2023 Colorado Revised Statutes › Title 24 - GOVERNMENT - STATE (§§ 24-1-101 — 24-116-102) › OTHER AGENCIES (§§ 24-40-101 — 24-49.9-102) › Article 48.5 - OFFICE OF ECONOMIC DEVELOPMENT (§§ 24-48.5-101 — 24-48.5-706) › Part 6 - COLORADO LOANS FOR INCREASING MAIN STREET BUSINESS ECONOMIC RESILIENCY ACT (§§ 24-48.5-601 — 24-48.5-609) › Section 24-48.5-607 - [Effective 9/1/2024] Use of small business recovery tax credits - carry over

(1)
For a tax credit certificate issued in fiscal year 2020-21:
(a)
The qualified taxpayer may claim up to fifty percent of the credit against premium tax liability incurred for a taxable year that begins on or after January 1, 2025; except that a taxpayer may not reduce its estimated tax payments in proportion to such credit prior to July 1, 2025; and
(b)
The qualified taxpayer may claim the remaining amount of the credit against premium tax liability incurred for a taxable year that begins on or after January 1, 2026; except that a taxpayer may not reduce its estimated tax payments in proportion to such credit prior to July 1, 2026.
(2)
For a tax credit certificate issued in fiscal year 2021-22 or fiscal year 2022-23:
(a)
The qualified taxpayer may claim up to fifty percent of the credit against premium tax liability incurred for a taxable year that begins on or after January 1, 2023; except that a taxpayer may not reduce its estimated tax payments in proportion to such credit prior to July 1, 2023; and
(b)
The qualified taxpayer may claim the remaining amount of the credit against premium tax liability incurred for a taxable year that begins on or after January 1, 2024; except that a taxpayer may not reduce the taxpayer's estimated tax payments in proportion to such credit prior to July 1, 2024.
(3)
(a)
The total credit to be applied by a qualified taxpayer in any one year must not exceed the premium tax liability of the qualified taxpayer for the taxable year. If the qualified taxpayer cannot use the entire amount of the tax credit for the taxable year in which the taxpayer is eligible for the credit, the excess may be carried over to succeeding taxable years and used as a credit against the premium tax liability of the taxpayer for those taxable years; except that:
(I)
For a credit issued in fiscal year 2020-21, the credit may not be carried over to any taxable year that begins after December 31, 2031; and
(II)
For a credit issued in fiscal year 2021-22 or 2022-23, the credit may not be carried over to any taxable year that begins after December 31, 2029.
(b)
Any amount of the credit that is not timely claimed expires and is not refundable.
(4)
A qualified taxpayer claiming a credit under this part 6 shall submit the tax credit certificate with its tax return.
(5)
A qualified taxpayer claiming a tax credit under this part 6 will not be required to pay any additional or retaliatory tax as a result of claiming the credit.
(6)
If a qualified taxpayer holding an unclaimed tax credit is part of a merger, acquisition, or line of business divestiture transaction, the tax credit may be transferred to and assumed by the resulting entity if the resulting entity is an insurance company authorized to do business in Colorado that has premium tax liability. The qualified taxpayer that originally purchased the credit and the resulting entity shall notify the department in writing of the transfer or assumption of the credit in accordance with procedures adopted by the department. The department shall provide a copy of the notice to the division of insurance in the department of regulatory agencies and shall maintain a record of the transfer or assumption of the tax credit. The transfer or assumption of the tax credit does not affect the time schedule for claiming the tax credit as provided in this section.
Renumbered from C.R.S. §
24-36-207
and amended by 2024 Ch. 355,§ 1, eff. 9/1/2024.
Amended by 2022 Ch. 374, § 4, eff. 6/3/2022.
Amended by 2020EX1 Ch. 5, § 4, eff. 12/7/2020.
Added by 2020 Ch. 121, § 1, eff. 6/23/2020.
L. 2020: Entire part added, (HB 20-1413), ch. 516, p. 516, § 1, effective June 23. L. 2020, 1st Ex. Sess.: (1) and (2) amended, (HB 20B-1006), ch. 5, p. 33, § 4, effective December 7.