2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › INCOME TAX (§§ 39-22-101 — 39-22-5508) › Article 22 - Income Tax (§§ 39-22-101 — 39-22-5508) › Part 5 - SPECIAL RULES (§§ 39-22-501 — 39-22-570) › Section 39-22-550 - [Effective Until 8/7/2024] [Repealed Effective 12/31/2033] Tax credit for reducing emissions from certain lawn equipment - tax preference performance statement - legislative declaration - definitions - report - repeal

(1)
(a)
The general assembly finds and declares that:
(I)
Gasoline-powered lawn equipment, such as lawn mowers, leaf blowers, trimmers, and snowblowers, emits high levels of air pollutants, including nitrogen oxides and volatile organic compounds that, together, form ozone and particulate matter;
(II)
Replacing such gasoline-powered lawn equipment with electric-powered lawn equipment can reduce ozone pollution; and
(III)
The purpose of the tax credit in subsection (3) of this section is to incentivize the voluntary transition from gasoline-powered to electric-powered lawn equipment.
(b)
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 further finds and declares that:
(I)
The general legislative purpose of the tax credit allowed by subsection (3) of this section is to induce certain designated behaviors by taxpayers, specifically the purchase of electric-powered lawn equipment; and
(II)
In order to allow the general assembly and the state auditor to measure the effectiveness of the tax credit, the department of revenue shall submit to the general assembly and the state auditor an annual report in accordance with subsection (5) of this section detailing the sales of new, electric-powered lawn equipment, as reported by taxpayers claiming the tax credit authorized under subsection (3) of this section.
(2)
As used in this section, unless the context otherwise requires:
(a)
"Lawn equipment" means a lawn mower, leaf blower, trimmer, or snowblower.
(b)
"Purchase price" has the meaning set forth in section
39-26-102 (7)
.
(c)
"Qualified retailer" means a retailer that sells lawn equipment and:
(I)
Holds a state sales tax license;
(II)
Has timely filed a monthly sales tax return showing a tax liability for at least twelve months;
(III)
Has paid the taxes due on the monthly sales tax return; and
(IV)
Has registered with the department of revenue pursuant to subsection (3)(d)(III) of this section.
(d)
"Retailer" has the meaning set forth in section
39-26-102 (8)
.
(e)
"Retail sale" has the meaning set forth in section
39-26-102 (9)
.
(3)
(a)
For income tax years commencing on or after January 1, 2024, but before January 1, 2027, a retailer qualified pursuant to subsection (3)(d)(III) of this section is allowed a tax credit against the tax imposed pursuant to this article 22 in an amount equal to thirty-three percent of the aggregate purchase price for all retail sales of new, electric-powered lawn equipment that the qualified retailer sold in the state during the tax year.
(b)
In order to qualify for the tax credit allowed under this subsection (3), the qualified retailer shall provide to the purchaser, at the time of the retail sale of new, electric-powered lawn equipment, a discount on the purchase price of the lawn equipment equal to thirty percent of the purchase price and shall show the discount as a separate item on the receipt or invoice provided to the purchaser.
(c)
To determine whether a qualified retailer sold new, electric-powered lawn equipment in this state, the rules of section
39-26-104 (3)(a)
apply.
(d)
The qualified retailer may retain from the credit allowed in this section an administrative fee not to exceed three percent of the purchase price of the new, electric-powered lawn equipment sold.
(e)
(I)
The qualified retailer shall electronically submit a report to the department of revenue, on a quarterly basis and in the form and manner required by the department, that details the number of pieces of new, electric-powered lawn equipment sold by the qualified retailer in the reporting period for which the qualified retailer provided a discount as described in subsection (3)(b) of this section. The department may require the qualified retailer to include additional information in the report.
(II)
Before selling a piece of new, electric-powered lawn equipment for which a retailer intends to claim a credit pursuant to this section, the retailer shall register as a qualified retailer by filing with the department of revenue a registration statement in the form and manner that the department prescribes.
(4)
If a credit authorized by this section exceeds the income tax due on the income of the qualified retailer for the taxable year, the excess credit may not be carried forward and must be refunded to the qualified retailer.
(5)
Pursuant to section
39-21-304 (3)
, notwithstanding section
24-1-136 (11)(a)(I)
, and for the purpose of providing data that allows the general assembly and the state auditor to measure the effectiveness of the tax credit created in subsection (3) of this section, the department of revenue, on or before January 1, 2025, and on or before January 1 of each year thereafter through January 1, 2028, shall submit to the general assembly and the state auditor a report detailing the sales of new, electric-powered lawn equipment, as reported by a qualified retailer claiming the tax credit authorized under subsection (3) of this section. The tax credit established in this section meets its purpose if sales of new, gasoline-powered lawn equipment are significantly reduced within five years after the tax credit becomes effective, as determined by the general assembly and the state auditor pursuant to section
39-21-304 (3)
.
(6)
This section is repealed, effective December 31, 2033.
Added by 2023 Ch. 165,§ 12, eff. 8/7/2023.
2023 Ch. 165, was passed without a safety clause. See Colo. Const. art. V, § 1(3).
This section is set out more than once due to postponed, multiple, or conflicting amendments.