ColoradoTax Expenditure Adjustments
What it does
The bill adjusts 3 2 existing tax expenditures. Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026; Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%. Section 3 2 creates a new tax credit.
More detail
The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
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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 11Senate Committee on Finance Postpone IndefinitelyLatest
- Vote recorded Postpone House Bill 26-1221 indefinitely. 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 Second Reading Special Order - Passed with Amendments - Committee, Floor
- Apr 30House Second Reading Laid Over Daily - No Amendments
- Apr 28House Committee on Appropriations Refer Unamended to House Committee of the WholeMinor
- Vote recorded Refer House Bill 26-1221 to the Committee of the Whole. Result: pass.Lower
- Mar 9House Committee on Finance Refer Amended to AppropriationsMinor
- Vote recorded Refer House Bill 26-1221, as amended, to the Committee on Appropriations. Result: pass.Lower
- Vote recorded Adopt amendment L.002. Result: pass.Lower
- Vote recorded Adopt amendment L.003. Result: pass.Lower
- Feb 17Introduced In House - Assigned to FinanceIntroduced
- May 11Senate Committee on Finance Postpone IndefinitelyLatest