HB 22-1149

HB 22-1149, known as the Advanced Industry Investment Tax Credit extension, increases tax incentives for investments in rural or economically distressed areas of Colorado. It extends the existing tax credit program by four years and boosts the maximum annual credit from $750,000 to $4 million, with individual credits rising from $50,000 to $100,000. The bill also allows business owners more flexibility in how they can distribute these tax credits among themselves. Additionally, it allocates $90,000 for economic development programs focused on advanced industries. Since the governor has signed this bill into law, it is now active and providing increased incentives to attract investment in less prosperous areas of Colorado.

Official Summary

The act extends the advanced industry investment tax credit (credit) for an additional 4 years, increases the aggregate annual maximum amount of credits that may be allowed from $750,000 to $4 million, increases the credit from 30% to 35% of the amount of a qualified investment in rural or economically distressed areas, and increases the total amount of the credit for each qualified investment from $50,000 to $100,000. Current law requires that individuals who are co-owners of a business claim only their pro rata share of the credit. The act allows the credit to be allocated among partners, shareholders, members, or other constituent qualified investors in any manner agreed to by such partners, shareholders, members, or other constituent qualified investors. The act appropriates $90,000 to the office of the governor for use by economic development programs for advanced industries. (Note: This summary applies to this bill as enacted.)

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