HB 25-1157 CO

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Became Law

The act extends the availability of the advanced industry investment tax credit (credit), which can be claimed by a qualified investor that makes a qualified investment in a qualified small business that is in an advanced industry, from December 31, 2026, through December 31, 2031. The act expands the definition of "qualified investment" by eliminating prohibitions against a qualified investor having more than 30% of the voting power in a qualified small business before the investor makes a qualified investment in the qualified small business and more than 49% of the voting power in a qualified small business after making a qualified investment in the qualified small business. The act changes the definition of "qualified investor" by clarifying that an entity subject to income tax may qualify as an investor; except that a C corporation, including any limited liability or other legal entity treated as a C corporation for federal and state income tax purposes, is not a qualified investor. A qualified investor may include a partner, shareholder, or beneficiary that is allocated a credit, but does not include: A person that had control of a qualified small business for 6 months preceding or following the date of the investment in the qualified small business; A founder, employee, or contractor or a spouse of a founder, employee, or contractor of a qualified small business; A person that has invested more than $50,000 in the qualified small business or owns more than 10% of the qualified small business on a fully diluted basis. The act authorizes the Colorado office of economic development (office), which administers the credit, to certify a small business as a qualified small business through October 1, 2031. A small business certified as a qualified small business must report to the office as requested to confirm the certified small business's status as a qualified small business. The office may require a qualified small business to provide information to confirm that a qualified investment has been made in the qualified small business, the intended use of the qualified investment, and the expected number of new employees that will be hired by the qualified small business as a result of the qualified investment. A qualified small business that receives a qualified investment is required to report data relevant to the impact of the credit and development of the qualified small business annually to the office for 5 years following a qualified investment. The office may assess a penalty against a qualified small business that does not meet this reporting requirement. The office may issue $4 million in credits per calendar year for the years through the 2026 calendar year for which the credit is currently available. The act decreases the cap to $2.5 million per calendar year beginning with the 2027 calendar year through the 2031 calendar year. If the qualified investor receiving a credit is a trust, the qualified investor may allocate the credit between the trust and its beneficiaries in any manner determined by the trust. The office shall issue a credit certificate to a trust beneficiary and a trust beneficiary may claim the amount indicated on the credit certificate. (Note: This summary applies to this bill as enacted.)

• Brianna Titone Democratic · primary
• William Lindstedt Democratic · primary
• Marc Snyder Democratic · primary
• Mark Baisley Republican · primary

1. May 19, 2025 Governor Signed · executive
2. May 7, 2025 Sent to the Governor · executive
3. May 7, 2025 Signed by the President of the Senate · upper
4. May 7, 2025 Signed by the Speaker of the House · lower
5. May 5, 2025 Senate Third Reading Passed - No Amendments · upper
6. May 2, 2025 Senate Second Reading Special Order - Passed - No Amendments · upper
7. May 2, 2025 Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole · upper
8. May 1, 2025 Senate Committee on Finance Refer Unamended to Appropriations · upper
9. Apr 30, 2025 Introduced In Senate - Assigned to Finance · upper
10. Apr 30, 2025 House Third Reading Passed - No Amendments · lower
11. Apr 29, 2025 House Second Reading Special Order - Passed with Amendments - Floor · lower
12. Apr 29, 2025 House Committee on Appropriations Refer Unamended to House Committee of the Whole · lower
13. Feb 6, 2025 House Committee on Finance Refer Unamended to Appropriations · lower
14. Jan 29, 2025 Introduced In House - Assigned to Finance · lower