Second Regular Session
              Sixty-eighth General Assembly
                    STATE OF COLORADO
                                                 INTRODUCED
                                                           
                                                           
 LLS NO. 12-0599.01 Esther van Mourik x4215HOUSE BILL 12-1260
                    HOUSE SPONSORSHIP
 Labuda,  Court, Ferrandino, Soper, Wilson
 
                   SENATE SPONSORSHIP
 (None),
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 House Committees
 Senate Committees
 
 
 Finance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                         A BILL FOR AN ACT
       Concerning the cap on the amount of an income tax credit
            that may be claimed in an income tax year for qualified
            investments in an enterprise zone.
       
       
                           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 the income tax years commencing on or after January 1, 2013,
       the bill limits the amount of an income tax credit that may be claimed in
       an income tax year for qualified investments in an enterprise zone. The
       limit is the lesser of:
                 The taxpayer's actual tax liability for the income tax year to
                 the extent such liability does not exceed $5,000, plus 50%
                 of any portion of the tax liability for the income tax year
                 that exceeds $5,000; or
                 $250,000.
       
       
       
       Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1.  In Colorado Revised Statutes, 39-30-104, amend
       (2) and (2.5) (b) as follows:
            39-30-104.  Credit against tax - investment in certain property
       - repeal. (2) (a)  For income tax years commencing prior to
       January 1, 2013, the amount of the credit set forth in subsection (1) of
       this section shall be subject to the limitations of section 39-22-507.5;
       except that, in computing the limitations on credit pursuant to section
       39-22-507.5 (3), a taxpayer's actual tax liability for the income tax year
       shall not be reduced by the amount of credits allowed by section
       39-30-105 and the limit on that portion of a taxpayer's tax liability that
       exceeds five thousand dollars shall be fifty percent.
            (b)  In addition to the limitations set forth in paragraph (a) of this
       subsection (2), for income tax years commencing on or after January 1,
       2011, but prior to January 1, 2014 January 1, 2013, any taxpayer that is
       eligible to claim a credit pursuant to subsection (1) of this section in
       excess of five hundred thousand dollars shall defer claiming any amount
       of the credit allowed pursuant to this section that exceeds five hundred
       thousand dollars until an income tax year commencing on or after January
       1, 2014 January 1, 2013. The five hundred thousand dollar limitation
       specified in this paragraph (b) shall apply to any credit allowed in the
       current year income tax years commencing on or after January 1,
       2011, but prior to January 1, 2013, including any amount carried
       forward from a prior year.
            (c) (I)  For income tax years commencing on or after
       January 1, 2013, the amount of the credit set forth in subsection
       (1) of this section for any income tax year shall not exceed the
       lesser of:
            (A)  The sum of up to five thousand dollars of the
       taxpayer's actual tax liability for the income tax year plus
       fifty percent of any portion of the tax liability for the income
       tax year that exceeds five thousand dollars; or
            (B)  Two hundred fifty thousand dollars.
            (II)  In computing the limitations on credit pursuant to this
       paragraph (c), a taxpayer's actual tax liability for the income
       tax year shall be derived from the calculated tax before any
       reduction of credits.
            (2.5) (b)  A taxpayer that deferred claiming any credit in excess of
       five hundred thousand dollars during an income tax year commencing on
       or after January 1, 2011, but prior to January 1, 2014 January 1, 2013,
       pursuant to paragraph (b) of subsection (2) of this section shall be
       allowed to claim the deferred credit as an investment tax credit carryover
       for twelve income tax years following the year the credit was originally
       allowed plus one additional income tax year for each income tax year that
       the credit was deferred pursuant to paragraph (b) of subsection (2) of this
       section.
            SECTION 2.  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.