C.R.S. § 39-22-629 — Advance payments of income tax credits - definitions

(1) As used in this section, unless the context otherwise requires: (a) Applicable credit means the credits allowed in sections 39-22-516.7, 39-22-516.8, and 39-22-555. (b) Department means the department of revenue. (c) Taxpayer means the person authorized to elect advanced payments of an applicable credit. (2) A taxpayer may elect to receive advance payments for applicable credits as follows: (a) The taxpayer shall annually register with the department for advance payments of one or more applicable credits no later than thirty days before the due date of the first quarterly report filed by the taxpayer under subsection (2)(b) of this section, in a form and manner prescribed by the department; and (b) (I) The taxpayer shall electronically file quarterly reports in a form and manner prescribed by the department no later than April 15, June 15, September 15, and December 15 of each tax year for which the taxpayer registers for advance payments; except that: (A) For a taxpayer with a taxable year beginning on any date other than January 1, the corresponding months shall be substituted for the months specified in subsection (2)(b)(I) of this section. (B) For a taxpayer with a taxable year less than twelve months, the due dates shall be determined in accordance with rules prescribed by the department. (II) The quarterly report must include the cumulative total of applicable credit that the taxpayer is seeking advance payment for in the quarter and any information required to be included in the quarterly report as specified in the statute under which the applicable credit is allowed. (3) After receipt of a completed quarterly report, the department shall make an advance payment of the applicable credit to the taxpayer in the form of a refund of the taxpayer's overpayment of tax imposed under this article 22; except that the advance payment does not accrue interest pursuant to section 39-21-108 (2) but is subject to intercept for the taxpayer's unpaid balance or unpaid debts, if any, pursuant to section 39-21-108 (3). (4) The taxpayer shall reduce the amount of an applicable credit claimed by the taxpayer for any taxable year by the aggregate amount of advance payments that the taxpayer claimed for the applicable credit during the taxable year, and: (a) If the aggregate amount of advance payments claimed for the applicable tax year exceeds the amount of the credit allowed to the taxpayer, the amount of the excess is subject to recapture; or (b) If the aggregate amount of advance payments for the applicable tax year is less than the amount of the credit allowed to the taxpayer, the amount of the difference may be claimed by the taxpayer as a credit in the taxable year in the same manner as the applicable credit. (5) In the case of a partnership or S corporation electing advance payments under this section, the partnership or S corporation shall make the election and the department shall make the advance payments to the partnership or S corporation. In the event of an excess amount pursuant to subsection (4)(a) of this section, the partnership or S corporation shall pay the amount of the excess on behalf of the partners or shareholders. In the event of an amount of difference pursuant to subsection (4)(b) of this section, the department shall refund the amount of the difference to the partnership or S corporation. Source: L. 2023: Entire section added, (HB 23-1272), ch. 167, p. 807, § 11, effective May 11. Cross references: For the legislative declaration in HB 23-1272, see section 1 of chapter 167, Session Laws of Colorado 2023.