Colorado § 39-22-532 - Advanced industry investment tax credit - definitions.

§ 39-22-532. Advanced industry investment tax credit - definitions.

(1) As used in this section, unless the context otherwise requires:

(a) "Advanced industry investment tax credit" or "tax credit" means the credit against income tax created in this section.

(b) "Qualified investment" shall have the same meaning as set forth in section 24-48.5-112 (1)(e), C.R.S.

(c) "Qualified investor" shall have the same meaning as set forth in section 24-48.5-112 (1)(f), C.R.S.

(d) "Qualified small business" shall have the same meaning as set forth in section 24-48.5-112 (1)(g), C.R.S.

(e) "Tax credit certificate" means a tax credit certificate issued to a qualified investor pursuant to section 24-48.5-112 (3), C.R.S.

(2) There shall be allowed an advanced industry investment tax credit against the income taxes imposed pursuant to this article for a qualified investment in a qualified small business. The amount of the credit is the amount determined and authorized by the Colorado office of economic development pursuant to section 24-48.5-112, C.R.S., and set forth in a tax credit certificate.

(3) To claim the advanced industry investment tax credit, the taxpayer shall attach to the taxpayer's tax return a copy of the tax credit certificate. No tax credit is allowed under this section unless the taxpayer provides the copy of the tax credit certificate.

(4) If the allowable advanced industry investment tax credit exceeds the amount of income tax due on the income of the taxpayer for the tax year during which the qualified investment was made, the amount of the tax credit not used as an offset against income taxes in such income tax year is not allowed as a refund. The taxpayer may carry forward and apply the unused credit against the income tax due in each of the five succeeding income tax years, but the taxpayer shall apply the credit against the income tax due for the earliest of the income tax years possible. Any amount of the tax credit that is not used after this period is not refundable.

(5) Repealed.

(6) If the department of revenue determines that there has been a misrepresentation on an application submitted to the Colorado office of economic development pursuant to section 24-48.5-112, C.R.S., the department of revenue shall deny the advanced industry investment tax credit if the misrepresentation relates to whether the applicant was a qualified investor or made a qualified investment. If the misrepresentation relates to whether the investment was made to a qualified small business, the department of revenue shall deny the tax credit only if the applicant knew or should have known at any time before the certification that the representation was false.

(7) If a qualified investor receiving a credit allowed in this section is a partnership or S corporation, the qualified investor may allocate the credit among its partners or shareholders in any manner agreed to by such partners or shareholders. If the qualified investor receiving the credit allowed by this section is a trust, the qualified investor may allocate the credit between the trust and its beneficiaries in any manner determined by the trust. The qualified investor shall certify to the Colorado office of economic development the amount of the credit allocated to each partner, shareholder, or beneficiary and the office shall issue credit certificates in the appropriate amounts to each partner, shareholder, or beneficiary. Each partner, shareholder, or beneficiary shall be allowed to claim such amount subject to any restrictions set forth in this section and section 24-48.5-112.

Source: L. 2009: Entire section added, (HB 09-1105), ch. 378, p. 2059, § 4, effective September 1. L. 2011: (4) amended, (HB 11-1045), ch. 209, p. 907, § 3, effective May 23. L. 2014: (1)(a), (2) to (4), and (6) amended, (HB 14-1012), ch. 274, p. 1102, § 3, effective May 29. L. 2022: (5) repealed and (7) added, (HB 22-1149), ch. 358, p. 2571, § 2, effective August 10. L. 2025: (7) amended, (HB 25-1157), ch. 213, p. 966, § 2, effective August 6.

Cross references: (1) For the legislative declaration in the 2011 act amending subsection (4), see section 1 of chapter 209, Session Laws of Colorado 2011.

(2) For the legislative declaration in HB 14-1012, see section 1 of chapter 274, Session Laws of Colorado 2014.