HB 14-1012 Summary

• Creates an income tax credit of 25% (or 30% in rural/economically distressed areas) for qualified investors who make investments of at least $10,000 in Colorado-based advanced industry businesses.

• Establishes eligibility requirements for qualified small businesses: must be in advanced industries, have headquarters or 50% of employees in Colorado, have received less than $10 million from third-party investors, have annual revenues under $5 million, and have been operating less than five years.

• Limits total tax credits to $375,000 for 2014 and $750,000 annually for 2015-2017, with individual credits capped at $50,000 per investment.

• Requires investors to apply within 90 days of making an investment and authorizes the Colorado Office of Economic Development to review applications and issue tax credit certificates by January 1, 2018.

• Allows unused tax credits to be carried forward and applied against income taxes for up to five succeeding years, with no refund allowed for unused amounts after the five-year period.