2021 Colorado Code
Title 39 - Taxation
Article 22 - Income Tax
Part 3 - Corporations
§ 39-22-344. Imposition of Tax

1. With respect to any taxable period for which it has made the election under section 39-22-343, an electing pass-through entity is subject to a tax in an amount equal to four and fifty-five one-hundredths percent of the sum of the following, all as determined pursuant to sections 39-22-202, 39-22-203, 39-22-322, and 39-22-323:
   1. Each electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income attributable to the state; and
   2. Each resident electing pass-through entity owner's pro rata or distributive share of the electing pass-through entity's income not attributable to the state.

2. An electing pass-through entity is treated as a corporation under section 39-22-606 with respect to the tax imposed under this subpart 3; except that section (5)(c)(I) does not apply during the first taxable period for which this subpart 3 is applicable.
3. Any credit allowed pursuant to this article 22 that is attributable to the activities of an electing pass-through entity in the taxable year shall be claimed by the entity and not passed through to or claimed by the electing pass-through entity owner. Notwithstanding any section to the contrary in this article 22, any excess income tax credit, net operating loss, or other modification may be carried forward on the electing pass-through entity's return but may only be utilized in a year in which the electing pass-through entity has made the election allowed in section 39-22-343; except that any limitation specified in the specific section for an income tax credit, the net operating loss, or any other modification shall apply to the electing pass-through entity.
4. The executive director of the department of revenue may promulgate rules in accordance with article 4 of title 24 to require or permit an electing pass-through entity to make returns, set forth information, or furnish copies of information as required in section 39-22-601 (2.5)(a) through (2.5)(c) and (5)(a) through (5)(c) as is necessary to execute the provisions of this subpart 3. Notwithstanding the specificity of the foregoing, the executive director may promulgate such other rules as are, in the executive director's view, necessary or expedient in enforcing the provisions of this subpart 3.
5. The provisions of sections 39-22-601 (2.5)(d) through (2.5)(i) and (5)(d) through (5)(i) are not applicable to an electing pass-through entity.
6. The provisions of article 21 of this title 39 regarding the collection, administration, and enforcement of tax is applicable to the tax due under this section, and, notwithstanding the provisions of sections 39-22-201, 39-22-302, and 39-22-322, an electing pass-through entity is a taxpayer.

History. Source: L. 2021: Entire subpart added, (HB 21-1327), ch. 300, p. 1802, § 1, effective June 23.