ColoradoColorado law allows approved job growth tax credits through 2034
Once effective, the signed law allows eligible employers to receive commission-approved income tax credits for tax years starting before January 1, 2035.
What it does
Once the law takes effect, eligible employers may receive job growth tax credits for tax years starting before January 1, 2035. The commission decides whether to approve credits and their amounts.
Once effective, the law requires lawmakers and the state auditor to measure jobs created and credit values. The commission must report credit recipients and certain rejected credits annually through 2042.
Argument forOffering eligible employers income tax credits could encourage them to create Colorado jobs by lowering their tax bills.
Argument againstAllowing approved employers to claim credits through 2034 could reduce state income tax revenue available for other public needs.
More detail
The law allows the commission overseeing the credit program to approve annual credits against state income taxes. The credit serves eligible employers under a program intended to support jobs in Colorado. Employers must meet the program's eligibility rules. The commission decides whether to allow a credit and determines its amount. The act takes effect after the 90-day period following final legislative adjournment: August 12, 2026, if adjournment was May 13, 2026. A referendum petition filed within that period delays the challenged provisions. They take effect only if voters approve them in November 2026 and the governor officially declares the vote. The credit provision covers income tax years starting on or after January 1, 2009, and before January 1, 2035. The program's governing section is scheduled for repeal on July 1, 2059.
Lawmakers and the state auditor must measure the credit's effectiveness. The commission overseeing the program must send annual electronic reports to the state tax department. The review measures new jobs created and the annual value of credits allowed and made available to taxpayers. Reports cover taxpayers receiving credits for the preceding calendar year or a fiscal year ending in that calendar year. They also cover credits rejected under a specified program rule for any year. These provisions follow the act's effective-date rule, including voter approval if a timely referendum petition challenges them. The commission's annual reports are due by September 1 each year through September 1, 2042.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- May 29Governor Jared Polis SignedBecame Law
- May 27Signed by the Speaker of the HouseMajor
- May 27Signed by the President of the SenateMajor
- May 27Sent to the GovernorTo Governor
- May 12House Considered Senate Amendments - Result was to Concur - Repass
- Vote recorded CONCUR. Result: pass.Upper
- Vote recorded REPASS. Result: pass.Upper
- Vote recorded REPASS. Result: pass.Lower
- Vote recorded CONCUR. Result: pass.Lower
- May 9House Considered Senate Amendments - Result was to Laid Over Daily
- May 8Senate Third Reading Passed - No AmendmentsPassed Senate
- Vote recorded BILL. Result: pass.Upper
- May 7Senate Committee on Appropriations Refer Unamended to Senate Committee of the WholeMinor
- Vote recorded Refer House Bill 26-1014 to the Committee of the Whole. Result: pass.Upper
- May 7Senate Second Reading Special Order - Passed with Amendments - Floor
- May 5Senate Committee on Finance Refer Unamended to AppropriationsMinor
- Vote recorded Refer House Bill 26-1014 to the Committee on Appropriations. Result: pass.Upper
- May 4House Third Reading Passed - No AmendmentsPassed House
- Vote recorded BILL. Result: pass.Lower
- May 4Introduced In Senate - Assigned to FinanceMinor
- May 1House Committee on Appropriations Refer Unamended to House Committee of the WholeMinor
- Vote recorded Refer House Bill 26-1014 to the Committee of the Whole. Result: pass.Lower
- May 1House Second Reading Special Order - Passed with Amendments - Floor
- Feb 23House Committee on Finance Refer Unamended to AppropriationsMinor
- Vote recorded Refer House Bill 26-1014 to the Committee on Appropriations. Result: pass.Lower
- Jan 14Introduced In House - Assigned to FinanceIntroduced
Economy & JobsTaxes & Budget