(1) The commission has the following powers and duties:
(a) To adopt an annual budget;
(b) To develop operating guidelines relating to the manner and forms of financial assistance such as loans, grants, and local match requirements to be provided for various types of projects;
(c) To review the economic needs of the various geographical regions of Colorado;
(d) To identify the types of businesses which need the most support in terms of economic development;
(e) and (f) (Deleted by amendment, L. 91, p. 823, � 1, effective March 29, 1991.)
(g) To make information and assistance available for businesses interested in relocating or expanding their operations in the state of Colorado;
(h) To receive and expend donations or grants from the private sector;
(i) To contract for those services, including personnel services, and materials required by the activities of the commission;
(j) To review and recommend to the governor expenditures of moneys of the fund for economic incentives and marketing, as provided in section 24-46-105, for reimbursement for actual and necessary expenses of the commission, as authorized in section 24-46-103 (2), and for operational expenses of the commission;
(k) To exercise any other powers or perform any other duties which are consistent with the purposes for which the commission was created and which are reasonably necessary for the fulfillment of the commission's assigned responsibilities;
(l) and (m) Repealed.
(n) To contract with the Colorado housing and finance authority, created in part 7 of article 4 of title 29, for the operation of:
(I) A Colorado credit reserve program for the purpose of increasing the availability of credit to small businesses in Colorado; and
(II) Repealed.
(o) To oversee the Colorado office of film, television, and media loan guarantee program pursuant to section 24-48.5-115 and the performance-based incentive for film production in Colorado pursuant to section 24-48.5-116; and
(p) To consult with the Colorado office of economic development pursuant to section 24-48.5-117.
(q) (I) To expend eight million dollars to contract with the Colorado housing and finance authority, created in part 7 of article 4 of title 29, for the creation and operation of one or more of the following programs to benefit low- to moderate-income residents in local governments that have been certified as accessory dwelling unit supportive jurisdictions by the department of local affairs:
(A) An accessory dwelling unit credit enhancement program that supports lenders offering affordable loans to eligible low- and moderate-income borrowers for the construction or conversion of accessory dwelling units;
(B) A program that allows for the buying down of interest rates on loans made to eligible low- and moderate-income borrowers in connection with the construction or conversion of accessory dwelling units;
(C) A program that offers down payment assistance in connection with accessory dwelling units, principal reduction on loans to eligible low- and moderate-income borrowers made in connection with accessory dwelling units, or both; or
(D) A program in which the Colorado housing and finance authority offers loans, revolving lines of credit, or grants to eligible non-profits, public housing authorities, and community development financial institutions to make direct loans or grants to support the construction or conversion of accessory dwelling units for low- and moderate-income borrowers or tenants.
(II) Any contract made by the commission with the Colorado housing and finance authority pursuant to this subsection (1)(q) may include normal and customary fees and expenses for administrating the programs described in this subsection (1)(q).
(2) The commission shall report to the general assembly no later than November 1 of each year regarding the work of the commission. The report shall include the information required to be collected by the commission pursuant to section 24-46-105.1.
Source: L. 87: Entire article added, p. 1026, � 1, effective July 8. L. 88: (2) amended, p. 1431, � 13, effective June 11. L. 89: (2) amended, p. 339, � 3, effective June 7. L. 91: Entire section amended, p. 823, � 1, effective March 29. L. 97: (1)(l) added, p. 588, � 20, effective April 30. L. 2002: (1)(m) added, p. 1120, � 2, effective June 3. L. 2003: (1)(m) repealed, p. 2139, � 41, effective May 22. L. 2007: (2) amended, p. 509, � 1, effective August 3. L. 2009: (1)(n) added, (SB 09-067), ch. 237, p. 1080, � 1, effective May 7. L. 2012: (1)(o) added, (HB 12-1286), ch. 186, p. 710, � 4, effective July 1; (2) amended, (SB 12-166), ch. 243, p. 1149, � 2, effective August 8. L. 2013: (1)(o) amended and (1)(p) added, (HB 13-1001), ch. 227, p. 1077, � 4, effective August 7. L. 2020: (1)(n) amended, (SB 20-222), ch. 120, p. 497, � 2, effective June 23. L. 2021: (1)(n)(II)(B) amended, (HB 21-1302), ch. 271, p. 1571, � 2, effective June 21. L. 2024: (1)(q) added, (HB 24-1152), ch. 167, p. 831, � 3, effective May 13.
Editor's note: (1) Subsection (1)(l) provided for the repeal of subsection (1)(l), effective January 1, 1998. (See L. 97, p. 588.)
(2) Subsection (1)(n)(II)(B) provided for the repeal of subsection (1)(n)(II), effective September 1, 2024. (See L. 2021, p. 1571.)
Cross references: (1) For the legislative declaration in the 2012 act adding subsection (1)(o), see section 1 of chapter 186, Session Laws of Colorado 2012.
(2) In 2013, subsection (1)(o) was amended and subsection (1)(p) was added by the Colorado Advanced Industries Acceleration Act. For the short title, see section 1 of chapter 227, Session Laws of Colorado 2013.
24-46-104.3. Transferable income tax credits for certain businesses located in the state - definitions. (1) As used in this section, unless the context otherwise requires:
(a) Business means a person doing business in the state.
(b) Department means the Colorado department of revenue.
(c) Income tax credit means the income tax credits allowed to a business no sooner than the income tax year commencing January 1, 2019, in section 39-22-531, 39-30-104, 39-30-105.1, or 39-30-105.5.
(d) Office means the Colorado office of economic development created in section 24-48.5-101.
(e) Period means ten consecutive income tax years starting with the business' income tax year that commences immediately following the date the business receives precertification from the commission authorizing the income tax credits to be treated differently pursuant to this section.
(f) Precertification means the written precertification the commission may issue as allowed in subsection (2)(a) of this section that must set forth the income tax credits a business may treat differently and the total estimated value of the income tax credits that the business may treat differently pursuant to this section.
(g) Strategic capital investment means a capital investment totaling not less than one hundred million dollars that the commission finds will be significant to the state and is expected to be productive over many years.
(h) Twelve-month interval means each twelve-month interval from July 1, 2017, through June 30, 2020, during which the commission may issue precertifications.
(2) (a) (I) Subject to the limitations specified in subsection (2)(b) of this section, commencing July 1, 2017, through June 30, 2020, if a business intends to make a strategic capital investment in the state, the commission may issue a written precertification to the business to grant the business the authority to treat its allowed income tax credits during the business' period differently as specified in this section. The strategic capital investment must be initiated after the issuance of the precertification and completed before the end of the business' period; except that, if a business makes a strategic capital investment that could result in allowed income tax credits with a total value greater than the precertification limitations set forth in subsection (2)(b) of this section, the commission may issue a second or third written precertification to the same business in the following twelve-month intervals for the same strategic capital investment, even if the strategic capital investment has already been initiated or completed. If, after precertification and during the business' period, the business meets the requirements of one or more of the income tax credits as set forth in the statutory sections pertaining to each credit, then once the income tax credits are allowed, the business may elect, by filing a written election as specified in subsection (2)(a)(III) of this section, to:
(A) Use the income tax credits as an offset against the business' income taxes in the income tax year that the income tax credit is allowed;
(B) Carry forward the income tax credits to be used against the business' income tax liability for no more than five years, except as provided in subsection (2)(a)(II) of this section, using the carried forward income tax credits in the earliest income tax years possible; or
(C) Transfer the income tax credits during the carry-forward period described in subsection (2)(a)(I)(B) of this section and as allowed in subsection (4) of this section.
(II) The five-year carry-forward period commences when the income tax credit is allowed and is not limited by the end of the business' period described in this section.
(III) If a business elects to treat its allowed income tax credits differently as specified in this section and as allowed in the precertification, the business must file a written election with the office. If the business files the written election, then, except as provided in subsection (2)(b)(II) of this section, the business may not elect to receive a refund as allowed in section 39-30-104 (2.6).
(b) (I) All precertifications issued by the commission in each twelve-month interval may not exceed ten million dollars of estimated total value of all income tax credits. Any portion of the ten million dollars not precertified in a twelve-month interval may not be carried forward to the next twelve-month interval.
(II) If the actual value of the income tax credits that a business is allowed exceeds the precertification's estimated value of the income tax credits, then the business may not treat the difference between the estimated value of the income tax credits and the actual value of the income tax credits differently as specified in this section. Instead, the difference must be treated as specified in the statutory sections for each income tax credit.
(3) The business shall notify the commission when the business has met the requirements of one or more of the income tax credits in the period, shall provide the commission with verifiable evidence that the strategic capital investment was made, and shall submit an audit opinion from an independent certified public accountant attesting that the income tax credit or income tax credits have been properly calculated. If the commission agrees that the business has satisfied the terms of the precertification, then the office shall notify the department in writing of the different treatment of the business' income tax credits for the business' period.
(4) (a) If the business chooses to transfer its allowed income tax credits, then the income tax credits are freely transferable and assignable, subject to the commission's issuance of the precertification pursuant to this section, and subject to any notice and verification requirements to be determined by the office; except that the business may only transfer the portion of the income tax credits that were not applied against the business' income tax imposed by article 22 of title 39.
(b) The transferee may use all or a portion of the transferred income tax credit as an offset against the transferee's income tax imposed by article 22 of title 39. Any unused portion of the transferred income tax credit may be carried forward and used as an income tax credit against the transferee's subsequent years' income tax liability for an interval not to exceed three additional income tax years from the date of the transferee's acquisition and shall be applied first to the earliest income tax years possible. The transferee may transfer any unused portion of the acquired income tax credit to a secondary transferee in that three income tax year interval, but the secondary transferee may only offset its acquired income tax credit against its income tax imposed by article 22 of title 39 for the remainder of the three income tax year intervals from the date of the first transferee's acquisition.
(c) With respect to the income tax credit set forth in section 39-30-104, if the business seeks a waiver of the limitation specified in section 39-30-104 (2)(c) and as allowed in section 39-30-104 (2)(c)(II), and the commission approves such waiver, then the approved waiver of the limitation must be reflected in the precertification and applies to any transferee of the business' income tax credit allowed under section 39-30-104.
(d) The office shall establish notice and verification requirements for transferred income tax credits.
(e) The transferor and the transferee of the income tax credits shall jointly file a copy of the written transfer agreement with the office within thirty days after the transfer. Any filing of the written transfer agreement with the office perfects the transfer.
(f) The office shall develop a system to track the transfers of income tax credits and to certify the ownership of the income tax credits. A certification by the office of the ownership and the amount of income tax credits may be relied on by the department and the transferee as being accurate to the extent the data supplied by the business is accurate, and the office shall not adjust the amount of income tax credits as to the transferee. The office, the department, and any other state agency retain any remedies they may have against the business and any other taxpayer that misrepresents the value of the transferable income tax credit in a transfer. The office shall establish policies to permit verification of the ownership and amount of the income tax credits and shall post those policies on the office's website; except that the policies may not unduly restrict or hinder the transfer of the tax credits as allowed in this section.
(g) The office shall provide a report to the department specifying the ownership and transfers of income tax credits as allowed in this section. The report must be provided on a schedule to be determined by the department and the office.
(5) The commission and the office shall post on the office's website all nonconfidential information related to the precertification and approval of the treatment of the income tax credits as specified in this section. Nothing in this section may be construed to abrogate the confidentiality provisions set forth in section 39-21-113.
(6) The commission shall include information regarding any transferability authorized pursuant to this section, including the names of the businesses and the amounts transferred, in its annual report required to be presented to the general assembly pursuant to section 24-46-104 (2). The commission shall annually report the same information to the finance committees of the house of representatives and the senate, or such successor committees, notwithstanding the limitations in section 24-1-136 (11).
Source: L. 2017: Entire section added, (HB 17-1356), ch. 237, p. 969, � 1, effective May 24.
24-46-104.5. Statewide enterprise zone - existing enterprise zones - recommendations to the general assembly - repeal. (Repealed)
Source: L. 2009: Entire section added, (SB 09-234), ch. 332, p. 1760, � 1, effective June 1.
Editor's note: Subsection (4) provided for the repeal of this section, effective January 15, 2011. (See L. 2009, p. 1760.)
24-46-105. Colorado economic development fund - creation - report - repeal. (1) (a) There is hereby created a fund to be known as the Colorado economic development fund, which shall be administered by the commission and which consists of all money that may be available to the commission. The commission may transfer to the fund any general fund money appropriated to the commission, and the commission may expend such money without further appropriation.
(b) (I) On April 1, 2023, the state treasurer shall transfer five million dollars from the general fund to the fund. The commission shall allocate the money transferred pursuant to this subsection (1)(b)(I) to the Colorado office of economic development created pursuant to section 24-48.5-101 to use in connection with the federal Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, Pub.L. 117-167.
(II) In addition to the reporting requirements specified in section 24-48.5-101 (7) and notwithstanding the requirement in section 24-1-136 (11)(a)(I), on or before November 1, 2023, and on or before November 1 of each year thereafter through 2028, the Colorado office of economic development shall submit a report to the joint budget committee detailing how the Colorado office of economic development is expending the money transferred pursuant to subsection (1)(b)(I) of this section and detailing all projects that the Colorado office of economic development funded pursuant to the federal Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022, Pub.L. 117-167. The report must include the following information:
(A) A detailed list of the projects funded;
(B) The identity of all entities receiving funding and the geographic location of the entities receiving funding;
(C) The type of funding provided;
(D) Any anticipated economic benefits that the funding is expected to produce;
(E) Project timelines and anticipated completion dates;
(F) Any efforts to provide funding to rural or underserved areas; and
(G) The amount of any administrative costs related to administering the money transferred pursuant to subsection (1)(b)(I) of this section.
(III) This subsection (1)(b) is repealed, effective December 31, 2028.
(c) Repealed.
(2) (a) Money in the fund is subject to annual appropriation by the general assembly, except as provided in subsection (2.5) of this section, for the purposes of this part 1. Any money not expended or encumbered from any appropriation at the end of any fiscal year remains available for expenditure in the next fiscal year without further appropriation. Contributions of money, property, or services may be received from any state agency, county, municipality, federal agency, person, or corporation for use in carrying out the purposes of this part 1.
(b) (I) For state fiscal years commencing on or before July 1, 2024, and on or after July 1, 2026, the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the revolving account created in subsection (2.5) of this section.
(II) Notwithstanding subsection (2)(a) of this section, for the state fiscal year commencing on July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.
(III) (A) On June 30, 2025, the state treasurer shall transfer two million nine thousand ninety-two dollars from the fund to the general fund.
(B) This subsection (2)(b)(III) is repealed, effective July 1, 2026.
(2.5) (a) The moneys in the fund may be used by the commission to make grants or loans to both public and private persons and entities for use in carrying out the purposes of this part 1, subject to the provisions of paragraph (b) of this subsection (2.5) and subsections (3) and (4) of this section. In determining whether to make a grant or loan, the commission shall consider each of the following guidelines:
(I) The amount of the grant or loan;
(II) The number of jobs that are likely to be generated in the state as a direct or indirect result of the facility or operation the grant or loan would fund and ancillary facilities thereto;
(III) The quality and wage level of jobs created;
(IV) The extent to which a person or entity establishing or expanding a business operation or facility intends to employ Colorado residents at the new or expanded operation or facility the grant or loan would fund and ancillary facilities thereto;
(V) The extent to which a person or entity establishing or expanding a business facility or operation intends to contract with Colorado residents and Colorado-based companies for services and goods at the new or expanded operation or facility the grant or loan would fund and ancillary facilities thereto; and
(VI) The extent of the public benefits expected to result from the grant or loan.
(b) The commission may establish whatever terms and conditions it deems appropriate in making grants or loans pursuant to this section; except that the terms and conditions established by the commission shall meet or exceed the requirements established in subsection (4) of this section for a grant or loan awarded in part or in whole based on a private person's or entity's creation of full-time permanent new jobs in the state. The loan amount and any interest earned thereon shall be paid back to the commission, and such moneys shall be credited to a special account in the fund to be known as the revolving account. In accordance with subsection (2) of this section, interest earned on the investment or deposit of moneys in the economic development fund shall also be credited to the revolving account. All moneys in the revolving account may be used by the commission to make loans and grants as provided in this subsection (2.5) without further appropriation by the general assembly. The commission shall not approve grants or loans to state departments or agencies for specific projects which are typically considered by the general assembly in the general appropriation bill or in supplemental appropriation bills unless the joint budget committee approves the application for such grants or loans.
(3) The governor is not authorized to expend moneys from the fund unless such expenditure has been reviewed and recommended by the commission. The governor may reject any recommendations by the commission.
(4) (a) The commission shall award a grant or loan from moneys in the fund based in part or in whole on a private person's or entity's creation of full-time permanent new jobs in the state, only if the person or entity:
(I) Pays all of its new employees hired on or after August 3, 2007, a minimum wage as determined by the commission;
(II) Creates one or more new jobs and maintains the jobs for at least one year; and
(III) (A) Has not been adjudicated to be in violation of any federal, state, or local laws affecting the health, safety, or working conditions of employees for at least the prior five years, as certified by the person or entity; or
(B) Has been adjudicated to be in violation of a federal, state, or local law affecting the health, safety, or working conditions of employees within five years of applying for a grant or loan pursuant to this section, but can provide evidence to the commission that it has corrected the violation or has taken steps to correct the violation and can provide an estimated date by which the violation will be corrected.
(b) The provisions of this subsection (4) do not apply to the following:
(I) A nonprofit entity;
(II) An intern or trainee who is under the age of twenty-one and who is employed for a period of not longer than three months; or
(III) Grants awarded to new businesses under the rural jump-start zone act under section 39-30.5-105 (5).
(c) No person or entity shall pay an employee through a third party or treat an employee as a subcontractor or independent contractor to avoid the requirements of this subsection (4). The provisions of this paragraph (c) shall not apply to a person or entity that hires subcontractors or independent contractors in the normal course of the person's or entity's business.
(5) to (7) Repealed.
Source: L. 87: Entire article added, p. 1027, � 1, effective July 8. L. 88: (2.5) added, p. 952, � 1, effective June 1. L. 89: (2.5) amended, p. 340, � 4, effective June 7. L. 91: (2) and (2.5) amended, p. 824, � 2, effective March 29. L. 93: (2) amended, p. 469, � 2, effective April 21. L. 98: (2.5) amended, p. 349, � 2, effective July 1. L. 2001: (2.5)(b) amended, p. 1177, � 8, effective August 8. L. 2004: (1), (2), and IP(2.5)(a) amended, p. 43, � 9, effective March 4. L. 2007: IP(2.5)(a) and (2.5)(b) amended and (4) added, p. 509, � 2, effective August 3. L. 2017: (1) amended, (SB 17-280), ch. 217, p. 846, � 1, effective May 20. L. 2018: (5) added, (HB 18-1185), ch. 369, p. 2232, � 4, effective August 8. L. 2020, 1st Ex. Sess.: (6) added, (SB 20B-001), ch. 2, p. 19, � 9, effective December 7. L. 2021: (6)(a) amended, (SB 21-001), ch. 6, p. 41, � 3, effective January 21; (4)(b) amended and (7) added, (SB 21-229), ch. 236, p. 1243, � 6, effective June 15; (6)(b) amended, (SB 21-266), ch. 423, p. 2801, � 18, effective July 2. L. 2023: (1) amended, (SB 23-137), ch. 10, p. 30, � 1, effective March 6. L. 2024: (1)(c) added, (HB 24-1152), ch. 167, p. 831, � 4, effective May 13; (7)(a)(II) and (7)(b) amended, (HB 24-1001), ch. 278, p. 1844, � 1, effective May 29. L. 2025: (2) amended, (SB 25-317), ch. 385, p. 2152, � 26, effective June 3; (1)(a) amended, (SB 25-275), ch. 377, p. 2066, � 166, effective August 6.
Editor's note: (1) Subsection (5)(b) provided for the repeal of subsection (5), effective July 1, 2020. (See L. 2018, p. 2232.)
(2) Subsection (6)(b) provided for the repeal of subsection (6), effective December 31, 2022. (See L. 2021, p. 2801.)
(3) Subsection (1)(c)(II) provided for the repeal of subsection (1)(c), effective July 1, 2025. (See L. 2024, p. 831.)
(4) Subsection (7)(b) provided for the repeal of subsection (7), effective July 1, 2025. (See L. 2024, p. 1844.)
Cross references: (1) For the legislative declaration contained in the 2004 act amending subsections (1) and (2) and the introductory portion to subsection (2.5)(a), see section 1 of chapter 11, Session Laws of Colorado 2004.
(2) For the legislative declaration in HB 18-1185, see section 1 of chapter 369, Session Laws of Colorado 2018. For the legislative declaration in SB 20B-001, see section 1 of chapter 2, Session Laws of Colorado 2020, First Extraordinary Session. For the legislative declaration in SB 21-229, see section 1 of chapter 236, Session Laws of Colorado 2021. For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.