HB 24-1295 — Creative Industry Community Revitalization Incentives

Summary

The act provides additional flexibility to the Colorado educational and cultural facilities authority in supporting educational and cultural facilities by authorizing the authority: To use money it has available for its general purposes to establish funds for loans or grants for capital projects for facilities, operations, maintenance, programming, and other endeavors for cultural and educational institutions; and To directly, or indirectly through a contract or a subsidiary controlled entity created by the authority, operate an educational or cultural facility. In addition, the definition of "facility", in the case of a cultural institution, is expanded to include a building on the national register of historic places that is owned or operated by the authority or a governmental entity. The act modifies the community revitalization grant program (grant program) by: Including projects that are eligible for funding under the space to create program administered by the creative industries division (division) within the office of economic development (office) as projects intended to be supported by the grant program; Extending deadlines for the adoption of policies, procedures, and guidelines for the grant program and for grant program reporting; and Extending the scheduled repeal of the grant program from January 1, 2025, to the date on which all money transferred or otherwise credited to the community revitalization fund is expended. The act creates a new community revitalization income tax credit (credit), for income tax years commencing on or after January 1, 2026, but before January 1, 2033, in an amount equal to 25% of the amount of eligible expenditures made by a qualified applicant in completing an eligible project; except that the office may reduce the credit percentage for reservations for credits made in any income tax year, and the maximum amount of the credit for a single project is $3 million. In addition, the maximum amount of credits that may be reserved during any calendar year is $10 million. An eligible project is a capital improvement project within a creative district, a historic district, or a neighborhood commercial center or a main street that involves the construction, rehabilitation, conversion, remodeling, or other improvement of one or more buildings, structures, or facilities for uses that support creative industries and creative industry workers and that is approved as an eligible project by the office. The act details a process for claiming the credit that requires: The submission by a qualified applicant to the office of an eligible project plan that includes an estimate of eligible expenditures; Preliminary and final review and approval of the plan by the office; Reservation of a credit for the qualified applicant by the office; Commencement of the eligible project incurrence by the qualified applicant of a specified minimum portion of the eligible expenditures within a specified period; Completion of the eligible project; Issuance of a tax credit certificate by the office; Filing of the tax credit certificate by the qualified applicant with the department of revenue with the qualified applicant's tax return or informational return; and Recapture of the credit if the eligible project is not used for a use that makes it an eligible project during a specified compliance period. The office is required to annually report to the general assembly regarding the credit and may, after soliciting advice from the department of revenue, create and modify policies and procedures as necessary to implement the credit. The community revitalization tax credit program cash fund is created, funded with tax credit application and issuance fees charged by the office as well as any other money provided by the general assembly and any gifts, grants, and donations received, and continuously appropriated to the office for the administration of the credit. For the 2024-25 state fiscal year, the act appropriates $102,498 from the general fund to the office of the governor for economic development programs. APPROVED by Governor May 28, 2024 EFFECTIVE May 28, 2024(Note: This summary applies to this bill as enacted.)

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill establishes a community revitalization income tax credit and modifies existing community revitalization grant program provisions.

• 24-48.5-317

  child care centers; → Child care centers;

  This change maintains the inclusion of child care centers as eligible for grants while correcting casing.

• 24-48.5-317

  PROJECTS THAT ARE ELIGIBLE FOR FUNDING UNDER THE SPACETOCREATE COLORADO PROGRAM ADMINISTERED BY THE DIVISION.

  This addition allows projects funded under a specific program to be included in the grant program.

• 24-48.5-317

  not later than December 31, 2022. → not later than December 31, 2024.

  This change extends the deadline for encumbering grants.

• 24-48.5-317

  On or before November 1, 2022 → On or before November 1, 2024

  This extension allows more time for reporting on grant usage.

• 24-48.5-317

  January 1, 2025, → the date on which all money transferred or otherwise credited to the community revitalization fund pursuant to this section is expended.

  This change repeals the scheduled expiration of the program, allowing it to continue until funds are fully expended.

• 24-75-402

  THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAM CASH FUND CREATED IN SECTION 39-22-560 (13).

  This inclusion exempts the new tax credit program fund from cash fund reserve limits.

• 39-22-560

  TAX PREFERENCE PERFORMANCE STATEMENT. IN ACCORDANCE WITH SECTION 39-21-304(1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

  This section establishes the tax credit program and articulates its legislative intent and goals.

• 39-22-560

  A QUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 FOR PLACING AN ELIGIBLE PROJECT IN SERVICE IN AN AMOUNT SPECIFIED.

  This defines the income tax credit for eligible applicants and projects.

• Committee Amendment Show changes

Action History

1. May 28, 2024

   Governor Signed

2. May 23, 2024

   Signed by the Speaker of the House

3. May 23, 2024

   Signed by the President of the Senate

4. May 23, 2024

   Sent to the Governor

5. May 08, 2024

   House Considered Senate Amendments - Result was to Concur - Repass

6. May 07, 2024

   Senate Third Reading Passed - No Amendments

7. May 06, 2024

   Senate Second Reading Special Order - Passed with Amendments - Committee

8. May 04, 2024

   Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

9. April 30, 2024

   Senate Committee on Finance Refer Amended to Appropriations

10. April 29, 2024

    Introduced In Senate - Assigned to Finance

11. April 26, 2024

    House Third Reading Passed - No Amendments

12. April 25, 2024

    House Committee on Appropriations Refer Amended to House Committee of the Whole

13. April 25, 2024

    House Second Reading Special Order - Passed with Amendments - Committee

14. March 21, 2024

    House Committee on Finance Refer Unamended to Appropriations

15. March 06, 2024

    House Committee on Business Affairs & Labor Refer Amended to Finance

16. February 14, 2024

    Introduced In House - Assigned to Business Affairs & Labor

Sponsors

• Brianna Titone · Primary
• Leslie Herod · Primary
• Steve Fenberg · Primary
• James Coleman · Primary

Votes

Subjects