Transfer of Unsold Insurance Premium Tax Credits

HOUSE BILL 26-1346
BY REPRESENTATIVE(S) Titone and Woodrow, Brown, McCluskie,
Bacon, Boesenecker, Duran, Garcia, Lindsay, Nguyen, Story;
also SENATOR(S) Kipp and Snyder, Bridges, Coleman.
CONCERNING ALLOWING THE DEPARTMENT OF THE TREASURY TO SELL
UNSOLD INSURANCE PREMIUM TAX CREDITS TO ENTITIES THAT ARE
NOT INSURANCE COMPANIES.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-36-402, amend (4)
as follows:
24-36-402. Definitions.
As used in this part 4, unless the context otherwise requires:
(4) (a) "Qualified taxpayer" means:
(I) An insurance company authorized to do business in Colorado
that has premium tax liability owing to the state and that purchases a tax
credit under this part 4; OR
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(II) AN ENTITY, OTHER THAN AN INSURANCE COMPANY, AUTHORIZED
TODOBUSINESSINCOLORADOTHATCONTRACTSWITHTHEDEPARTMENTTO
PURCHASE A TAX CREDIT THAT REMAINS UNSOLD FOLLOWING THE
APPLICATION PROCESS FOR INSURANCE COMPANIES CONDUCTED BY THE
DEPARTMENT PURSUANT TO SECTION 24-36-403.
(b) "Qualified taxpayer" also includes an insurance company that
receives or assumes a tax credit transferred in accordance with section
24-36-403 (7)(e) or 24-36-404 (5).
SECTION 2. In Colorado Revised Statutes, 24-36-404, amend (5)
as follows:
24-36-404. Use of insurance premium tax credits -carry over.
( 5) (a) If a qualified taxpayer holding an unclaimed tax credit is part
of a merger, acquisition, or line of business divestiture transaction, the tax
credit may be transferred to and assumed by the resulting entity if the
resulting entity is an insurance company authorized to do business in
Colorado that has premium tax liability.
(b) AN UNCLAIMED TAX CREDIT PURCHASED BY A QUALIFIED
TAXPAYER DESCRIBED IN SECTION 24-36-402 (4)(a)(Il) MAY BE
TRANSFERRED ONCE TO AN INSURANCE COMPANY AUTHORIZED TO DO
BUSINESS IN COLORADO THAT HAS PREMIUM TAX LIABILITY, WHICH
INSURANCE COMPANY SHALL NOT TRANSFER THE TAX CREDIT EXCEPT IN
ACCORDANCE WITH SUBSECTION (5)(a) OF THIS SECTION OR SECTION
24-36-403 (7)(e).
( c) The qualified taxpayer that originally purchased the credit and
the resulting entity OR INSURANCE COMPANY TRANSFEREE, AS APPLICABLE,
shall notify the department in writing of the transfer or assumption of the
credit in accordance with procedures adopted by the department. UPON
RECEIPT OF A NOTICE OF TRANSFER OR ASSUMPTION OF THE CREDIT, THE
DEPARTMENT SHALL ISSUE A NEW TAX CREDIT CERTIFICATE TO THE
TRANSFEROR AND THE TRANSFEREE. The transfer or assumption of the tax
credit does not affect the time schedule for claiming the tax credit as
provided in this section.
PAGE 2-HOUSE BILL 26-1346
SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
the support and maintenance of the departments of the state and state
institutions.
Juli~
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
Vanessa Reilly P<0b
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
James Rashad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED c,~ V'Y)<1hJ~v\ c)-IM).- I r-1- 2.:;;:>4 '\..\: 11: 000Y1--i
(bate and Time)
TE OF COLORADO
PAGE 3-HOUSE BILL 26-1346