Senate Bill 02-066
|The Amendment to the Bill||Bill in Microsoft Word Format|
Sixty-third General Assembly
STATE OF COLORADO
LLS NO. 02-0231.01 Nicole Hoffman SENATE BILL 02-066
Senate Committees House Committees
Business, Labor, and Finance
A BILL FOR AN ACT
CONCERNING AN INCOME TAX CREDIT FOR INDIVIDUAL TAXPAYERS WHO MAKE CHARITABLE CONTRIBUTIONS TO ORGANIZATIONS THAT PROVIDE ASSISTANCE TO LOW-INCOME FAMILIES.
(Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.)
Encourages individual taxpayers in the private sector to help charitable organizations assist low-income and homeless people.
For any income tax year commencing on or after January 1, 2002, allows a state income tax credit for any individual taxpayer who makes a contribution to a secular or faith-based charitable organization that is used by such charitable organization for providing food, shelter, clothing, housing, job training, tutoring, prenatal medical care, counseling, education, or other ancillary services to homeless or low-income individuals or families. Specifies that the income tax credit shall be a specified percentage of the total value of the contribution.
In the event that the amount of the credit allowed exceeds the amount of income taxes otherwise due on the taxpayer's income in the income tax year for which the credit is claimed, allows the amount of the credit not used to be carried forward and used as a credit against subsequent years' income.
Requires any charitable contribution tax credit claimed to be accompanied by an affidavit and receipts from the charitable organization to verify the amount of the contribution and that the contribution was used by the charitable organization to provide food, shelter, clothing, housing, job training, tutoring, prenatal medical care, counseling, education, or other ancillary services to homeless or low-income individuals or families.
II. 39-22-128. Credit for charitable contributions. (1) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:
III. (a) "CHARITABLE ORGANIZATION" MEANS A NOT FOR PECUNIARY PROFIT SECULAR OR FAITH-BASED ORGANIZATION THAT IS CURRENTLY EXEMPT FROM FEDERAL INCOME TAXATION UNDER SECTION 501 (c) (3) OF THE INTERNAL REVENUE CODE, AND THAT PROVIDES FOOD, SHELTER, CLOTHING, HOUSING, JOB TRAINING, TUTORING, PRENATAL MEDICAL CARE, COUNSELING, EDUCATION, OR OTHER ANCILLARY SERVICES TO HOMELESS OR LOW-INCOME INDIVIDUALS OR FAMILIES.
IV. (b) "HOMELESS" MEANS AN INDIVIDUAL OR FAMILY WHO LACKS A FIXED, REGULAR, AND ADEQUATE NIGHTTIME RESIDENCE OR WHO HAS A PRIMARY NIGHTTIME RESIDENCE THAT IS:
V. (I) A SUPERVISED, PUBLICALLY OR PRIVATELY OPERATED SHELTER DESIGNED TO PROVIDE TEMPORARY LIVING ACCOMMODATIONS, INCLUDING WELFARE HOTELS, CONGREGATE SHELTERS, AND TRANSITIONAL HOUSING FOR THE MENTALLY ILL;
VI. (II) AN INSTITUTION THAT PROVIDES A TEMPORARY RESIDENCE FOR INDIVIDUALS INTENDED TO BE INSTITUTIONALIZED; OR
VII. (III) A PUBLIC OR PRIVATE PLACE NOT DESIGNATED FOR OR ORDINARILY USED AS A REGULAR SLEEPING ACCOMMODATION FOR HUMAN BEINGS.
VIII. (c) "LOW-INCOME" MEANS AN ANNUAL INCOME THAT DOES NOT EXCEED ONE HUNDRED FIFTY PERCENT OF THE FEDERAL POVERTY LEVEL AS REPORTED BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES.
IX. (d) "QUALIFYING CONTRIBUTION" MEANS A NON-REIMBURSED MONETARY OR IN-KIND CONTRIBUTION TO A CHARITABLE ORGANIZATION USED BY SUCH ORGANIZATION TO PROVIDE FOOD, SHELTER, CLOTHING, HOUSING, JOB TRAINING, TUTORING, PRENATAL MEDICAL CARE, COUNSELING, EDUCATION, OR OTHER ANCILLARY SERVICES TO HOMELESS OR LOW-INCOME INDIVIDUALS OR FAMILIES.
X. (2) FOR ANY INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2002, ANY INDIVIDUAL TAXPAYER WHO MAKES A QUALIFYING CONTRIBUTION TO A CHARITABLE ORGANIZATION IN THE STATE SHALL BE ALLOWED A CREDIT AGAINST THE INCOME TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF THE TOTAL VALUE OF THE CONTRIBUTION.
XI. (3) IF THE AMOUNT OF THE CREDIT ALLOWED PURSUANT TO THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE TAXPAYER'S INCOME IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS CLAIMED, THE AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES IN SAID INCOME TAX YEAR MAY BE CARRIED FORWARD AND USED AS A CREDIT AGAINST SUBSEQUENT YEARS' INCOME TAX LIABILITY FOR A PERIOD NOT TO EXCEED SEVEN YEARS AND SHALL BE APPLIED FIRST TO THE EARLIEST INCOME TAX YEARS POSSIBLE. ANY CREDIT REMAINING AFTER SAID PERIOD SHALL NOT BE REFUNDED OR CREDITED TO THE TAXPAYER.
XII. (4) ANY CREDIT CLAIMED PURSUANT TO THIS SECTION SHALL BE ACCOMPANIED BY AN AFFIDAVIT AND RECEIPTS FROM THE CHARITABLE ORGANIZATION TO VERIFY THE AMOUNT OF THE CONTRIBUTION AND TO CERTIFY THAT SUCH CONTRIBUTION WAS A QUALIFYING CONTRIBUTION FOR PURPOSES OF THIS SECTION.
SECTION Effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution; except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.