SB17-299 Summary

• Creates new tax apportionment method for taxpayers operating enterprise data centers in Colorado, treating service revenues as Colorado sales based on customer billing address in the state.

• Requires minimum capital investment of $150 million in enterprise data center operations within any consecutive 5-year period commencing January 1, 2013 or later.

• Taxpayer must enter memorandum of understanding with Colorado Office of Economic Development specifying investment amount, timeline, minimum new employees to be hired, and other economic development commitments.

• Apportionment transitions incrementally over up to 8 years once capital investment is fully funded and memorandum is signed, with Office providing written certification to taxpayer and Department of Revenue.

• Taxpayer loses eligibility for special apportionment method if capital investment is not fully funded or memorandum obligations are not fulfilled; reverts to standard apportionment rules.