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 10-1199
      
      
      BY REPRESENTATIVE(S) Ferrandino, Benefield, Frangas, Hullinghorst,
      Judd, Kagan, Labuda, Levy, Pommer;
      also SENATOR(S) Heath.
      
      
      Concerning a temporary limit on the state income tax deduction
           for a net operating loss.
      
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Article 21 of title 39, Colorado Revised Statutes, is
      amended BY THE ADDITION OF A NEW SECTION to read:
      
           39-21-122.  Revenue impact of 2010 tax legislation - tracking by
      department.  The department of revenue shall account for all
      revenue attributable to the enactment of House Bill 10-1199,
      enacted in 2010, and shall, to the extent such information is
      available, make quarterly reports to the general assembly
      regarding the quarterly and cumulative net revenue gain to the
      state resulting from the enactment of said bill.
      
           SECTION 2.  39-22-504, Colorado Revised Statutes, is amended
      BY THE ADDITION OF A NEW SUBSECTION to read:
      
           39-22-504.  Net operating losses.  (6) (a)  Notwithstanding any
      other provision of this section, the maximum amount of net
      operating loss that a corporation may subtract from federal
      taxable income pursuant to section 39-22-304 (3) (g) for a tax year
      commencing on or after January 1, 2011, but prior to January 1,
      2014, is two hundred fifty thousand dollars.
      
           (b)  All net operating losses may be carried forward one
      additional year for each tax year that a corporation is prohibited
      pursuant to paragraph (a) of this subsection (6) from subtracting
      a portion of such net operating losses from the corporation's
      federal taxable income.
      
           (c)  An amount equal to the amount of all net operating
      losses that a corporation is prohibited pursuant to paragraph (a)
      of this subsection (6) from subtracting from federal taxable
      income multiplied by a rate of interest equal to three and
      one-quarter percent per annum for the period during which such
      net operating losses are prohibited shall be added to the
      allowable net operating loss that is carried forward by the
      corporation, and, for the purpose of section 39-22-304 (3) (g), shall
      be considered net operating loss.
      
           SECTION 3.  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.
      
      
      
      
      ________________________________________________________
      Terrance D. Carroll                Brandon C. Shaffer
      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