BY SENATORS Linkhart, Bishop, Dennis, Hernandez, Martinez, Pascoe, Perlmutter, Phillips, Reeves, Rupert, Tanner, and Weddig;
also REPRESENTATIVES Alexander, Bacon, Chavez, George,
Mace, Veiga, and Zimmerman.
CONCERNING A CREDIT AGAINST THE STATE INCOME TAX
FOR CONTRIBUTIONS TO PROMOTE CHILD CARE IN THE STATE.
Be it enacted by the General Assembly of the State
of Colorado:
SECTION 1. Part
1 of article 22 of title 39, Colorado Revised Statutes, is amended
BY THE ADDITION OF A NEW SECTION to read:
3922121. Credit for child
care facilities repeal. (1) FOR
INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999, ANY TAXPAYER
WHO MAKES A MONETARY OR INKIND CONTRIBUTION TO PROMOTE CHILD
CARE IN THE STATE SHALL BE ALLOWED A CREDIT AGAINST THE INCOME
TAX IMPOSED BY ARTICLE 22 OF THIS TITLE IN AN AMOUNT EQUAL TO
TWENTYFIVE PERCENT OF THE TOTAL VALUE OF THE CONTRIBUTION
EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (4) OF THIS SECTION.
(2) MONETARY OR INKIND CONTRIBUTIONS
TO PROMOTE CHILD CARE IN THE STATE SHALL INCLUDE THE FOLLOWING
TYPES OF CONTRIBUTIONS:
(a) DONATING MONEY, REAL ESTATE, OR PROPERTY
FOR THE ESTABLISHMENT OR OPERATION OF A CHILD CARE FACILITY OR
PROGRAM IN THE STATE;
(b) DONATING MONEY TO ESTABLISH A GRANT
OR LOAN PROGRAM FOR A PARENT OR PARENTS IN THE STATE REQUIRING
FINANCIAL ASSISTANCE FOR CHILD CARE;
(c) POOLING MONEYS OF SEVERAL BUSINESSES
AND DONATING SUCH MONEYS FOR THE ESTABLISHMENT OF A CHILD CARE
FACILITY IN THE STATE;
(d) DONATING MONEY FOR THE TRAINING OF
CHILD CARE PROVIDERS IN THE STATE; AND
(e) DONATING MONEY, SERVICES, OR EQUIPMENT
FOR THE ESTABLISHMENT OF AN INFORMATION DISSEMINATION PROGRAM
IN THE STATE TO PROVIDE INFORMATION AND REFERRAL SERVICES TO ASSIST
A PARENT OR PARENTS IN OBTAINING CHILD CARE.
(3) IN NO EVENT SHALL CREDITS BE ALLOWED
PURSUANT TO THIS SECTION FOR CONTRIBUTIONS THAT ARE NOT DIRECTLY
RELATED TO PROMOTING CHILD CARE IN THE STATE OR FOR CONTRIBUTIONS
THAT A TAXPAYER MAKES TO A CHILD CARE FACILITY IN WHICH THE TAXPAYER
OR A PERSON RELATED TO THE TAXPAYER HAS A FINANCIAL INTEREST.
(4) WHEN A CONTRIBUTION FOR WHICH A CREDIT
IS CLAIMED PURSUANT TO THIS SECTION IS MADE TO A FORPROFIT
BUSINESS, SUCH CONTRIBUTION SHALL BE DIRECTLY INVESTED BY THE
BUSINESS FOR THE ACQUISITION OR IMPROVEMENT OF FACILITIES, EQUIPMENT,
OR SERVICES, INCLUDING THE IMPROVEMENT OF STAFF SALARIES, STAFF
TRAINING, OR THE QUALITY OF CHILD CARE.
(5) THE CREDIT ALLOWED BY THIS SECTION
SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS OR THE TAXPAYER'S
ACTUAL INCOME TAX LIABILITY FOR THE TAX YEAR FOR WHICH THE CREDIT
IS CLAIMED, WHICHEVER IS LESS. INKIND CONTRIBUTIONS SHALL
NOT EXCEED FIFTY PERCENT OF THE TOTAL AMOUNT OF THE CREDIT CLAIMED
FOR A GIVEN TAX YEAR.
(6) IF THE AMOUNT OF THE CREDIT ALLOWED
PURSUANT TO THE PROVISIONS OF THIS SECTION EXCEEDS THE AMOUNT
OF INCOME TAXES OTHERWISE DUE ON THE TAXPAYER'S INCOME 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 MAY BE CARRIED FORWARD AND USED AS A CREDIT AGAINST
SUBSEQUENT YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED
FIVE YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX
YEARS POSSIBLE. ANY CREDIT REMAINING AFTER SAID PERIOD SHALL
NOT BE REFUNDED OR CREDITED TO THE TAXPAYER.
(7) THIS SECTION IS REPEALED, EFFECTIVE
JANUARY 1, 2005.
SECTION 2. 3930103.5
(2), Colorado Revised Statutes, is amended to read:
3930103.5. Credit against
tax contributions to enterprise zone administrators to
implement economic development plans repeal.
(2) (a) FOR INCOME TAX YEARS COMMENCING PRIOR
TO JANUARY 1, 1999, monetary or inkind contributions to
promote child care in enterprise zones shall be deemed to be for
the purpose of implementing the economic development plan for
the enterprise zone and shall include but shall not be limited
to the following types of contributions:
(a) (I) Donating
money, real estate, or property to the enterprise zone for the
establishment of a child care facility;
(b) (II) Donating
money to the enterprise zone to establish a grant or loan program
for a parent or parents requiring financial assistance for child
care;
(c) (III) Pooling
moneys of several businesses and donating such moneys to the enterprise
zone for the establishment of a child care facility;
(d) (IV) Donating
money to the enterprise zone for the training of child care providers;
and
(e) (V) Donating
money, services, or equipment to the enterprise zone for the establishment
of an information dissemination program to provide information
and referral services to assist a parent or parents in obtaining
child care.
(b) NOTWITHSTANDING ANY OTHER PROVISION TO THE CONTRARY, NOTHING IN THIS SUBSECTION (2) SHALL BE CONSTRUED TO LIMIT THE ABILITY OF A TAXPAYER TO CLAIM A CREDIT UNDER THIS SUBSECTION (2) FOR CONTRIBUTIONS MADE ON OR AFTER JANUARY 1, 1999, PURSUANT TO THE TERMS OF AN AGREEMENT ENTERED INTO PRIOR TO SUCH DATE BETWEEN THE TAXPAYER AND AN ENTERPRISE ZONE ADMINISTRATOR.
SECTION 3. Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninetyday period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.
____________________________ ____________________________
Tom Norton Charles E. Berry
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Patricia K. Dicks Judith M. Rodrigue
ASSISTANT SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
_________________________________________
Roy Romer
GOVERNOR OF THE STATE
OF COLORADO