§ 24-48.5-607 — Use of small business recovery tax credits - carry over

Colorado § 24-48.5-607

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Office of Economic Development

Text

(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.

Legislative History

Source: L. 2024: Entire part added with relocations, (HB 24-1453), ch. 355, p. 2427, � 1, effective September 1.