State Bill Colorado

Amendments for HB25-1021

House Journal, February 19
5 HB25-1021 be amended as follows, and as so amended, be referred to
6 the Committee on Finance with favorable
7 recommendation:
8
9 Amend printed bill, page 3, line 5, strike "SECTION," and substitute
10 "SUBSECTION (4)(dd),".
11
12 Page 3, strike lines 17 through 20.
13
14 Reletter succeeding sub-subparagraph accordingly.
15
16 Page 5, line 1, strike "SECTION," and substitute "SUBSECTION (3)(s),".
17
18 Page 5, strike lines 13 through 16.
19
20 Reletter succeeding sub-subparagraph accordingly.
21
22 Page 6, line 17, strike "SECTION," and substitute "SUBSECTION (3)(t),".
23
24 Page 7, line 17, after "(1)(a)(III)," add "(2)(a)(II)," and after "(2)(j)(II),"
25 add "(2)(j)(III),".
26
27 Page 7, line 19, after "(14);" insert "repeal (2)(j)(I);".
28
29 Page 8, after line 6 insert:
30
31 "(a) (II) The office shall develop guidelines that clarify the types
32 of employee ownership grants that qualify as an alternate equity structure.
33 THE OFFICE MAY DEVELOP GUIDELINES THAT ADJUST THE PERCENTAGES
34 SET FORTH IN SUBSECTION (2)(a)(I) OF THIS SECTION; EXCEPT THAT THE
35 PERCENTAGES SHALL NOT BE ADJUSTED TO AN AMOUNT LESS THAN
36 TWENTY PERCENT. The office may periodically update any guidelines
37 issued pursuant to this subsection (2)(a)(II).".
38
39 Page 8, after line 22 insert:
40
41 "(I) Is owned in whole or in part by an employee ownership
42 trust;".
43
44 Page 8, line 23, strike "state." and substitute "state;".
45
46 Page 9, after line 1 insert:
47
48 "(III) (A) IS OWNED IN WHOLE OR IN PART BY AN EMPLOYEE
49 OWNERSHIP TRUST;
50 (B) Has an employee stock ownership plan;
51 (C) Is in whole or in part a worker-owned cooperative; or
52 (D) Has an alternate equity structure; and".
53
54
1 Page 9, line 4, after "CODE" insert "OR A TAXPAYER SUBJECT TO TAX
2 UNDER THIS ARTICLE 22, INCLUDING A C CORPORATION, S CORPORATION,
3 LIMITED LIABILITY COMPANY, PARTNERSHIP, LIMITED LIABILITY
4 PARTNERSHIP, SOLE PROPRIETORSHIP, OR OTHER SIMILAR PASS-THROUGH
5 ENTITY".
6
7 Page 9, line 9, after "CONVERSION" insert "TO" and strike "TO" and
8 substitute "OF".
9
10 Page 9, line 11, after "THREE" insert "EITHER".
11
12 Page 9, strike lines 12 and 13 and substitute "THAT HAVE THE INTENT OF
13 CONVERTING TO QUALIFIED EMPLOYEE-OWNED BUSINESSES OR QUALIFIED
14 EMPLOYEE-OWNED BUSINESSES THAT HAVE THE INTENT OF EXPANDING;".
15
16 Page 9, line 18, after "(k.5)" insert "(I)" and strike "MEANS" and substitute
17 "MEANS, SUBJECT TO GUIDELINES DEVELOPED BY THE OFFICE PURSUANT
18 TO SUBSECTION (5)(a) OF THIS SECTION,".
19
20 Page 9, strike lines 20 through 23 and substitute:
21
22 "(A) STAFF SALARIES AND BENEFITS FOR STAFF INVOLVED IN
23 BUSINESS DEVELOPMENT, MARKETING, AND OUTREACH;".
24
25 Page 9, line 24, strike "(II)" and substitute "(B)".
26
27 Page 9, line 26, strike "EMPLOYEE-OWNERSHIP;" and substitute
28 "EMPLOYEE-OWNERSHIP AND SIMILAR COSTS;".
29
30 Page 9, strike line 27.
31
32 Page 10, strike lines 1 and 2 and substitute:
33
34 "(C) A PROPORTIONAL AMOUNT OF BASIC ORGANIZATIONAL
35 OVERHEAD COSTS INCLUDING GENERAL OR ADMINISTRATIVE COSTS,
36 EXPENSES, RENT, AND FACILITIES COSTS.
37 (II) "SUPPORT COSTS" DOES NOT INCLUDE ANY COSTS THAT ARE
38 CONVERSION COSTS.".
39
40 Page 11, line 12, strike "OR THE EXPANSION".
41
42 Page 11, line 13, strike "BUSINESSES." and substitute "BUSINESSES OR THE
43 EXPANSION OF QUALIFIED EMPLOYEE-OWNED BUSINESSES.".
44
45 Page 12, line 19, strike "BUSINESSES," and substitute "BUSINESSES OR
46 QUALIFIED EMPLOYEE-OWNED BUSINESSES,".
47
48 Page 12, line 21, after the second "BUSINESS" insert "OR EXPANSION OF A
49 QUALIFIED EMPLOYEE-OWNED BUSINESS".
50
51 Page 12, line 23, strike "CONVERSION," and substitute "CONVERSION OR
52 EXPANSION," and after "BUSINESSES" insert "OR QUALIFIED
53 EMPLOYEE-OWNED BUSINESSES".
54
55
1 Page 12, line 25, strike "EXPAND TO QUALIFIED EMPLOYEE-OWNED
2 BUSINESSES" and substitute "EXPAND, AS APPLICABLE,".
3
4 Page 13, line 12, after the first "business" insert "OR, IF APPLICABLE, THE
5 NONPROFIT ORGANIZATION".
6
7 Page 13, line 16, after the second "business" insert "OR, IF APPLICABLE,
8 THE NONPROFIT ORGANIZATION".
9
10 Page 14, line 23, after "THAT" insert "IS AN ORGANIZATION EXEMPT FROM
11 TAXATION UNDER SECTION 501 (c)(3) OF THE INTERNAL REVENUE CODE
12 AND THAT".
13
14 Page 15, strike line 10 and substitute "(2)(a) introductory portion,
15 (2)(d)(II), (2)(d)(III), and (2)(f); and repeal (2)(d)(I) as follows:".
16
17 Page 15, after line 15 insert:
18
19 "(a) "Alternate equity structure" means a mechanism under which
20 an employer grants to employees a form of employee ownership,
21 including but not limited to an employee stock purchase plan, LLC
22 membership, phantom stock, profit interest, restricted stock, stock
23 appreciation right, stock option, or synthetic equity. The office may
24 develop guidelines that clarify the types of employee ownership grants
25 that qualify as an alternate equity structure. THE OFFICE MAY DEVELOP
26 GUIDELINES THAT ADJUST THE PERCENTAGES SET FORTH IN THIS
27 SUBSECTION (2)(a); EXCEPT THAT THE PERCENTAGES SHALL NOT BE
28 ADJUSTED TO AN AMOUNT LESS THAN TWENTY PERCENT. An alternate
29 equity structure must at a minimum:".
30
31 Page 15, after line 19 insert:
32
33 "(I) Is owned in whole or in part by an employee ownership trust;
34 (II) (A) IS OWNED IN WHOLE OR IN PART BY AN EMPLOYEE
35 OWNERSHIP TRUST;
36 (B) Has an employee stock ownership plan;
37 (C) Is beneficially owned in whole or in part by a worker-owned
38 cooperative; or
39 (D) Has an alternate equity structure; and".
40
41 Strike "A QUALIFIED TAXPAYER" and substitute "AN OWNER" on: Page 3,
42 line 3; and Page 4, line 26.
43
44 After "A" insert "BUSINESS OR A" on: Page 12, line 15; and Page 13, line
45 6.
46
18 47 After the second "THE" insert "BUSINESS OR THE" on: Page 12, lines
48 and 23.
49
50 After "THE" insert "BUSINESS OR THE" on: Page 12, lines 19 and 22.
51
52

House Journal, March 6
5 HB25-1021 be amended as follows, and as so amended, be referred to
6 the Committee on Appropriations with favorable
7 recommendation:
8
9 Amend printed bill, page 3, after line 6 insert:
10
11 "(A) "OFFICE" MEANS THE COLORADO OFFICE OF ECONOMIC
12 DEVELOPMENT CREATED IN SECTION 24-48.5-101.".
13
14 Reletter succeeding sub-subparagraphs accordingly.
15
16 Page 3, line 23, strike "CODE." and substitute "CODE, SUBJECT TO THE
17 LIMITATION SET FORTH IN SUBSECTION (4)(dd)(V) OF THIS SECTION.".
18
19 Page 4, after line 15 insert:
20
21 "(V) (A) ON OR BEFORE JUNE 30, 2026, THE OFFICE SHALL
22 ESTABLISH AND POST ON ITS WEBSITE THE TOTAL AMOUNT OF CAPITAL
23 GAINS THAT MAY BE SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE
24 INCOME PURSUANT TO THIS SUBSECTION (4)(dd), WHICH AMOUNT IS IN
25 EFFECT FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
26 2027, BUT BEFORE JANUARY 1, 2038, OR UNTIL THE OFFICE ADJUSTS THE
27 AMOUNT AS SET FORTH IN SUBSECTION (4)(dd)(V)(B) OF THIS SECTION.
28 (B) AFTER JUNE 30, 2026, ON OR BEFORE JUNE 30, 2027, AND ON
29 OR BEFORE JUNE 30 OF EACH YEAR THEREAFTER UNTIL JUNE 30, 2036, THE
30 OFFICE MAY ADJUST THE TOTAL AMOUNT OF CAPITAL GAINS THAT MAY BE
31 SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE INCOME THAT THE
32 OFFICE HAS PREVIOUSLY ESTABLISHED IN ACCORDANCE WITH THIS
33 SUBSECTION (4)(dd)(V). THE ADJUSTED AMOUNT MUST BE POSTED ON THE
34 OFFICE'S WEBSITE AND IS IN EFFECT FOR INCOME TAX YEARS COMMENCING
35 ON OR AFTER JANUARY 1 OF THE YEAR IMMEDIATELY FOLLOWING THE
36 YEAR IN WHICH THE ADJUSTMENT IS MADE BUT BEFORE JANUARY 1, 2038,
37 OR UNTIL THE OFFICE SUBSEQUENTLY ADJUSTS THE AMOUNT AS SET FORTH
38 IN THIS SUBSECTION (4)(dd)(V)(B).
39 (C) AN OWNER MAY NOT SUBTRACT MORE THAN THE AMOUNT OF
40 CAPITAL GAINS ESTABLISHED BY THE OFFICE IN ACCORDANCE WITH
41 SUBSECTION (4)(dd)(V)(A) OR (4)(dd)(V)(B) OF THIS SECTION IN THE
42 INCOME TAX YEAR.
43 (D) BEGINNING IN JANUARY 2027, AND IN JANUARY EVERY YEAR
44 THEREAFTER FOLLOWING A YEAR IN WHICH THE OFFICE ADJUSTS THE
45 AMOUNT OF CAPITAL GAINS THAT MAY BE SUBTRACTED FROM AN OWNER'S
46 FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (4)(dd)(V)(B) OF
47 THIS SECTION, THE OFFICE SHALL INCLUDE, AS PART OF ITS PRESENTATION
48 DURING ITS "SMART ACT" HEARING REQUIRED BY SECTION 2-7-203,
49 INFORMATION CONCERNING THE AMOUNT OF CAPITAL GAINS THAT MAY BE
50 SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE INCOME THAT THE
51 OFFICE HAS ESTABLISHED PURSUANT TO SUBSECTION (4)(dd)(V)(A) OR
52 (4)(dd)(V)(B) OF THIS SECTION AND THE METHOD THAT THE OFFICE USED
53 TO ESTABLISH THE AMOUNT.".
54
55 Renumber succeeding subparagraph accordingly.
56
1 Page 5, after line 2 insert:
2
3 "(A) "OFFICE" MEANS THE COLORADO OFFICE OF ECONOMIC
4 DEVELOPMENT CREATED IN SECTION 24-48.5-101.".
5
6 Reletter succeeding sub-subparagraphs accordingly.
7
8 Page 5, line 19, "CODE." and substitute "CODE, SUBJECT TO THE
9 LIMITATION SET FORTH IN SUBSECTION (3)(s)(V) OF THIS SECTION.".
10
11 Page 6, after line 11 insert:
12
13 "(V) (A) ON OR BEFORE JUNE 30, 2026, THE OFFICE SHALL
14 ESTABLISH AND POST ON ITS WEBSITE THE TOTAL AMOUNT OF CAPITAL
15 GAINS THAT MAY BE SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE
16 INCOME PURSUANT TO THIS SUBSECTION (3)(s), WHICH AMOUNT IS IN
17 EFFECT FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
18 2027, BUT BEFORE JANUARY 1, 2038, OR UNTIL THE OFFICE ADJUSTS THE
19 AMOUNT AS SET FORTH IN SUBSECTION (3)(s)(V)(B) OF THIS SECTION.
20 (B) AFTER JUNE 30, 2026, ON OR BEFORE JUNE 30, 2027, AND ON
21 OR BEFORE JUNE 30 OF EACH YEAR THEREAFTER UNTIL JUNE 30, 2036, THE
22 OFFICE MAY ADJUST THE TOTAL AMOUNT OF CAPITAL GAINS THAT MAY BE
23 SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE INCOME THAT THE
24 OFFICE HAS PREVIOUSLY ESTABLISHED IN ACCORDANCE WITH THIS
25 SUBSECTION (3)(s)(V). THE ADJUSTED AMOUNT MUST BE POSTED ON THE
26 OFFICE'S WEBSITE AND IS IN EFFECT FOR INCOME TAX YEARS COMMENCING
27 ON OR AFTER JANUARY 1 OF THE YEAR IMMEDIATELY FOLLOWING THE
28 YEAR IN WHICH THE ADJUSTMENT IS MADE BUT BEFORE JANUARY 1, 2038,
29 OR UNTIL THE OFFICE SUBSEQUENTLY ADJUSTS THE AMOUNT AS SET FORTH
30 IN THIS SUBSECTION (3)(s)(V)(B).
31 (C) AN OWNER MAY NOT SUBTRACT MORE THAN THE AMOUNT OF
32 CAPITAL GAINS ESTABLISHED BY THE OFFICE IN ACCORDANCE WITH
33 SUBSECTION (3)(s)(V)(A) OR (3)(s)(V)(B) OF THIS SECTION IN THE INCOME
34 TAX YEAR.
35 (D) BEGINNING IN JANUARY 2027, AND IN JANUARY EVERY YEAR
36 THEREAFTER FOLLOWING A YEAR IN WHICH THE OFFICE ADJUSTS THE
37 AMOUNT OF CAPITAL GAINS THAT MAY BE SUBTRACTED FROM AN OWNER'S
38 FEDERAL TAXABLE INCOME PURSUANT TO SUBSECTION (3)(s)(V)(B) OF
39 THIS SECTION, THE OFFICE SHALL INCLUDE, AS PART OF ITS PRESENTATION
40 DURING ITS "SMART ACT" HEARING REQUIRED BY SECTION 2-7-203,
41 INFORMATION CONCERNING THE AMOUNT OF CAPITAL GAINS THAT MAY BE
42 SUBTRACTED FROM AN OWNER'S FEDERAL TAXABLE INCOME THAT THE
43 OFFICE HAS ESTABLISHED PURSUANT TO SUBSECTION (3)(s)(V)(A) OR
44 (3)(s)(V)(B) OF THIS SECTION AND THE METHOD THAT THE OFFICE USED TO
45 ESTABLISH THE AMOUNT.".
46
47 Renumber succeeding subparagraph accordingly.
48
49

House Journal, April 25
1 Amendment No. 1, Finance Report, dated March 3, 2025, and placed in
2 member’s bill file; Report also printed in House Journal, March 6, 2025.
3
4 Amendment No. 2, Business Affairs & Labor Report, dated February 19,
5 2025, and placed in member’s bill file; Report also printed in House
6 Journal, February 20, 2025.
7
8 Amendment No. 3, by Representative Lindstedt:
9
10 Amend the Business Affairs and Labor Committee Report, dated
11 February 19, 2025, page 3, line 8, after "CONVERSION" insert "OR
12 EXPANSION".
13
14 Page 3 of the report, after line 8 insert:
15
16 "Page 11 of the printed bill, line 4, strike "CONVERSION" and substitute
17 "EXPANSION".".
18
19 Page 3 of the report, line 23, after "16," insert "strike the first "business."
20 and substitute "business OR, IF APPLICABLE, THE QUALIFIED SUPPORT
21 ENTITY." and".
22
23 Page 3 of the report, after line 24 insert:
24
25 "Page 13 of the bill, line 23, strike "subsection (3)(b)" and substitute
26 "subsection (3)(b) SUBSECTION (3)(c)".".
27
28 Amendment No. 4, by Representative Lindstedt:
29
30 Amend printed bill, page 11, line 21, after "2026;" insert "AND".
31
32 Page 11, line 22, strike "THREE" and substitute "TWO".
33
34 Page 11, strike line 24 and substitute "2032.".
35
36 Page 11, strike lines 25 through 27.
37
38 Strike "JANUARY 1, 2038," and substitute "JANUARY 1, 2032," on: Page
39 10, lines 6, 10, 19, and 27; and Page 11, line 7.
40
41 As amended, ordered engrossed and placed on the Calendar for Third
42 Reading and Final Passage.
43

Senate Journal, May 1
After consideration on the merits, the Committee recommends that HB25-1021 be
amended as follows, and as so amended, be referred to the Committee on Appropriations
with favorable recommendation.
Amend reengrossed bill, page 14, line 27, after the second "JANUARY 1," insert
"2026;".

Page 18, line 21, strike "DECEMBER 31, 2042." and substitute "DECEMBER 31,
2037.".

Finance