C.R.S. § 39-22-5504 — Recapture

(1) As of the last day of any taxable year during the compliance period, if the amount of the qualified basis of a qualified development with respect to a taxpayer is less than the amount of the qualified basis as of the last day of the prior taxable year, then the amount of the taxpayer's state income tax liability for that taxable year must be increased by the credit recapture amount. (2) For purposes of subsection (1) of this section, the credit recapture amount is an amount equal to the aggregate decrease in the credit allowed to the taxpayer pursuant to this part 55 for all prior taxable years that would have resulted if the accelerated portion of the credit allowable by reason of this part 55 were not allowed for all prior taxable years with respect to the reduced amount of qualified basis described in subsection (1) of this section. (3) For purposes of subsection (2) of this section, the accelerated portion of the credit for the prior taxable years with respect to any amount of qualified basis is the difference between: (a) The aggregate amount of the credit allowed pursuant to this part 55, notwithstanding this subsection (3), for the years with respect to such qualified basis; and (b) The aggregate amount of the credit that would be allowed pursuant to this part 55 for such years with respect to the qualified basis if the aggregate credit that would have been allowable, but for this subsection (3), for the entire compliance period were allowable ratably over fifteen years. (4) In the event that recapture of any credit is required in any tax year, the return submitted for that tax year to the department shall include the proportion of credit required to be recaptured, the identity of each taxpayer subject to the recapture, and the amount of credit previously allocated to such taxpayer. (5) Notwithstanding subsection (1) of this section, credits issued pursuant to this part 55 must not be recaptured if a qualified development, after the initial award of credits, ceases being located in a transit-oriented center within a certified transit-oriented community or in a neighborhood center within a metropolitan planning organization. Source: L. 2024: Entire part added, (HB 24-1434), ch. 291, p. 1982, § 2, effective May 30.