§ 24-36-404 — Use of insurance premium tax credits - carry over

Colorado § 24-36-404

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Department of the Treasury

Text

(1) For a tax
credit certificate issued in fiscal year 2025-26, the department, in consultation with
the office of state planning and budgeting, prior to the sale, may determine the
calendar years in which the qualified taxpayer may claim the qualified taxpayer's
tax credit against the qualified taxpayer's premium tax liability.

(2) 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 the credit may not
be carried over to any taxable year that begins after December 31, 2033. Any
amount of the credit that is not timely claimed expires and is not refundable.

(3) A qualified taxpayer claiming a credit under this part 4 shall submit the
tax credit certificate with its tax return.

(4) A qualified taxpayer claiming a tax credit under this part 4 shall not be
required to pay any additional or retaliatory tax as a result of claiming the credit.

(5) 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
transfer or assumption of the tax credit does not affect the time schedule for
claiming the tax credit as provided in this section.

(6) The department shall provide a report to the division of insurance for
each fiscal year in which it issues tax credit certificates pursuant to this part 4
within thirty days after the close of the fiscal year. The report must include:

(a) The name and identifying number issued by the National Association of
Insurance Commissioners, or any successor organization, of each qualified taxpayer
to which the department issued a tax credit certificate;

(b) The total amount of the tax credit allocated to the qualified taxpayer; and

(c) The serial number of the tax credit certificate issued, transferred, or
assumed that is sufficient to allow the division of insurance in the department of
regulatory agencies to verify the issuance and ownership of the tax credit.

Legislative History

Source: L. 2025, 1st Ex. Sess.: Entire part added, (HB 25B-1004), ch. 8, p. 30, � 1, effective August 28.