Business Briefs – new in 2014

In May, Governor Hickenlooper signed into law House Bill 14-1014. HB 14-1014 expands the number of companies that are eligible for job-growth tax incentive credits, which the Denver Business Journal remarks is “widely considered the top tool the state has to attract relocating or expanding businesses.”

HB 14-1014 led to amendments of C.R.S. § 39-22-531, the statute relating to job growth incentive tax credits. The amendments lower from 110 percent to 100 percent the amount of the average county salary that companies must pay to be eligible for the tax credits, extend from five to eight years the length of time businesses can claim the breaks, and require only that the income tax credit be a major reason that the company chose to grow in Colorado, not the sole reason.

House Bill 14-1001 went into effect in May of 2014. House Bill 14-1001 was created in response to the recent natural disasters that have occurred throughout the state. Beginning in the 2013 income tax year, HB 1001 establishes an income tax credit for a taxpayer that owns real or business personal property that was destroyed by a natural cause as determined by the county assessor of the county in which the property is located. The credit amount is an amount equal to the taxpayer’s property tax liability for the destroyed property in the property tax year in which the natural cause occurred, however the credit may only be taken in the income tax year the property was destroyed. Among other things, HB 1001 requires a taxpayer to request that the county assessor in the county in which the destroyed property is located complete and sign a certification form for the destroyed property, prior to claiming any income tax credit. Additional requirements can be found by reviewing C.R.S. § 39-1-123.

Similarly, House Bill 14-1279 involves income tax credits for business personal property.

HB 14-1279 creates a state income tax credit for businesses for the amount of business personal property tax paid in Colorado. The credit is equal to the amount of business personal property tax paid, less the value of the tax benefit received by the taxpayer from deducting these taxes from his/her federal taxable income. If you believe this Bill may be beneficial to you or your business, please review C.R.S. § 39-22-537 for additional information.