Read the full stored bill text
HOUSE BILL 26-1362
BY REPRESENTATIVE(S) Sirota and Taggart, Brown, Ricks;
also SENATOR(S) Bridges and Kirkmeyer, Amabile.
CONCERNING THE REPEAL OF THE DECARBONIZA TION TAX CREDITS
ADMINISTRATION CASH FUND.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 24-38.5-120, amend
(3); and repeal (l)(c), (2), (3.5), (4), and (5) as follows:
24-38.5-120. Decarbonization tax credits administration cash
fund -definitions -repeal.
(1) As used in this section, unless the context otherwise requires:
(c) "Fund" means the deeaibonization _tax credits administration
cash fund et eated in subsection (2) of this section.
(2) The deeaibonization tax credits administration cash fund is
hereby et eated in the state treasury. The fund consists of money er edited to
the fund pmsuant to section 39-29-108 (2)(e)(I) and any other money that
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.
the general assembly may appropriate or tr ans fer to the fund.
(3) (a) Subjectto annual appropriation by the general assembly, For
state fiscal years 2023-24 2027-2028 through 2034-35, THE GENERAL
ASSEMBL y MA y APPROPRIATE MONEY TO the office and the department may
expend money ft om the fund for THE direct and indirect costs associated
with the implementation and administration of the decarbonization tax
credits.
(b) (I) Money in the fund may also be used to repay administrative
costs to the respective cash funds. The state treasmer shall transfer money
frnm the fund in the amount attributable to administ1 ati v e costs to the
r especti'\I e cash funds so that all administ1 ativ e costs ate repaid to the
respective cash funds on 01 before June 29, 2024.
(II) As used in this subsection (3)(b), unless the context other wise
reqmres.
(A) "Administrative costs" means the amount of nroney expended
ft om the r cspectiv e cash funds by the office and the department for the
administration and implementation of certain income tax credits, as
pt0'\lided for in sections 24-38.5-116 (6)(b)(II), 24-38.5-118 (7)(d),
24-3'8.5-506 (2)(b), artd of the temporary specific ownership tax rate
reduction for electr ie rnediunr-dttty and hea ry-duty tr ttcks that are part of a
fleet as pro'\lided for in section 25-7-1405 (2)(b).
(D) "Respective cash funds" means the indust1 ial and manufoctu1 ing
opet ations clean air gr ant pt ogr am cash fund ct eated in sectiort 24-3 8. 5-116
(6), the geothermal energy grant fund created in section 24-38.5-118 (7), the
community access to electric bicycles cash fund created in section
24-38.5-506, and the electrifying school buses grant program cash fund
created in section 25-7-1405.
(3.5) (a) On January 1, 2026, the state treasurer shall transfer two
million five hundt ed thousand dollars ft om the fund to the ene1 gy and
carbon management cash fund created in section 34-60-122 (5).
(b) This subsection (3.5) is repealed, effective July 1, 2026.
( 4) The state tr easm er shall tr ans fer all unexpended and
PAGE 2-HOUSE BILL 26-1362
uneneumbe1ed money in the fund on June 30, 2024, June 30, 2025, and
June 30, 2026, to the general fund, exeept that the balanee of money
1 emaining in the fund not ineluding expended and eneumbe1 ed money shall
not be less than three hundred thousand dollars.
(5) Notwithstanding subseetion (4) of this seetion, on July 1, 2036,
the state t1 easm e1 shall transfer all money in the fund to the general fund.
SECTION 2. In Colorado Revised Statutes, 24-38.5-116, amend
( 6)(b )(II) as follows:
24-38.5-116. Industrial and manufacturing operations clean air
grant program -creation - eligibility - fund created - gifts, grants, or
donations -transfer -legislative declaration -definitions - reporting -
repeal.
(6) Fund.
(b) (II) For state fiscal years 2023-24 and 2024-25, the office and,
subject to annual appropriation, the department of revenue may expend
money from the fund for the administration and implementation of the
industrial clean energy tax credit created in section 39-22-551 and the tax
credit for sustainable aviation fuel production facility created in section
39-22-556. The office shall keep an accounting of all money expended from
the fund pursuant to this subsection (6)(b )(II). for putposes of ealeulating
the repayment of the administrative eosts requited by seetion 24-38.5-120
ffl
SECTION 3. In Colorado Revised Statutes, 24-38.5-118, amend
(7)( d) as follows:
24-38.5-118. Geothermal energy grant program - creation -
procedures -fund -report-definitions -legislative declaration -repeal.
(7) Fund.
(d) For state fiscal years 2023-24 and 2024-25, the office and,
subject to annual appropriation, the department of revenue may expend
money in the fund for the administration and implementation of the tax
credit for expenditures made in connection with a geothermal energy project
PAGE 3-HOUSE BILL 26-1362
created in section 39-22-552, the geothermal electricity generation
production tax credit created in section 39-22-553, and the heat pump
technology and thermal energy network tax credit created in section
39-22-554. The office shall keep an accounting of all money expended from
the fund pursuant to this subsection (7)( d). fot ptttposes of calculating the
repayment of the administrative costs requited by section 24-38.5-120 (3)
SECTION 4. In Colorado Revised Statutes, 24-38.5-506, amend
(2)(b) as follows:
24-38.5-506. Community access to electric bicycles cash fund -
creation -gifts, grants, or donations -transfer -repeal.
(2) (b) For state fiscal years 2023-24 and 2024-25, the office and,
subject to annual appropriation, the department of revenue may expend
money in the fund for the administration and implementation of the electric
bicycle tax credit created in section 39-22-555. The office shall keep an
accounting of all money expended from the fund pursuant to this subsection
(2)(b ). fur purposes of calculating the repayment of the adnrinistrative costs
tequited by section 24-38.5-120 (3)
SECTION 5. In Colorado Revised Statutes, 25-7-1405, amend
(2)(b) as follows:
25-7-1405. Electrifying school buses grant program cash fund
-creation -gifts, grants, and donations -transfer - repeal.
(2) (b) For state fiscal years 2023-24 and 2024-25, and subject to
annual appropriation, the Colorado energy office, created in section
24-38.5-101, and the department of revenue may expend money from the
fund for the administration and implementation of the innovative motor
vehicles and innovative trucks tax credits created in sections 39-22-516.7
and 39-22-516.8 and for the specific ownership tax rate reduction for
electric medium-duty and heavy-duty trucks that are part of a fleet as set
forth in section 42-3-107 (l)(a)(IV). The office shall keep an accounting of
all money expended from the fund pursuant to this subsection (2)(b ). for
pmposes of calculating the tepayment of the administrative costs tequited
by section 24-38.5-120 (3)
SECTION 6. In Colorado Revised Statutes, 34-60-122, repeal
PAGE 4-HOUSE BILL 26-1362
(5)(f) as follows:
34-60-122. Expenses - energy and carbon management cash
fund created -repeal.
(5) (f) (I) On June 30, 2025, the state t1easme1 shall transfer two
million five hundred thousand dollars fi:om the energy and carbon
management cash fund to the deea1bonization tax credits administration
eash fund created in section 24-38.5-120 (2).
(11) This subsection (5)(f) is repealed, effective July 1, 2026.
SECTION 7. In Colorado Revised Statutes, 39-29-108, amend
(2)(b ); and repeal (2)( e) as follows:
39-29-108. Allocation of severance tax revenues - definitions -
repeal.
(2) (b) Except as set forth in subsections (2)(d) and (2)(e)
SUBSECTION (2)(d) of this section, of the total gross receipts realized from
the severance taxes imposed on minerals and mineral fuels under the
provisions of this article after June 30, 2017, fifty percent shall be credited
to the state severance tax trust fund created by section 39-29-109, and fifty
percent shall be credited to the local government severance tax fund created
by section 39-29-110.
( e) (I) Fm the state fiscal y eats 2023-24 tht ough 2026-27, the state
ti easm et shall et edit the dise1 cte ine1 eased amount of severance tax fot oil
and gas prnduction that is attributable to the reduction of the credit against
tax pmsuant to section 39-29-105 (2)(b)(II) to the decatbonization tax
credits administration cash fund created in section 24-38.5-120 (2), except
that, fot state fiscal years 2024-25 and 2025-26, money credited to the
decat bonization tax ct edits administ1 ation cash fund shall not exceed the net
tevenue fi:om the oil and gas severance tax collection.
(II) Repealed.
(111) As used in this subsection (2)(e), unless the context otherwise
1equues.
PAGE 5-HOUSE BILL 26-1362
(A) Repealed.
(B) "Discrete inereased amount of sevetanee tax fut oil and gas
prnduetion" means the amount of tax eolleeted that is attributable to a
twelve and one-half pet eent t eduetion in the se vet anee tax et edit fut oil and
gas prnduetion set furth in seetion 39-29-105 (2)(b)(II) for tax years
beginning on or after January 1, 2024, but before January 1, 2026.
(C) Repealed.
(IV) This subseetion (2)(e) is t epealed, effeeti'1 e Deeembet 31,
2-fB6:
SECTION 8. Effective date. This act takes effect only if House
Bill 26-1405 becomes law, in which case this act takes effect on July 1,
2027.
SECTION 9. 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
PAGE 6-HOUSE BILL 26-1362
the support and maintenance of the departments of the state and state
institutions.
Jul~
SPEAKER OF THE HOUSE
OF REPRESENTATIVES
v~~
Vanessa Reilly
CHIEF CLERK OF THE HOUSE
OF REPRESENTATIVES
es R11Shad Coleman, Sr.
PRESIDENT OF
THE SENATE
Esther van Mourik
SECRETARY OF
THE SENATE
APPROVED o~ \h~ V'Yl~ 2~ 2.o-ua M IV~
( ate an Time)
ST A TE Of COLORADO
PAGE 7-HOUSE BILL 26-1362