Second Regular Session
             Sixty-seventh General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 10-0458.01 Ed DeCecco           HOUSE BILL 10-1263
                    HOUSE SPONSORSHIP
 Pommer,  Casso, Ferrandino, Fischer, Gagliardi, Hullinghorst, Kerr A., Labuda, Levy,
 Merrifield, Miklosi, Primavera, Weissmann
 
                   SENATE SPONSORSHIP
 Boyd,  Hudak, Steadman, Tochtrop, Williams
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning a limit on the state income tax benefit for
            compensation paid by a business for personal services
            rendered.
       
       
                           Bill Summary
       
            (Note:  This summary applies to this bill as introduced and does
       not reflect any amendments that may be subsequently adopted.  If this bill
       passes third reading in the house of introduction, a bill summary that
       applies to the reengrossed version of this bill will be available at
       http://www.leg.state.co.us/billsummaries.)
       
            For purposes of calculating the state income tax, the bill increases
       Colorado taxable income by an amount equal to the amount of salary or
       other compensation over $250,000 paid to an individual that is claimed
       as a federal deduction by a taxpayer.
            The bill also limits the amount of a separate state income tax
       deduction for wages or salaries, which are disallowed from being claimed
       as a deduction under federal law, to $250,000 per individual.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  39-22-104 (3), Colorado Revised Statutes, is
       amended BY THE ADDITION OF A NEW PARAGRAPH to read:
            39-22-104.  Income tax imposed on individuals, estates, and
       trusts - single rate - definitions - repeal.  (3)  There shall be added to
       the federal taxable income:
            (j)  For income tax years commencing on or after January
       1, 2011, an amount equal to the amount of salary or other
       compensation for personal services actually rendered over two
       hundred fifty thousand dollars paid to an individual that is
       claimed as a deduction by a taxpayer pursuant to section 162 (a)
       (1) or any other section of the internal revenue code.
            SECTION 2.  39-22-304 (2), Colorado Revised Statutes, is
       amended BY THE ADDITION OF A NEW PARAGRAPH to read:
            39-22-304.  Net income of corporation.  (2)  There shall be added
       to federal taxable income:
            (i)  For income tax years commencing on or after January
       1, 2011, an amount equal to the amount of salary or other
       compensation for personal services actually rendered over two
       hundred fifty thousand dollars paid to an individual that is
       claimed as a deduction by a taxpayer pursuant to section 162 (a)
       (1) or any other section of the internal revenue code.
            SECTION 3.  39-22-304 (3) (i), Colorado Revised Statutes, is
       amended to read:
            39-22-304.  Net income of corporation.  (3)  There shall be
       subtracted from federal taxable income:
            (i)  That portion of wages or salaries paid or incurred for the
       taxable year, the deduction for which is disallowed by section 280C of the
       internal revenue code; except that, for income tax years
       commencing on or after January 1, 2010, such wages or salaries
       shall not exceed two hundred fifty thousand dollars per
       individual.
            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.