(c) (I) For income tax years commencing on or after January 1, 2014, except as provided in sections 24-46-104.3 and 24-46-108 and subsection (2)(c)(II) of this section, the amount that may be claimed by a taxpayer for an income tax year and that is not applied or refunded under section 24-46-108 is limited to the lesser of:
(A) The sum of up to five thousand dollars of the taxpayer's actual tax liability for the income tax year plus fifty percent of any portion of the tax liability for the income tax year that exceeds five thousand dollars; or
(B) Seven hundred fifty thousand dollars plus any investment tax credit carryovers previously allowed in subsection (2.5) of this section for investments made in income tax years commencing before January 1, 2014.
(II) (A) A taxpayer may seek a waiver of the limitation specified in subparagraph (I) of this paragraph (c) by completing a written application to the Colorado economic development commission for permission to claim a credit in excess of such limit for the income tax year in which the total qualified investment is made. The application must include an identification of the substantial positive impact the waiver of the limitation would have on investments and on well-paying jobs in the enterprise zone, documentation that demonstrates that without the waiver of the limitation the substantial positive impact on investments and on well-paying jobs in the enterprise zone is not likely to occur, and information that the waiver of the limitation is a substantial factor to the start-up, expansion, or relocation of the taxpayer's business, that receipt of the waiver of the limitation is a major factor in the taxpayer's decision, and that without the waiver of the limitation the taxpayer is not likely to make the qualified investment. In deciding whether to grant the waiver of the limitation, the commission must consider the overall economic health of this state and the economic viability of the arguments made by the taxpayer in support of the taxpayer's application. The Colorado economic development commission may require the taxpayer to provide an independent analysis, at the taxpayer's expense, substantiating the taxpayer's arguments in support of the application. The taxpayer's application must be considered at a regularly scheduled meeting of the Colorado economic development commission where the public is allowed to comment.
(B) The Colorado economic development commission may allow all, part, or none of a taxpayer's application to waive the limitation specified in subparagraph (I) of this paragraph (c). The Colorado economic development commission shall issue a credit certificate that sets forth the amount of the credit that the taxpayer may claim for the income tax year in which the total qualified investment is made. The credit certificate shall be submitted by the taxpayer to the department of revenue with the taxpayer's income tax return for the tax year for which the credit certificate is issued.
(C) In the event the Colorado economic development commission approves a taxpayer's application to waive the limitation specified in subparagraph (I) of this paragraph (c), the Colorado economic development commission shall include its decision in the enterprise zone annual report to the general assembly specified in section 39-30-103 (4)(b.7), including the taxpayer's name, the amount of the credit that the commission allowed the taxpayer to claim, and the Colorado economic development commission's justification for approving the application.
(III) (A) Except as otherwise provided in sections 24-46-104.3 and 24-46-108 and subsection (2)(c)(III)(B) of this section, any excess credit allowed pursuant to this subsection (2)(c) shall be an investment tax credit carryover to each of the fourteen income tax years following the unused credit year.
(B) Except as otherwise provided in section 24-46-104.3, any excess credit allowed pursuant to this subsection (2)(c) for a renewable energy investment made in an income tax year commencing before January 1, 2018, shall be an investment tax credit carryover for twenty-two income tax years following the year the credit was originally allowed.
(IV) The limitation contained in this subsection (2)(c) on the amount a taxpayer may claim for the income tax year in which the total qualified investment is made does not limit the total amount of the credit allowed under subsection (1)(a) of this section, nor does it limit the ability of a taxpayer to carry over a credit to subsequent tax years as allowed in subsection (2)(c)(III) of this section or previously allowed in subsection (2.5) of this section for investments made in income tax years commencing before January 1, 2014.
(V) In computing the amount that may be claimed by a taxpayer pursuant to this paragraph (c), a taxpayer's actual tax liability for the income tax year shall be derived from the calculated tax before any reduction of credits.
(2.5) (a) (I) Notwithstanding section 39-22-507.5 (7)(b), except as provided in section 24-46-107 and except as otherwise provided in subsections (2.5)(a)(II) and
(2.5)(b) of this section, any excess credit allowed pursuant to this section for an investment made in an income tax year commencing before January 1, 2014, shall be an investment tax credit carryover to each of the twelve income tax years following the unused credit year.
(II) Except as provided in section 24-46-107, any excess credit claimed pursuant to this section for a renewable energy investment made in an income tax year commencing before January 1, 2014, is an investment tax credit carryover for twenty income tax years following the year the credit was originally allowed.
(b) (I) For income tax years commencing on or after January 1, 2011, but prior to January 1, 2014, any taxpayer that is eligible to claim a credit pursuant to subsection (1) of this section in excess of five hundred thousand dollars shall defer claiming any amount of the credit allowed pursuant to this section that exceeds five hundred thousand dollars until an income tax year commencing on or after January 1, 2014. The five-hundred- thousand-dollar limitation specified in this subsection (2.5)(b) applies to any credit allowed in the income tax years commencing on or after January 1, 2011, but prior to January 1, 2014, including any amount carried forward from a prior year.
(II) Except as provided in section 24-46-107 and subsection (2.5)(b)(III) of this section, a taxpayer that deferred claiming any credit in excess of five hundred thousand dollars during an income tax year commencing on or after January 1, 2011, but prior to January 1, 2014, pursuant to subsection (2.5)(b)(I) of this section shall be allowed to claim the deferred credit as an investment tax credit carryover for twelve income tax years following the year the credit was originally allowed plus one additional income tax year for each income tax year that the credit was deferred pursuant to subsection (2.5)(b)(I) of this section.
(III) Except as provided in section 24-46-107, a taxpayer is allowed to claim the deferred credit described in subsection (2.5)(b)(II) of this section for a renewable energy investment made in an income tax year commencing before January 1, 2014, as an investment tax credit carryover for twenty income tax years following the year the credit was originally allowed plus one additional income tax year for each income tax year that the credit was deferred pursuant to subsection
(2.5)(b)(I) of this section.
(c) This subsection (2.5) is repealed, effective January 1, 2040.
(2.6) (a) Except as provided in section 24-46-104.3 and subsection (2.6)(b) of this section and notwithstanding any other provision in this section, in each income tax year commencing on or after January 1, 2015, but before January 1, 2021, a taxpayer who places a new renewable energy investment in service on or after January 1, 2015, but before January 1, 2021, that results in a credit pursuant to subsection (1) of this section may elect to receive a refund of eighty percent of the amount of such credit as specified in this subsection (2.6)(a) and forego the remaining twenty percent as a cost of such election. If eighty percent of the amount of the credit in subsection (1) of this section is:
(I) Seven hundred fifty thousand dollars or less, the taxpayer receives the full refund in the first tax year; or
(II) More than seven hundred fifty thousand dollars, the taxpayer annually receives a refund not to exceed seven hundred fifty thousand dollars per income tax year until eighty percent of the amount of the credit in subsection (1) of this section for the new renewable energy investment described in the final certification is completely refunded to the taxpayer.
(b) A taxpayer may make the election allowed in paragraph (a) of this subsection (2.6) for more than one new renewable energy investment per income tax year. If a taxpayer makes an election allowed in paragraph (a) of this subsection
(2.6) for more than one new renewable energy investment, then the taxpayer may only receive the refund allowed in said paragraph (a) for any subsequent new renewable energy investment after the eighty percent of the amount of the credit for the previous new renewable energy investment is completely refunded to the taxpayer. Under no circumstances may a taxpayer making the required election specified in paragraph (a) of this subsection (2.6) receive refunds allowed pursuant to this subsection (2.6) totaling more than seven hundred fifty thousand dollars per income tax year.
(c) The taxpayer makes an election described in paragraph (a) of this subsection (2.6) by filing an election statement on such form as prescribed by the department of revenue not later than the due date, including extensions, for filing the tax return for the taxable year during which the new renewable energy investment described in the final certification is placed into service.
