First Regular Session
Sixty-second General Assembly
LLS NO. 99-0485.01 Bob Lackner SENATE BILL 99-128
STATE OF COLORADO
BY SENATORS Grampsas and Anderson;
also REPRESENTATIVE Sullivant.
FINANCE
APPROPRIATIONS
A BILL FOR AN ACT
101 CONCERNING THE STATE INCOME TAX CREDIT FOR QUALIFIED COSTS
102 INCURRED IN THE PRESERVATION OF HISTORIC PROPERTIES.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Permanently extends the state income tax credit, currently
scheduled to expire January 1, 2000, for qualified costs incurred in the
preservation of historic properties. Increases the maximum amount of the
credit. Increases the carry forward period from 5 to 10 years.
Removes the limitation on credits for taxpayers receiving a federal
income tax credit for the same project. Authorizes the reviewing entity
to reduce or eliminate the fees for small rehabilitation projects. Permits
certification of rehabilitation commenced prior to submitting an
application where acceptable documentation exists of building conditions
prior to rehabilitation.
Clarifies that, when more than one taxpayer qualifies for the tax
credit, the amount of the tax credit shall be divided pro rata unless a
binding agreement is on file with the appropriate reviewing entity that
specifies a different method for allocating the credit.
Makes conforming amendments.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. The introductory portion to 39-22-514 (1) (a),
3 39-22-514 (2), the introductory portion to 39-22-514 (3) (a), and
4 39-22-514 (3) (a) (I), (4), (6), (7) (a), (10), and (11), Colorado Revised
[ ] 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 Statutes, are amended to read:
2 39-22-514. Tax credit for qualified costs incurred in
3 preservation of historic properties. (1) (a) Except as otherwise
4 provided in paragraph (b) of this subsection (1), for income tax years
5 commencing on or after January 1, 1991, but prior to January 1, 2000,
6 there shall be allowed a credit with respect to the income taxes imposed
7 pursuant to the provisions of this article to each taxpayer:
8 (2) (a) Except as otherwise provided in paragraph (b) of this
9 subsection (2), The credit provided for in paragraph (a) of subsection (1)
10 of this section shall not exceed an aggregate of fifty thousand dollars per
11 qualified property or an amount equal to twenty percent of the aggregate
12 qualified costs incurred per qualified property. whichever is less;
13 however, for any given taxable year, the maximum amount of said credit
14 which may be claimed shall not exceed two thousand dollars plus an
15 amount equal to fifty percent of the difference between the tax liability of
16 the taxpayer and two thousand dollars.
17 (b) If any taxpayer is allowed a credit pursuant to the provisions
18 of section 38 of the internal revenue code for the costs incurred in the
19 rehabilitation of property located in Colorado, the credit provided for in
20 paragraph (a) of subsection (1) of this section shall be determined
21 pursuant to the provisions of section 39-22-507.5 (1) (b).
22 (3) (a) Except as otherwise provided in paragraph (b) of this
23 subsection (3), and subsection (6) of this section, in order for any
24 taxpayer to qualify for the credit provided for in paragraph (a) of
25 subsection (1) of this section, the taxpayer shall:
26 (I) Prior to the commencement of any restoration, rehabilitation,
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1 or preservation of any qualified property, EXCEPT AS OTHERWISE
2 PROVIDED IN THIS SUBPARAGRAPH (I), submit a fee of two hundred fifty
3 dollars, the plans and specifications for such proposed restoration,
4 rehabilitation, or preservation, and a signed agreement, if any, specified
5 in subsection (4) of this section to the appropriate reviewing entity and
6 receive preliminary approval, in writing, from said reviewing entity
7 stating that such proposed restoration, rehabilitation, or preservation
8 constitutes qualified rehabilitation. IN THE DISCRETION OF THE REVIEWING
9 ENTITY, THE FEE IMPOSED PURSUANT TO THIS SUBPARAGRAPH (I) MAY BE
10 REDUCED OR ELIMINATED WHEN THE AMOUNT OF QUALIFIED COSTS
11 EXPECTED TO BE INCURRED IN CONNECTION WITH THE RESTORATION,
12 REHABILITATION, OR PRESERVATION IS LESS THAN FIFTEEN THOUSAND
13 DOLLARS. IF ANY RESTORATION, REHABILITATION, OR PRESERVATION HAS
14 COMMENCED PRIOR TO THE SUBMISSION OF THE APPLICATION FEE, PLANS
15 AND SPECIFICATIONS, AND SIGNED AGREEMENT, IF ANY, PURSUANT TO THE
16 PROVISIONS OF THIS SUBPARAGRAPH (I), THE TAXPAYER SHALL ALSO
17 SUBMIT DOCUMENTATION SATISFACTORY TO THE REVIEWING ENTITY
18 INDICATING THE CONDITION OF THE QUALIFIED PROPERTY PRIOR TO
19 COMMENCEMENT OF THE REHABILITATION, INCLUDING, BUT NOT LIMITED
20 TO, PHOTOGRAPHS OF THE PROPERTY AND WRITTEN DECLARATIONS FROM
21 PERSONS KNOWLEDGEABLE ABOUT THE PROPERTY. For the purposes of this
22 subparagraph (I), any owners of qualified property and any qualified
23 tenants leasing said qualified property who wish to qualify for the credit
24 provided for in paragraph (a) of subsection (1) of this section for said
25 qualified property may jointly submit the fee and the plans and
26 specifications, or such owners may submit the fee, the plans and
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1 specifications, and a list of qualified tenants leasing said qualified
2 property AND, IF SUCH OWNERS OR TENANTS HAVE COMMENCED
3 RESTORATION, REHABILITATION, OR PRESERVATION PRIOR TO THE
4 SUBMISSION OF THE APPLICATION FEE, PLANS AND SPECIFICATIONS, AND
5 SIGNED AGREEMENT, IF ANY, PURSUANT TO THE PROVISIONS OF THIS
6 SUBPARAGRAPH (I), THEY SHALL ALSO JOINTLY SUBMIT SUCH
7 DOCUMENTATION AS IS REQUIRED PURSUANT TO THIS SUBPARAGRAPH (I).
8 (4) When more than one taxpayer qualify for the tax credit
9 provided for in paragraph (a) of subsection (1) of this section for the same
10 qualified property, there shall be a rebuttable presumption that the amount
11 of the tax credit allowed pursuant to the provisions of this section shall be
12 divided pro rata according to the number of such taxpayers Such
13 presumption shall be rebutted only upon the filing of UNLESS a binding
14 agreement HAS BEEN FILED with the reviewing entity, as specified in
15 subparagraph (I) of paragraph (a) of subsection (3) of this section, which
16 THAT is signed by all of the taxpayers who qualify for said tax credit for
17 the same qualified property and which THAT specifies the manner in
18 which the amount of the tax credit allowed is to be divided among such
19 taxpayers. NOTHING IN THIS SUBSECTION (4) SHALL PRECLUDE THE STATE
20 INCOME TAX CREDIT CREATED PURSUANT TO THIS SECTION FROM BEING
21 ALLOCATED AMONG TAXPAYERS IN A DIFFERENT MANNER THAN THE
22 ALLOCATION OF ANY CREDIT CLAIMED PURSUANT TO SECTION 38 OF THE
23 INTERNAL REVENUE CODE.
24 (6) (a) (I) Except as otherwise provided in paragraph (b) of this
25 subsection (6), any taxpayer who was given preliminary approval prior
26 to January 1, 2000, pursuant to the provisions of subparagraph (I) of
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1 paragraph (a) of subsection (3) of this section; whose completion deadline
2 as set forth in subparagraph (II) of paragraph (a) of subsection (3) and in
3 subsection (5) of this section is subsequent to December 31, 1999; and
4 who has not completed the qualified rehabilitation prior to January 1,
5 2000, shall, in order to qualify for the credit provided for in paragraph (a)
6 of subsection (1) of this section, obtain a form from the reviewing entity
7 verifying compliance with the provisions of subparagraph (I) of
8 paragraph (a) of subsection (3) of this section and this subsection (6). If
9 more than one of the taxpayers have complied with said provisions for the
10 same qualified property, the reviewing entity shall issue such verification
11 form to each such taxpayer, and such verification form shall specify the
12 proportion of the amount of the tax credit allowed to such taxpayer as
13 determined pursuant to subsection (4) of this section.
14 (II) The reviewing entity shall issue said verification form only
15 upon the submittal of an accounting of total qualified costs incurred in
16 said qualified rehabilitation prior to January 1, 2000, and the names of the
17 owners and qualified tenants who incurred such qualified costs, the
18 payment of a fee in an amount determined pursuant to the provisions of
19 paragraph (a) of subsection (11) of this section, and the making of the
20 determination that the portion of such qualified rehabilitation which was
21 completed as of January 1, 2000:
22 (A) Conforms to the plans and specifications approved pursuant
23 to subparagraph (I) of paragraph (a) of subsection (3) of this section; and
24 (B) Preserves and maintains those qualities of such qualified
25 property which made it eligible for inclusion individually or as a
26 contributing property in a district in the state register of historic places or
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1 for designation as a landmark or as a contributing property in a historic
2 district by a certified local government.
3 (III) The taxpayer shall submit the verification form obtained
4 pursuant to this paragraph (a) with the income tax return being filed by
5 the taxpayer for the income tax year commencing on or after January 1,
6 1999, but prior to January 1, 2000.
7 (b) The provisions of paragraph (a) of this subsection (6) shall not
8 apply to any taxpayer who is allowed a credit for costs incurred in the
9 rehabilitation of property located in Colorado pursuant to the provisions
10 of section 38 of the internal revenue code.
11 (7) (a) Except as otherwise provided in paragraph (b) of this
12 subsection (7), if the amount of the credit allowed pursuant to the
13 provisions of this section exceeds the amount of income taxes otherwise
14 due on the income of the taxpayer in the income tax year for which the
15 credit is being claimed, the amount of the credit not used as an offset
16 against income taxes in said income tax year may be carried forward as
17 a credit against subsequent years' income tax liability for a period not
18 exceeding five TEN years and shall be applied first to the earliest income
19 tax years possible. however, for any given taxable year, the maximum
20 amount of said credit which may be claimed shall not exceed two TEN
21 thousand dollars plus an amount equal to fifty percent of the difference
22 between the tax liability of the taxpayer and two thousand dollars. Any
23 amount of the credit which THAT is not used after said period shall not be
24 refundable to the taxpayer.
25 (10) (a) Prior to January 1, 1991 1999, and annually thereafter,
26 each certified local government shall adopt a resolution stating whether
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1 such certified local government will act as a reviewing entity for the
2 purposes of subsections SUBSECTION (3) and (6) of this section during the
3 following twelve months. A copy of such resolution shall be sent to the
4 state historic preservation officer prior to January 1 of each year.
5 (b) Any certified local government which has decided to act as a
6 reviewing entity for any given year for the purposes of subsections
7 SUBSECTION (3) and (6) of this section shall be required to perform all
8 duties and responsibilities pursuant to said subsections SUBSECTION (3)
9 and (6) for all qualified rehabilitations which THAT received preliminary
10 approval from said reviewing entity during such year.
11 (11) (a) The amount of the fee required to be paid pursuant to the
12 provisions of subparagraph (III) of paragraph (a) of subsection (3) and
13 subparagraph (II) of paragraph (a) of subsection (6) of this section shall
14 be an amount equal to the appropriate amount determined pursuant to the
15 following schedule minus the two-hundred-fifty-dollar-fee AMOUNT OF
16 THE FEE paid pursuant to subparagraph (I) of paragraph (a) of subsection
17 (3) of this section; EXCEPT THAT, IN THE DISCRETION OF THE REVIEWING
18 ENTITY, THE FEE IMPOSED PURSUANT TO THIS PARAGRAPH (a) MAY BE
19 REDUCED OR ELIMINATED WHERE THE AMOUNT OF THE QUALIFIED COSTS
20 INCURRED IS LESS THAN FIFTEEN THOUSAND DOLLARS:
21 Amount of qualified costs incurred Amount of fee
22 $5,000 up to and including $15,000 $ 250
23 Over $15,000 up to and including $50,000 $ 500
24 Over $50,000 up to and including $100,000 $ 750
25 Over $100,000 $ 1,000
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1 (b) (I) Any certified local government which has decided to act as
2 a reviewing entity for the purposes of subsections SUBSECTION (3) and (6)
3 of this section shall create a preservation fund. All fees collected
4 pursuant to the provisions of subparagraphs (I) and (III) of paragraph (a)
5 of subsection (3) and subparagraph (II) of paragraph (a) of subsection (6)
6 of this section by a certified local government shall be credited to the
7 preservation fund of such certified local government. The moneys in such
8 fund shall be used for expenditures of such certified government incurred
9 in the performance of its duties pursuant to the provisions of this section.
10 (II) All fees collected pursuant to the provisions of subparagraphs
11 (I) and (III) of paragraph (a) of subsection (3) and subparagraph (II) of
12 paragraph (a) of subsection (6) of this section by the state historic
13 preservation officer shall be transmitted to the state treasurer, who shall
14 credit said fees to the state historic preservation fund, which fund is
15 hereby created. The moneys in the state historic preservation fund shall
16 be subject to annual appropriation by the general assembly to the state
17 historical society for expenditures of the state historic preservation officer
18 and the state historical society incurred in the performance of their duties
19 pursuant to the provisions of this section and for expenditures incurred in
20 the administration and general operations of the state historical society.
21 SECTION 2. Applicability. This act shall apply to the
22 restoration, rehabilitation, or preservation of historic properties
23 commenced on or after the effective date of this act.
24 SECTION 3. Safety clause. The general assembly hereby finds,
25 determines, and declares that this act is necessary for the immediate
26 preservation of the public peace, health, and safety.