2023 Colorado Revised Statutes › Title 10 - INSURANCE (§§ 10-1-101 — 10-23-110) › HEALTH CARE (§§ 10-21-101 — 10-22.5-101) › Article 22 - COLORADO HEALTH BENEFIT EXCHANGE (§§ 10-22-101 — 10-22-115) › Section 10-22-110 - Tax credit for contributions to the exchange - allocation notice - rules - repeal

(1)
(a)
For the tax year 2013 and each tax year thereafter, a credit against the tax imposed by sections
10-3-209
and
10-6-128
is allowed to any insurance company that becomes a qualified taxpayer by making a contribution to the exchange pursuant to this section.
(b)
A qualified taxpayer claiming a credit against premium tax liability under this section is not required to pay any additional retaliatory tax as a result of claiming the credit.
(2)
The commissioner may promulgate rules necessary for the administration of the tax credit allowed by subsection (1) of this section in accordance with article
4
of title
24
, C.R.S.
(3)
(a)
Subject to subsection (4)(c) of this section, an insurance company shall become a qualified taxpayer if all of the following conditions are met:
(I)
The insurance company declares with its quarterly tax payment due on or about July 31 in the manner prescribed by the commissioner its intent to contribute to the exchange on or before October 31 an amount of money equal to the premium taxes paid by the company pursuant to the July 31 tax payment or a lesser amount as specified by the commissioner if required pursuant to paragraph (b) of subsection (4) of this section;
(II)
The total amount of the tax credits granted by the commissioner does not exceed five million dollars; except that, on and after September 1, 2022, through August 31, 2028, the total amount of the tax credits does not exceed nine million dollars; and
(III)
The insurance company receives an allocation notice from the commissioner and the insurance company makes the contribution to the exchange as specified in the allocation notice on or before October 31.
(b)
Subject to paragraph (c) of subsection (4) of this section, an insurance company that becomes a qualified taxpayer may claim the tax credit on one or more subsequent quarterly or annual tax payments beginning on or about October 31.
(c)
The board shall promptly notify the commissioner when it receives a contribution pursuant to this section of the amount and date of the contribution and the name of the contributor.
(4)
(a)
Subject to paragraph (c) of this subsection (4), by September 30 of each year, the commissioner shall:
(I)
Send an allocation notice to each insurance company whose declaration of intent to contribute to the exchange has been accepted pursuant to this subsection (4). The allocation notice shall specify the amount of tax credits allocated to the insurance company and the amount of cash the insurance company must contribute to the exchange by October 31, which amounts shall be identical and not exceed the amount of premium taxes paid by the insurance company in its quarterly tax payment due on or about July 31.
(II)
Post on the division's website whether the full amount of tax credits authorized to be allocated each year has been allocated.
(b)
(I)
Subject to subsection (4)(c) of this section, the commissioner shall allocate no more than the following total amounts of premium tax credits per year:
(A)
Before September 1, 2022, a total of five million dollars;
(B)
On and after September 1, 2022, through August 31, 2028, a total of nine million dollars; and
(C)
On and after September 1, 2028, a total of five million dollars.
(II)
Except as provided in subsection (4)(b)(III) of this section, the commissioner shall allocate to an insurance company that has declared its intent to contribute to the exchange pursuant to this section tax credits in an amount equal to the amount of premium taxes paid by the insurance company in its quarterly tax payment due on or about July 31 in the order in which the division receives such quarterly tax payments until the full amount of credits available pursuant to this section has been allocated.
(III)
If the amount of premium taxes or the sum of all the premium taxes filed by all the insurance companies on any one day would exceed, singly or in the aggregate, the annual maximum aggregate amount of tax credits available under this section, the commissioner shall reduce the allocation to the insurance company whose contribution first exceeds the annual maximum aggregate to the amount needed to satisfy the annual maximum aggregate. If the commissioner is unable to determine the order of receipt of tax payments on that day, the commissioner shall allocate the tax credits to the company or among the companies on a pro rata basis based on the ratio such company's quarterly tax payment bears to the total amount of all such companies' quarterly tax payments until the full amount of credits available pursuant to this section has been allocated.
(c)
(I)
The commissioner shall allow insurance companies to declare their intent to contribute to the exchange pursuant to this section on the insurance companies' quarterly tax payments due on or about October 31 and shall send such companies allocation notices by February 1 if:
(A)
The full amount of tax credits available in any one year have not been fully allocated by the commissioner pursuant to statements of intent filed with insurance companies' quarterly tax payments due on or about July 31; or
(B)
The total amount of tax credits has been claimed, but one or more insurance companies failed to timely make a contribution to the exchange.
(II)
An insurance company that declares its intent to contribute to the exchange pursuant to this paragraph (c) shall make the contribution to the exchange as specified in the allocation notice on or before March 1 and may claim the tax credit on one or more subsequent quarterly or annual tax payments due on or about March 1.
(5)
The board shall use money contributed to the exchange as follows:
(a)
The amount of contributions from insurers to which the first five million dollars of tax credits is allocated pursuant to subsection (4)(b) of this section and the interest derived from the deposit and investment of the money, to operate and sustain the exchange and to build reserves; except that, on and after September 1, 2028, the total amount of contributions and interest derived from the deposit and investment of the money shall be used for the purposes specified in this subsection (5)(a).
(b)
(I)
Any amount of contributions from insurers to which any amount in excess of the first five million dollars of tax credits is allocated pursuant to subsection (4)(b) of this section and the interest derived from the deposit and investment of the money, for the public awareness and education campaign in section
10-22-115
.
(II)
This subsection (5)(b) is repealed, effective December 31, 2028.
Amended by 2022 Ch. 448, § 2, eff. 8/10/2022.
Added by 2013 Ch. 258, § 5, eff. 5/23/2013.
L. 2013: Entire section added, (HB 13-1245), ch. 258, p. 1362, § 5, effective May 23.
2022 Ch. 448, was passed without a safety clause. See Colo. Const. art. V, § 1(3).