As used in this part 4, unless the context otherwise requires:
(1) Biotechnology means:
(a) The application of technologies to produce or modify products, to develop microorganisms for specific uses, to identify targets for small pharmaceutical development, or to transform biological systems into useful processes or products; and
(b) The potential endpoints of the resulting products, processes, microorganisms, or targets are for improving human or animal health-care outcomes.
(2) Clean technology means:
(a) Renewable energy generation technologies, including but not limited to solar, wind, biofuel, and geothermal energy generation technologies;
(b) Products and technologies used in renewable energy development and generation on a commercial scale; or
(c) Products and technologies that enhance the efficient extraction, collection, storage, distribution, production, or consumption of energy from any type of source.
(d) Repealed.
(3) Medical technology means a therapeutic or diagnostic machine or tool used to improve human or animal health.
(4) Qualified biotechnology taxpayer means a C corporation, as defined in section 39-22-103 (2.5), a partnership, as defined in section 39-22-103 (5.6), a limited liability company that is not a C corporation, an S corporation, as defined in section 39-22-103 (10.5), or a sole proprietorship that purchases, stores, uses, or consumes tangible personal property to be used in Colorado directly and predominately in research and development of biotechnology.
(5) Qualified medical technology or clean technology taxpayer means a taxpayer that:
(a) Is a C corporation, as defined in section 39-22-103 (2.5); a partnership, as defined in section 39-22-103 (5.6); a limited liability company that is not a C corporation; an S corporation, as defined in section 39-22-103 (10.5); or a sole proprietorship;
(b) Employs thirty-five or fewer full-time employees in Colorado;
(c) Is headquartered in Colorado or has more than fifty percent of its employees in Colorado; and
(d) Conducts research and development of medical technology or clean technology.
(6) Research and development means qualified research as defined by 26 U.S.C. sec. 41 (d)(1).
(7) Tangible personal property includes capital equipment, instruments, apparatus, and supplies used in laboratories, including, but not limited to, microscopes, machines, glassware, chemical reagents, computers, computer software, and technical books and manuals.
Source: L. 99: Entire part added, p. 609, � 2, effective May 17. L. 2009: Entire part amended, (HB 09-1035), ch. 371, p. 2011, � 1, effective August 5. L. 2015: (2)(b), (2)(c), (3), and (5) amended and (2)(d) repealed, (HB 15-1180), ch. 227, p. 845, � 1, effective August 5.
39-26-402. Refund of state sales and use tax for biotechnology - application requirements and procedures. (1) For the calendar year commencing January 1, 1999, and for each calendar year thereafter prior to January 1, 2027, each qualified biotechnology taxpayer shall be allowed to claim a refund of all state sales and use tax paid by the qualified biotechnology taxpayer, pursuant to parts 1 and 2 of this article 26, on the sale, storage, use, or consumption of tangible personal property to be used in Colorado directly and predominately in research and development of biotechnology during that calendar year.
(2) To claim the refund allowed by subsection (1) of this section, a qualified biotechnology taxpayer shall submit a refund application to the department of revenue on a form provided by the department. Such application shall be submitted no earlier than January 1 and no later than April 1 of the calendar year following the calendar year for which the refund is claimed. The application shall be accompanied by proof of payment of state sales and use taxes paid by the qualified biotechnology taxpayer in the immediately preceding calendar year. The application shall also include any additional information that the department of revenue may require by rule, which may include, without limitation, a detailed list of all expenditures that support a claim for a refund, the name and addresses of an individual who maintains records of such expenditures, and a statement that the qualified biotechnology taxpayer agrees to furnish records of all such expenditures to the department of revenue upon request. No refund shall be allowed if the qualified biotechnology taxpayer has not complied with this subsection (2).
Source: L. 99: Entire part added, p. 610, � 2, effective May 17. L. 2000: (2) amended, p. 1869, � 99, effective August 2. L. 2009: Entire part amended, (HB 09-1035), ch. 371, p. 2012, � 1, effective August 5. L. 2024: (1) amended, (HB 24-1036), ch. 373, p. 2530, � 19, effective August 7. L. 2025: (1) amended, (SB 25-026), ch. 362, p. 1966, � 10, effective August 6.
Cross references: For the legislative declaration in HB 24-1036, see section 1 of chapter 373, Session Laws of Colorado 2024.
39-26-403. Refund of state sales and use tax for medical technology and clean technology - application requirements and procedures - legislative declaration - repeal. (Repealed)
Source: L. 2009: Entire part and (3)(b) amended, (HB 09-1035), ch. 371, pp. 2013, 2014, �� 1, 2, effective August 5. L. 2015: Entire section RC&RE, (HB 15-1180), ch. 227, p. 846, � 2, effective August 5.
Editor's note: Subsection (4) provided for the repeal of this section, effective January 1, 2019. (See L. 2015, p. 846.)