HB 23-1275 CO

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Became Law

The act modifies the definition of "qualified local expenditure" for purposes of the performance-based incentive for film production in Colorado to include payment by a production company to a personal services corporation to pay the wages or salaries of an employee-owner of the personal service corporation. "Personal service corporation" and "employee-owner of a personal service corporation" have the same meaning as set forth in the internal revenue code. A payment by a production company to a personal service corporation is a qualified local expenditure only if the production company documents the payment in an information income tax return. Payments in excess of $1 million per calendar year per personal service corporation are excluded from the calculation of the performance-based incentive. The changes related to the definition of employee and withholding requirements made in the act apply to income tax years commencing on or after January 1, 2024. The act adds the new information income tax return requirement for production companies to state income tax law and specifies that a production company is generally not required to deduct and withhold state income tax from a payment to a personal service corporation for services. However, if the information return fails to provide a taxpayer identification number for the personal service corporation that can be validated through the taxpayer identification number matching program administered by the internal revenue service, or provides a taxpayer identification number issued for a nonresident alien, then such deduction, withholding, and payment of state income tax to the department of revenue is required. The act also eliminates the withholding exemption for a payment to a nonresident individual who performs services in connection with a film production for less than 120 days in a calendar year. APPROVED by Governor June 1, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

• William Lindstedt Democratic · primary
• Ron Weinberg Republican · primary
• Dylan Roberts Democratic · primary

1. Jun 1, 2023 Governor Signed · executive
2. May 17, 2023 Sent to the Governor · executive
3. May 17, 2023 Signed by the President of the Senate · upper
4. May 17, 2023 Signed by the Speaker of the House · lower
5. May 1, 2023 Senate Third Reading Passed - No Amendments · upper
6. Apr 28, 2023 Senate Second Reading Passed - No Amendments · upper
7. Apr 25, 2023 Senate Committee on Finance Refer Unamended to Senate Committee of the Whole · upper
8. Apr 17, 2023 Introduced In Senate - Assigned to Finance · upper
9. Apr 14, 2023 House Third Reading Passed - No Amendments · lower
10. Apr 13, 2023 House Second Reading Special Order - Passed with Amendments - Committee · lower
11. Apr 10, 2023 House Committee on Finance Refer Amended to House Committee of the Whole · lower
12. Mar 30, 2023 Introduced In House - Assigned to Finance · lower

The published texts of this bill as it moves through the legislature. Each links to the official document on the state legislature site. Data from OpenStates.

• Signed Act (06/01/2023) · PDF
• Final Act (05/17/2023) · PDF
• Rerevised (05/01/2023) · PDF
• Revised (04/28/2023) · PDF
• Reengrossed (04/14/2023) · PDF
• Engrossed (04/13/2023) · PDF
• Introduced (03/30/2023) · PDF
• PA1 (04/11/2023) · PDF
• Committee Amendment · PDF