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Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO.
HB1295_S_FIN.001 SENATE COMMITTEE OF REFERENCE REPORT _______________________________ April 30, 2024 Chair of Committee Date Committee on Finance .
24-0658.03 Jason Gelender x4330 HOUSE BILL 24-1295 HOUSE SPONSORSHIP Titone and Herod, SENATE SPONSORSHIP Fenberg and Coleman, House Committees Senate Committees Business Affairs & Labor Finance Appropriations A BILL FOR AN ACT C ONCERNING COMMUNITY REVITALIZATION INCENTIVES FOR THE SUPPORT OF CREATIVE INDUSTRIES , AND , IN CONNECTION THEREWITH , EXTENDING THE COMMUNITY GRANT REVITALIZATIONPROGRAM ,CREATINGANINCOMETAXCREDIT FOR EXPENSES INCURRED IN COMPLETING INFRASTRUCTURE THATSUPPORTSCREATIVEINDUSTRIESANDCREATIVEINDUSTRY WORKERS ,AND MAKING AN APPROPRIATION .
After consideration on the merits, the Committee recommends the following:
Bill Summary (Note:
HB24-1295 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
This summary applies to this bill 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 i 4 http://leg.colorado.gov.) a 0 S R , O n 2 Shading denotes HOUSE amendment.
Amend reengrossed bill, page 3, after line 1 insert:
Double underlining denotes SENATE amendment.H 2 r Capital letters or bold & italic numbers indicate new material to be added to exisding law.
"SECTION 1.
Dashes through the words or numbers indicate deletions from existing law.
In Colorado Revised Statutes, 23-15-102, amend (1)(a) as follows:
e m A Section 1 of the bill modifies the community revitalization grant program (grant program) by:
23-15-102.
! Including projects that are eligible for funding under the space to create program administered by the creative industriesdivision(division)withintheofficeofeconomic development (office) as projects intended to be supported by the grant program;
Legislative declaration.
! Extending deadlines for the adoption of policies, procedures, and guidelines for the grant program and for grant program reporting;
(1) The general assembly hereby finds and declares that:
and ! Extending the scheduled repeal of the grant program from January1,2025,tothedateonwhichallmoneytransferred or otherwise credited to the communityrevitalization fund pursuant to this section is expended.
(a) It is the intent of the general assembly to create the Colorado educational and cultural facilities authorityto lend moneyto educational institutionsandculturalinstitutions;toauthorizetheauthoritytoacquire, construct, reconstruct, repair, alter, improve, extend, own, lease, and dispose of propertiestotheend that the authoritymaybe able to promote the welfare of the people of this state;
Section 2 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;
to authorize the authority to administer the Colorado education savings program;
except that the office may reduce the creditpercentageforreservationsforcreditsmadeinanyincometaxyear, and the maximum amount of the credit for a single project is $3 million.
to permit the bonds or certificates of participation of the authority and the bonds or certificates of participation of other issuers to be designated as Colorado education savings bonds or certificates;
In addition, the maximum amount of credits that maybe reserved during any calendar year is $16 million.
and to vest such authority with powerstoenablesuchauthoritytoaccomplishsuchpurposes;Itisnotthe intent of the general assembly to authorize the authority to operate any such educational or cultural facility.
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 bill details a process for claiming the credit that requires:
! The submission bya 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;
! Filingofthetaxcreditcertificatebythequalifiedapplicant with the department of revenue with the qualified -2- 1295 applicant's tax return or informational return;
and ! Recaptureofthecreditiftheeligibleprojectisnotusedfor 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.
Be it enacted by the General Assembly of the State of Colorado:
SECTION1.
InColoradoRevisedStatutes,24-48.5-317,amend (2)(a)(V), (2)(a)(VI), (4) introductory portion, (8)(a), and (9);
repeal (2)(b);
and add (2)(a)(VII) as follows:
24-48.5-317.
Community revitalization grants - fund - reporting - compliance with federal requirements - legislative declaration - definitions - repeal.
(2) (a) The communityrevitalization grant program is hereby established in the division.
The purpose of the grant program is to provide state assistance in the form of grant awards to finance various projects across the state that are intended to create or revitalize mixed-use commercial centers.
The grant program is intended to support creative projects in these commercial centers that would combinerevitalizedornewlyconstructedcommercialspaceswithpublic or community spaces including but not limited to such projects as:
(V) The renovation or refurbishment of vacant or blighted property for creative industries, economic development, or historic preservation purposes;
and (VI) Child care centers;D (VII) P ROJECTS THAT ARE ELIGIBLE FOR FUNDING UNDER THE SPACETOCREATE COLORADOPROGRAMADMINISTEREDBYTHEDIVISION .
(b) Allgrantsawardedunderthissectionmustbeencumberednot -3- 1295 later than December 31, 2022.
(4) On or before September 1, 2021DECEMBER 1, 2024, the director of the division, in consultation with the director of the division of local government, or their designees, shall adopt policies, procedures, and guidelines for the grant program that include without limitation:
(8) (a) On or before November 1, 2022EMBER 1, 2024, and on or before November 1, 2023OVEMBER 1, 2026, the division shall publish a report summarizing the use of all of the money that was awarded as grants under the grant program in the preceding fiscal year.
At a minimum, the report shall specify the amount of grant money distributed to each grant recipient and a description of each grant recipient's use of the grant money.
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The report must be posted on the website of the office of economic development created in section 24-48.5-101.
(9) This section isL BErepealed effective January 1, IF25 ALLMONEYTRANSFERRED OR OTHERWISE CREDITEDTOTHE COMMUNITY REVITALIZATION FUND PURSUANT TO THIS SECTION IS EXPENDE.
THE DIRECTOR OF THE DIVISION SHALL NOTIFY THE REVISOR OF STATUTES IN WRITING OF THE DATE WHEN THE CONDITION SPECIFIED IN THIS SUBSECTION (9) HAS OCCURRED BY E -MAILING THE NOTICE TO REVISOROFSTATUTES GA @ COLEG.GOV.
T HIS SECTION IS REPEALED , EFFECTIVE UPON THE DATE IDENTIFIED IN THE NOTICE THAT ALL MONEY TRANSFERRED OR OTHERWISE CREDITED TO THE COMMUNITY REVITALIZATION FUND PURSUANT TO THIS SECTION IS EXPEND,OR ,IF THENOTICEDOESNOTSPECIFYTHATDATE ,UPONTHEDATEOFTHENOTICE TO THE REVISOR OF STATUTE.
In Colorado Revised Statutes, 24-75-402, amend -4- 1295 (5)(ccc) and (5)(ddd);
In Colorado Revised Statutes, 23-15-103, amend (8.5)(a)(I)(A) and (8.5)(a)(II)(A) as follows:
and add (5)(eee) as follows:
23-15-103.
24-75-402.
Definitions.Asusedinthisarticle,unlessthecontext otherwise requires:
Cash funds - limit on uncommitted reserves - reduction in the amount of fees - exclusions - definitions.
(8.5) (a) (I) (A) "Facility", in the case of a participating educational institution, means any structure or building suitable for use asa housing facility, an instructional facility,anadministrationbuilding, aresearchfacility,alaboratory,amaintenance,storage,orutilityfacility, an auditorium, a dining hall, a food service and preparation facility, a mentalorphysicalhealth-carefacility,arecreationalfaciAHOTEL ,or astudentcenterfacilityoranyotherstructureorfacilityrequiredoruseful for the operation of an educational institution, including, but not limited to:
(5) Notwithstanding any provision of this section to the contrary, the following cash funds are excluded from the limitations specified in this section:
Offices, parking lots and garages, EATING OR DRINKING ESTABLISHMENTS , GIFT SHOPS,LODGING , and other supporting service structures;
(ccc) The wildfire resiliency code board cash fund created in section 24-33.5-1236 (8);
any equipment, furnishings, and appurtenances necessary or useful in the operation of a participating educational institution;
and (ddd) Theclosedlandfillremediationgrantprogramfundcreated in section 30-20-124 (AND (eee) THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAM CASH FUND CREATED IN SECTION39-22-560 (13).
and the acquisition, preparation, and development of all real and personal property necessary or convenient as a site or sites for any such structure or facility.
(II) (A) "Facility", in the case of a cultural institution, means any property that is suitable for the particular purposes of a cultural institution, including, without limitation, any such property suitable for use as or in connection with the operation of any one or more of the following:
An administrative facility, an aquarium, an assembly hall, an auditorium, a botanical garden, an exhibition or performance hall or structure, a gallery, a greenhouse, a library, a museum, a scientific laboratory, FILM CENTER ,A HOTEL, a housing facility that serves the culturalneedsof itsresidentsandisbeingfinancedaspartof a multistate program of financing educational or cultural facilities under this article, a theater, or a zoological facility;
and also including, without limitation, the books, works of art or music, and the animal, plant, or aquatic life or otheritemscontainedthereinfordisplay,exhibition,orperformance.The term "facility" includes any other structure or facility required or useful for the operation of a cultural institution including, but not limited to, offices,parkinglotsandgarages,ATINGORDRINKINGESTABLISHMENTS , GIFT SHOPS, LODGING , and other supporting service structures;
any equipment, furnishings, and appurtenances necessary or useful in the operation of a cultural institution;
and the acquisition, preparation, and development of all real andpersonalpropertynecessaryor convenient as a site or sites for any such structure or facility.
The term "facility" also includes buildings on the national register of historic places which are owned and OR operated by nonprofit OR GOVERNMENTAL entities, INCLUDING THE AUTHORITY .
In Colorado Revised Statutes, add 39-22-560 as follows:
In Colorado Revised Statutes, 23-15-107, amend (1) introductory portion, (1)(v), and (2);
39-22-560.
and add (1)(w) as follows:
Community revitalization tax credit -unity revitalization tax credit program cash fund - tax preference performancestatement-legislativedeclaration-definitions-repeal.
23-15-107.
(1) Tax preference performance statement.
General powers of the authority.
I ACCORDANCE WITH SECTION39-21-304(1),WHICHREQUIRESEACHBILLTHATCREATESANEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION,THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
(1) In addition to any other powers granted to the authoritybythis article 15, the authority shall haveHAS the following powers:
(a) THE GENERAL LEGISLATIVE PURPOSES OF THE TAX CREDIT ALLOWED BY THIS SECTION AR:
(v) To designate as Colorado education savings bonds or certificates the bonds or certificates of participation of issuers other than the authority if the issuer has applied for such designation and the authority has determined that such instruments satisfy the criteria -2- established in section 23-15-110.AND2);
(I) TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS;
(w) T O ESTABLISH AND ADMINISTER ONE OR MORE FUNDS FOR LOANS ,REVOLVING LOANS ,OR GRANTS TO SUPPORT CAPITAL PROJECTS FORFACILITIESASWELLASOPERATIONS ,MAINTENANCE ,PROGRAMMING ANDOTHERENDEAVORS ,FORCULTURALINSTITUTIONSANDEDUCATIONAL INSTITUTIONS FROM ANY SOURCES THAT MAY BE AVAILABLE TO THE AUTHORITYFORITSGENERALPURPOSES ,INCLUDINGBUT NOT LIMITEDTO NET FACILITY REVENUES,GRANTS,GIFTS,OR FEES.
AND (II) TO PROVIDE TAX RELIEF FOR CERTAIN BUSINESSES OR -5- 1295 INDIVIDUALS;
(2) TheauthorityshallnothaveS thepowertooperateafacility asabusiness,ITHERDIRECTLYORINDIRECTLYTHROUGHCONTRACTSFOR THE MANAGEMENT AND OPERATION OF A FACILITY , or other than as a lesseeorlessor.IHEAUTHORITYOPERATESAFACILITY THEAUTHORITY MUSTDIRECTALLNETREVENUEFROMTHEFACILITYTOTHEPURPOSESSET FORTH IN THIS ARTICL15.
(b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT ALLOWEDBYTHISSECTIONISTOREVITALIZECOMMUNITIESBYPROVIDING FINANCIAL SUPPORT AND A FINANCIAL INCENTIVE FOR CAPITAL IMPROVEMENTPROJECTSINCREATIVEDISTRICTSTHATSUPPORTCREATIVE INDUSTRIES AND CREATIVE INDUSTRY WORKERS BY PROVIDING AFFORDABLE HOUSING AND LIVE-WORK SPACES FOR SUCH WORKERS AND OTHER MIXED USE AND CREATIVE-USE SPACES FOR BOTH SUCH WORKERS ANDTHEGENERALPUBLICTHATENJOYSANDBENEFITSFROMTHEIRWORK .
N ORDER TO ISOLATE OPERATING RISK ON A PROJECT-BY-PROJECT BASIS, THE AUTHORITY HAS THE POWER TO ESTABLISH,ORADOPTARESOLUTIONAPPROVINGTHEESTABLISHMENTOF , ONE OR MORE SUBSIDIARY CONTROLLED ENTITIES.
(c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE PURPOSES SPECIFIED IN SUBSECTION(2)(aAND (2)(b)OF THIS SECTION BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED BY AND REPORTED BY THE OFFICE PURSUANT TO SUBSECTION (11) OF THIS SECTION.
UCH A CONTROLLED ENTITY ENJOYS AND IS ENTITLED TO THE SAME POWE,PRIVILEGE,AND IMMUNITIES AS THE AUTHORITY SO LONG A:
(2) Definitions.
(a) THE CONTROLLED ENTITY IS A NONPROFIT CORPORATION , LIMITED LIABILITY COMPAN,LIMITED LIABILITY LIMITED PARTNERSH,P OROTHERENTITYFORMEDPURSUANTTOSTATELAWANDTHEAUTHORITY IS THE SOLE MEMBER OR PARTNER OF THE ENTI;Y (b) TE AUTHORITY APPOINTS THE GOVERNING BODY OF OR AN AGENT TO OVERSEE THE CONTROLLED ENTITY AND MAY REMOVE A MEMBER OF THE GOVERNING BODY OR AGENT ;
AUSED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(c) A NY REVENUE OF THE CONTROLLED ENTITY THAT IS NOT REQUIRED TO PAY ITS EXPENSES AND OBLIGATIONS AND TO FUND RESERVESFORSUCHEXPENSESANDOBLIGATIONSAND ,UPONDISSOLUTION OF THE CONTROLLED ENTITY,ANY ASSETS OF THE CONTROLLED ENTITY NOT REQUIRED TO PAY ITS EXPENSES AND OBLIGATIONS MUST BE DISTRIBUTEDTOORATTHEDIRECTIONOFTHEAUTHORITYANDSHALLNOT BEUSEDFORORACCRUETOTHEBENEFITOFANYPRIVATEINTERESTS ;AND (d) TEAUTHORITYMAYLOANPROCEEDSFROMBONDSISSUEDBY THE AUTHORITY TO THE CONTROLLED ENTITY.".
(a) "APPLICATION" MEANS AN APPLICATION IN THE FORM AND MANNER APPROVED BY THE OFFICE FOR THE CREDIT ALLOWED IN THIS SECTION THAT INCLUDES THE PROJECT PLAN AND ESTIMATED ELIGIBLE EXPENDITURES .
Renumber succeeding sections accordingly.
(b) "CREATIVE DISTRIC"HAS THE SAME MEANING AS SET FORTH IN SECTION24-48.5-314 (2)(b).
** *** ** *** ** -3-
(c) "DEPARTMENT "MEANS THE DEPARTMENT OF REVENUE .
(d) "ELIGIBLE EXPENDITURES " MEANS REASONABLE AND NECESSARY EXPENDITURES , IN ACCORDANCE WITH GUIDELINES DEVELOPED BY THE OFFICE , ACTUALLY PAID BY A TAXPAYER IN -6- 1295 COMPLETING AN ELIGIBLE PROJEC.
(e) "EIGIBLEPROJECT"MEANSACAPITALIMPROVEMENTPROJECT UNDERTAKEN IN THE STATE WITHIN A CREATIVE DISTRICT,A HISTORIC DISTRICT,OR A NEIGHBORHOOD COMMERCIAL CENTER OR ON 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 , INCLUDING AFFORDABLE HOUSING AND LIVE-WORK SPACES FOR SUCH WORKERS AND OTHER MIXED USE, CREATIVE-USE, PERFORMANCE ,AND EXHIBITION SPACES FOR SUCH WORKERS AND FOR THE GENERAL PUBLIC AND THAT IS APPROVED BY THE OFFICE IN ACCORDANCE WITH THE POLICIES , PROCEDURES , AND GUIDELINES FOR THE IMPLEMENTATION AND ADMINISTRATIONOFTHETAXCREDITALLOWEDBYTHISSECTIONADOPTED BY THE OFFICE PURSUANT TO SUBSECTION(12)OF THIS SECTIO.
(f) "OFFIC" MEANS THE OFFICE OF ECONOMIC DEVELOPMENT.
(g) (I) "QALIFIED APPLICAN"MEANS A PERSON THAT :
(A) H AS A CONTRACTUAL OR REAL PROPERTY INTEREST IN AN EXISTINGORPLANNEDBUILDING ,STRUCTURE ,ORFACILITYTHAT ISTOBE CONSTRUCTED ,REHABILITATED,CONVERTED ,REMODELED ,OROTHERWISE IMPROVED THROUGH THE COMPLETION OF AN ELIGIBLE PROJECT;AND (B) M AKES ELIGIBLE EXPENDITURE;
(II)A QUALIFIED APPLICANT MAY BE A PERSON SUBJECT TO TAX PURSUANTTOTHISARTICLE 22 ORAPERSONORPOLITICALSUBDIVISIONOF THESTATETHATISEXEMPTFROMSUCHTAXATIONPURSUANTTOSECTION 39-22-112(1).
(3)Creditallowed.(a) FRINCOMETAXYEARSCOMMENCINGON -7- 1295 ORAFTER JANUARY 1,2026, BUTPRIORTO JANUARY 1,2033,AQUALIFIED APPLICANT IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE22 FOR PLACING AN ELIGIBLE PROJECT IN SERVICE IN AN AMOUNT SPECIFIED ON THE CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO SUBSECTION (7)OF THIS SECTIO.
(b) IN ORDER TO CLAIM THE CREDIT ALLOWED PURSUANT TO THIS SECTION ,THE QUALIFIED APPLICANT MUST SUBMIT AN APPLICATION AS SPECIFIED IN SUBSECTION (4) OF THIS SECTION,PLACE THE ELIGIBLE PROJECT IN SERVICE PRIOR TOJANUARY 1, 2033,OBTAIN A TAX CREDIT CERTIFICATE FROM THE OFFICE AS SPECIFIED IN SUBSECTIO(7)OF THIS SECTION ,AND , ONCE ISSUED BY THE OFFICE , FILE THE TAX CREDIT CERTIFICATE WITH THE QUALIFIED APPLICANTS INCOME TAX RETURN AS SPECIFIED IN SUBSECTION(8)OF THIS SECTIO.
(4)Applicationsubmissionandreview.(a) A NAPPLICANTMAY SUBMIT AN APPLICATION TO THE OFFICE ON OR AFTERJANUARY 1, 2025, BUT NO LATER THAN OCTOBER 3, 2029.
(b) THE OFFICE SHALLREVIEWALLSUBMITTED APPLICATIONS TO :
(I) D ETERMINE WHETHER THE APPLICANT IS A QUALIFIED APPLICANT ;
(II) DETERMINE WHETHER THE APPLICATION IS COMPLETE AND INCLUDESAPROPERTYADDRESS ,LEGALDESCRIPTION ,OROTHERSPECIFIC LOCATION IDENTIFIER;
(III) MAKE A PRELIMINARY DETERMINATION WHETHER THE PROJECTPLANISAPLANFORANELIGIBLEPROJECTBASEDONTHEPOLICIES AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION (12) OF THIS SECTIO;
(IV) D ETERMINEWHETHERTHEELIGIBLEPROJECTISENTITLEDTO -8- 1295 A TAX CREDIT RESERVATION AS SPECIFIED IN SUBSECTION (6) OF THIS SECTION ;
(V) ONCE THE ELIGIBLE PROJECT IS PLACED IN SERVIC,MAKE A FINAL DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT BASED ON THE POLICIES AND PROCEDURES DEVELOPED BY THE OFFICE PURSUANT TO SUBSECTION (12)OF THIS SECTION;AND (VI) I THE PROJECT IS AN ELIGIBLE PROJECT ,REVIEW THE CERTIFIED ELIGIBLE EXPENDITURES AND ,IF APPROVED ,ISSUE A CREDIT CERTIFICATE TO THE QUALIFIED APPLICANT,AS SPECIFIED IN SUBSECTION (7) OF THIS SECTIO.
(c) THE OFFICE SHALL MAKE THE DETERMINATIONS SPECIFIED IN SUBSECTIONS (4)(b)(ITO (4)(b)(VOFTHISSECTIONWITHINNINETYDAYS OF THE DATE THE OFFICE RECEIVES THE APPLICATION.
(d) (I) I THE OFFICE DETERMINES THAT AN APPLICATION IS INCOMPLETE OR THAT IT IS UNABLE TO MAKE THE DETERMINATIONS SPECIFIED IN SUBSECTIONS (4)(b)(ITO(4)(b)(V)OF THIS SECTION,THE OFFICE SHALL NOTIFY THE APPLICANT IN WRITING OF THE OFFICE 'S DECISION AND SHALL REMOVE THE APPLICATION FROM THE REVIEW PROCESS .
(II) INAPPLICANTRESUBMITSANAPPLICATION ,THEOFFICEMAY CHARGEANEWAPPLICATIONFEEINANAMOUNTSPECIFIEDINSUBSECTION (5) OF THIS SECTIO.
(5) Application and issuance fees.
(a) (I) F APPLICATION FOR WHICH THE AMOUNT OF THE TAX CREDIT REQUESTED BY AN APPLICANTPURSUANTTOTHISSECTIONISTWOHUNDREDFIFTYTHOUSAND DOLLARSORMORE THEOFFICEMAYIMPOSEAREASONABLEAPPLICATION FEE ON AN APPLICANT THAT DOES NOT EXCEED FIVE HUNDRED DOLLARS .
-9- 1295 (II) OR AN APPLICATION FOR WHICH THE AMOUNT OF THE TAX CREDITREQUESTEDBYANAPPLICANT PURSUANTTOTHISSECTIONISLESS THANTWOHUNDREDFIFTYTHOUSANDDOLLARS THEOFFICEMAYIMPOSE A REASONABLE APPLICATION FEE ON AN APPLICANT THAT DOES NOT EXCEED TWO HUNDRED DOLLARS .
(b) THE OFFICE MAY IMPOSE ON A QUALIFIED APPLICANT A REASONABLE ISSUANCE FEE OFUPTO THREE PERCENT OFTHE AMOUNT OF THE TAX CREDIT SPECIFIED ON THE TAX CREDIT CERTIFICATE ISSUED BY THEOFFICEASSPECIFIEDINSUBSECTION (7)OFTHISSECTION,WHICHMUST BEPAIDBEFORETHETAXCREDITCERTIFICATEISISSUEDTOTHEQUALIFIED APPLICANT.
(c) ANYFEEREVENUECOLLECTEDPURSUANTTOTHISSUBSECTION (5)MUST BE CREDITED TO THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAMCASHFUNDCREATEDINSUBSECTION (13)OFTHISSECTIONAND APPLIED TO THE ADMINISTRATION OF THE TAX CREDIT CREATED BY THIS SECTION.
(6)Taxcreditreservation.(a) BEDONTHEFACTORSSPECIFIED INSUBSECTION (6)(dOFTHISSECTION,THEOFFICEMAYDETERMINETHAT A QUALIFIED APPLICANT IS ENTITLED TO A TAX CREDIT RESERVATION IN ACCORDANCE WITH THE PROVISIONS OFTHIS SECTIO.THE OFFICE SHALL ISSUETAXCREDITRESERVATIONSSUBJECTTOTHELIMITATIONSSETFORTH IN THIS SUBSECTION(6)AND IN ACCORDANCE WITH THE POLICIES AND PROCEDURES ESTABLISHED PURSUANT TO SUBSECTION (12)OF THIS SECTION.THEOFFICESHALLNOTISSUETAXCREDITRESERVATIONSAFTER JANUARY 1, 2030.
(b) I THE OFFICE RESERVES A TAX CREDIT FOR THE BENEFIT OF A QUALIFIED APPLICANT, THE OFFICE SHALL NOTIFY THE QUALIFIED -10- 1295 APPLICANTINWRITINGOFTHERESERVATIONANDTHEAMOUNTRESERVED .
T HE RESERVATION OF A TAX CREDIT BY THE OFFICE FOR A QUALIFIED APPLICANTDOESNOTENTITLETHEQUALIFIEDAPPLICANTTOISSUANCEOF A CREDIT CERTIFICATE UNTIL THE QUALIFIED APPLICANT COMPLIES WITH ALL THE OTHER REQUIREMENTS SPECIFIED IN THIS SECTION FOR THE ISSUANCEOFTHETAXCREDIT .WHENTHEOFFICEAPPROVESATAXCREDIT RESERVATION THEOFFICEMAYALSOIMPOSEADDITIONALREQUIREMENTS , WHICH A QUALIFIED APPLICANT SHALL SATISFY AS PART OF COMPLETING THE ELIGIBLE PROJEC,BEFORE A TAX CREDIT CERTIFICATE IS ISSUED TO THE QUALIFIED APPLICANT.
(c)(I) SBJECTTOTHELIMITATIONSINTHISSUBSECTION (6)(cIF APPROVED ,THE OFFICE MAY ISSUE A TAX CREDIT RESERVATION TO A QUALIFIED APPLICANT FOR A SINGLE ELIGIBLE PROJECT IN AN AMOUNT EQUAL TO THE LESSER OF TWENTY -FIVE PERCENT OF THE QUALIFIED APPLICANT'S ESTIMATED ELIGIBLE EXPENDITURES OR THREE MILLION DOLLARS .
(II) E XCEPT AS PROVIDED IN SUBSECTIONS (6)(c)(IIAND (6)(c)(IV)FTHISSECTION THEAGGREGATEAMOUNTOFALLTAXCREDIT RESERVATIONS THAT THE OFFICE MAY ISSUE PURSUANT TO THIS SECTION MUST NOT EXCEED TEN MILLION DOLLARS IN ANY CALENDAR YEAR PLUS THE AMOUNT OF ANY PREVIOUSLY ISSUED TAX CREDIT RESERVATIONS THAT WERE RESCINDED PURSUANT TO SUBSECTION (7)(a)(IOF THIS SECTION FROM PREVIOUS CALENDAR YEARS .
(III) ITHE OFFICS ISSUANCE OF A TAX CREDIT RESERVATION IN ACALENDARYEARWOULDCAUSETHEOFFICETOEXCEEDTHEAGGREGATE LIMIT SPECIFIED IN SUBSECTIO(6)(c)(IIOF THIS SECTION FOR THAT CALENDAR YEAR ,THEN THE AGGREGATE AMOUNT OF ALL TAX CREDIT -11- 1295 RESERVATIONSTHATTHEOFFICEMAYISSUEINTHEFOLLOWINGCALENDAR YEAR IS DECREASED BY THE AMOUNT OF THE TAX CREDIT RESERVATIONS ISSUED IN THE PREVIOUS CALENDAR YEAR THAT EXCEEDED THE LIMITATION SET FORTH IN SUBSECTIO(6)(c)(IIOF THIS SECTIO.
(IV) IF THE OFFICS ISSUANCE OF TAX CREDIT RESERVATIONS BY THE END OF A CALENDAR YEAR IS LESS THAN THE AGGREGATE LIMIT SPECIFIEDINSUBSECTION (6)(c)(IOFTHISSECTIONFORTHATCALENDAR YEAR ,THEN THE AGGREGATE AMOUNT OF TAX CREDIT RESERVATIONS THAT THE OFFICE MAY ISSUE IN THE NEXT CALENDAR YEAR IS INCREASED BY THE UNRESERVED AMOUNT FROM THE PREVIOUS CALENDAR YEAR .
(d) IN MAKING THE FINAL DETERMINATION OF WHICH PROJECT PLANS TO ISSUE TAX RESERVATIONS FOR PURSUANT TO THIS SUBSECTION (6),THEOFFICEMAYPRIORITIZEELIGIBLEPROJECTPLANSINACCORDANCE WITH :
(I) THE NUMBER OF NEW AFFORDABLE HOUSING UNITS TO BE CREATED BY THE ELIGIBLE PROJEC;
(II) THE NUMBER OF LIV-WORK SPACES TO BE CREATED BY THE ELIGIBLE PROJECT;
(III) THE GEOGRAPHIC DIVERSITY OF THE APPLICATIONS AND PROJECT PLANS THAT QUALIFIED APPLICANTS HAVE SUBMITTED TO THE OFFICE;
(IV) T HE QUALITY AND ACCESSIBILITY OF MAKERSPACE TO BE PROVIDED FOR CREATIVE INDUSTRY WORKERS BY THE ELIGIBLE PROJEC;
(V) DEMONSTRATION OF COMMUNITY ENGAGEMENT IN IDENTIFYING HOW THE PROJECT WILL SATISFY UNMET NEEDS AND DRIVE THE LOCAL CREATIVE ECONOMY ;
(VI) D EMONSTRATION OF STRONG EVIDENCE THAT THE ELIGIBLE -12- 1295 PROJECTHASORCANATTRACTDIVERSESOURCESOFFUNDINGANDBROAD LOCAL GOVERNMENT SUPPORT ;
(VII) D EMONSTRATION OF HOW THE PROJECT SERVES RURAL , UNDER -RESOURCED OR UNDERSERVED COMMUNITIES ;
(VIII) WHETHER THE PROJECT PLAN IS RECEIVING PROPERTY TAX ABATEMENTS ,CREDITS,REBATES ,GRANTS,OR OTHER INCENTIVES FROM A LOCAL TAXING JURISDICTIO;
(IX) WHETHERTHEPROJECTWILLOCCURWITHOUTTHEISSUANCE OF A TAX CREDIT PURSUANT TO THIS SECTI;N (X) W HETHER THE QUALIFIED APPLICANT WILL RECEIVE A FEDERAL INCENTIVE FOR THE PROJEC;
(XI) THEPROXIMITYOFTHEPROJECTTOPUBLICTRANSPORTATION ;
AND (XII) THE EXPECTED QUALIFICATION OF THE BUILDING , STRUCTURE ,OR FACILITY THAT IS THE SUBJECT OF THE ELIGIBLE PROJECT FORACERTIFIABLESUSTAINABLEPROGRAMBOTHBEFOREANDAFTERTHE COMPLETION OF THE PROJECT.
(7) Deadline for incurring specified amount of estimated eligible expenditures - proof of compliance - audit of eligible expenditure certification - issuance of tax credit certificate.
(a) (I) A QUALIFIED APPLICANT RECEIVING A RESERVATION OF TAX CREDITS PURSUANT TO SUBSECTION (6) OF THIS SECTION SHALL INCUR TWENTY PERCENT OR MORE OF THE ESTIMATED ELIGIBLE EXPENDITURES CONTAINED IN THE APPLICATION AND PROJECT PLAN NOT LATER THAN EIGHTEENMONTHSAFTERTHEDATEOFISSUANCEOFTHEWRITTENNOTICE FROM THE OFFICE TO THE QUALIFIED APPLICANT GRANTING THE RESERVATION OF A TAX CREDI.
-13- 1295 (II) QUALIFIEDAPPLICANTFORWHOMTHEOFFICEHASRESERVED A TAX CREDIT SHALL SUBMIT EVIDENCE OF COMPLIANCE WITH THE PROVISIONS OF SUBSECTION (7)(a)(IOF THIS SECTIO.
F THE OFFICE DETERMINES THAT A QUALIFIEDAPPLICANTHASFAILEDTO COMPLY WITH THEREQUIREMENTSOFSUBSECTION (7)(a)(OFTHISSECTION ,THEOFFICE SHALL PROMPTLY NOTIFY THE QUALIFIED APPLICANT AND MAY RESCIND THE ISSUANCE OF THE WRITTEN NOTICE IT PREVIOUSLY GAVE THE QUALIFIED APPLICANT GRANTING THE RESERVATION OF A TAX CRED.IF THE OFFICE SO RESCINDS AN ISSUANCE OF THE WRITTEN NOTICE, THE QUALIFIED APPLICANT MAY SUBMIT A NEW APPLICATIO,PROJECT PLAN, AND ESTIMATE OF ELIGIBLE EXPENDITURES FOR WHICH THE OFFICE MAY CHARGE A NEW APPLICATION FEE IN ACCORDANCE WITH SUBSECTION(5) OF THIS SECTION, AND THE TOTAL AMOUNT OF TAX CREDITS MADE AVAILABLEFORRESERVATIONINTHECALENDARYEARDURINGWHICHTHE OFFICE RESCINDS THE ISSUANCE OF WRITTEN NOTICE MUST INCREASE BY THE AMOUNT OF THE TAX CREDIT RESERVED IN THE WRITTEN NOTIC.
(b) AFTER A QUALIFIED APPLICANT COMPLETES A PROJEC, THE QUALIFIED APPLICANT SHALL NOTIFY THE OFFICE THAT THE PROJECT HAS BEEN PLACED IN SERVICE AND SHALL CERTIFY THE ELIGIBLE EXPENDITURES , AFTER WHICH THE OFFICE SHALL MAKE A FINAL DETERMINATION WHETHER THE PROJECT IS AN ELIGIBLE PROJECT AS REQUIRED IN SUBSECTION (4)(b)(V)OF THIS SECTIO.
THE APPLICANT SHALL INCLUDE A REVIEW OF THE CERTIFICATION BY A LICENSED CERTIFIED PUBLIC ACCOUNTANT THAT IS NOT AFFILIATED WITH THE QUALIFIED APPLICANT THAT ALIGNS WITH OFFICE POLICIES FOR CERTIFICATION OF ELIGIBLE EXPENDITUR.THE APPLICANT SHALL ALSO CERTIFY AND PROVIDE DOCUMENTS DEMONSTRATING THAT THE -14- 1295 APPLICANT SATISFIED ANY ADDITIONAL REQUIREMENTS IMPOSED BY THE OFFICE PURSUANT TO SUBSECTION(6)OF THIS SECTIO.
WITHIN NINETY DAYS AFTER RECEIPT OF SUCH DOCUMENTATION FROM THE QUALIFIED APPLICANT, THE OFFICE SHALL REVIEW THE QUALIFIED APPLICANT S DOCUMENTATION OF CERTIFIED ELIGIBLE EXPENDITURES , DETERMINE WHETHERTHEDOCUMENTATIONSATISFIESTHEPROJECTPLANANDOTHER REQUIREMENTS , AND, IF THE OFFICE DETERMINES THAT THE DOCUMENTATION SATISFIES THE PROJECT PLAN AND OTHER REQUIREMENTS ,THE OFFICE SHALL ISSUE A TAX CREDIT CERTIFICATE IN THE AMOUNT SPECIFIED IN THE TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT PURSUANT TO SUBSECTION (6)OF THIS SECTIO;
EXCEPTTHATACREDITCERTIFICATEMAYNOTBEISSUEDFORANYINCOME TAX YEAR COMMENCING BEFORE JANUARY 1, 2026.
(c) I THERE ARE ANY UNRESERVED AMOUNTS OF TAX CREDITS AVAILABLEUNDERSUBSECTION (6OFTHISSECTION ,ANDIFTHEAMOUNT OF CERTIFIED ELIGIBLE EXPENDITURES INCURRED BY THE QUALIFIED APPLICANT WOULD HAVE RESULTED IN THE QUALIFIED APPLICANT BEING ISSUED A TAX CREDIT CERTIFICATE THAT EXCEEDS THE AMOUNT OF THE TAX CREDIT RESERVATION ISSUED TO THE QUALIFIED APPLICANT,THE QUALIFIEDAPPLICANTMAYAPPLYTOTHEOFFICEFORTHEISSUANCEOFAN ADDITIONAL TAX CREDIT CERTIFICATE IN AN AMOUNT EQUAL TO THE DIFFERENCE BETWEEN THE TAX CREDIT RESERVATION AND WHAT WOULD HAVE BEEN ISSUED AS A RESULT OF THE CERTIFIED ELIGIBLE EXPENDITURES BY SUBMITTING AN APPLICATION IN A FORM AND MANNER DETERMINED BY THE OFFIC;EXCEPT THAT THE AGGREGATE OF THE TWO TAX CREDIT CERTIFICATES FOR THE ELIGIBLE PROJECT MAY NOT EXCEED THREEMILLIONDOLLARS .THEOFFICESHALLREVIEWTHEAPPLICATIONAS -15- 1295 SPECIFIED IN SUBSECTION(4)OF THIS SECTION AN,IF APPROVED,SHALL ISSUE A SEPARATE TAX CREDIT CERTIFICATE AWARDING THE QUALIFIED APPLICANT THE ADDITIONAL CREDIT .
(8) Filing tax credit certificate with income tax return.
(a) I ORDERTOCLAIMTHE CREDIT AUTHORIZEDBYTHISSECTION ,AQUALIFIED APPLICANT SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY THE OFFICE PURSUANT TO SUBSECTION (7) OF THIS SECTION WITH THE QUALIFIED APPLICANT S STATE INCOME TAX RETURN .
F THE QUALIFIED APPLICANT IS EXEMPT FROM TAX PURSUANT TO SECTION 39-22-112 (1), THE QUALIFIED APPLICANT SHALL FILE A RETURN PURSUANT TO SECTION 39-22-601 (7)(b).
TE AMOUNT OF THE TAX CREDIT THAT A QUALIFIED APPLICANT MAY CLAIM PURSUANT TO THIS SECTION IS THE AMOUNT STATED ON THE TAX CREDIT CERTIFICATE.
(b) A TAX CREDIT CERTIFICATE ISSUED TO A PARTNERSHIP , A LIMITED LIABILITY COMPANY TAXED AS A PARTNERSHIP ,OR MULTIPLE OWNERS OF A PROPERTY MUST BE PASSED THROUGH TO THE PARTNERS , MEMBERS ,OR OWNERS ,INCLUDING ANY NONPROFIT ENTITY THAT IS A PARTNER ,MEMBER ,OR OWNER ,RESPECTIVELY ,ON A PRO RATA BASIS OR PURSUANT TO AN EXECUTED AGREEMENT AMONG THE PARTNERS , MEMBERS ,OR OWNERS DOCUMENTING AN ALTERNATE DISTRIBUTION METHOD .
(9) Refundability.
THE ENTIRE TAX CREDIT TO BE ISSUED PURSUANT TO THIS SECTION MAY BE CLAIMED BY THE QUALIFIED APPLICANT IN THE TAXABLE YEAR IN WHICH THE ELIGIBLE PROJECT IS PLACED IN SERVICE.IF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF THE QUALIFIED APPLICANT IN THE INCOME TAX -16- 1295 YEAR FOR WHICH THE CREDIT IS BEING CLAIMED ,OR THE QUALIFIED APPLICANT IS A PERSON WHO IS EXEMPT FROM TAXATION PURSUANT TO SECTION 39-22-112(1),NINETY PERCENT OFTHE AMOUNT OFTHE CREDIT NOTUSEDASANOFFSETAGAINSTINCOMETAXESINTHEINCOMETAXYEAR IS REFUNDED TO THE QUALIFIED APPLICANT .
HE REMAINDER OF THE CREDIT IS NOT CARRIED FORWARD AND MAY NOT BE USED BY THE TAXPAYER .
(10) Compliance monitoring and recapture.
(a) E XCEPT AS PROVIDED IN SUBSECTION (10)(b)OF THIS SECTIO,IF,AS OF THE LAST DAY OF ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD ,THE BUILDING ,STRUCTURE ,ORFACILITYTHAT ISTHESUBJECTOFANELIGIBLE PROJECT IS NOT BEING USED AS AN ELIGIBLE PROJE,THE OFFICE SHALL NOTIFY THE QUALIFIED APPLICANT AND THE DEPARTMENT THAT THE CREDIT ALLOWED IN THIS SECTION IS DISALLOWED .
THE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE CREDIT THAT WAS ACTUALLY USED TO OFFSET THE QUALIFIED APPLICANT'S INCOME TAX OR REFUNDED TO THE QUALIFIED APPLICANT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS SUBSECTION (10).
(b) T HE POTENTIAL INCREASE IN TAX REQUIRED PURSUANT TO SUBSECTION (10)(aOF THIS SECTION DOES NOT APPL:
(I) IF A BUILDIN,STRUCTURE ,OR FACILITY IS NOT AN ELIGIBLE PROJECT AS A RESULT OF A CASUALTY LOSS IF THE LOSS IS RESTORED BY RECONSTRUCTION OR REPLACEMENT WITHIN A REASONABLE PERIOD ESTABLISHED BY THE OFFICE;OR (II) SOLELY BY REASON OF THE DISPOSITION OF A BUILDING , STRUCTURE OR FACILITY,OR AN INTEREST THEREINIFIT ISREASONABLY -17- 1295 EXPECTEDTHATTHEBUILDING ,STRUCTURE,ORFACILITYWILLCONTINUE TO BE OPERATED AS AN ELIGIBLE PROJECT FOR THE REMAINDER OF THE COMPLIANCE PERIOD .
(c) (I) TE OFFICE SHALL ESTABLISH REPORTING REQUIREMENTS TO MONITOR COMPLIANCE WITH THIS SUBSECTION (10), INCLUDING REQUIREMENTS REGARDING THE REPORTING OF A DISPOSITION OF A BUILDING,STRUCTURE ,OR FACILITY BY THE QUALIFIED APPLICANT AND THE REPORTING REQUIRED FOR SUCH A BUILDING , STRUCTURE ,OR FACILITY FOR THE REMAINDER OF THE COMPLIANCE PERIO.
(II) IF A DISPUTE ARISES ABOUT WHETHER A BUILDING , STRUCTURE ,OR FACILITY IS AN ELIGIBLE PROJEC,THE OFFICE SHALL ADJUDICATE THE DISPUTE AND NOTIFY THE DEPARTMENT OF THE RESOLUTION .
(III) NTWITHSTANDING SECTION 39-21-107 (2)IF A BUILDI,G STRUCTURE , OR FACILIT, OR AN INTEREST THEREIN,IS DISPOSED OF DURING ANY TAXABLE YEAR DURING THE COMPLIANCE PERIOD ,AND THEREAFTERTHEBUILDING ,STRUCTURE ,ORFACILITYISNOTANELIGIBLE PROJECT:
(A) THE QUALIFIED APPLICANT SHALL ADD THE FULL AMOUNT OF THE CREDIT TO ITS RETURN AS A RECAPTURED CREDIT FOR THE TAXABLE YEAR IN WHICH THE CREDIT IS DISALLOWED PURSUANT TO THIS SUBSECTION (10)NOTWITHSTANDINGTHEDISPOSITIONOFTHEQUALIFIED RESIDENTIAL STRUCTURE;
(B) THE STATUTORY PERIOD FOR THE ASSESSMENT OF ANY DEFICIENCYWITHRESPECTTOTHEDISALLOWEDCREDITMUSTNOTEXPIRE BEFORE THE EXPIRATION OF THREE YEARS FROM THE DATE THE OFFICE IS NOTIFIED,IN SUCH A MANNER AS THE OFFICE DETERMINES ,THAT THE -18- 1295 STRUCTURE IS NOT A QUALIFIED RESIDENTIAL STRUCTU;AND (C) THEDEPARTMENTSHALLASSESSANYDEFICIENCYBEFORETHE EXPIRATION OF SUCH THREE -YEAR PERIOD TOGETHER WITH ANY APPLICABLEINTERESTANDPENALTYIMPOSEDPURSUANTTOTHISARTICLE 22.
(d) A S USED IN THIS SUBSECTIO(10),UNLESS THE CONTEXT OTHERWISE REQUIRES , COMPLIANCE PERIOD "MEANS THE PERIOD OF FIFTEEN YEARS FOLLOWINGTHETAXABLE YEARINWHICHTHE QUALIFIED APPLICANT PLACED THE ELIGIBLE PROJECT IN SERV.CE (11) Reporting.
(a) NLATER THAN DECEMBER 31, 2027AND , NOTWITHSTANDINGTHEREQUIREMENTINSECTION 24-1-136(11)(a)(INO LATER THAN D ECEMBER 31OF EACH YEAR THEREAFTER THROUGH 2033, THE OFFICE SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC.
N CONNECTION WITH TAX CREDITS ISSUED PURSUANT TO THIS SECTION,THE REPORT MUST INCLUDE:
(I) TE NUMBER OF ELIGIBLE PROJECTS PLACED IN SERV;CE (II) A DESCRIPTION OF THE USE OR USES OF EACH ELIGIBLE PROJECT AND A STATEWIDE SUMMARY OF THE NUMBER OF ELIGIBLE PROJECTS FOR EACH US;
(III) FELIGIBLEPROJECTSTHATCREATEAFFORDABLEHOUSING OR LIVEWORK SPACES FOR CREATIVE INDUSTRY WORKERS,THE NUMBER OF AFFORDABLE HOUSING OR LIV-WORK UNITS PLANNED OR CREATED ;
(IV) THE OCCUPANCY RATE OF CREATED AFFORDABLE HOUSING AND LIVE-WORK UNITS;
(V) THECOUNTIESINWHICHQUALIFIEDCOMMERCIALSTRUCTURES WERECONVERTEDTOQUALIFIEDCOMMERCIALRESIDENTIALSTRUCTURES ;
-19- 1295 AND (VI) THEAMOUNTOFANYDISALLOWEDTAXCREDITRECAPTURED PURSUANT TO SUBSECTION (10)OF THIS SECTIO.
(b) T HE OFFICE SHALL,IN A SUFFICIENTLY TIMELY MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THE INCOME TAX CREDIT ALLOWED IN THIS SECTION,PROVIDE THE DEPARTMENT WITH AN ELECTRONIC REPORT OF EACH QUALIFIED APPLICANT TO WHICH THE OFFICE ISSUES A TAX CREDIT CERTIFICATE FOR THE PRECEDING TAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION :
(I) THE QUALIFIED APPLICANTS NAME ;
(II) THE AMOUNT OF THE CREDIT;AND (III) THE QUALIFIED APPLICANTS SOCIAL SECURITY NUMBER OR THEQUALIFIEDAPPLICANT S COLORADOACCOUNTNUMBERANDFEDERAL EMPLOYER IDENTIFICATION NUMBER .
(12) Policies and procedures.
(a) TOFFICE MAY CREATE AND MODIFY POLICIES ,PROCEDURES ,AND GUIDELINES AS NECESSARY TO FURTHER IMPLEMENT THE TAX CREDITS TO BE CLAIMED FOR THE COMPLETION OF ELIGIBLE PROJECTS PURSUANT TO THIS SECTION AND SHALL SOLICIT ADVICE FROM THE DEPARTMENT IN CREATING AND MODIFYING SUCH POLICIES,PROCEDURES ,AND GUIDELINES.
(b) W ITHRESPECTTOMAKINGTHEPRELIMINARYDETERMINATION WHETHERAPROJECTPLANISAPLANFORANELIGIBLEPROJECTPURSUANT TO SUBSECTION (4)(b)(IIIOF THIS SECTIO,THE OFFICE SHALL DEVELOP STANDARDS THAT INCLUDE ,BUT ARE NOT LIMITED TO:
(I) A DETAILED COST ESTIMATE FOR THE PROJECT PLAN;
(II) EVIDENCE OF SITE CONTROLOFTHE SITE WHERE THE PROJECT WILL OCCUR ;AND -20- 1295 (III) THE FINANCING OR FUNDING THAT IS AVAILABLE FOR THE PROJECT PLAN.
(13) Community revitalization tax credit programcash fund.
(a) THE COMMUNITYREVITALIZATIONTAXCREDIT PROGRAMCASHFUND IS CREATED IN THE STATE TREASURY .
THE FUND CONSISTS OF GIFTS, GRANTS ,DONATIONS ,FEEREVENUECREDITEDTOTHEFUNDPURSUANTTO SUBSECTION (5)OF THIS SECTIO, AND ANY OTHER MONEY THAT THE GENERAL ASSEMBLY MAY APPROPRIATE ,TRANSFER,OR REQUIRE BY LAW TO BE CREDITED TO THE FUND.
(b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE COMMUNITY REVITALIZATION TAX CREDIT PROGRAM CASH FUND TO THE FUND .
(c) MONEYINTHE FUNDISCONTINUOUSLYAPPROPRIATEDTOTHE OFFICE FOR THE PURPOSE OF ADMINISTERING THE TAX CREDIT ISSUED PURSUANT TO THIS SECTION.
(d) THE STATE TREASURER SHALL TRANSFER ALL UNEXPENDED AND UNENCUMBERED MONEY IN THE FUND ON D ECEMBER 31, 2050TO THE GENERAL FUND .
(14) Repeal.
THIS SECTION IS REPEAL,EFFECTIVE DECEMBER 31,2050.
SECTION 4.
Appropriation.
For the 2024-25 state fiscal year, $102,498 is appropriated to the office of the governor for use by economic development programs.
This appropriation isfromthe general fund and is based on an assumption that the office will require an additional 0.8 FTE.
To implement this act, the office may use this appropriation for the council on creative industries.
-21- 1295 SECTION 5.
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 areferendumpetition is filed pursuant 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 bythe 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.
-22- 1295