Amendments for SB22-051
Senate Journal, March 3
After consideration on the merits, the Committee recommends that SB22-051 be amended
as follows, and as so amended, be referred to the Committee on Appropriations with
favorable recommendation.
Amend the Transportation & Energy Committee Report, dated February 8,
2022, page 1, line 6, strike "air-source and ground-source".
Page 1 of the committee report, line 19, strike "AIR-SOURCE AND
GROUND-SOURCE".
Page 1 of the committee report, lines 22 and 23, strike "AIR-SOURCE AND
GROUND-SOURCE".
Page 1 of the committee report, line 25, strike "THOSE".
Page 2 of the committee report, line 1, strike "AIR-SOURCE AND
GROUND-SOURCE".
Page 2 of the committee report, line 3, strike "BUSINESSES," and substitute
"BUSINESSES".
Page 2 of the committee report, strike lines 5 and 6 and substitute "AND TAKE
ADVANTAGE OF LATENT HEAT SOURCES AND AVAILABLE RENEWABLE POWER
DURING LOW DEMAND PERIODS.".
Page 2 of the committee report, lines 14 and 15, strike "AIR-SOURCE AND
GROUND-SOURCE".
Page 2 of the committee report, line 22, strike "AIR-SOURCE AND
GROUND-SOURCE".
Page 2 of the committee report, strike lines 33 through 43.
Page 3 of the committee report, strike lines 1 through 14 and substitute:
"(c) "HEAT PUMP SYSTEM" MEANS AN AIR-SOURCE HEAT PUMP SYSTEM,
GROUND-SOURCE HEAT PUMP SYSTEM, WATER-SOURCE HEAT PUMP SYSTEM, OR
VARIABLE REFRIGERANT FLOW HEAT PUMP SYSTEM.
(d) "HEAT PUMP WATER HEATER" HAS THE SAME MEANING SET FORTH
IN SECTION 39-26-731 (2)(b).
(e) "PURCHASER" MEANS A TAXPAYER WHO IS THE BUYER OF A HEAT
PUMP SYSTEM OR HEAT PUMP WATER HEATER.
(f) "SELLER" MEANS THE ENTITY THAT SELLS A HEAT PUMP SYSTEM OR
HEAT PUMP WATER HEATER TO A PURCHASER.
(g) "WATER-SOURCE HEAT PUMP SYSTEM" HAS THE SAME MEANING SET
FORTH IN SECTION 39-26-731 (2)(e).
(h) "VARIABLE REFRIGERANT FLOW HEAT PUMP SYSTEM" HAS THE SAME
MEANING SET FORTH IN SECTION 39-26-731 (2)(f).
(3) (a) SUBJECT TO THE PROVISIONS OF SUBSECTION (4) OF THIS
SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2023,
BUT BEFORE JANUARY 1, 2033, ANY PURCHASER THAT INSTALLS A RESIDENTIAL
OR COMMERCIAL HEAT PUMP SYSTEM OR THAT INSTALLS A RESIDENTIAL OR
COMMERCIAL HEAT PUMP WATER HEATER IS ALLOWED A CREDIT AGAINST THE
TAX IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT EQUAL TO TEN PERCENT OF
THE PURCHASE PRICE OF THE HEAT PUMP SYSTEM OR HEAT PUMP WATER
HEATER.
(b) THE CREDIT ALLOWED PURSUANT TO THIS SECTION IS FOR THE
INCOME TAX YEAR IN WHICH THE HEAT PUMP SYSTEM OR HEAT PUMP WATER
HEATER IS PURCHASED.
(4) (a) (I) TO BE ELIGIBLE TO CLAIM A TAX CREDIT PURSUANT TO THIS
SECTION, THE PURCHASER SHALL CERTIFY, AS SPECIFIED IN SUBSECTION (4)(b)
OF THIS SECTION, THAT ALL NECESSARY MECHANICAL, PLUMBING, AND
ELECTRICAL WORK PERFORMED IN CONNECTION WITH THE INSTALLATION OF A
HEAT PUMP SYSTEM OR HEAT PUMP WATER HEATER IN A NEW OR EXISTING
INDUSTRIAL, COMMERCIAL, OR MULTIFAMILY RESIDENTIAL BUILDING
CONTAINING TWENTY THOUSAND SQUARE FEET OR MORE OF CONDITIONED
FLOOR SPACE WAS OR WILL BE PERFORMED BY A CONTRACTOR ON THE CERTIFIED
CONTRACTOR LIST CREATED PURSUANT TO SECTION 40-3.2-105.6 (3)(a), OR BY
EMPLOYEES OF A UTILITY, SUBJECT TO STATE LICENSING REQUIREMENTS AND
ALL APPLICABLE STATE AND LOCAL RULES, CODES, AND STANDARDS.
(II) THE REQUIREMENTS OF THIS SUBSECTION (4)(a) DO NOT APPLY TO
THE INSTALLATION OF A HEAT PUMP SYSTEM OR HEAT PUMP WATER HEATHER
THAT IS LIMITED TO IN-UNIT WORK IN A MULTIFAMILY BUILDING OR UNIT AND
THAT IS INITIATED BY THE OWNER OR TENANT OF THE MULTIFAMILY BUILDING
OR UNIT.
(b) THE PURCHASER SHALL CERTIFY, IN A FORM AND MANNER TO BE
DETERMINED BY THE DEPARTMENT OF REVENUE, THAT THE HEAT PUMP SYSTEM
OR HEAT PUMP WATER HEATER WAS OR WILL BE INSTALLED IN ACCORDANCE
WITH THE PROVISIONS OF SUBSECTION (4)(a) OF THIS SECTION, IF APPLICABLE.
THE SELLER SHALL PROVIDE THE CERTIFICATION TO THE TAXPAYER FOR THE
PURPOSES OF SUBSECTION (5) OF THIS SECTION.
(5) (a) A PURCHASER SHALL ASSIGN THE TAX CREDIT ALLOWED IN THIS
SECTION TO THE PURCHASER'S SELLER AS FOLLOWS:
(I) THE ASSIGNMENT TO THE SELLER MUST BE COMPLETED AT THE TIME
OF PURCHASE OF A NEW HEAT PUMP SYSTEM OR HEAT PUMP WATER HEATER BY
ENTERING INTO AN AGREEMENT AS SET FORTH IN SUBSECTION (5)(c) OF THIS
SECTION;
(II) THE PURCHASER MUST CERTIFY IN WRITING THAT THE PURCHASER
WILL COMPLY WITH THE PROVISIONS REGARDING INSTALLATION OF THE HEAT
PUMP SYSTEM OR HEAT PUMP WATER HEATER SPECIFIED IN SUBSECTION (4) OF
THIS SECTION, IF APPLICABLE;
(III) THE PURCHASER SHALL ASSIGN THE TAX CREDIT TO THE SELLER
AND FORFEIT THE RIGHT TO CLAIM THE TAX CREDIT ON THE PURCHASER'S TAX
RETURN IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION; AND
(IV) THE SELLER SHALL COMPENSATE THE PURCHASER FOR THE FULL
NOMINAL VALUE OF THE TAX CREDIT. THE COMPENSATION PAID TO THE
PURCHASER IS CONSIDERED A REFUND OF STATE TAXES AND IS NOT STATE
TAXABLE INCOME.
(b) NOTWITHSTANDING SECTION 39-21-108 (3), IF A PURCHASER
ASSIGNS THE TAX CREDIT TO A SELLER PURSUANT TO THIS SUBSECTION (5), THE
SELLER RECEIVES THE FULL AMOUNT OF THE TAX CREDIT THAT THE PURCHASER
IS ALLOWED IN THIS SECTION. ANY UNPAID BALANCE OR UNPAID DEBT OF THE
PURCHASER MAY NOT BE CREDITED FROM THE AMOUNT OF THE TAX CREDIT
ALLOWED IN THIS SECTION.
(c) TO COMPLETE THE TAX CREDIT ASSIGNMENT, THE PURCHASER AND
THE SELLER SHALL ENTER INTO AN AGREEMENT THAT:
(I) INCLUDES THE PURCHASER'S WRITTEN CERTIFICATION TO COMPLY
WITH THE PROVISIONS REGARDING INSTALLATION OF THE HEAT PUMP SYSTEM
OR HEAT PUMP WATER HEATER SPECIFIED IN SUBSECTION (4) OF THIS SECTION,
IF APPLICABLE; AND
(II) AFFIRMS THAT THE REQUIREMENTS SPECIFIED IN SUBSECTION (5)(a)
OF THIS SECTION WERE MET.
(d) THE SELLER MAY AUTHORIZE AN AGENT OR A DESIGNEE TO SIGN THE
AGREEMENT ON ITS BEHALF.
(e) THE SELLER SHALL ELECTRONICALLY SUBMIT A REPORT CONTAINING
THE INFORMATION REQUIRED IN THE AGREEMENT DESCRIBED IN SUBSECTION
(5)(c) OF THIS SECTION TO THE DEPARTMENT OF REVENUE WITHIN THIRTY DAYS
OF THE PURCHASE OF A HEAT PUMP SYSTEM OR HEAT PUMP WATER HEATER IN
A FORM AND MANNER TO BE DETERMINED BY THE DEPARTMENT.
(f) THE SELLER SHALL ALSO FILE THE AGREEMENT DESCRIBED IN
SUBSECTION (5)(c) OF THIS SECTION WITH THE ORIGINAL TAX RETURN FOR THE
TAXABLE YEAR IN WHICH THE HEAT PUMP SYSTEM OR HEAT PUMP WATER
HEATER IS PURCHASED.
(g) THE DEPARTMENT OF REVENUE, IN CONSULTATION WITH THE
COLORADO ENERGY OFFICE, SHALL DEVELOP A MODEL REPORT AND AGREEMENT
NO LATER THAN DECEMBER 1, 2022.
(6) IF A CREDIT AUTHORIZED IN THIS SECTION EXCEEDS THE INCOME TAX
DUE ON THE INCOME OF THE PURCHASER FOR THE TAXABLE YEAR, THE EXCESS
CREDIT MAY NOT BE CARRIED FORWARD AND SHALL BE REFUNDABLE TO THE
TAXPAYER AND PAID TO THE SELLER TO WHICH THE TAXPAYER ASSIGNED THE
CREDIT.
(7) MAKING A PURCHASER AWARE OF THE INCOME TAX CREDIT
ALLOWED IN THIS SECTION OR HELPING A PURCHASER ASSIGN THE INCOME TAX
CREDIT TO A SELLER AS ALLOWED IN THIS SECTION DOES NOT RISE TO THE LEVEL
OF PROVIDING THE PURCHASER WITH UNAUTHORIZED TAX ADVICE.
(8) THIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2035.".
Page 3 of the committee report, strike lines 35 through 43.
Page 4 of the committee report, strike lines 1 through 12 and substitute:
"(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "ENERGY STORAGE SYSTEM" MEANS ANY COMMERCIALLY
AVAILABLE, CUSTOMER-SITED SYSTEM, INCLUDING BATTERIES AND THE
BATTERIES PAIRED WITH ON-SITE GENERATION, THAT IS CAPABLE OF RETAINING,
STORING, AND DELIVERING ENERGY BY CHEMICAL, THERMAL, MECHANICAL, OR
OTHER MEANS.
(b) "PURCHASER" MEANS A TAXPAYER WHO IS THE BUYER OF AN
ENERGY STORAGE SYSTEM.
(c) "SELLER" MEANS THE ENTITY THAT SELLS AN ENERGY STORAGE
SYSTEM.
(3) (a) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2023, BUT BEFORE JANUARY 1, 2033, ANY PURCHASER THAT INSTALLS AN
ENERGY STORAGE SYSTEM IN A RESIDENTIAL DWELLING IS ALLOWED A CREDIT
AGAINST THE TAX IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT EQUAL TO TEN
PERCENT OF THE PURCHASE PRICE OF THE ENERGY STORAGE SYSTEM.
(b) THE CREDIT ALLOWED PURSUANT TO THIS SECTION IS FOR THE
INCOME TAX YEAR IN WHICH THE ENERGY STORAGE SYSTEM IS PURCHASED.
(4) (a) A PURCHASER SHALL ASSIGN THE TAX CREDIT ALLOWED IN THIS
SECTION TO THE PURCHASER'S SELLER AS FOLLOWS:
(I) THE ASSIGNMENT TO THE SELLER MUST BE COMPLETED AT THE TIME
OF PURCHASE OF A NEW ENERGY STORAGE SYSTEM BY ENTERING INTO AN
AGREEMENT AS SET FORTH IN SUBSECTION (4)(c) OF THIS SECTION;
(II) THE PURCHASER SHALL ASSIGN THE TAX CREDIT TO THE SELLER AND
FORFEIT THE RIGHT TO CLAIM THE TAX CREDIT ON THE PURCHASER'S TAX
RETURN IN EXCHANGE FOR GOOD AND VALUABLE CONSIDERATION; AND
(III) THE SELLER SHALL COMPENSATE THE PURCHASER FOR THE FULL
NOMINAL VALUE OF THE TAX CREDIT. THE COMPENSATION PAID TO THE
PURCHASER IS CONSIDERED A REFUND OF STATE TAXES AND IS NOT STATE
TAXABLE INCOME.
(b) NOTWITHSTANDING SECTION 39-21-108 (3), IF A PURCHASER
ASSIGNS THE TAX CREDIT TO A SELLER PURSUANT TO THIS SUBSECTION (4), THE
SELLER RECEIVES THE FULL AMOUNT OF THE TAX CREDIT THAT THE PURCHASER
IS ALLOWED IN THIS SECTION. ANY UNPAID BALANCE OR UNPAID DEBT OF THE
PURCHASER MAY NOT BE CREDITED FROM THE AMOUNT OF THE TAX CREDIT
ALLOWED IN THIS SECTION.
(c) TO COMPLETE THE TAX CREDIT ASSIGNMENT, THE PURCHASER AND
THE SELLER SHALL ENTER INTO AN AGREEMENT THAT AFFIRMS THAT THE
REQUIREMENTS SPECIFIED IN SUBSECTION (4)(a) OF THIS SECTION WERE MET.
(d) THE SELLER MAY AUTHORIZE AN AGENT OR A DESIGNEE TO SIGN THE
AGREEMENT ON ITS BEHALF.
(e) THE SELLER SHALL ELECTRONICALLY SUBMIT A REPORT CONTAINING
THE INFORMATION REQUIRED IN THE AGREEMENT DESCRIBED IN SUBSECTION
(4)(c) OF THIS SECTION TO THE DEPARTMENT OF REVENUE WITHIN THIRTY DAYS
OF THE PURCHASE OF AN ENERGY STORAGE SYSTEM IN A FORM AND MANNER TO
BE DETERMINED BY THE DEPARTMENT.
(f) THE SELLER SHALL ALSO FILE THE AGREEMENT DESCRIBED IN
SUBSECTION (4)(c) OF THIS SECTION WITH THE ORIGINAL TAX RETURN FOR THE
TAXABLE YEAR IN WHICH THE ENERGY STORAGE SYSTEM IS PURCHASED.
(g) THE DEPARTMENT OF REVENUE, IN CONSULTATION WITH THE
COLORADO ENERGY OFFICE, SHALL DEVELOP A MODEL REPORT AND AGREEMENT
NO LATER THAN DECEMBER 1, 2022.
(5) IF A CREDIT AUTHORIZED IN THIS SECTION EXCEEDS THE INCOME TAX
DUE ON THE INCOME OF THE PURCHASER FOR THE TAXABLE YEAR, THE EXCESS
CREDIT MAY NOT BE CARRIED FORWARD AND SHALL BE REFUNDABLE TO THE
TAXPAYER AND PAID TO THE SELLER TO WHICH THE TAXPAYER ASSIGNED THE
CREDIT.
(6) MAKING A PURCHASER AWARE OF THE INCOME TAX CREDIT
ALLOWED IN THIS SECTION OR HELPING A PURCHASER ASSIGN THE INCOME TAX
CREDIT TO A SELLER AS ALLOWED IN THIS SECTION DOES NOT RISE TO THE LEVEL
OF PROVIDING THE PURCHASER WITH UNAUTHORIZED TAX ADVICE.
(7) THIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2035.".
Page 4 of the committee report, strike lines 14 through 25 and substitute:
"Page 5, lines 17 and 18, strike "39-26-730 and 39-26-731" and substitute
"39-26-730, 39-26-731, and 39-26-732".
Page 8, line 10, strike "Air-source and ground-source heat" and substitute
"Heat".
Page 8, strike lines 23 and 24 and substitute "RESIDENTIAL BUILDINGS BY
INSTALLING HEAT PUMP SYSTEMS AND HEAT PUMP WATER HEATERS, WHICH
REDUCE NET GREENHOUSE".
Page 8, strike line 27 and substitute "HEAT PUMP SYSTEMS AND HEAT PUMP
WATER HEATERS WILL ENCOURAGE".
Page 9, strike lines 4 through 8 and substitute:
"(V) THE PURCHASE AND USE OF HEAT PUMP SYSTEMS AND HEAT PUMP
WATER HEATERS WILL BENEFIT PUBLIC HEALTH IN THE HEATING AND COOLING
OF HOMES AND BUSINESSES AND TAKE ADVANTAGE OF LATENT HEAT SOURCES
AND AVAILABLE RENEWABLE POWER DURING LOW DEMAND PERIODS.".
Page 9, line 8, strike "REDUCE" and substitute "MAKE USE OF".
Page 9, strike lines 16 and 17 and substitute "SPECIFICALLY THE PURCHASE AND
USE OF HEAT PUMP SYSTEMS AND HEAT PUMP WATER HEATERS; AND".
Page 9, strike line 23 and substitute "NUMBER OF HEAT PUMP SYSTEMS AND
HEAT PUMP WATER HEATERS SOLD".".
Page 5 of the committee report, line 20, strike "EIGTHTY" and substitute
"EIGHTY".
Page 5 of the committee report, after line 33 insert:
"(c) "HEAT PUMP SYSTEM" MEANS AN AIR-SOURCE HEAT PUMP SYSTEM,
GROUND-SOURCE HEAT PUMP SYSTEM, WATER-SOURCE HEAT PUMP SYSTEM, OR
VARIABLE REFRIGERANT FLOW HEAT PUMP SYSTEM.".
Reletter succeeding paragraph accordingly.
Page 5 of the committee report, line 35, strike "USING" and substitute "THAT
USES".
Page 5 of the committee report, strike lines 36 through 40 and substitute
"SURROUNDING AIR TO WATER IN A TANK AND THAT IS CERTIFIED PURSUANT TO
THE FEDERAL ENVIRONMENTAL PROTECTION AGENCY'S ENERGY STAR
PROGRAM.".
Page 6 of the committee report, strike line 4 and substitute "OPERATION OF A
HEAT PUMP WATER HEATER.
(e) (I) "WATER-SOURCE HEAT PUMP SYSTEM" MEANS A SYSTEM THAT:
(A) IS CERTIFIED TO THE INTERNATIONAL ORGANIZATION FOR
STANDARDIZATION'S LATEST STANDARDS;
(B) IS INSTALLED BY A LICENSED CONTRACTOR, PLUMBER, OR
EMPLOYEE OF A GAS UTILITY IN ACCORDANCE WITH THE NATIONAL ELECTRIC
CODE AND MANUFACTURER'S SPECIFICATIONS;
(C) CONFORMS TO ALL APPLICABLE MUNICIPAL, STATE, AND FEDERAL
CODES, STANDARDS, REGULATIONS, AND CERTIFICATIONS;
(D) HAS BLOWERS THAT ARE VARIABLE SPEED, HIGH-EFFICIENCY
MOTORS THAT MEET OR EXCEED EFFICIENCY LEVELS LISTED IN THE NATIONAL
ELECTRICAL MANUFACTURERS ASSOCIATION MG1-1993 PUBLICATION; AND
(E) COMPLIES WITH ALL STATE AND LOCAL DRINKING WATER
GUIDELINES AND REGULATIONS AND PUBLIC WATER SYSTEM REQUIREMENTS.
(II) "WATER-SOURCE HEAT PUMP SYSTEM" MAY INCLUDE A DUAL FUEL
SYSTEM SO LONG AS:
(A) THE WATER-SOURCE HEAT PUMP IS USED AS THE PRIMARY SOURCE
OF A BUILDING'S HEAT AND IS DESIGNED TO SUPPLY AT LEAST EIGHTY PERCENT
OF THE TOTAL ANNUAL HEATING FOR THE BUILDING;
(B) THE SYSTEM IS CAPABLE OF DISTRIBUTING PRODUCED HEAT TO ALL
CONDITIONED AREAS OF THE BUILDING;
(C) THE FURNACE HAS AN ANNUAL FUEL UTILIZATION EFFICIENCY
RATING OF NINETY PERCENT OR HIGHER;
(D) ALL PIPING FOR A SPLIT SYSTEM IS INSTALLED BY TECHNICIANS
CERTIFIED TO THE NITC R78 BRAZING PROCEDURE; AND
(E) THE SYSTEM IS INSTALLED BY TECHNICIANS WHO ARE TRAINED IN
THE SAFE HANDLING OF FLAMMABLE REFRIGERANTS.
(III) "WATER-SOURCE HEAT PUMP SYSTEM" INCLUDES MECHANICAL
AND ELECTRICAL EQUIPMENT CENTRAL TO THE OPERATION OF A WATER-SOURCE
HEAT PUMP.
(f) (I) "VARIABLE REFRIGERANT FLOW HEAT PUMP SYSTEM" MEANS A
SYSTEM THAT:
(A) IS CERTIFIED TO THE INTERNATIONAL ORGANIZATION FOR
STANDARDIZATION'S LATEST STANDARDS;
(B) IS INSTALLED BY A LICENSED CONTRACTOR, PLUMBER, OR
EMPLOYEE OF A GAS UTILITY IN ACCORDANCE WITH THE NATIONAL ELECTRIC
CODE AND MANUFACTURER'S SPECIFICATIONS;
(C) CONFORMS TO ALL APPLICABLE MUNICIPAL, STATE, AND FEDERAL
CODES, STANDARDS, REGULATIONS, AND CERTIFICATIONS;
(D) HAS BLOWERS THAT ARE VARIABLE SPEED, HIGH-EFFICIENCY
MOTORS THAT MEET OR EXCEED EFFICIENCY LEVELS LISTED IN THE NATIONAL
ELECTRICAL MANUFACTURERS ASSOCIATION MGI-1993 PUBLICATION; AND
(E) COMPLIES WITH ALL STATE AND LOCAL DRINKING WATER
GUIDELINES AND REGULATIONS AND PUBLIC WATER SYSTEM REQUIREMENTS.
(II) "VARIABLE REFRIGERANT FLOW SYSTEM" MAY INCLUDE A DUAL
FUEL SYSTEM SO LONG AS:
(A) THE VARIABLE REFRIGERANT FLOW SYSTEM IS USED AS THE
PRIMARY SOURCE OF A BUILDING'S HEAT AND IS DESIGNED TO SUPPLY AT LEAST
EIGHTY PERCENT OF THE TOTAL ANNUAL HEATING FOR THE BUILDING;
(B) THE SYSTEM IS CAPABLE OF DISTRIBUTING PRODUCED HEAT TO ALL
CONDITIONED AREAS OF THE BUILDING;
(C) THE FURNACE HAS AN ANNUAL FUEL UTILIZATION EFFICIENCY
RATING OF NINETY PERCENT OR HIGHER;
(D) ALL PIPING FOR A SPLIT SYSTEM IS INSTALLED BY TECHNICIANS
CERTIFIED TO THE NITC R78 BRAZING PROCEDURE; AND
(E) THE SYSTEM IS INSTALLED BY TECHNICIANS WHO ARE TRAINED IN
THE SAFE HANDLING OF FLAMMABLE REFRIGERANTS.
(III) "VARIABLE REFRIGERANT FLOW SYSTEM" INCLUDES MECHANICAL
AND ELECTRICAL EQUIPMENT CENTRAL TO THE OPERATION OF A VARIABLE
REFRIGERANT FLOW SYSTEM.".
Page 6 of the committee report, strike lines 5 through 7 and substitute:
"Page 11, strike lines 25 through 27 and substitute:
"(3) ON AND AFTER JANUARY 1, 2023, SUBJECT TO THE PROVISIONS OF
SUBSECTION (4) OF THIS SECTION, ALL SALES, STORAGE, AND USE OF HEAT PUMP
SYSTEMS AND HEAT PUMP WATER HEATERS THAT ARE USED IN COMMERCIAL OR
RESIDENTIAL".
Page 12, after line 2 insert:
"(4) (a) (I) TO BE ELIGIBLE FOR THE SALES AND USE TAX EXEMPTION
PURSUANT TO THIS SECTION, THE PURCHASER OF A HEAT PUMP SYSTEM OR HEAT
PUMP WATER HEATER SHALL CERTIFY, AS SPECIFIED IN SUBSECTION (4)(b) OF
THIS SECTION, THAT ALL NECESSARY MECHANICAL, PLUMBING, AND ELECTRICAL
WORK PERFORMED IN CONNECTION WITH THE INSTALLATION OF A HEAT PUMP
SYSTEM OR HEAT PUMP WATER HEATER IN A NEW OR EXISTING INDUSTRIAL,
COMMERCIAL, OR MULTIFAMILY RESIDENTIAL BUILDING CONTAINING TWENTY
THOUSAND SQUARE FEET OR MORE OF CONDITIONED FLOOR SPACE WILL BE
PERFORMED BY A CONTRACTOR ON THE CERTIFIED CONTRACTOR LIST CREATED
PURSUANT TO SECTION 40-3.2-105.6 (3)(a), OR BY EMPLOYEES OF A UTILITY,
SUBJECT TO STATE LICENSING REQUIREMENTS AND ALL APPLICABLE STATE AND
LOCAL RULES, CODES, AND STANDARDS.
(II) THE REQUIREMENTS OF THIS SUBSECTION (4)(a) DO NOT APPLY TO
THE INSTALLATION OF A HEAT PUMP SYSTEM OR HEAT PUMP WATER HEATER
THAT IS LIMITED TO IN-UNIT WORK IN A MULTIFAMILY BUILDING OR UNIT AND
THAT IS INITIATED BY THE OWNER OR TENANT OF THE MULTIFAMILY BUILDING
OR UNIT.
(b) THE PURCHASER SHALL CERTIFY, IN A FORM AND MANNER TO BE
DETERMINED BY THE DEPARTMENT OF REVENUE, THAT THE HEAT PUMP SYSTEM
OR HEAT PUMP WATER HEATER WILL BE INSTALLED IN ACCORDANCE WITH THE
PROVISIONS OF SUBSECTION (4)(a) OF THIS SECTION, IF APPLICABLE.".
Renumber succeeding subsection accordingly.
Page 12, after line 3 insert:
"39-26-732. Residential energy storage systems - tax preference
performance statement - legislative declaration - definition - repeal.
(1) (a) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES EACH
BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE
PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE
DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND DECLARES THAT
THE PURPOSES OF THE TAX EXPENDITURE CREATED IN SUBSECTION (3) OF THIS
SECTION ARE TO:
(I) INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS,
SPECIFICALLY THE PURCHASE AND INSTALLATION OF RESIDENTIAL ENERGY
STORAGE SYSTEMS; AND
(II) CONTRIBUTE TO THE STATE'S EFFORT TO ACHIEVE ITS CLIMATE
GOALS.
(b) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL MEASURE
THE EFFECTIVENESS OF THE TAX EXEMPTION IN ACHIEVING THE PURPOSES
SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE NUMBER OF
RESIDENTIAL ENERGY STORAGE SYSTEMS SOLD AND USED IN THE STATE. THE
COLORADO ENERGY OFFICE SHALL PROVIDE THE STATE AUDITOR WITH ANY
AVAILABLE INFORMATION THAT WOULD ASSIST THE STATE AUDITOR'S
MEASUREMENT.
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, "ENERGY STORAGE SYSTEM" MEANS ANY COMMERCIALLY
AVAILABLE, CUSTOMER-SITED SYSTEM, INCLUDING BATTERIES AND THE
BATTERIES PAIRED WITH ON-SITE GENERATION, THAT IS CAPABLE OF RETAINING,
STORING, AND DELIVERING ENERGY BY CHEMICAL, THERMAL, MECHANICAL, OR
OTHER MEANS.
(3) ON AND AFTER JANUARY 1, 2023, ALL SALES, STORAGE, AND USE OF
ENERGY STORAGE SYSTEMS THAT ARE USED IN A RESIDENTIAL DWELLING ARE
EXEMPT FROM TAXATION UNDER PARTS 1 AND 2 OF THIS ARTICLE 26.
(4) THIS SECTION IS REPEALED, EFFECTIVE JANUARY 1, 2033.".".
Page 6 of the committee report, line 11, strike "ON OR BEFORE".
Page 6 of the committee report, strike lines 12 through 14 and substitute
"AFTER JANUARY 1, 2023, AN INVESTOR-OWNED GAS UTILITY, AT ITS
DISCRETION, MAY APPLY TO THE COMMISSION FOR APPROVAL TO MEASURE THE
AMOUNT OF USE FOR BILLING PURPOSES IN EITHER FUEL COMMODITY UNITS OR
FOR ENERGY SERVICES PROVIDED. UPON RECEIPT OF THE UTILITY'S APPLICATION,
THE COMMISSION SHALL APPROVE, DENY, OR MODIFY THE UTILITY'S
APPLICATION FOR MEASUREMENT OF USE FOR BILLING PURPOSES PURSUANT TO
THIS SECTION.".".
Page 6 of the committee report, strike lines 16 and 17 and substitute:
"Page 12, line 24, strike "AND".
Page 12, strike lines 25 through 27 and substitute:
"(R) THE EXEMPTION FOR SALES OF HEAT PUMP SYSTEMS AND HEAT
PUMP WATER HEATERS SET FORTH IN SECTION 39-26-731; AND
(S) THE EXEMPTION FOR SALES OF ENERGY STORAGE SYSTEMS SET
FORTH IN SECTION 39-26-732.".".
Finance The Committee on Finance has had under consideration and has had a hearing on the
following appointments and recommends that the appointments be placed on the consent
calendar and confirmed:
MEMBERS OF THE
COLORADO LIMITED GAMING CONTROL COMMISSION
for terms expiring July 1, 2025:
Sheriff Kevin Armstrong of Black Hawk, Colorado, to serve as a member from the
Second Congressional District, a representative of law enforcement, and as a Republican,
appointed;
Patricia Landaveri of Denver, Colorado, to serve as a member of the First Congressional
District, a representative of business management, and an Unaffiliated, appointed.
Senate Journal, April 1
After consideration on the merits, the Committee recommends that SB22-051 be amended
as follows, and as so amended, be referred to the Committee of the Whole with favorable
recommendation.
Amend the Finance Committee Report, dated March 2, 2022, page 1, strike line
7 and substitute:
"Page 1 of the Transportation & Energy Committee Report, line 25, strike
"THOSE HEAT PUMP SYSTEMS" and substitute "HEAT PUMP SYSTEMS AND HEAT
PUMP WATER HEATERS".".
Page 1 of the Finance Committee Report, line 12, strike "5 and 6" and substitute
"4 through 6".
Page 2 of the Finance Committee Report, line 6, strike "(2)(b)." and substitute
"(2)(d).".
Page 2 of the Finance Committee Report, after line 6 insert:
"(e) "PURCHASE PRICE" MEANS THE AMOUNT ACTUALLY PAID BY THE
PURCHASER FOR THE TANGIBLE PERSONAL PROPERTY INSTALLED, INCLUDING
CHARGES FOR SALES TAX AND FREIGHT, BUT NOT INCLUDING ANY CHARGES FOR
ASSEMBLY, INSTALLATION, OR OTHER CONSTRUCTION SERVICES, OR PERMIT
FEES.".
Reletter succeeding paragraphs accordingly.
Page 2 of the Finance Committee Report, strike lines 11 through 14 and
substitute:
"(g) "TAXPAYER" MEANS A PERSON SUBJECT TO TAX UNDER THIS
ARTICLE 22, OR A PERSON OR POLITICAL SUBDIVISION OF THIS STATE WHO IS
EXEMPT FROM TAX UNDER SECTION 39-22-112 (1), BUT DOES NOT INCLUDE
INSURANCE COMPANIES SUBJECT TO THE TAX IMPOSED ON GROSS PREMIUMS BY
SECTION 10-3-209. FOR PURPOSES OF THIS SECTION, A PERSON OR POLITICAL
SUBDIVISION OF THIS STATE WHO IS EXEMPT FROM TAX UNDER SECTION
39-22-112 (1) IS A TAXPAYER EVEN IF THE PERSON OR POLITICAL SUBDIVISION
HAS NO UNRELATED BUSINESS INCOME.
(h) "VARIABLE REFRIGERANT FLOW HEAT PUMP SYSTEM" HAS THE SAME
MEANING SET FORTH IN SECTION 39-26-731 (2)(f).
(i) "WATER-SOURCE HEAT PUMP SYSTEM" HAS THE SAME MEANING SET
FORTH IN SECTION 39-26-731 (2)(e).".
Page 2 of the Finance Committee Report, line 18, after "SYSTEM" insert "INTO
REAL PROPERTY IN THIS STATE".
Page 2 of the Finance Committee Report, line 19, after "HEATER" insert "INTO
REAL PROPERTY IN THIS STATE".
Page 2 of the Finance Committee Report, line 21, strike "PRICE OF" and
substitute "PRICE PAID BY THE PURCHASER FOR".
Page 3 of the Finance Committee Report, line 7, strike "TAXPAYER" and
substitute "PURCHASER".
Page 3 of the Finance Committee Report, line 26, strike "IF" and substitute
"WHEN".
Page 4 of the Finance Committee Report, line 13, strike "PURCHASER" and
substitute "SELLER".
Page 4 of the Finance Committee Report, strike lines 15 and 16 and substitute
"REFUNDABLE TO THE SELLER.".
Page 4 of the Finance Committee Report, after line 31 insert:
"(b) "PURCHASE PRICE" MEANS THE AMOUNT ACTUALLY PAID BY THE
PURCHASER FOR THE TANGIBLE PERSONAL PROPERTY INSTALLED, INCLUDING
CHARGES FOR SALES TAX AND FREIGHT, BUT NOT INCLUDING ANY CHARGES FOR
ASSEMBLY, INSTALLATION, OR OTHER CONSTRUCTION SERVICES, OR PERMIT
FEES.".
Reletter succeeding paragraph accordingly.
Page 4 of the Finance Committee Report, line 38, after "DWELLING" insert "IN
THIS STATE".
Page 4 of the Finance Committee Report, line 40, strike "PRICE OF" and
substitute "PRICE PAID BY THE PURCHASER FOR".
Page 5 of the Finance Committee Report, line 19, strike "IF" and substitute
"WHEN".
Page 6 of the Finance Committee Report, line 1, strike "PURCHASER" and
substitute "SELLER".
Page 6 of the Finance Committee Report, strike lines 3 and 4 and substitute
"REFUNDABLE TO THE SELLER.".
Page 6 of the Finance Committee Report, after line 10 insert:
"SECTION 2. In Colorado Revised Statutes, 39-22-601, amend (7) as
follows:
39-22-601. Returns. (7) (a) Every person or organization exempt from
taxes pursuant to section 39-22-112 shall make and file a return only if said
person or organization is required to file a federal return of unrelated business
income, which Colorado return shall contain such information as the executive
director may prescribe. All procedures of law relating to the determination,
assessment, collection, and refund of tax shall apply to such return and the tax
payable thereon.
(b) THE EXECUTIVE DIRECTOR MAY REQUIRE A PERSON OR
ORGANIZATION EXEMPT FROM TAXES PURSUANT TO SECTION 39-22-112 TO
MAKE AND FILE A RETURN CONTAINING SUCH INFORMATION AS THE EXECUTIVE
DIRECTOR MAY PRESCRIBE TO CLAIM A CREDIT ALLOWED UNDER THIS ARTICLE
22 EVEN IF THE PERSON OR ORGANIZATION DOES NOT HAVE UNRELATED
BUSINESS INCOME.
(c) ALL PROCEDURES OF LAW RELATING TO THE DETERMINATION,
ASSESSMENT, COLLECTION, AND REFUND OF TAX APPLY TO A RETURN MADE AND
FILED UNDER THIS SUBSECTION (7) AND THE TAX PAYABLE THEREON, IF ANY.".
Renumber succeeding sections accordingly.
Page 7 of the Finance Committee Report, line 21, after "GAS" insert "OR
WASTEWATER".
Page 7 of the Committee Report, line 30, after "SYSTEM" insert "AND
WASTEWATER SYSTEM".
Page 8 of the Finance Committee Report, line 16, after "GAS" insert "OR
WASTEWATER".
Page 8 of the Finance Committee Report, line 25, after "SYSTEM" insert "AND
WASTEWATER SYSTEM".
Amend printed bill, page 9, line 1, strike "THOSE".
Page 9 of the printed bill, line 2, after "SYSTEMS" insert "AND HEAT PUMP
WATER HEATERS".
Page 12 of the printed bill, strike line 5 and substitute "(1)(d)(I)(Q), (1)(d)(I)(R),
and (1)(d)(I)(S) as follows:".
Amend the Transportation & Energy Committee Report, dated February 8,
2022, page 5, line 11, after "TO" insert "THE".
Page 5 of the Transportation & Energy Committee Report, line 26, after "TO"
insert "THE".
Appro-
priations
Senate Journal, April 5
SB22-051 by Senator(s) Hansen; also Representative(s) Sirota--Concerning policies to reduce
emissions from the built environment.
Amendment No. 1, Transportation & Energy Committee Amendment.
(Printed in Senate Journal, February 9, page(s) 131-134 and placed in members' bill files.)
Amendment No. 2, Finance Committee Amendment.
(Printed in Senate Journal, March 3, page(s) 313-319 and placed in members' bill files.)
Amendment No. 3, Appropriations Committee Amendment.
(Printed in Senate Journal, April 1, page(s) 580-582 and placed in members' bill files.)
Amendment No. 4(L.008), by Senator Hansen.
Amend printed bill, page 1, after line 1 insert:
"SECTION 1. In Colorado Revised Statutes, 24-92-117, add (7) as
follows:
24-92-117. Maximum global warming potential for materials used
in eligible projects - buildings - projects that are not roads, highways, or
bridges - environmental product declaration - short title - report -
definitions. (7) FOR PURPOSES OF THE SALES AND USE TAX EXEMPTION FOR
ELIGIBLE DECARBONIZING BUILDING MATERIALS ALLOWED PURSUANT TO
SECTION 39-26-730, ANY MANUFACTURER OF AN ELIGIBLE MATERIAL MAY
SUBMIT THE ENVIRONMENTAL PRODUCT DECLARATION FOR THE ELIGIBLE
MATERIAL TO THE OFFICE OF THE STATE ARCHITECT. THE OFFICE SHALL REVIEW
THE ENVIRONMENTAL PRODUCT DECLARATION FOR ANY ELIGIBLE MATERIAL
SUBMITTED TO THE OFFICE BY A MANUFACTURER, AND SHALL DETERMINE
WHETHER THE MANUFACTURER'S ELIGIBLE MATERIAL IS WITHIN THE MAXIMUM
ACCEPTABLE GLOBAL WARMING POTENTIAL FOR THAT MATERIAL AS
DETERMINED BY THE OFFICE PURSUANT TO SUBSECTION (3) OF THIS SECTION.
BEGINNING JANUARY 1, 2024, THE OFFICE SHALL COMPILE AND MAINTAIN A LIST
OF ALL ELIGIBLE MATERIALS AND THE MANUFACTURERS OF THE ELIGIBLE
MATERIALS THAT ARE SUBMITTED TO THE OFFICE AND VERIFIED BY THE OFFICE
TO BE WITHIN THE MAXIMUM ACCEPTABLE GLOBAL WARMING POTENTIAL FOR
THAT MATERIAL AS DETERMINED BY THE OFFICE PURSUANT TO SUBSECTION (3)
OF THIS SECTION. IN COMPILING THE LIST, THE OFFICE SHALL CONSULT WITH THE
DEPARTMENT OF REVENUE TO ENSURE THAT ALL INFORMATION REQUIRED FOR
PURPOSES OF THE SALES AND USE TAX EXEMPTION ALLOWED PURSUANT TO
SECTION 39-26-730 IS INCLUDED ON THE LIST. THE OFFICE SHALL REGULARLY
UPDATE THE LIST, POST THE MOST CURRENT VERSION OF THE LIST ON THE
OFFICE'S WEBSITE, AND ENSURE THAT THE LIST IS AVAILABLE TO THE
DEPARTMENT OF REVENUE.".
Renumber succeeding sections accordingly.
Page 7, line 25, after "MATERIALS" insert "THAT ARE ON THE LIST OF ELIGIBLE
MATERIALS MAINTAINED BY THE OFFICE OF THE STATE ARCHITECT PURSUANT
TO SECTION 24-92-117 (7),".
Page 8, strike lines 1 through 8 and substitute "SHALL PROVIDE THE LIST IT
COMPILES AND MAINTAINS PURSUANT TO SECTION 24-92-117 (7) TO THE
DEPARTMENT OF REVENUE. BASED ON THE LIST FROM THE OFFICE OF THE STATE
ARCHITECT, THE DEPARTMENT SHALL CREATE AND MAINTAIN A DATABASE OF
PRODUCTS, INCLUDING THE MANUFACTURERS OF THE PRODUCTS, THAT ARE
ELIGIBLE FOR THE SALES AND USE TAX EXEMPTION ALLOWED PURSUANT TO THIS
SECTION FOR USE BY ENTITIES THAT SELL DECARBONIZING BUILDING
MATERIALS.".
As amended, ordered engrossed and placed on the calendar for third reading and final
passage.
House Journal, April 22
26 SB22-051 be amended as follows, and as so amended, be referred to
27 the Committee on Finance with favorable
28 recommendation:
29
30 Amend reengrossed bill, page 7, line 15, strike "SHALL" and substitute
31 "MAY".
32
33 Page 7, line 25, strike "SHALL" and substitute "MUST".
34
35 Page 8, line 2, strike "SHALL" and substitute "MUST".
36
37 Page 8, line 6, strike "WHEN" and substitute "IF".
38
39 Page 8, line 13, strike "SHALL" and substitute "MUST".
40
41 Page 9, line 17, strike "2035." and substitute "2038.".
42
43 Page 10, after line 17 insert:
44 "(b) "PURCHASE PRICE" MEANS THE AMOUNT ACTUALLY PAID BY
45 THE PURCHASER FOR THE TANGIBLE PERSONAL PROPERTY INSTALLED,
46 INCLUDING CHARGES FOR SALES TAX AND FREIGHT, BUT NOT INCLUDING
47 ANY CHARGES FOR ASSEMBLY, INSTALLATION, OR OTHER CONSTRUCTION
48 SERVICES, OR PERMIT FEES.".
49
50 Reletter succeeding paragraphs accordingly.
51
52 Page 11, strike lines 1 through 5.
53
54 Reletter succeeding paragraph accordingly.
55
1 Page 11, line 9, strike "SHALL" and substitute "MAY".
2
3 Page 11, line 15, strike "SHALL" and substitute "MUST".
4
5 Page 11, line 19, strike "SHALL" and substitute "MUST".
6
7 Page 11, line 23, strike "WHEN" and substitute "IF".
8
9 Page 12, line 3, strike "SHALL" and substitute "MUST".
10
11 Page 13, line 2, strike "2035." and substitute "2038.".
12
13 Page 18, line 16, after "INCLUDE" insert "AN ELECTRIC RESISTANCE
14 HEATING ELEMENT OR".
15
16 Page 18, line 17, after "SYSTEM" insert "FOR SUPPLEMENTAL HEAT".
17
18 Page 18, line 23, after "THE" insert "DUAL FUEL".
19
20 Page 19, after line 1 insert:
21
22 "(III) "AIR-SOURCE HEAT PUMP SYSTEM" INCLUDES MECHANICAL
23 AND ELECTRICAL EQUIPMENT CENTRAL TO THE OPERATION OF AN
24 AIR-SOURCE HEAT PUMP, INCLUDING AN UPGRADED ELECTRICAL PANEL
25 IF NECESSARY.".
26
27 Page 20, line 6, strike "PUMP." and substitute "PUMP, INCLUDING AN
28 UPGRADED ELECTRICAL PANEL IF NECESSARY.".
29
30 Page 20, line 11, strike "SYSTEM, OR" and substitute "SYSTEM, COMBINED
31 WATER-SOURCE AND AIR-SOURCE HEAT PUMP SYSTEM, OR".
32
33 Page 20, line 20, strike "PUMP" and substitute "PUMP, INCLUDING AN
34 UPGRADED ELECTRICAL PANEL IF NECESSARY".
35
36
House Journal, May 2
17 SB22-051 be amended as follows, and as so amended, be referred to
18 the Committee on Appropriations with favorable
19 recommendation:
20
21 Amend the Energy and Environment Committee Report, dated April 21,
22 2022, page 1, strike lines 1 and 2 and substitute:
23
24 "Amend reengrossed bill, page 7, line 5, strike "HEATHER" and substitute
25 "HEATER".
26
27 Page 7 of the bill, line 15, strike "SHALL" and substitute "MAY".".
28
29 Page 2 of the report, strike lines 18 and 19 and substitute:
30
31 "Page 20 of the bill, line 20, strike "HEATER." and substitute "HEATER,
32 INCLUDING AN UPGRADED ELECTRICAL PANEL IF NECESSARY.".".
33
34
House Journal, May 5
25 Amendment No. 1, Appropriations Report, dated May 4, 2022, and placed
26 in member’s bill file; Report also printed in House Journal, May 4, 2022.
27
28 Amendment No. 2, Finance Report, dated May 2, 2022, and placed in
29 member’s bill file; Report also printed in House Journal, May 2, 2022.
30
31 Amendment No. 3, Energy & Environment Report, dated April 21, 2022,
32 and placed in member’s bill file; Report also printed in House Journal,
33 April 22, 2022.
34
35 As amended, ordered revised and placed on the Calendar for Third
36 Reading and Final Passage.
37