First Regular Session
Sixty-second General Assembly
LLS NO. 99-0291.01 Dan Cartin HOUSE BILL 99-1131
STATE OF COLORADO
BY REPRESENTATIVES Hefley, Sinclair, Kester, and Webster.
FINANCE
A BILL FOR AN ACT
101 CONCERNING A STATE INCOME TAX CREDIT FOR THE EXPENSES OF AN
102 EMPLOYER INCURRED IN PROVIDING ENGLISH LANGUAGE TRAINING
103 FOR THE EMPLOYER'S EMPLOYEES.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Beginning with the 1999 income tax year, allows a credit against
state income tax for 30% of an employer's annual expenses for classroom
or supervised training of employees to read, write, speak, and understand
the English language.
Authorizes the executive director of the department of revenue to
promulgate rules for the implementation and administration of the tax
credit. Specifies the governing bodies that may approve qualified
language training.
Allows the excess credit to be carried forward as a credit against
subsequent years' tax liability for up to 5 years.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 5 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
4 read:
5 39-22-522. Credit against tax - language training expenses.
6 (1) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 1999,
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
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1 THERE SHALL BE ALLOWED TO THE EMPLOYER OF ANY EMPLOYEE
2 RECEIVING QUALIFIED LANGUAGE TRAINING A CREDIT AGAINST THE TAX
3 IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO THIRTY PERCENT OF
4 THE EMPLOYER'S ANNUAL QUALIFIED LANGUAGE TRAINING EXPENSES FOR
5 THE EMPLOYER'S EMPLOYEES; EXCEPT THAT, FOR ANY GIVEN TAXABLE
6 YEAR, THE MAXIMUM AMOUNT OF SAID CREDIT SHALL NOT EXCEED TWO
7 HUNDRED FIFTY DOLLARS PER EMPLOYEE RECEIVING QUALIFIED LANGUAGE
8 TRAINING.
9 (2) FOR PURPOSES OF THIS SECTION:
10 (a) "EMPLOYEE" SHALL HAVE THE SAME MEANING AS SET FORTH IN
11 SECTION 39-22-604 (2) (a).
12 (b) "INDIVIDUAL WITH LIMITED ENGLISH PROFICIENCY" MEANS:
13 (I) AN INDIVIDUAL WHO SPEAKS A LANGUAGE OTHER THAN
14 ENGLISH AND DOES NOT COMPREHEND OR SPEAK ENGLISH; OR
15 (II) AN INDIVIDUAL WHO COMPREHENDS OR SPEAKS SOME ENGLISH
16 BUT WHOSE PREDOMINANT COMPREHENSION OR SPEECH IS IN A LANGUAGE
17 OTHER THAN ENGLISH.
18 (c) (I) "QUALIFIED LANGUAGE TRAINING" MEANS:
19 (A) CLASSROOM OR SUPERVISED TRAINING OF AN INDIVIDUAL WITH
20 LIMITED ENGLISH PROFICIENCY TO READ, WRITE, SPEAK, AND UNDERSTAND
21 THE ENGLISH LANGUAGE FOR THE PURPOSE OF GIVING THAT INDIVIDUAL
22 BASIC AND FUNCTIONAL LITERACY SKILLS; AND
23 (B) CLASSROOM OR SUPERVISED REMEDIAL TRAINING IN THE USE
24 OF THE ENGLISH LANGUAGE BY AND TO IMPROVE THE LITERACY OF AN
25 INDIVIDUAL WITH LIMITED ENGLISH PROFICIENCY.
26 (II) "QUALIFIED LANGUAGE TRAINING" INCLUDES ANY PROGRAM
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1 APPROVED BY:
2 (A) THE BOARD OF EDUCATION OF THE SCHOOL DISTRICT IN WHICH
3 THE PROGRAM IS OPERATING;
4 (B) THE STATE BOARD FOR COMMUNITY COLLEGES AND
5 OCCUPATIONAL EDUCATION;
6 (C) THE DIVISION OF PRIVATE OCCUPATIONAL SCHOOLS CREATED
7 PURSUANT TO SECTION 23-60-703, C.R.S.; OR
8 (D) THE COLORADO COMMISSION ON HIGHER EDUCATION.
9 (d) "QUALIFIED LANGUAGE TRAINING EXPENSES" MEANS:
10 (I) MONEYS DIRECTLY EXPENDED BY AN EMPLOYER ON BEHALF OF
11 AN EMPLOYEE OF THE EMPLOYER FOR THE QUALIFIED LANGUAGE TRAINING
12 OF THAT EMPLOYEE, INCLUDING, BUT NOT LIMITED TO, TUITION, FEES,
13 BOOKS, AND SUPPLIES; OR
14 (II) MONEYS DIRECTLY EXPENDED BY AN EMPLOYER FOR THE
15 WAGES OF AN EMPLOYEE OF THE EMPLOYER WHO PROVIDES QUALIFIED
16 LANGUAGE TRAINING TO THE EMPLOYER'S EMPLOYEES AND FOR THE BOOKS
17 AND SUPPLIES USED IN CONNECTION WITH THE PROVISION OF THAT
18 TRAINING.
19 (3) THE EXECUTIVE DIRECTOR SHALL PROMULGATE RULES FOR THE
20 IMPLEMENTATION AND ADMINISTRATION OF THE CREDIT ALLOWED UNDER
21 SUBSECTION (1) OF THIS SECTION.
22 (4) THE CREDIT ALLOWED BY THIS SECTION FOR ANY INCOME TAX
23 YEAR SHALL NOT EXCEED THE EMPLOYER'S ACTUAL TAX LIABILITY FOR
24 SUCH TAXABLE YEAR. IF THE AMOUNT OF THE CREDIT ALLOWED BY THIS
25 SECTION EXCEEDS THE EMPLOYER'S ACTUAL TAX LIABILITY FOR ANY
26 INCOME TAX YEAR IN WHICH THE CREDIT AUTHORIZED IN THIS SECTION IS
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1 CLAIMED, SUCH EXCESS SHALL BE A TAX CREDIT CARRYOVER TO EACH OF
2 THE FIVE INCOME TAX YEARS FOLLOWING THE UNUSED CREDIT YEAR AND
3 SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX YEARS POSSIBLE.
4 ANY AMOUNT OF THE CREDIT THAT IS NOT USED DURING SAID PERIOD
5 SHALL NOT BE REFUNDABLE TO THE TAXPAYER.
6 SECTION 2. Effective date. This act shall take effect at 12:01
7 a.m. on the day following the expiration of the ninety-day period after
8 final adjournment of the general assembly that is allowed for submitting
9 a referendum petition pursuant to article V, section 1 (3) of the state
10 constitution; except that, if a referendum petition is filed against this act
11 or an item, section, or part of this act within such period, then the act,
12 item, section, or part, if approved by the people, shall take effect on the
13 date of the official declaration of the vote thereon by proclamation of the
14 governor.