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Extension Of Certain Unused Tax Credits

Concerning the extension of the period for which unused and expiring Colorado job growth incentive and enterprise zone income tax credits may be carried forward to subsequent years, and, in connection therewith, making an appropriation.
2022 Regular Session
Fiscal Policy & Taxes
State Revenue & Budget
Bill Summary

The act allows a taxpayer who operates in a strategic industry disproportionately impacted by the COVID-19 pandemic and who experienced significant financial hardship due to the COVID-19 pandemic to apply to the economic development commission (commission) for a 5-year extension of the allowable carry-forward period for unused Colorado job growth incentive tax credits and unused enterprise zone tax credits that would otherwise expire between January 1, 2021, and December 31, 2025; except that the tax credit for contributions to enterprise zone administrators to implement economic development plans is not eligible for the 5-year carry-forward extension. The act requires the commission, in consultation with the office of economic development, to establish a process for accepting, reviewing, and approving one-time applications by taxpayers for the extended carry-forward period on a first come, first served, rolling basis subject to taxpayers meeting certain eligibility requirements, which, in the commission's discretion, may include additional economic development commitments to the state. The act caps the total amount of tax credits allowed to be carried forward in the extended period at zero dollars for the first 2 years in the 5-year period, $10 million for the third year, and $15 million per year for the fourth and fifth years.

$18,412 is appropriated from the general fund for the 2022-23 state fiscal year to the office of the governor for use by economic development programs.

(Note: This summary applies to this bill as enacted.)


Became Law


Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details