CO HB1132

Allows a 50% state income tax credit for persons earning income from creative business activities (design, creation, production, sale, exhibition, or performance of artistic, literary, musical, architectural, or other creative work) conducted within state-certified creative districts for tax years 2013-2017.

Reduces the state sales tax rate from 2.9% to 1.45% on all sales made within a state-certified creative district from January 1, 2013, through December 31, 2017; excludes districts certified on or after November 1, 2012, until the first day of the third month following certification.

Requires applicants to obtain a credit certificate from the creative industries division of the Colorado office of economic development by submitting proof of engaging in creative business activities at a permanent place of business within a certified creative district.

The income tax credit is non-refundable and cannot be carried forward to subsequent tax years; persons claiming the credit must submit the certificate with their income tax return to the department of revenue.

Both the income tax credit and reduced sales tax provisions expire on July 1, 2021, and the act takes effect 90 days after adjournment of the general assembly, or after voter approval if a referendum petition is filed.