NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      HOUSE BILL 08-1034
      
      
      BY REPRESENTATIVE(S) Garza-Hicks and Ferrandino, McGihon,
      Benefield, Kerr J., Labuda, Looper, Rose, Todd, and Buescher;
      also SENATOR(S) Veiga.
      
      
      Concerning clarifications to employer tax credits for taxpayers
           utilizing employee leasing companies.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  39-30-105 (5) (c), Colorado Revised Statutes, is
      amended, and the said 39-30-105 (5) is further amended BY THE
      ADDITION OF A NEW PARAGRAPH, to read:
      
           39-30-105.  Credit for new business facility employees -
      definitions.  (5) (c)  For purposes of this section, a partnership, S
      corporation, limited liability company, or other entity electing not to be
      taxed as a corporation may pass through the credits earned under this
      section in any tax year to its participating partners, shareholders, or
      members, hereinafter referred to as the "investors" of the entity, in any
      percentage the entity chooses, up to the amount of the credit earned in the
      tax year.  Credits earned but unclaimed in a tax year for which the entity
      elects to be taxed as a corporation may not be distributed to investors in a
      later tax year for which the entity elects not to be taxed as a corporation.  In
      any tax year for which the entity elects not to be taxed as a corporation, all
      credits passed through to investors may be carried forward at the investor
      level for the carryover periods specified in this section.  For purposes of this
      section, a taxpayer may only claim the new business facility employee credit
      for employees for whom the taxpayer withholds social security, medicare,
      and income taxes under the taxpayer's own federal and state taxpayer
      identification numbers.
      
           (d)  For purposes of this section, a taxpayer may only claim
      the new business facility employee credit for employees for whom:
      
           (I)  The taxpayer withholds social security, medicare, and
      income taxes under the taxpayer's own federal and state
      taxpayer identification numbers; or
      
           (II)  The taxpayer is the work-site employer, as defined in
      section 8-70-114 (2) (a) (III), C.R.S., and an employee leasing
      company, as defined in section 8-70-114 (2) (a) (I), C.R.S., as the
      employing unit for, or co-employer with, the taxpayer, withholds
      social security, medicare, and income taxes under the employee
      leasing company's own federal and state taxpayer identification
      numbers.
      
           SECTION 2.  39-35-104 (6), Colorado Revised Statutes, is amended
      to read:
      
           39-35-104.  Aircraft manufacturer - credit for new employees. 
      (6)  For purposes of this section, an aircraft manufacturer may only claim
      the new employee credit for employees for whom:
      
           (a)  The aircraft manufacturer withholds social security, medicare,
      and income taxes under the aircraft manufacturer's own federal and state
      taxpayer identification numbers; or
      
           (b)  The aircraft manufacturer is the work-site employer, as
      defined in section 8-70-114 (2) (a) (III), C.R.S., and an employee
      leasing company, as defined in section 8-70-114 (2) (a) (I), C.R.S., as
      the employing unit for, or co-employer with, the aircraft
      manufacturer, withholds social security, medicare, and income
      taxes under the employee leasing company's own federal and state
      taxpayer identification numbers.
      
           SECTION 3.  Applicability.  This act shall apply to tax credits for
      employees hired on or after August 3, 2007.
      
           SECTION 4.  Safety clause.  The general assembly hereby finds,
      determines, and declares that this act is necessary for the immediate
      preservation of the public peace, health, and safety.
      
      
      
      
      ________________________________________________________
      Andrew Romanoff                        Peter C. Groff
      SPEAKER OF THE HOUSE                     PRESIDENT OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
      
      
      ____________________________  ____________________________
      Marilyn Eddins                          Karen Goldman
      CHIEF CLERK OF THE HOUSE                 SECRETARY OF
      OF REPRESENTATIVES                         THE SENATE
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO