HB 23-1081 CO

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Became Law

Under the law, a qualified business is allowed a tax credit in the amount of 50% of the costs to convert the qualified business to a form of employee ownership. The tax credit has been capped at $25,000 for converting a qualified business to a worker-owned cooperative or employee ownership trust and $100,000 for converting a qualified business to an employee stock ownership plan. The act: Increases the caps for converting a qualified business to a worker-owned cooperative or employee ownership trust from $25,000 to $40,000, and for converting a qualified business to an employee stock ownership plan from $100,000 to $150,000; Expands the tax credit to include 50% of the costs of a qualified employee-owned business expanding its employee ownership by at least 20%, not to exceed $25,000; Expands the tax credit to include 50% of the costs of a qualified business converting to or expanding an alternate equity structure, not to exceed $25,000. An alternate equity structure is a mechanism under which an employer grants to employees a form of employee ownership, including an employee stock ownership plan, LLC membership, phantom stock, profit interest, restricted stock, stock appreciation right, stock option, or synthetic equity. Establishes certain minimum requirements for an alternate equity structure and requires the Colorado office of economic development in the office of the governor to develop guidelines for the types of employee ownership grants that qualify as an alternate equity structure; and Specifies that a qualified business or qualified employee-owned business may apply for and claim only one credit for the conversion or expansion costs per tax year. APPROVED by Governor May 23, 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
• Rick Taggart Republican · primary
• Nick Hinrichsen Democratic · primary

1. May 23, 2023 Governor Signed · executive
2. May 12, 2023 Sent to the Governor · executive
3. May 12, 2023 Signed by the President of the Senate · upper
4. May 11, 2023 Signed by the Speaker of the House · lower
5. May 5, 2023 Senate Third Reading Passed - No Amendments · upper
6. May 4, 2023 Senate Second Reading Special Order - Passed - No Amendments · upper
7. May 4, 2023 Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole · upper
8. May 2, 2023 Senate Committee on Finance Refer Unamended to Appropriations · upper
9. Apr 24, 2023 Introduced In Senate - Assigned to Finance · upper
10. Apr 21, 2023 House Third Reading Passed - No Amendments · lower
11. Apr 20, 2023 House Third Reading Laid Over Daily - No Amendments · lower
12. Apr 19, 2023 House Second Reading Special Order - Passed with Amendments - Committee, Floor · lower
13. Apr 18, 2023 House Committee on Appropriations Refer Unamended to House Committee of the Whole · lower
14. Feb 2, 2023 House Committee on Finance Refer Amended to Appropriations · lower
15. Jan 19, 2023 Introduced In House - Assigned to Finance · lower