HB22-1149 Summary

• Extends the Advanced Industry Investment Tax Credit program from January 1, 2023 to January 1, 2027, allowing qualified investments in Colorado small businesses operating in advanced industries, including quantum fields.

• Increases the annual tax credit cap from $750,000 (2015-2022) to $4 million for each calendar year from 2023 through 2026, and raises the per-investment credit limit from $50,000 to $100,000.

• Increases the tax credit percentage from 25% to 35% for qualified investments in businesses located in rural areas or economically distressed areas of the state.

• Allows pass-through entities (partnerships, LLCs, S-corporations) to allocate tax credits among their partners, shareholders, or members in any agreed manner, replacing prior pro-rata share limitations.

• Adds a tax preference performance statement requiring legislative oversight and mandates additional reporting to the General Assembly on November 1, 2027, and appropriates $90,000 to the Governor's office for implementation.