1. (1) For a tax credit certificate issued in fiscal year 2025-26, the department, in consultation with the office of state planning and budgeting, prior to the sale, may determine the calendar years in which the qualified taxpayer may claim the qualified taxpayer's tax credit against the qualified taxpayer's premium tax liability.
2. (2) The total credit to be applied by a qualified taxpayer in any one year must not exceed the premium tax liability of the qualified taxpayer for the taxable year. If the qualified taxpayer cannot use the entire amount of the tax credit for the taxable year in which the taxpayer is eligible for the credit, the excess may be carried over to succeeding taxable years and used as a credit against the premium tax liability of the taxpayer for those taxable years; except that the credit may not be carried over to any taxable year that begins after December 31, 2033. Any amount of the credit that is not timely claimed expires and is not refundable.
3. (3) A qualified taxpayer claiming a credit under this part 4 shall submit the tax credit certificate with its tax return.
4. (4) A qualified taxpayer claiming a tax credit under this part 4 shall not be required to pay any additional or retaliatory tax as a result of claiming the credit.
5. (5) If a qualified taxpayer holding an unclaimed tax credit is part of a merger, acquisition, or line of business divestiture transaction, the tax credit may be transferred to and assumed by the resulting entity if the resulting entity is an insurance company authorized to do business in Colorado that has premium tax liability. The qualified taxpayer that originally purchased the credit and the resulting entity shall notify the department in writing of the transfer or assumption of the credit in accordance with procedures adopted by the department. The transfer or assumption of the tax credit does not affect the time schedule for claiming the tax credit as provided in this section.

6. (6) The department shall provide a report to the division of insurance for each fiscal year in which it issues tax credit certificates pursuant to this part 4 within thirty days after the close of the fiscal year. The report must include:

   1. (a) The name and identifying number issued by the National Association of Insurance Commissioners, or any successor organization, of each qualified taxpayer to which the department issued a tax credit certificate;
   2. (b) The total amount of the tax credit allocated to the qualified taxpayer; and
   3. (c) The serial number of the tax credit certificate issued, transferred, or assumed that is sufficient to allow the division of insurance in the department of regulatory agencies to verify the issuance and ownership of the tax credit.

Source: L. 2025, 1st Ex. Sess.: Entire part added, (HB 25B-1004), ch. 8, p. 30, § 1, effective August 28.