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39-22-101 — 39-22-5508) › Part 5 - SPECIAL RULES (§§ 39-22-501 — 39-22-570) › Section 39-22-555 - [Effective 8/7/2024] [Repealed Effective 12/31/2038] Electric bicycle tax credit - tax preference performance statement - definitions - repeal

(1)
(a)
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 the purpose of the tax credit provided in this section is to induce certain designated behavior by taxpayers, specifically the purchase of electric bicycles, and to provide tax relief to certain businesses, specifically retailers, that provide a discount on the sale of an electric bicycle.
(b)
The general assembly and the state auditor shall measure the effectiveness of the credit in achieving the purpose specified in subsection (1)(a) of this section based on the information required to be maintained by and reported to the state auditor by the office and the department pursuant to subsection (4)(b) of this section.
(2)
Definitions.
As used in this section, unless the context otherwise requires:
(a)
"Colorado energy office" or "office" means the Colorado energy office created in section
24-38.5-101
.
(b)
"Department" means the department of revenue.
(c)
"Electric bicycle" has the same meaning as "electrical assisted bicycle" as set forth in section
42-1-102
(28.5). "Electric bicycle" includes an electric adaptive bicycle.
(d)
"Purchase price" has the same the meaning as set forth in section
39-26-102 (7)
.
(e)
"Qualified electric bicycle" means an electric bicycle that satisfies the standards for approval developed by the Colorado energy office pursuant to subsection (4)(a)(I) of this section.
(f)
"Qualified purchaser" means a person who is a resident of the state and who has not previously purchased a qualified electric bicycle that was discounted by a qualified retailer claiming a tax credit allowed by this section for the retail sale in the same income tax year.
(g)
"Qualified retailer" means a retailer that sells qualified electric bicycles 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 pursuant to subsection (3)(e)(III) of this section.
(h)
"Retailer" has the same meaning as set forth in section
39-26-102 (8)
.
(3)
(a)
Except as otherwise provided in subsection (6) of this section, for income tax years commencing on or after January 1, 2024, but before January 1, 2033, a qualified retailer is allowed a credit against the tax imposed pursuant to this article 22 in an amount equal to five hundred dollars for each retail sale of new qualified electric bicycles sold in the state during the income tax year to a qualified purchaser; except that for the income tax year commencing on January 1, 2024, the credit is allowed only for retail sales made on or after April 1, 2024, but on or before December 31, 2024.
(b)
In order to qualify for the tax credit allowed pursuant to this section, the qualified retailer shall provide to the qualified purchaser at the time of the retail sale of the new qualified electric bicycle a discount on the purchase price of the qualified electric bicycle equal to the lesser of four hundred fifty dollars or the purchase price and shall show the discount as a separate item on the receipt or invoice provided to the qualified purchaser. Except as otherwise provided in subsection (4)(a)(II) of this section, the qualified retailer shall, at the time of the retail sale, collect from a purchaser an affidavit on forms prescribed by the office affirming that the purchaser is a qualified purchaser.
(c)
To determine whether a qualified retailer sold new qualified electric bicycles in the state, the rules set forth in 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 fifty dollars for providing the discount.
(e)
(I)
The qualified retailer shall electronically submit a report to the department on a quarterly basis in a form and manner required by the department that details the number of new qualified electric bicycles 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, and that includes any other information the executive director of the department may require. The qualified retailer shall submit with the quarterly report required by this subsection (3)(e)(I) the affidavits from qualified purchasers that the qualified retailer is required to collect pursuant to subsection (3)(b) of this section and the office shall inspect the affidavits to determine that retail sales have been made to qualified purchasers.
(II)
For income tax years commencing on or after January 1, 2025, the qualified retailer may elect advance payments of the credit allowed pursuant to this section as specified in section
39-22-629
.
(III)
Prior to selling a qualified electric bicycle 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 a registration statement in the form and manner prescribed by the department.
(4)
(a)
(I)
The office shall develop standards for determining allowable electric bicycle manufacturers for purposes of determining the type of electric bicycle that is a qualified electric bicycle eligible for the tax credit allowed pursuant to this section. The office shall consider the design and manufacture of allowable electric bicycles and certification of allowable electric bicycles for compliance with consensus safety standards, such as the ANSI/CAN/UL 2849 standard for safety for electrical systems for electric bicycles or similar, in order to determine that an electric bicycle is a qualified electric bicycle. The office may annually review the standards. The standards must be posted on the office's website.
(II)
If on or before June 30, 2025, the office determines, in connection with its inspection of the affidavits required pursuant to subsection (3)(b) of this section, that a registration process is needed and would be cost effective in curtailing fraud or abuse related to claiming the credit allowed under this section, the office shall develop a process in lieu of the affidavits for purchasers to register as qualified purchasers, through the office and prior to purchasing a qualified electric bicycle from a qualified retailer, by affirming the purchaser's residency and that the purchaser has not previously purchased a qualified electric bicycle that was discounted pursuant to this section in the same income tax year. The process must allow for a qualified retailer to access qualified purchaser information in order to confirm a purchaser is a qualified purchaser.
(b)
Pursuant to section
39-21-304 (3)
, and for the purpose of providing data that allows the effectiveness of the tax credit allowed pursuant to this section to be measured, the department, on or before January 1, 2025, and on or before January 1 of each year thereafter through January 1, 2034, shall provide to the state auditor information that details the number of sales of new qualified electric bicycles for which credits are claimed as reported by taxpayers claiming the credit for consideration during the state auditor's evaluation of this tax expenditure pursuant to section
39-21-305
.
(5)
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.
(6)
If the June 2025 revenue forecast, and each June revenue forecast through the June 2031 revenue forecast as prepared by either legislative council staff or the office of state planning and budgeting, projects that state revenues, as defined in section
24-77-103.6 (6)(c)
, will not increase by at least four percent for the next fiscal year, the amount of the credit allowed pursuant to this section, the discount required pursuant to subsection (3)(b) of this section, and the administrative fee allowed pursuant to subsection (3)(d) of this section for any tax year commencing in the calendar year that begins during said next fiscal year, is reduced by fifty percent.
(7)
The office shall provide technical assistance to ensure that qualified retailers have access to low-cost financing to support them in claiming the credit allowed under this section.
(8)
This section is repealed, effective December 31, 2038.
Amended by 2024 Ch. 490,§ 84, eff. 8/7/2024.
Added by 2023 Ch. 167,§ 9, eff. 5/11/2023.
2024 Ch. 490, 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.