Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute.

First Regular Session

Sixty-first General Assembly

LLS NO. 97­0374.01 MKD SENATE BILL 97­022

STATE OF COLORADO

BY SENATOR Linkhart

FINANCE

A BILL FOR AN ACT

CONCERNING THE CREATION OF A STATE INCOME TAX CREDIT FOR INVESTMENT IN QUALIFIED SCHOOL­TO­WORK PROGRAMS.

Bill Summary

(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments which may be subsequently adopted.)

Beginning with the 1998 tax year, allows a credit against state income taxes for 10% of the total qualified investment made in a qualified school­to­work program. Prohibits a person claiming this credit from claiming a school­to­work credit under the laws relating to enterprise zones. Allows the amount of excess credit to be carried forward as a credit against subsequent years' tax liability for up to five years.

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.  School­to­work tax credit. (1) (a)  FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 1998, 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 SCHOOL­TO­WORK PROGRAM.

(b)  FOR PURPOSES OF THIS SUBSECTION (1):

(I)  "QUALIFIED INVESTMENT" MEANS MONEYS DIRECTLY EXPENDED FOR WAGES, WORKERS' COMPENSATION INSURANCE, UNEMPLOYMENT INSURANCE, AND TRAINING EXPENSES TO EMPLOY A STUDENT 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;

(C)  THE PRIVATE OCCUPATIONAL SCHOOL DIVISION CREATED PURSUANT TO SECTION 23­60­703, C.R.S; OR

(D)  THE COLORADO COMMISSION ON HIGHER EDUCATION.

(2)  NO PERSON CLAIMING A TAX CREDIT UNDER SUBSECTION (1) OF THIS SECTION SHALL BE ELIGIBLE TO CLAIM A CREDIT UNDER SECTION 39­30­104 (5).

(3)  IF THE AMOUNT OF THE CREDIT PROVIDED FOR PURSUANT TO SUBSECTION (1) 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.  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.