SB 17-299

Senate Bill 17-299, which has been signed into law, allows companies that invest a significant amount of money (at least $50 million) in building or expanding enterprise data centers in Colorado over five consecutive years to negotiate with the state’s economic development office. This negotiation can lead to a special agreement where the company pays income tax based on a different method that supports the state's economy more effectively. The agreement includes details about the investment and how it benefits Colorado, along with a plan for transitioning to this new tax arrangement. This bill primarily affects large tech companies planning substantial investments in data centers within the state.

Official Summary

The bill allows a taxpayer that makes a capital investment in an enterprise data center operation in the state of a specified dollar amount within a consecutive 5-year period to enter into a memorandum of understanding with the office of economic development to transition to a different apportionment method for apportioning the income of the taxpayer. The memorandum of understanding must describe the amount of the capital investment and any other investments or actions on the part of the taxpayer that will support the economic development of the state. The bill specifies that a transition schedule must be included in the memorandum of understanding. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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