The bill makes the following modifications to the existing 'Colorado Job Creation and Main Street Revitalization Act':
- Adds a definition of a key term and streamlines and clarifies existing definitions;
- Adds subheadings to subsections to promote greater clarity;
- Extends the last income tax year for which the tax credit is available from 2019 to 2029;
- Separates subsections dealing solely with residential structures from subsections dealing solely with commercial structures to promote greater clarity;
- Under the existing tax credit, the amount of the tax credit, measured by a percentage of the actual qualified rehabilitation expenditures, is increased when the historic structure, whether commercial or residential, is located in a disaster area. The bill also increases the amount of the tax credit when the structure is located in a rural community. The bill prohibits a taxpayer from claiming the benefits offered for a structure in a disaster area or in a rural community.
- Requires the state historical society (society) to promulgate rules as necessary to to further implement the tax credits to be claimed for the substantial rehabilitation of qualified residential structures. Requires the society to promulgate rules on standards for the approval of the substantial rehabilitation of qualified residential structures and related reporting requirements.
- In connection with the reservation of tax credits for qualified commercial structures, changes the existing requirements under which the Colorado office of economic opportunity (office) uses a lottery process to determine the order in which it will review applications and plans received on the same day to a process under which the office must date and timestamp each application and review a plan and application on the basis of the order in which such documents were submitted;
- Streamlines procedures the owner of a qualified commercial structure is to follow upon the completion of rehabilitation of the structure to obtain a tax credit certificate;
- For income tax years commencing on or after January 1, 2020 but prior to January 1, 2030, maintains the aggregate limit on the amount of a tax credit certificate issued for any one qualified commercial structure at $1 million as for the 2016 through 2019 tax years;
- For qualified commercial structures, regardless of the amount of estimated qualified rehabilitation expenditures, the bill maintains the aggregate amount of all tax credits that may be reserved for each of the 2020 through 2029 calendar years in the same amount as for the 2017 through 2019 tax years, at $10 million, but specifies that the aggregate reservation amount of the $10 million in tax credits in any tax year that may be reserved by the office must be equally split between large and small projects for qualified commercial structures;
- Deletes existing provisions specifying the aggregate amount of tax credits that may be issued for particular income tax years;
- Deletes a reporting requirement that is part of existing law but requires the society to provide a report to the department of revenue by March 15, 2019, and on a quarterly basis thereafter specifying the ownership of tax credits (as well as transfers of tax credits in the case of tax credits for qualified commercial structures) to be claimed for the rehabilitation of qualified residential and commercial structures covering the period since the last report;
- Changes an existing provision mandating that the office, in consultation with the society, promulgate rules necessary to further implement the tax credits to be claimed for the substantial rehabilitation for qualified commercial structures so that the duty to promulgate rules is permissive; and
- Clarifies that certain requirements found in existing law are intended to apply only to tax credits issued for qualified commercial structures.
(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)