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. 97­0600.01 MKD SENATE BILL 97­123

STATE OF COLORADO

BY SENATOR Tanner

FINANCE

A BILL FOR AN ACT

CONCERNING THE CREATION OF A STATE INCOME TAX CREDIT FOR DONATIONS MADE TO NONPROFIT ORGANIZATIONS FOR USE IN PROVIDING SERVICES TO PERSONS RECEIVING PUBLIC ASSISTANCE TO FOSTER ECONOMIC SELF­SUFFICIENCY.

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 1997 income tax year, allows a credit against state income taxes for 50% of the total qualified donation made to a nonprofit organization for use in providing programs for persons receiving public assistance that help such persons become economically self­sufficient. Prohibits a person claiming this credit from claiming a credit for contributions to enterprise zones for purposes of assisting the homeless. Allows the amount of excess credit to be carried forward against subsequent years' tax liability for up to 5 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.  Tax credit for donations to nonprofit organizations providing services that foster self­sufficiency. (1) (a)  FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 1997, THERE SHALL BE ALLOWED TO ANY TAXPAYER AS A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE AN AMOUNT EQUAL TO FIFTY PERCENT OF THE TOTAL QUALIFIED DONATION MADE DURING THE TAX YEAR TO A QUALIFIED NONPROFIT ORGANIZATION FOR USE IN PROVIDING SERVICES TO ELIGIBLE INDIVIDUALS WHO RECEIVE BENEFITS UNDER THE FEDERAL MEANS­TESTED PUBLIC ASSISTANCE PROGRAMS SET FORTH IN TITLES IV AND XVI OF THE FEDERAL "SOCIAL SECURITY ACT", AS AMENDED, THE FEDERAL "FOOD STAMP ACT", AS AMENDED, OR ANY OF THE STATE MEANS­TESTED PUBLIC ASSISTANCE PROGRAMS SET FORTH ARTICLE 2 OF TITLE 26, C.R.S., THAT FOSTER ECONOMIC SELF­SUFFICIENCY.

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

(I)  "ELIGIBLE INDIVIDUAL" MEANS A PERSON WHO IS A MEMBER OF A HOUSEHOLD THAT RECEIVES OR HAS RECEIVED WITHIN THE PAST TWENTY­FOUR MONTHS ASSISTANCE FROM ANY OF THE FEDERAL MEANS­TESTED PUBLIC ASSISTANCE PROGRAMS SET FORTH IN TITLES IV AND XVI OF THE FEDERAL "SOCIAL SECURITY ACT", AS AMENDED, THE FEDERAL "FOOD STAMP ACT", AS AMENDED, OR ANY OF THE STATE MEANS­TESTED PUBLIC ASSISTANCE PROGRAMS SET FORTH IN ARTICLE 2 OF TITLE 26, C.R.S.

(II)  "QUALIFIED DONATION" MEANS THE DONATION OF MONEY, REAL ESTATE, OR PERSONAL PROPERTY TO A QUALIFIED NONPROFIT ORGANIZATION THAT PROVIDES ELIGIBLE INDIVIDUALS WITH JOB TRAINING, HOUSING ASSISTANCE, EDUCATION, CHILD CARE, COUNSELING, OR FINANCIAL ASSISTANCE FOR THE PURPOSE OF FOSTERING ECONOMIC SELF­SUFFICIENCY.

(III)  "QUALIFIED NONPROFIT ORGANIZATION" MEANS ANY ORGANIZATION THAT HAS BEEN DESIGNATED AS SUCH FOR PURPOSES OF THIS SECTION BY THE DIRECTOR OF THE COUNTY DEPARTMENT OF HUMAN SERVICES IN THE COUNTY WHERE SUCH ORGANIZATION IS LOCATED OR PROVIDES SERVICES, THAT QUALIFIES AS A TAX­EXEMPT NONPROFIT ORGANIZATION OR ASSOCIATION UNDER THE FEDERAL "INTERNAL REVENUE CODE OF 1986", AS AMENDED, AND THAT PROVIDES SERVICES TO ELIGIBLE INDIVIDUALS THAT FOSTER SELF­SUFFICIENCY.

(2)  NO PERSON CLAIMING A TAX CREDIT UNDER SUBSECTION (1) OF THIS SECTION SHALL BE ELIGIBLE TO CLAIM A CREDIT FOR THE SAME DONATION UNDER SECTION 39­30­103.5 (3).

(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.

(4)  THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF HUMAN SERVICES SHALL PROMULGATE RULES IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, C.R.S., THAT ESTABLISH CRITERIA FOR COUNTY DEPARTMENTS OF HUMAN SERVICES TO USE IN DETERMINING WHETHER TO DESIGNATE AN ORGANIZATION AS A "QUALIFIED NONPROFIT ORGANIZATION" FOR PURPOSES OF THIS SECTION.

(5)  THE DEPARTMENT OF REVENUE MAY REQUIRE PROOF BY THE TAXPAYER OF ANY DONATION CLAIMED UNDER THIS SECTION AS WELL AS PROOF THAT SUCH DONATION WAS MADE TO A QUALIFIED NONPROFIT ORGANIZATION.

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.