HOUSE BILL 971152
BY REPRESENTATIVES Tucker, Agler, Allen, Grampsas, Schauer, T. Williams, Chavez, Clarke, Dyer, Hagedorn, Mace, Schwarz, and S. Williams;
also SENATORS Norton, Dennis, Bishop, Linkhart, Martinez,
Matsunaka, Pascoe, Phillips, Rizzuto, Rupert, and Wattenberg.
CONCERNING A STATE INCOME TAX CREDIT AS AN INCENTIVE
FOR INVESTMENT IN QUALIFIED SCHOOLTOCAREER PROGRAMS.
Be it enacted by the General Assembly of the State
of Colorado
SECTION 1. Part
5 of article 22 of title 39, Colorado Revised Statutes, 1994 Repl.
Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION
to read:
3922520. Credit against
tax investment in schooltocareer program.
(1) THE GENERAL ASSEMBLY HEREBY RECOGNIZES THAT BUSINESSES
AND OTHER ASPECTS OF THE ECONOMY NEED TRAINED, EDUCATED, AND MOTIVATED
WORKERS. IT IS THEREFORE THE INTENT OF THE GENERAL ASSEMBLY TO
ENCOURAGE PRIVATE INVESTMENT IN PROGRAMS THAT INTEGRATE TRADITIONAL
EDUCATION WITH ONTHEJOB TRAINING. IT IS FURTHER THE
INTENT OF THE GENERAL ASSEMBLY TO FOSTER AND ENCOURAGE COOPERATION
AMONG THE PRIVATE SECTOR AND THE EDUCATIONAL COMMUNITY IN CREATING
PROGRAMS THAT WILL OPEN DOORS OF OPPORTUNITY FOR STUDENTS AND
ENABLE THEM TO DEVELOP THE KNOWLEDGE AND SKILLS THAT WILL EMPOWER
THEM TO BECOME PRODUCTIVE MEMBERS OF SOCIETY.
(2) (a) FOR INCOME TAX YEARS BEGINNING
ON OR AFTER JANUARY 1, 1997, THERE SHALL BE ALLOWED TO ANY PERSON
AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT
EQUAL TO TEN PERCENT OF THE TOTAL QUALIFIED INVESTMENT MADE IN
A QUALIFIED SCHOOLTOCAREER PROGRAM.
(b) FOR PURPOSES OF THIS SUBSECTION (2):
(I) "QUALIFIED INVESTMENT" MEANS
MONEYS DIRECTLY EXPENDED FOR WAGES, WORKERS' COMPENSATION INSURANCE,
UNEMPLOYMENT INSURANCE, AND TRAINING EXPENSES TO EMPLOY A STUDENT
TO WORK OR TO ALLOW A STUDENT TO PARTICIPATE IN AN INTERNSHIP
THROUGH A QUALIFIED SCHOOLTOCAREER PROGRAM.
(II) "QUALIFIED SCHOOLTOCAREER
PROGRAM" MEANS A PROGRAM THAT INTEGRATES SCHOOL CURRICULUM
WITH JOB TRAINING, THAT ENCOURAGES PLACEMENT OF STUDENTS IN JOBS
OR INTERNSHIPS THAT WILL TEACH THEM NEW SKILLS AND IMPROVE THEIR
SCHOOL PERFORMANCE, AND THAT IS APPROVED BY:
(A) THE BOARD OF EDUCATION OF THE SCHOOL
DISTRICT IN WHICH THE PROGRAM IS OPERATING;
(B) THE STATE BOARD FOR COMMUNITY COLLEGES
AND OCCUPATIONAL EDUCATION;
(C) THE DIVISION OF PRIVATE OCCUPATIONAL
SCHOOLS CREATED PURSUANT TO SECTION 2360703, C.R.S.;
OR
(D) THE COLORADO COMMISSION ON HIGHER
EDUCATION.
(3) IF THE AMOUNT OF THE CREDIT PROVIDED
FOR PURSUANT TO SUBSECTION (2) OF THIS SECTION EXCEEDS THE AMOUNT
OF INCOME TAXES DUE ON THE INCOME OF THE TAXPAYER IN THE INCOME
TAX YEAR FOR WHICH THE CREDIT IS BEING CLAIMED, THE AMOUNT OF
THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID
INCOME TAX YEAR SHALL NOT BE ALLOWED AS A REFUND BUT MAY BE CARRIED
FORWARD AS A CREDIT AGAINST SUBSEQUENT YEARS' TAX LIABILITY FOR
A PERIOD NOT EXCEEDING FIVE YEARS AND SHALL BE APPLIED FIRST TO
THE EARLIEST INCOME TAX YEARS POSSIBLE. ANY AMOUNT OF THE CREDIT
THAT IS NOT USED DURING SAID PERIOD SHALL NOT BE REFUNDABLE TO
THE TAXPAYER.
SECTION 2. 3930104
(5), Colorado Revised Statutes, 1994 Repl. Vol., as amended, is
repealed as follows:
3930104. Credit against
tax investment in certain property.
(5) (a) In addition
to any other tax credit allowed under this section, for income
tax years commencing on or after January 1, 1997, there shall
be allowed to any person as a credit against the tax imposed by
article 22 of this title an amount equal to ten percent of the
total qualified investment made in a qualified schooltowork
program.
(b) For purposes of this subsection
(5):
(I) "Qualified investment"
means moneys directly expended for wages, workers' compensation
insurance, unemployment insurance, and training expenses to employ
a student to work predominantly within an enterprise zone through
a qualified schooltowork program.
(II) "Qualified schooltowork
program" means a program that integrates school curriculum
with job training, that encourages placement of students in jobs
that will teach them new skills and improve their school performance,
and that is approved by:
(A) The board of education of
the school district in which the program is operating;
(B) The state board for community
colleges and occupational education; or
(C) The division of private occupational
schools created pursuant to section 2360701, C.R.S.
SECTION 3. 3930103
(4) (b) (VIII), Colorado Revised Statutes, 1994 Repl. Vol., as
amended, is amended to read:
3930103. Zones established
termination. (4) (b) For
any area designated as an enterprise zone or as a portion of an
enterprise zone prior to July 1, 1996, the executive director
of the department of local affairs shall require local governments
that submitted development plans pertaining to areas selected
as enterprise zones to develop and submit no later than September
1, 1996, specific business development and job creation objectives
to be achieved in the zones or portions thereof. The executive
director shall require the local governments that submitted development
plans pertaining to areas selected as enterprise zones to continue
to submit annual documentation of efforts to improve conditions
in those areas and the results of those efforts. In order for
the executive director to determine if the enterprise zones or
portions thereof are achieving the specific business development
and job creation objectives submitted pursuant to this paragraph
(b) or to paragraph (d) of subsection (3) of this section, such
annual documentations shall include, but need not be limited to,
the most recent statistics available for companies claiming enterprise
zone tax credits on:
(VIII) The number of employees trained
and the amount of investment in job training programs pursuant
to section 3930104 (4). and
the number of individuals hired and the amount of investment in
schooltowork programs pursuant to section 3930104
(5).
SECTION 4. No appropriation.
The general assembly has determined that this act can be implemented
within existing appropriations, and therefore no separate appropriation
of state moneys is necessary to carry out the purposes of this
act.
SECTION 5. 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.
____________________________ ____________________________
Charles E. Berry Tom Norton
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Judith M. Rodrigue Joan M. Albi
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE OF COLORADO