(1) (a) For the tax year 2013 and each tax year thereafter, a credit against the tax imposed by sections 10-3-209 and 10-6-128 is allowed to any insurance company that becomes a qualified taxpayer by making a contribution to the exchange pursuant to this section.
(b) A qualified taxpayer claiming a credit against premium tax liability under this section is not required to pay any additional retaliatory tax as a result of claiming the credit.
The commissioner may promulgate rules necessary for the administration of the taxcredit allowed by subsection (1) of this section in accordance with article 4 of title 24, C.R.S.
(a) Subject to paragraph (c) of subsection (4) of this section, an insurance company shall become a qualified taxpayer if all of the following conditions are met:
The insurance company declares with its quarterly tax payment due on or about July31 in the manner prescribed by the commissioner its intent to contribute to the exchange on or before October 31 an amount of money equal to the premium taxes paid by the company pursuant to the July 31 tax payment or a lesser amount as specified by the commissioner if required pursuant to paragraph (b) of subsection (4) of this section;
The total amount of the tax credits granted by the commissioner does not exceed fivemillion dollars; and
The insurance company receives an allocation notice from the commissioner andthe insurance company makes the contribution to the exchange as specified in the allocation notice on or before October 31.
Subject to paragraph (c) of subsection (4) of this section, an insurance company thatbecomes a qualified taxpayer may claim the tax credit on one or more subsequent quarterly or annual tax payments beginning on or about October 31.
The board shall promptly notify the commissioner when it receives a contributionpursuant to this section of the amount and date of the contribution and the name of the contributor.
(a) Subject to paragraph (c) of this subsection (4), by September 30 of each year, the commissioner shall:
Send an allocation notice to each insurance company whose declaration of intent tocontribute to the exchange has been accepted pursuant to this subsection (4). The allocation notice shall specify the amount of tax credits allocated to the insurance company and the amount of cash the insurance company must contribute to the exchange by October 31, which amounts shall be identical and not exceed the amount of premium taxes paid by the insurance company in its quarterly tax payment due on or about July 31.
Post on the division's website whether the full amount of tax credits authorized to beallocated each year has been allocated.
Subject to paragraph (c) of this subsection (4), the commissioner shall allocate nomore than a total of five million dollars of premium tax credits per year. The commissioner shall allocate to an insurance company that has declared its intent to contribute to the exchange pursuant to this section tax credits in an amount equal to the amount of premium taxes paid by the insurance company in its quarterly tax payment due on or about July 31 in the order in which the division receives such quarterly tax payments until the full amount of credits available pursuant to this section has been allocated; except that, if such amount of taxes or the sum of all the taxes filed by all the insurance companies on any one day would exceed, singly or in the aggregate, the annual maximum aggregate amount of tax credits available under this section, the commissioner shall reduce the allocation to the insurance company whose contribution first exceeds the annual maximum aggregate to the amount needed to satisfy the annual maximum aggregate. If the commissioner is unable to determine the order of receipt of tax payments on that day, the commissioner shall allocate the tax credits to the company or among the companies on a pro rata basis based on the ratio such company's quarterly tax payment bears to the total amount of all such companies' quarterly tax payments until the full amount of credits available pursuant to this section has been allocated.
(I) The commissioner shall allow insurance companies to declare their intent to contribute to the exchange pursuant to this section on the insurance companies' quarterly tax payments due on or about October 31 and shall send such companies allocation notices by February 1 if:
The full amount of tax credits available in any one year have not been fully allocatedby the commissioner pursuant to statements of intent filed with insurance companies' quarterly tax payments due on or about July 31; or
The total amount of tax credits has been claimed, but one or more insurance companies failed to timely make a contribution to the exchange.
(II) An insurance company that declares its intent to contribute to the exchange pursuant to this paragraph (c) shall make the contribution to the exchange as specified in the allocation notice on or before March 1 and may claim the tax credit on one or more subsequent quarterly or annual tax payments due on or about March 1.
The board shall use moneys contributed to the exchange pursuant to this section andinterest derived from the deposit and investment of the moneys to operate and sustain the exchange and to build reserves.
Source: L. 2013: Entire section added, (HB 13-1245), ch. 258, p. 1362, § 5, effective May 23.