Bill > HB1157

This bill reauthorizes and extends the Advanced Industries Investment Tax Credit program in Colorado, making several key changes to the existing law. The bill extends the program's sunset date from January 1, 2027, to January 1, 2032, and adjusts the annual cap on tax credits from $4 million to $2.5 million for calendar years 2027-2031. It modifies the definition of a "qualified investor" to more precisely define who can claim the tax credit, excluding C corporations, founders, employees, and contractors of the qualified small business. The bill clarifies that qualified investments must be monetary and can include various types of equity securities. It also requires certified small businesses to report data about the impact of the tax credit for five years following an initial investment. The total tax credit for each qualified investment remains capped at $100,000, and investors can only claim one tax credit per qualified small business. Additionally, the bill allows more flexibility in how tax credits can be allocated among partners, shareholders, or beneficiaries of pass-through entities like partnerships, S corporations, and trusts.

Budget and Finance

https://leg.colorado.gov/bills/hb25-1157