HB23-1289 Summary

• Creates an 18% refundable income tax credit for purchase or lease of electric-powered aviation ground support equipment (ground power units, baggage carts, tugs, air stairs, belt loaders, de-icing equipment) that replaces gas or diesel models, available for tax years 2024-2032 with an annual cap of $250,000 distributed on a first-come, first-served basis.

• Establishes a 30% refundable income tax credit for qualified investors making investments of at least $10,000 in Colorado businesses that research, develop, or produce alternative aviation fuels or alternative aircraft powerplants (including electric propulsion, hydrogen, and sustainable aviation fuel), available for tax years 2024-2032 with annual caps ranging from $750,000 in 2024 to $4.75 million in 2028-2032.

• Allows aviation businesses, airports, and fixed base operators to claim the equipment credit; permits qualified investors (including the businesses themselves) to claim the investment credit with department oversight and precertification of eligible businesses.

• Makes both credits refundable (excess credits not carried forward but refunded to taxpayers) and requires only one credit per individual piece of equipment; credits allocated on first-come, first-served basis with department tracking.

• Repeals the equipment credit on December 31, 2043 and the investment credit on December 31, 2036; takes effect 90 days after legislative adjournment unless subject to referendum petition.