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Second Regular Session
Sixty-first General Assembly
LLS NO. 980809.01D DLC
HOUSE BILL 981373
STATE OF COLORADO
BY REPRESENTATIVES Hefley, Agler, Allen, Arrington,
Dean, Epps, Musgrave, Sinclair, and Tool;
A BILL FOR AN ACT
CONCERNING A STATE INCOME TAX CREDIT FOR THE EXPENSES
OF AN EMPLOYER INCURRED IN PROVIDING ENGLISH LANGUAGE TRAINING
FOR THE EMPLOYER'S EMPLOYEES.
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments that may be subsequently
Beginning with the 1998 income tax year, allows a
credit against state income tax for 50% of an employer's annual
investment in training employees to read, write, speak, and understand
the English language. Allows the excess credit to be carried
forward as a credit 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, is amended BY THE ADDITION OF A NEW SECTION to read:
3922522. Credit against tax language training expenses. (1) FOR INCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 1998, THERE SHALL BE ALLOWED TO THE EMPLOYER OF ANY PERSON RECEIVING QUALIFIED LANGUAGE TRAINING A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE EMPLOYER'S ANNUAL INVESTMENT IN QUALIFIED LANGUAGE TRAINING EXPENSES FOR THE EMPLOYER'S EMPLOYEES.
(2) FOR PURPOSES OF THIS SECTION:
(a) "QUALIFIED LANGUAGE TRAINING" MEANS:
(I) TRAINING INDIVIDUALS WITH LIMITED ENGLISH PROFICIENCY TO READ, WRITE, SPEAK, AND UNDERSTAND THE ENGLISH LANGUAGE FOR THE PURPOSE OF GIVING THOSE INDIVIDUALS BASIC AND FUNCTIONAL LITERACY SKILLS; AND
(II) REMEDIAL TRAINING OF INDIVIDUALS WITH LIMITED ENGLISH PROFICIENCY IN ENGLISH LANGUAGE AND LITERACY.
(b) "QUALIFIED LANGUAGE TRAINING EXPENSES" MEANS:
(I) MONEYS DIRECTLY EXPENDED BY AN EMPLOYER ON BEHALF OF AN EMPLOYEE OF THE EMPLOYER FOR THE QUALIFIED LANGUAGE TRAINING OF THAT EMPLOYEE, INCLUDING, BUT NOT LIMITED TO, TUITION, FEES, BOOKS, AND SUPPLIES;
(II) MONEYS DIRECTLY EXPENDED BY AN EMPLOYER FOR THE WAGES OF AN EMPLOYEE OF THE EMPLOYER WHO PROVIDES QUALIFIED LANGUAGE TRAINING TO THE EMPLOYER'S EMPLOYEES AND FOR THE BOOKS AND SUPPLIES USED IN CONNECTION WITH THE PROVISION OF THAT TRAINING; OR
(III) MONEYS DIRECTLY EXPENDED BY THE EMPLOYER FOR THE WAGES OF AN EMPLOYEE OF THE EMPLOYER RECEIVING QUALIFIED LANGUAGE TRAINING TO THE EXTENT THOSE WAGES ARE ALLOCABLE TO TRAINING TIME.
(3) THE CREDIT ALLOWED BY THIS SECTION FOR ANY INCOME TAX YEAR SHALL NOT EXCEED THE EMPLOYER'S ACTUAL TAX LIABILITY FOR SUCH TAXABLE YEAR. IF THE AMOUNT OF THE CREDIT ALLOWED BY THIS SECTION EXCEEDS THE EMPLOYER'S ACTUAL TAX LIABILITY FOR ANY INCOME TAX YEAR IN WHICH THE CREDIT AUTHORIZED IN THIS SECTION IS CLAIMED, SUCH EXCESS SHALL BE A TAX CREDIT CARRYOVER TO EACH OF THE THREE INCOME TAX YEARS FOLLOWING THE UNUSED CREDIT YEAR 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.