENT ,IN A FORM AND MANNER TO BE DETERMINED BY THE DEPARTMENT ,ASTATEMENT ,INCLUDINGTHEPURCHASEPRICE ,THATTHE TRANSFEREE PURCHASED THE TAX CREDIT FROM THE TRANSFEROR ;

(g) A TRANSFEREE OFA TAX CREDIT MUST PURCHASE THE CREDIT PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE22,NOT INCLUDING -8- HB23-1079 ANY EXTENSIONS ,FOR FILING THE TRANSFERES INCOME TAX RETURN ;

(h) A TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR ASARESULTOFADONATIONBYAPASS THROUGHENTITY ,BUTNOTATAX CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S ESTATE FOR TAXES OWED BY THE ESTATE,SURVIVES THE DEATH OF THE INDIVIDUALAND MAY BE CLAIMED OR TRANSFERRED BYTHE DECEDENT 'S ESTATE ;

(i) A TAXPAYER WHO CLAIMS A TAX CREDIT PURSUANT TO SUBSECTION (3)OF THIS SECTION AND TRANSFERS THE CREDIT PURSUANT TO THIS SUBSECTION (5)IS THE TAX MATTERS REPRESENTATIVE IN ALL MATTERS WITH RESPECT TO THE CREDIT.

THE TAX MATTERS REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT , INCLUDING ,BUTNOT LIMITEDTO ,NOTIFICATIONSANDCORRESPONDENCE FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS ,REFUNDS , SETTLEMENT AGREEMENTS ,AND THE STATUTE OF LIMITATIONS .

THE TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CRED.T (j) FINAL RESOLUTION OF DISPUTES REGARDING A TAX CREDIT BETWEEN THE DEPARTMENT AND THE TAX MATTERS REPRESENTATIVE , INCLUDING FINAL DETERMINATIONS , COMPROMISES , PAYMENT OF ADDITIONALTAXESORREFUNDSDUE ,ANDADMINISTRATIVEANDJUDICIAL DECISIONS,IS BINDING ON TRANSFEREE.

(6) IATAXPAYERRECEIVINGACREDITALLOWEDINTHISSECTION IS A PARTNERSHIP,LIMITED LIABILITY COMPANY , SCORPORATION ,OR SIMILAR PASS-THROUGH ENTITY , THE TAXPAYER MAY ALLOCATE THE CREDIT AMONG ITS PARTNERS ,SHAREHOLDERS ,MEMBERS , OR OTHER -9- HB23-1079 CONSTITUENTTAXPAYERSINANYMANNERAGREEDTOBYTHEPARTNERS , SHAREHOLDERS , MEMBERS ,OR OTHER CONSTITUENT TAXPAYERS .

THE TAXPAYER SHALL CERTIFY TO THE DEPARTMENT THE AMOUNT OF THE CREDIT ALLOCATED TO EACH PARTNER , SHAREHOLDER ,MEMBER , OR OTHER CONSTITUENT TAXPAYER .

E ACH PARTNER , SHAREHOLDER , MEMBER , OR OTHER CONSTITUENT TAXPAYER MAY CLAIM THE AMOUNT SUBJECT TO ANY RESTRICTIONS SET FORTH IN THIS SEC.ION (7) NO LATER THAN D ECEMBER 15, 2024AND NO LATER THAN D ECEMBER 15OF EACH YEAR THEREAFTER,EACH PRIVATE SCHOOL THAT ISSUESACREDITCERTIFICATESHALLPROVIDETHEDEPARTMENTWITHAN ELECTRONIC REPORT OF ANY CREDIT CERTIFICATE ISSUED FOR THAT INCOME TAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION:

(a) THE TAXPAYER'S NAME;

(b) THE TAXPAYER S COLORADO ACCOUNT NUMBER OR SOCIAL SECURITY NUMBER ;AND (c) ANY ASSOCIATED TAXPAYERS ' NAMES AND COLORADO ACCOUNT NUMBERS OR SOCIAL SECURITY NUMBERS IF THE CREDIT ALLOWED IN THIS SECTION ISALLOCATEDFROMA PASS-THROUGH ENTITY PURSUANT TO SUBSECTION (6)OF THIS SECTI.N 39-22-550.

Credit for taxpayers that use home-based education for a qualified child - rules - tax preference performance statement - legislative declaration - definitions.

(1) (a) T ASSEMBLY HEREBY FINDS AND DECLARES THAT:

(I) EERYSTUDENTINTHESTATEOF C OLORADOSHOULDHAVEAS MUCHACCESSASPOSSIBLETOTHEEDUCATIONALFORMATSTHATBESTFIT THEIR NEEDS AND LEARNING STYLE;

(II) HME -BASED EDUCATION CAN BEST MEET THOSE NEEDS FOR -10- HB23-1079 MANY COLORADO STUDENTS ;

(III) PBLIC MONEY FOR EDUCATION IS LIMITED AND SHOULD BE DIRECTED TO THE MOST COST EFFICIENT MEANS OF DELIVERING EDUCATIONAL OPPORTUNITIES FOR ALLCOLORADO STUDENTS ;

(IV) PARENTS HAVE THE FUNDAMENTAL RIGHT AND RESPONSIBILITY TO DIRECT THE EDUCATION OF THEIR CHILD;EN (V) TRANSPORTATIONTIME ,SYSTEMS,ANDINFRASTRUCTURECAN BE RELIEVED BY INCREASED EDUCATIONAL FLEXIBILI;Y (VI) D ISASSOCIATING FAILING SCHOOLS WITH PARTICULAR HOUSING AREAS WILL INCREASE THE DESIRABILITY OF NEIGHBORHOODS THROUGHOUT THE STATE AND REINVIGORATE DECAYING SCHOOL DISTRICTS;

(VII) SCHOOL CROWDING AND ASSOCIATED ISSUES CAN BE RELIEVEDCREATIVELYINSTEAD OFWITH COSTLYNEWSTRUCTURES ;AND (VIII) CURRENT SCHOOL FINANCING IS LINEAR AND DOES NOT PROVIDE A MECHANISM FOR ECONOMIES OF SCALE , MAKING IT COST PROHIBITIVE TO CONTINUE TO EXPAND SCHOOL INFRASTRUCTURE .

H OME-BASED EDUCATION OFFERS ONE OF THE ONLY MECHANISMS TO REDUCE SCHOOL CROWDING AND EXPENDITURES WHILE NOT PENALIZING THE CHILDREN CURRENTLY ENROLLED IN THE SCHOOLS.

(b) IN ACCORDANCE WITH SECTION 39-21-304 (1),WHICH REQUIRESEACHBILLTHATCREATESANEWTAXEXPENDITURETOINCLUDE ATAXPREFERENCE PERFORMANCE STATEMENT ASPARTOFASTATUTORY LEGISLATIVEDECLARATION ,THEGENERALASSEMBLYHEREBYFINDSAND DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN SUBSECTION (3)OF THIS SECTION ARE :O (I) POVIDETAXRELIEFFORCERTAININDIVIDUALS ,SPECIFICALLY -11- HB23-1079 INDIVIDUALSTHATUSEHOME -BASEDEDUCATIONFORAQUALIFIEDCHILD ;

AND (II) GVE PARENTS AND STUDENTS MORE EDUCATIONAL CHOICES WHILE OPTIMIZING THE USE OF PUBLIC MONEY DESIGNATED FOR EDUCATIONAL PURPOSES .

(c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE PURPOSESSPECIFIEDINSUBSECTION (1)(bOFTHISSECTIONBASEDONTHE NUMBER OF QUALIFIED CHILDREN WHO ARE TAUGHT THROUGH HOME -BASEDEDUCATIONFORTHEFIRSTTIMEINTHEAPPLICABLESCHOOL YEAR .THEDEPARTMENTOFREVENUESHALLPROVIDETHESTATEAUDITOR WITHTHE NUMBEROFQUALIFIEDCHILDRENWHOGENERATEDANINCOME TAX CREDIT TO ASSIST THE STATE AUDITS MEASUREMENT .

(2) AS USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "DEPARTMENT "MEANS THE DEPARTMENT OF REVENUE .

(b) "H OME-BASED EDUCATION " MEANS THE EDUCATION OF A QUALIFIED CHILD PURSUANT TO SECTION 22-33-104.5OR TAUGHT AT HOME UNDER THE SUPERVISION OF A PRIVATE SCHOO.

(c)(I) "QALIFIEDCHILD"MEANSADEPENDENT CHILDENROLLED ONAFULL TIMEORHALF TIMEBASIS,ASDESCRIBEDINTHESTATEBOARD OFEDUCATIONRULES ,INAPUBLICSCHOOLINTHESTATEFORTHESCHOOL YEAR PRIOR TO BEING TAUGHT THROUGH HOME-BASED EDUCATION OR A DEPENDENT CHILD WHO WAS NOT OLD ENOUGH TO ENROLL IN A PUBLIC KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN THE SCHOOL YEAR PRIOR TO BEING TAUGHT THROUGH HOME BASED EDUCATION ,BUT DOES NOT INCLUDE A DEPENDENT CHILD WHO IS ENROLLED IN A PRIVATE -12- HB23-1079 SCHOOL OR TAUGHT THROUGH HOME BASED EDUCATION IN THE STATE PRIOR TO THE EFFECTIVE DATE OF THIS SECT.ON (II) O NCE A CHILD IS A QUALIFIED CHILD AS SPECIFIED IN SUBSECTION (2)(c)(OF THIS SECTIO,THE CHILD REMAINS A QUALIFIED CHILD SO LONG AS THE CHILD CONTINUES TO BE TAUGHT THROUGH HOME -BASED EDUCATION IN THE STATE IN A KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM .

(d) "TAXPAYER" MEANS A RESIDENT INDIVIDUAL OR A DOMESTIC ORFOREIGNCORPORATIONSUBJECTTOTHEPROVISIONSOFPART 3OFTHIS ARTICLE 22, A PARTNERSHIP , LIMITED LIABILITYCOMPANY , S CORPORATION ,OR OTHER SIMILAR PASSTHROUGH ENTITY ,ESTATE ,OR TRUST,AND A PARTNER ,MEMBER ,AND SUBCHAPTER SSHAREHOLDER OF SUCH PASS-THROUGH ENTITY.

(3) (a) (I)N OTWITHSTANDING THE PROVISIONS OF SECTION 39-21-304 (4),FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2024THERE IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE22,IN AN AMOUNT EQUAL TO FORTY PERCENT OFTHE PREVIOUS YEARSSTATE AVERAGE PERPUPILREVENUES , FORANYTAXPAYERWHOUSESHOME -BASEDEDUCATIONFORAQUALIFIED CHILD WHO WAS ENROLLED IN A PUBLIC SCHOOL IN THE STATE PRIOR TO BEINGTAUGHTTHROUGHHOME -BASEDEDUCATIONORWHOWASNOTOLD ENOUGH TO ENROLL IN A PUBLIC KINDERGARTEN THROUGH TWELFTH GRADEPROGRAMINTHESCHOOLYEARPRIORTOBEINGTAUGHTTHROUGH HOME -BASED EDUCATION.

(II) NOTWITHSTANDING THE PROVISIONS OF SECTIO39-21-304 (4),ORINCOMETAXYEARSCOMMENCINGONORAFTER JANUARY 1,2024, THEREISALLOWEDASACREDITAGAINSTTHEINCOMETAXESIMPOSEDBY -13- HB23-1079 THIS ARTICLE 22 AN AMOUNT EQUAL TO TWENTY PERCENT OF THE PREVIOUS YEAR S STATE AVERAGE PER PUPIL REVENUES ,FOR ANY TAXPAYER WHO USES HOME BASED EDUCATION FOR A QUALIFIED CHILD WHO WAS ENROLLED ON A HALF -TIME BASIS IN A PUBLIC SCHOOL IN THE STATE PRIOR TO BEING TAUGHT THROUGH HOME -BASED EDUCATION OR WHO WAS NOT OLD ENOUGH TO ENROLL IN A PUBLIC KINDERGARTEN THROUGH TWELFTH GRADE PROGRAM IN THE SCHOOL YEAR PRIOR TO BEING TAUGHT THROUGH HOME -BASED EDUCATION .

(b) A TAXPAYER WHO USES HOME -BASED EDUCATION FOR A QUALIFIEDCHILDDURINGTHE 2023-24STATEFISCALYEARORANYSTATE FISCAL YEAR THEREAFTER ,IS ELIGIBLE FOR THE INCOME TAX CREDIT SPECIFIED IN SUBSECTIO(3)(a)OF THIS SECTION FOR THE INCOME TAX YEAR COMMENCING DURING THE STATE FISCAL YEAR IN WHICH THE QUALIFIED CHILD IS TAUGHT THROUGH HOMEBASED EDUCATION .

(4) I THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE INCOME TAXES OTHERWISE DUE ON THE TAXPAYER 'S INCOME, THE AMOUNT OFTHE CREDIT NOT USEDASANOFFSET AGAINST INCOME TAXES MAY BE CARRIED FORWARD AS A TAX CREDIT AGAINST SUBSEQUENT YEARS 'INCOME TAX LIABILITY FOR A PERIOD NOT EXCEEDING THREE YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST YEARS POSSI.LE A NY CREDIT REMAINING AFTER SAID PERIOD MAY NOT BE REFUNDED OR CREDITED TO THE TAXPAYER.

(5) A TAXPAYER MAY TRANSFER ALL OR A PORTION OF A TAX CREDIT GRANTED PURSUANT TO SUBSECTION (3)OF THIS SECTION TO ANOTHER TAXPAYER FOR SUCH OTHER TAXPAYER ,AS TRANSFEREE ,TO APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICL22 SUBJECT TO THE FOLLOWING LIMITATION:

-14- HB23-1079 (a) THE TAXPAYER MAY ONLY TRANSFER SUCH PORTION OF THE TAX CREDIT AS THE TAXPAYER HAS NOT APPLIED AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE22;

(b) THE TAXPAYER MAY NOT TRANSFER A PRORATED PORTION OF THE TAX CREDIT TO MORE THAN ONE TRANSFEREE ;

(c) A TRANSFEREE MAY NOT ELECT TO HAVE ANY TRANSFERRED CREDIT REFUNDED ;

(d) FOR ANY TAX YEAR IN WHICH A TAX CREDIT IS TRANSFERRED PURSUANT TO THIS SUBSECTION (5),BOTH THE TAXPAYER AND THE TRANSFEREE SHALL FILE WRITTEN STATEMENTS WITH THEIR INCOME TAX RETURNS SPECIFYING THE AMOUNT OF THE TAX CREDIT THAT HAS BEEN TRANSFERRED .

ATRANSFEREE MAY NOT CLAIM A CREDIT TRANSFERRED PURSUANT TO THIS SUBSECTION (5) UNLESS THE TAXPAYER S WRITTEN STATEMENT VERIFIES THE AMOUNT OF THE TAX CREDIT CLAIMED BY THE TRANSFEREE .

(e) TO THE EXTENT THAT A TRANSFEREE PAID VALUE FOR THE TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO THE TRANSFEREE ,THE TRANSFEREE SHALL BE DEEMED TO HAVE USED THE CREDIT TO PAY ,IN WHOLE OR IN PART,THE INCOME TAX OBLIGATION IMPOSED ON THE TRANSFEREE UNDER THIS ARTICLE 22, AND TO SUCH EXTENT THE TRANSFEREE 'S USE OF A TAX CREDIT FROM A TRANSFEROR UNDER THIS SECTION TO PAY TAXES OWED SHALL NOT BE DEEMED A REDUCTION IN THE AMOUNT OF INCOME TAXES IMPOSED BY THIS ARTICLE 22 ON THE TRANSFEREE;

(f) I A TRANSFEREE PAID VALUE FOR THE TRANSFER OF A CREDIT ALLOWED PURSUANT TO THIS SECTION TO THE TRANSFEREE , THE TRANSFEREE AND THE TRANSFEROR SHALL BOTH SUBMIT TO THE -15- HB23-1079 DEPARTMENT ,IN A FORM AND MANNER TO BE DETERMINED BY THE DEPARTMENT ,ASTATEMENT ,INCLUDINGTHEPURCHASEPRICE ,THATTHE TRANSFEREE PURCHASED THE TAX CREDIT FROM THE TRANSFEROR ;

(g) A TRANSFEREE OFA TAX CREDIT MUST PURCHASE THE CREDIT PRIOR TO THE DUE DATE IMPOSED BY THIS ARTICLE22,NOT INCLUDING ANY EXTENSIONS ,FOR FILING THE TRANSFERES INCOME TAX RETURN ;

(h) A TAX CREDIT HELD BY AN INDIVIDUAL EITHER DIRECTLY OR ASARESULTOFADONATIONBYAPASS THROUGHENTITY ,BUTNOTATAX CREDIT HELD BY A TRANSFEREE UNLESS USED BY THE TRANSFEREE 'S ESTATE FOR TAXES OWED BY THE ESTATE ,SURVIVES THE DEATH OF THE INDIVIDUALANDMAY BE CLAIMED OR TRANSFERRED BY THE DECEDENT 'S ESTATE ;

(i) A TAXPAYER WHO CLAIMS A TAX CREDIT PURSUANT TO SUBSECTION (3)OF THIS SECTION AND TRANSFERS THE CREDIT PURSUANT TO THIS SUBSECTION (5)IS THE TAX MATTERS REPRESENTATIVE IN ALL MATTERS WITH RESPECT TO THE CREDIT.

T HE TAX MATTERS REPRESENTATIVE IS RESPONSIBLE FOR REPRESENTING AND BINDING THE TRANSFEREES WITH RESPECT TO ALL ISSUES AFFECTING THE CREDIT , INCLUDING ,BUT NOT LIMITEDTO,NOTIFICATIONSANDCORRESPONDENCE FROM AND WITH THE DEPARTMENT , AUDIT EXAMINATIONS ,REFUNDS , SETTLEMENT AGREEMENTS ,AND THE STATUTE OF LIMITATIONS .

THE TRANSFEREE IS SUBJECT TO THE SAME STATUTE OF LIMITATIONS WITH RESPECT TO THE CREDIT AS THE TRANSFEROR OF THE CRED.T (j) FINAL RESOLUTION OF DISPUTES REGARDING A TAX CREDIT BETWEEN THE DEPARTMENT AND THE TAX MATTERS REPRESENTATIVE , INCLUDING FINAL DETERMINATIONS , COMPROMISES , PAYMENT OF ADDITIONALTAXESORREFUNDSDUE ANDADMINISTRATIVEANDJUDICIAL -16- HB23-1079 DECISIONS,IS BINDING ON TRANSFEREES .

SECTION 3.

Act subject to petition - effective date.

This act takes effect at 12:01 a.m.

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly;except that, if a referendumpetition isfiledpursuant 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 approved by the people at the general election to be held in November 2024 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

-17- HB23-1079