First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0888.02 Pierce Lively x2059
HOUSE BILL 25-1296
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE ADJUSTMENT OF CERTAIN TAX EXPENDITURES .101
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill adjusts several state tax expenditures as follows:
! Section 2 of the bill increases the amount of a company's
total domestic workforce that must be in Colorado for a
company to qualify for the insurance premium tax rate tax
expenditure for a home office or regional home office;
! Section 3 requires insurance companies, when submitting
certain filings with the division of insurance, to submit the
total annual dollar amount of premiums collected or
HOUSE SPONSORSHIP
Garcia and Zokaie,
SENATE SPONSORSHIP
Weissman,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. contracted for on policies or contracts of insurance
covering property or risks in Colorado during the previous
calendar year from entities that are exempt from taxation;
! Section 6 limits the existing tax deduction related to
expenses, the deduction of which is disallowed by section
280C of the internal revenue code, so that a taxpayer may
only claim the tax deduction for income tax years
commencing before January 1, 2026;
! Section 10, for income tax years commencing on and after
January 1, 2026, creates a new tax deduction related to
expenses, the deduction of which is disallowed by section
280C of the internal revenue code, so that a taxpayer may
claim the deduction for any expenses that cannot be
deducted under section 280C of the internal revenue code;
! Section 7 limits the alternative minimum tax credit to
income tax years commencing prior to January 1, 2025;
! Section 8 extends the tax credit for monetary contributions
to promote child care, so that the tax credit is available
through income tax years commencing before January 1,
2030, rather than January 1, 2028;
! Section 9, for income tax years commencing on and after
January 1, 2026, creates an income tax credit for certain
individuals who are 65 years of age or older in the income
tax year, or who are a surviving spouse of that individual,
and who were previously eligible to receive a grant for real
property tax assistance and heat or fuel expenses
assistance;
! Section 20, beginning January 1, 2026, ends the
availability of grants for real property tax assistance and
heat or fuel expenses assistance;
! Sections 4, 5, 14, 15, 21, 22, and 23 make conforming
amendments for the changes made in sections 9 and 20;
! Section 11 expands the definition of local government to
include counties for purposes of the alternative
transportation options tax credit;
! Section 12 limits the existing business personal property
tax credit so that a taxpayer may only claim the tax
deduction for income tax years commencing before January
1, 2026;
! Section 13 modifies the tax credit for qualified costs
incurred in preservation of historic structures by removing
the 5% increase in the percentage of rehabilitation expenses
incurred in a rehabilitation in a disaster area for the
rehabilitation of a commercial structure that are applicable
for the tax credit;
HB25-1296
-2- ! Section 16 modifies the downloaded software sales tax
exemption so that all software that is available for repeated
sale and license and governed by a nonnegotiable license
agreement qualifies as tangible property and thus is subject
to sales tax;
! Section 17 ensures that, beginning July 1, 2025, interstate
telephone and telegraph services are subject to state sales
tax;
! Section 18 repeals, effective July 1, 2025, the special fuel
excise tax reduction associated with bad debt and the
payment of the special fuel excise tax; and
! Section 19 modifies the enterprise zone tax credit for
income tax years beginning January 1, 2026, by limiting the
total amount of the credit that may be claimed to $2
million, providing an exemption process for that limit, and
prohibiting certain taxpayers from claiming that credit.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) (I) The insurance premium tax rate tax expenditure for a home4
office or regional home office was intended to create an incentive for5
insurance companies to maintain a substantial workforce presence in the6
state, but the tax expenditure has not satisfied this intent;7
(II) In order to better meet the intended purpose of the tax8
expenditure, the home office or regional home office tax rate exemption9
is modified to increase the amount of a company's total domestic10
workforce that must be in Colorado to qualify for the tax expenditure11
from 2.5% to 7%; and12
(III) The modification of the tax expenditure will only cause a de13
minimis revenue gain that is incidental to the primary purpose of14
modifying the tax expenditure so that it better satisfies its original intent;15
(b) (I) The Colorado alternative minimum tax, like the federal16
HB25-1296-3- alternative minimum tax, ensures that taxpayers who benefit from certain1
income tax provisions pay a minimum amount of income tax;2
(II) A taxpayer's Colorado alternative minimum tax is calculated3
based on that taxpayer's federal alternative minimum taxable income;4
(III) A taxpayer may claim the Colorado alternative minimum tax5
credit, like the federal alternative minimum tax credit, if that taxpayer was6
liable for the federal alternative minimum tax in the previous income tax7
year;8
(IV) Colorado's tax policy has long been and remains to assess an9
income tax on individual and corporate taxpayers;10
(V) Colorado is one of only three states that has an alternative11
minimum tax and an associated tax credit, and the Colorado alternative12
minimum tax is not assessed equally against individual and corporate13
taxpayers;14
(VI) In order to achieve greater internal consistency in Colorado15
tax policy and to achieve more consistency between Colorado tax policy16
and the tax policy in other states, this act repeals the alternative minimum17
tax credit; and18
(VII) The repeal of the tax expenditure will only cause a de19
minimis revenue gain that is incidental to the primary purpose of ensuring20
greater tax policy consistency;21
(c) (I) House Bill 24-1314 substantially modified the tax credit for22
qualified costs incurred in the preservation of historic structures by,23
among other things, expanding the amount of the tax credit available to24
taxpayers;25
(II) As part of modifying the tax expenditure, House Bill 24-131426
also removed the 5% increase in the percentage of rehabilitation expenses27
HB25-1296
-4- incurred in a disaster area for the rehabilitation of a residential structure,1
but not a commercial structure, that are considered in determining the2
amount of the tax expenditure;3
(III) This act further modifies the tax expenditure by removing the4
5% increase in the percentage of rehabilitation expenses incurred in a5
rehabilitation in a disaster area for the rehabilitation of a commercial6
structure that are considered in determining the amount of the tax7
expenditure;8
(IV) The primary purpose of the modification of this tax9
expenditure is to decrease administrative burden by aligning the treatment10
of expenses incurred in rehabilitating residential and commercial historic11
structures; and12
(V) The modification of this tax expenditure will only cause a de13
minimis revenue gain that is incidental to the primary purpose of14
modifying the tax expenditure;15
(d) (I) The downloaded software sales tax exemption, by16
modifying the definition of tangible personal property to not include17
certain types of software, exempts certain software that is downloaded at18
the time of purchase from sales tax;19
(II) The primary purpose of this tax expenditure was to resolve20
taxpayer confusion and decrease administrative burden by clarifying the21
definition of tangible personal property as it relates to software;22
(III) The primary purpose of modifying this tax expenditure is to23
further resolve taxpayer confusion and decrease administrative burden by24
clarifying that all computer software available for repeated sale and25
governed by a nonnegotiable license agreement qualifies as personal26
tangible property and is subject to sales tax; and27
HB25-1296
-5- (IV) The modification of this tax expenditure will only cause a de1
minimis revenue gain that is incidental to the primary purpose of2
resolving taxpayer confusion and decreasing administrative burden;3
(e) (I) One of the 5 primary categories of sales that are subject to4
state sales tax is intrastate telephone and telegraph services;5
(II) Interstate telephone and telegraph services are not subject to6
state sales tax;7
(III) Unlike Colorado, 28 states subject interstate telephone and8
telegraph services to state sales tax if at least one of the nodes of those9
services is in the state levying the sales tax;10
(IV) Like the state, many home rule municipalities in Colorado11
impose sales tax on intrastate telephone and telegraph services, meaning12
that some telephone and telegraph services are taxed while others are not;13
(V) The primary purpose of repealing this tax expenditure is to14
further resolve taxpayer confusion and decrease administrative burden by15
repealing the sales tax exemption to make it clear that all telephone and16
telegraph services are subject to sales tax; and17
(VI) The repeal of this tax expenditure will only cause a de18
minimis revenue gain that is incidental to the primary purpose of19
repealing the tax expenditure;20
(f) (I) The bad debt losses and administrative allowance fuel21
excise tax expenditure allows a taxpayer, after calculating a two-percent22
deduction in net fuel taxes for the loss allowance for the gasoline and23
special fuel excise tax, to reduce the amount of net gasoline and special24
fuel excise taxes owed by one-half percent;25
(II) There are two primary purposes for the bad debt losses and26
administrative allowance fuel excise tax expenditure:27
HB25-1296
-6- (A) To cover bad debt losses incurred by the taxpayer by covering1
the costs of the taxes that the taxpayer paid on fuel that customers2
requested but did not then pay for; and3
(B) To cover the administrative costs incurred by the taxpayer by4
covering the costs associated with the calculation and payment of fuel5
excise taxes;6
(III) The bad debt losses actually incurred by a taxpayer are not7
directly related to the amount of the bad debt and administrative8
allowance fuel excise tax expenditure;9
(IV) Other state and federal tax expenditures are available to10
cover the bad debt losses;11
(V) Most taxes levied by Colorado, other states, and the federal12
government do not allow for a tax expenditure to compensate vendors for13
the costs associated with the calculation and payment of those taxes;14
(VI) The purpose of repealing the bad debts and administrative15
allowance fuel excise tax expenditure is to decrease administrative burden16
by removing a duplicative tax expenditure and to better align the17
administration of the fuel excise tax with other taxes imposed by the state;18
and19
(VII) The repeal of this tax expenditure will only cause a de20
minimis revenue gain that is incidental to the primary purpose of21
repealing the tax expenditure;22
(g) (I) The purpose of the enterprise zone tax expenditure, which23
awards a tax credit in proportion to the amount of a taxpayer's investment24
within certain areas of Colorado, is to incentivize the formation of25
businesses and the creation of jobs within economically distressed parts26
of Colorado;27
HB25-1296
-7- (II) Some businesses that currently claim the enterprise zone tax1
expenditure are inherently highly location-dependent and therefore are2
not as incentivized or discentivized by a tax expenditure that rewards3
investment within certain areas of Colorado;4
(III) The purpose of limiting the amount of, and who may qualify5
for, the enterprise zone tax expenditure is to narrow the scope of the tax6
expenditure so that it will achieve its original purpose of incentivizing the7
formation of businesses and the creation of jobs within economically8
distressed parts of Colorado; and9
(IV) The modification of this tax expenditure will only cause a de10
minimis revenue gain that is incidental to the primary purpose of11
modifying the tax expenditure to better achieve its original purpose; and12
(h) Therefore, consistent with the Colorado supreme court's13
holding in TABOR Found. v. Reg'l Transp. Dist., 2018 CO 29, that14
legislation that causes only an incidental and de minimis tax revenue15
increase does not amount to a new tax or a tax policy change that requires16
voter approval in advance under section 20 of article V of the state17
constitution, the modifications to tax expenditures in this act are neither18
new taxes nor tax policy changes that require voter approval.19
SECTION 2. In Colorado Revised Statutes, 10-3-209, amend20
(1)(b)(II.5)(B) and (1)(b)(II.5)(C); and add (1)(b)(II.5)(D) as follows:21
10-3-209. Tax on premiums collected - exemptions - penalties22
- filing system - division to contract with third parties - rules - repeal.23
(1) (b) (II.5) To be deemed to maintain a home office or regional home24
office in this state, a company must meet one of the criteria set forth in25
subsection (1)(b)(II) of this section and also have a workforce in the state26
that is greater than or equal to:27
HB25-1296
-8- (A) Two percent of the company's total domestic workforce, for1
taxes that are due and payable for calendar year 2022;2
(B) Two and one-quarter percent of the company's total domestic3
workforce, for taxes that are due and payable for calendar year 2023; and4
(C) Two and one-half percent of the company's total domestic5
workforce, for taxes that are due and payable for calendar year 2024; and6
each calendar year thereafter7
(D) S
EVEN PERCENT OF THE COMPANY 'S TOTAL DOMESTIC8
WORKFORCE, FOR TAXES THAT ARE DUE AND PAYABLE FOR CALENDAR9
YEAR 2025 AND EACH CALENDAR YEAR THEREAFTER .10
SECTION 3. In Colorado Revised Statutes, 10-3-209, add (6)(d)11
as follows:12
10-3-209. Tax on premiums collected - exemptions - penalties13
- filing system - division to contract with third parties - rules - repeal.14
(6) (d) I
N SUBMITTING TAXES, PENALTIES, FINES, FEES, AND ASSOCIATED15
FILINGS REQUIRED UNDER THIS SECTION TO THE DIVISION, AN INSURANCE16
COMPANY SHALL IDENTIFY THE TOTAL ANNUAL DOLLAR AMOUNT OF17
PREMIUMS COLLECTED OR CONTRACTED FOR ON POLICIES OR CONTRACTS18
OF INSURANCE COVERING PROPERTY OR RISKS IN COLORADO DURING THE19
PREVIOUS CALENDAR YEAR FROM ENTITIES THAT ARE EXEMPT FROM20
TAXATION PURSUANT TO SECTION 10-3-209 (1)(d)(IV).21
SECTION 4. In Colorado Revised Statutes, 38-13-220, amend22
(1) as follows:23
38-13-220. Tax refunds. (1) On and after October 1, 2002, any24
amount due and payable as a refund of Colorado income tax or grant for
25
property taxes, rent, or heat or fuel expenses assistance represented by a26
warrant that has not been presented for payment within six months after27
HB25-1296
-9- the date of issuance of the warrant and that has been forwarded by the1
department of revenue to the administrator pursuant to section 39-21-1082
(5) is presumed abandoned.3
SECTION 5. In Colorado Revised Statutes, 39-21-108, amend4
(5) as follows:5
39-21-108. Refunds. (5) (a) On and after October 1, 2002, any6
warrant representing a refund of income tax imposed by article 22 of this7
title 39 or a grant for property taxes, rent, or heat or fuel expenses8
assistance allowed by article 31 of this title 39 that is not presented for9
payment within six months from its date of issuance shall be IS void. On10
and after October 1, 2002, upon the cancellation of a warrant in11
accordance with the standard operating procedures of the department or12
the state controller, the department shall forward to the state treasurer the13
name of the taxpayer as it appears on the warrant, the taxpayer14
identification number, the taxpayer's last-known address, the amount of15
the canceled warrant, and an amount of money equal to the amount16
specified in the warrant so that the state treasurer may make the refund17
pursuant to the "Revised Uniform Unclaimed Property Act", article 13 of18
title 38.19
(b) The department may reclaim from the unclaimed property fund20
and credit to the appropriate state revenue fund any amount forwarded by21
the department to the state treasurer pursuant to paragraph (a) of this22
subsection (5) SUBSECTION (5)(a) OF THIS SECTION that was based on a23
warrant representing an erroneous refund. or grant If the state treasurer24
issued an erroneous refund or grant to the person named on the warrant,25
the treasurer shall provide proof of that payment to the department and26
the department may assess that amount pursuant to section 39-21-103 (1). 27
HB25-1296
-10- SECTION 6. In Colorado Revised Statutes, 39-22-304, amend1
(3)(i) as follows:2
39-22-304. Net income of corporation - legislative declaration3
- definitions - repeal. (3) There shall be subtracted from federal taxable4
income:5
(i) (I) F
OR INCOME TAX YEARS COMMENCING BEFORE JANUARY 1,6
2026, that portion of wages or salaries paid or incurred for the taxable7
year, the deduction for which is disallowed by section 280C of the8
internal revenue code;9
(II) T
HIS SUBSECTION (3)(i) IS REPEALED, EFFECTIVE DECEMBER10
31,
2031.11
SECTION 7. In Colorado Revised Statutes, 39-22-105, amend12
(3)(b) and (4); and add (3)(c) as follows:13
39-22-105. Alternative minimum tax - repeal. (3) (b) For14
taxable years beginning on or after January 1, 2000,
BUT BEFORE15
J
ANUARY 1, 2025, each individual, estate, and trust shall be allowed a16
credit against the tax imposed by this part 1 in an amount equal to twelve17
percent of the credit allowed for the same tax year by section 53 of the18
internal revenue code.19
(c) T
HIS SUBSECTION (3) IS REPEALED, EFFECTIVE DECEMBER 31,20
2030.21
(4) In the case of a nonresident taxpayer, the tax imposed by22
subsections (1) and (1.5) of this section and the credit allowed by
23
subsection (3) of this section shall be apportioned in the ratio of the24
modified federal alternative minimum taxable income from Colorado25
sources over the total modified federal alternative minimum taxable26
income.27
HB25-1296
-11- SECTION 8. In Colorado Revised Statutes, 39-22-121, amend1
(1.5) as follows:2
39-22-121. Credit for child care facilities - legislative3
declaration - definitions - repeal. (1.5) For income tax years4
commencing prior to January 1, 2028 JANUARY 1, 2030, any taxpayer who5
makes a monetary contribution to promote child care in the state is6
allowed a credit against the income tax imposed by this article 22 in an7
amount equal to fifty percent of the total value of the contribution except8
as otherwise provided in subsections (5) and (6.7) of this section.9
SECTION 9. In Colorado Revised Statutes, add with amended10
and relocated provisions 39-22-131 as follows:11
39-22-131. [Formerly 39-31-104.5] Tax credit for assistance12
for elderly individuals and individuals with disabilities - tax13
preference performance statement - legislative declaration -14
definitions. (1) (a) The general assembly finds and declares that in15
accordance with section 39-21-304, the tax expenditure created in this16
section is intended to reduce net taxes paid by certain individuals.17
Specifically, the tax expenditure is intended to provide assistance through18
an income tax credit for individuals with WHO DO NOT HAVE AN INCOME19
ABOVE A CERTAIN THRESHOLD AMOUNT AND WHO ARE OF A CERTAIN AGE20
OR HAVE a disability. who do not have income above a certain threshold21
amount22
(b) The general assembly and the state auditor shall measure the23
effectiveness of the tax expenditure in achieving the purpose specified in24
subsection (1)(a) of this section based on the number of taxpayers who25
have claimed the credit and the total amount of credits claimed.26
(2) As used in this section, unless the context otherwise requires:27
HB25-1296
-12- (a) "Credit" means the credit against income tax that is created in1
this section.2
(b) "Inflation" means the annual percentage change in the United3
States department of labor, bureau of labor statistics, consumer price4
index for Denver-Aurora-Lakewood for all items and all urban5
consumers, or its successor index.6
(c) (I) "Qualified individual" means a resident individual who has7
a disability during the entire income tax year to a degree sufficient to8
qualify for the payment to the individual of full benefits from any bona9
fide public or private plan or source based solely upon such THEIR10
disability
AND, FOR TAX YEARS COMMENCING ON OR AFTER JANUARY 1,11
2026,
A RESIDENT INDIVIDUAL WHO IS SIXTY-FIVE YEARS OF AGE OR OLDER12
DURING THE INCOME TAX YEAR .13
(II) An individual has a disability for purposes of subsection14
(2)(c)(I) of this section if the individual is unable to engage in any15
substantial gainful activity by reason of any medically determinable16
physical or mental impairment that can be expected to result in death or17
that has lasted for a continuous period of not less than twelve months.18
(d) "S
URVIVING SPOUSE" MEANS A RESIDENT INDIVIDUAL:19
(I) W
HO IS FIFTY-EIGHT YEARS OF AGE OR OLDER;20
(II) W
HOSE SPOUSE IS DECEASED; OR21
(III) W
HOSE SPOUSE WAS A QUALIFIED INDIVIDUAL AS A RESULT OF22
BEING SIXTY-FIVE YEARS OF AGE OR OLDER DURING THE INCOME TAX23
YEAR.24
(3) For income tax years commencing on or after January 1, 202525
a qualified individual
OR, FOR TAX YEARS COMMENCING ON OR AFTER26
J
ANUARY 1, 2026, A QUALIFIED INDIVIDUAL OR A SURVIVING SPOUSE is27
HB25-1296
-13- allowed a credit against the tax imposed by THIS article 22 of this title 391
in an amount set forth in subsection (4) of this section.2
(4) (a) The credit may be claimed in an amount equal to:3
(I) One thousand two hundred dollars for:4
(A) A qualified individual
OR A SURVIVING SPOUSE filing a single5
return who has a federal adjusted gross income less than or equal to ten6
thousand dollars;7
(B) Two qualified individuals filing a joint return with a federal8
adjusted gross income less than or equal to sixteen thousand dollars; or9
(C) A qualified individual and a nonqualified individual filing a10
joint return with a federal adjusted gross income less than or equal to11
sixteen thousand dollars;12
(II) One thousand dollars for:13
(A) A qualified individual
OR A SURVIVING SPOUSE filing a single14
return who has a federal adjusted gross income greater than ten thousand15
dollars but less than or equal to twelve thousand five hundred dollars;16
(B) Two qualified individuals filing a joint return with a federal17
adjusted gross income greater than sixteen thousand dollars but less than18
or equal to twenty thousand dollars; or19
(C) A qualified individual and a nonqualified individual filing a20
joint return with a federal adjusted gross income greater than sixteen21
thousand dollars but less than or equal to twenty thousand dollars;22
(III) Eight hundred dollars for:23
(A) A qualified individual
OR A SURVIVING SPOUSE filing a single24
return who has a federal adjusted gross income greater than twelve25
thousand five hundred dollars but less than or equal to fifteen thousand26
dollars;27
HB25-1296
-14- (B) Two qualified individuals filing a joint return with a federal1
adjusted gross income greater than twenty thousand dollars but less than2
or equal to twenty-four thousand dollars; or3
(C) A qualified individual and a nonqualified individual filing a4
joint return with a federal adjusted gross income greater than twenty5
thousand dollars but less than or equal to twenty-four thousand dollars;6
(IV) Six hundred dollars for:7
(A) A qualified individual
OR A SURVIVING SPOUSE filing a single8
return who has a federal adjusted gross income greater than fifteen9
thousand dollars but less than or equal to seventeen thousand five10
hundred dollars;11
(B) Two qualified individuals filing a joint return with a federal12
adjusted gross income greater than twenty-four thousand dollars but less13
than or equal to twenty-eight thousand dollars; or14
(C) A qualified individual and a nonqualified individual filing a15
joint return with a federal adjusted gross income greater than twenty-four16
thousand dollars but less than or equal to twenty-eight thousand dollars;17
and18
(V) Four hundred dollars for:19
(A) A qualified individual
OR A SURVIVING SPOUSE filing a single20
return who has a federal adjusted gross income greater than seventeen21
thousand five hundred dollars but less than or equal to twenty thousand22
dollars;23
(B) Two qualified individuals filing a joint return with a federal24
adjusted gross income greater than twenty-eight thousand dollars but less25
than or equal to thirty-two thousand dollars; or26
(C) A qualified individual and a nonqualified individual filing a27
HB25-1296
-15- joint return with a federal adjusted gross income greater than twenty-eight1
thousand dollars but less than or equal to thirty-two thousand dollars.2
(b) (I) A qualified individual
OR A SURVIVING SPOUSE who files a3
single return and has a federal adjusted gross income greater than twenty4
thousand dollars is not allowed a credit under this section.5
(II) Two qualified individuals, or a qualified individual and a6
nonqualified individual, who file a joint return with a federal adjusted7
gross income greater than thirty-two thousand dollars are not allowed a8
credit under this section.9
(c) (I) The department of revenue shall annually adjust for10
inflation the credit amounts set forth in subsection (4)(a) of this section11
if cumulative inflation since the last adjustment, when applied to the12
current credit amounts, results in an increase of at least ten dollars when13
the adjusted credit amounts are rounded to the nearest ten dollars.14
(II) The department of revenue shall annually adjust for inflation15
the adjusted gross income amounts set forth in subsections (4)(a) and16
(4)(b) of this section if cumulative inflation since the last adjustment,17
when applied to the current adjusted gross income amounts, results in an18
increase of at least one hundred dollars when the adjusted gross income19
amounts, as adjusted, are rounded to the nearest one hundred dollars.20
(5) (a) If the credit exceeds the income taxes due on the qualified21
individual's
OR SURVIVING SPOUSE'S income, the amount of the credit not22
used to offset income taxes is not carried forward and must be refunded23
to the qualified individual
OR SURVIVING SPOUSE.24
(b) A
QUALIFIED INDIVIDUAL OR SURVIVING SPOUSE IS ALLOWED25
ONE CREDIT PURSUANT TO THIS SECTION PER INCOME TAX YEAR .26
(6) A qualified individual who claims the credit cannot in the
27
HB25-1296
-16- same tax year also claim the grant allowed pursuant to section 39-31-101.1
(7) (6) The credit received pursuant to this section is not treated2
as income for purposes of determining the eligibility of any individual for3
old age pension benefits under article 2 of title 26.4
(8) (7) Notwithstanding section 39-21-304 (4), the credit5
continues indefinitely.6
(9) The credit allowed by this section is administered in the same7
manner as other credits against the tax imposed by article 22 of this title8
39.9
(8) I
N THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED10
UNDER THIS SECTION IS APPORTIONED IN THE RATIO DETERMINED UNDER11
SECTION 39-22-110 (1).12
SECTION 10. In Colorado Revised Statutes, add 39-22-311 as13
follows: 14
39-22-311. Net income subtraction - tax preference15
performance statement - definition. (1) I
N ACCORDANCE WITH SECTION16
39-21-304 (1),
WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX17
EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT18
AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL19
ASSEMBLY FINDS AND DECLARES THAT :20
(a) S
ECTION 280C OF THE INTERNAL REVENUE CODE PREVENTS A21
TAXPAYER FROM SUBTRACTING CERTAIN EXPENSES THAT THE TAXPAYER22
USES TO QUALIFY FOR CERTAIN FEDERAL TAX CREDITS FROM THE FEDERAL23
TAXABLE INCOME, SO THAT A TAXPAYER DOES NOT RECEIVE A24
DUPLICATIVE FEDERAL TAX BENEFIT FROM THESE EXPENSES ; 25
(b) W
HILE COLORADO USES FEDERAL TAXABLE INCOME AS THE26
BASIS FOR DETERMINING COLORADO TAXABLE INCOME , THERE ARE NOT27
HB25-1296
-17- STATE TAX CREDITS EQUIVALENT TO THE FEDERAL TAX CREDITS THAT1
WOULD RESULT IN A TAXPAYER RECEIVING A DUPLICATIVE TAX BENEFIT2
FOR INCURRING CERTAIN EXPENSES BUT FOR SECTION 280C OF THE3
INTERNAL REVENUE CODE;4
(c) T
HE PURPOSE OF THE TAX EXPENDITURE PROVIDED FOR IN THIS5
SECTION IS TO REDUCE STRUCTURAL INEFFICIENCIES IN THE TAX6
STRUCTURE AND PROVIDE A REDUCTION IN INCOME TAX LIABILITY FOR7
CERTAIN TAXPAYERS BY ALLOWING A TAXPAYER WHO INCURS EXPENSES8
THAT THE TAXPAYER CANNOT DEDUCT FROM THEIR FEDERAL T AXABLE9
INCOME PURSUANT TO SECTION 280C OF THE INTERNAL REVENUE CODE TO10
RECEIVE A SUBTRACTION FROM STATE INCOME TAX FOR THOSE EXPENSES ;11
AND12
(d) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL13
MEASURE THE EFFECTIVENESS OF THE TAX EXPENDITURE PROVIDED FOR IN14
THIS SECTION IN ACHIEVING THE PURPOSES SPECIFIED IN SUBSECTION (1)(a)15
OF THIS SECTION BASED ON THE NUMBER AND VALUE OF THE CLAIMED TAX16
EXPENDITURE.17
(2) N
OTWITHSTANDING ANY LAW TO THE CONTRARY , BEGINNING18
J
ANUARY 1, 2026, THERE SHALL BE SUBTRACTED FROM A TAXPAYER 'S19
FEDERAL TAXABLE INCOME THE AMOUNT OF EXPENSES THE TAXPAYER20
PAID OR INCURRED FOR THE TAXABLE YEAR , THE DEDUCTION FOR WHICH21
IS DISALLOWED BY SECTION 280C OF THE INTERNAL REVENUE CODE.22
(3) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
REQUIRES, "TAXPAYER" MEANS ANY TAXPAYER SUBJECT TO THE TAX24
IMPOSED BY THIS ARTICLE 22 WHOSE NET INCOME AND STATE INCOME TAX25
LIABILITY IS DETERMINED PURSUANT TO THIS SUBPART 1.26
SECTION 11. In Colorado Revised Statutes, 39-22-509, amend27
HB25-1296
-18- (2)(d) as follows:1
39-22-509. Credit against tax - employer expenditures for2
alternative transportation options for employees - legislative3
declaration - definitions - repeal. (2) As used in this section, unless the4
context otherwise requires:5
(d) "Local government" means any home rule city, town,
COUNTY6
or city and county, or
AND ANY statutory city, or town, OR COUNTY. 7
SECTION 12. In Colorado Revised Statutes, 39-22-537.5,8
amend (3)(a); and add (5) as follows:9
39-22-537.5. Credit for personal property taxes paid -10
legislative declaration - definitions - repeal. (3) (a) For income tax11
years commencing on or after January 1, 2019,
BUT BEFORE JANUARY 1,12
2026, a taxpayer is allowed a credit against the tax imposed by this article13
22 equal to the property tax paid in Colorado during the income tax year14
on up to eighteen thousand dollars of the total actual value of the15
taxpayer's personal property.16
(5) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.17
SECTION 13. In Colorado Revised Statutes, 39-22-514.5,18
amend (8)(b)(III) introductory portion as follows:19
39-22-514.5. Tax credit for qualified costs incurred in20
preservation of historic structures - commercial historic preservation21
tax credit program cash fund - tax preference performance statement22
- legislative declaration - short title - definitions. (8) Deadline for23
incurring specified amount of estimated costs of rehabilitation - proof24
of compliance - audit of cost and expense certification - issuance of25
tax credit certificate - commercial structures. (b) Following the26
completion of a rehabilitation of a qualified commercial structure, the27
HB25-1296
-19- owner shall notify the office that the rehabilitation has been completed1
and shall certify the qualified rehabilitation costs and expenses. The2
applicant shall include a review of the certification by a licensed certified3
public accountant that is not affiliated with the qualified applicant, and4
the review of the certification must align with office policies for5
certification of qualified rehabilitation expenditures. The office and the6
historical society shall review the documentation of the rehabilitation and7
the historical society shall verify that the documentation satisfies the8
rehabilitation plan. Within ninety days after receipt of such9
documentation from the owner, the office shall issue a tax credit10
certificate in an amount equal to the following subject to subsection (8)(c)11
of this section:12
(III) F
OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1,13
2030,
AND FOR APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (5)14
OF THIS SECTION PRIOR TO JANUARY 1, 2026, with respect to a certified15
historic structure that is a qualified commercial structure that is located16
in an area that the president of the United States has determined to be a17
major disaster area under section 102 (2) of the federal "Robert T.18
Stafford Disaster Relief and Emergency Assistance Act", 42 U.S.C. sec.19
5121 et seq., or that is located in an area that the governor has determined20
to be a disaster area under the "Colorado Disaster Emergency Act", part21
7 of article 33.5 of title 24, the tax credit amounts specified in subsections22
(8)(b)(I) and (8)(b)(II) of this section must be increased as follows for an23
application that is filed within six years after the disaster determination:24
SECTION 14. In Colorado Revised Statutes, 39-22-544, amend25
(4)(c) as follows:26
39-22-544. Credit against tax - qualifying seniors - creation -27
HB25-1296
-20- legislative declaration - definitions - repeal. (4) (c) (I) For the income1
tax year commencing on January 1, 2022, notwithstanding subsections2
(4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant3
under article 31 of this title 39 during calendar year 2022 is eligible to4
receive the full credit without an income-based reduction that otherwise5
applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.6
(II) T
HIS SUBSECTION (4)(c) IS REPEALED, EFFECTIVE DECEMBER7
31,
2026.8
SECTION 15. In Colorado Revised Statutes, 39-22-2003, amend9
(5)(c)(I); and add (5)(c)(III) as follows:10
39-22-2003. State sales tax refund - offset against state income11
tax - qualified individuals - definitions - repeal.12
(5) (c) (I) Notwithstanding any provision of subsection (5)(b) of this13
section to the contrary,
BEFORE JANUARY 1, 2026, a qualified individual14
as defined in subsection (1)(a)(II) or (1)(a)(IV) of this section who claims15
a property tax or heat or fuel assistance grant pursuant to section16
39-31-101 may claim a refund authorized by this section on the assistance17
grant application form described in section 39-31-102 (2). Claiming a18
refund on such assistance grant application form is in lieu of claiming the19
refund on an income tax return pursuant to subsection (5)(b) of this20
section. Any refund claimed pursuant to this subsection (5)(c) must be21
claimed on or before October 15 of the calendar year following the tax22
year for which the refund is being claimed.23
(III) T
HIS SUBSECTION (5)(c) IS REPEALED, EFFECTIVE DECEMBER24
31,
2026.25
SECTION 16. In Colorado Revised Statutes, 39-26-102, amend26
(5.7) and (15)(c) as follows:27
HB25-1296
-21- 39-26-102. Definitions. As used in this article 26, unless the1
context otherwise requires:2
(5.7) "Mainframe computer access" means the provision of access3
to computer equipment for the purpose of storing or processing data.4
"Mainframe computer access" does not include the provision of access to5
computer equipment for the purpose of examining or acquiring data6
maintained by the vendor. "Mainframe computer access" does not include7
the provision of access to computer equipment incident to electronic8
computer software delivery, as defined in subsection (15)(c)(II)(C) of this9
section, or incident to the use of computer software hosted by an10
application service provider, as defined in subsection (15)(c)(II)(A) of11
this section.12
(15) (c) (I) "Tangible personal property", commencing July 1,13
2012, shall include INCLUDES computer software if the computer software14
is: meets all of the following criteria15
(A) The computer software is prepackaged AVAILABLE for16
repeated sale or license;
AND17
(B) The use of the computer software is
Governed by a tear-open18
nonnegotiable license agreement; and19
(C) The computer software is delivered to the customer in a20
tangible medium. Computer software is not delivered to the customer in21
a tangible medium if it is provided through an application service22
provider, delivered by electronic computer software delivery, or23
transferred by load and leave computer software delivery.24
(I.5) T
ANGIBLE PERSONAL PROPERTY DOES NOT INCLUDE CUSTOM25
SOFTWARE DEVELOPED FOR USE BY A PARTICULAR USER .26
(II) As used in this paragraph (c)
SUBSECTION (15)(c), unless the27
HB25-1296
-22- context otherwise requires:1
(A) "Application service provider" or "ASP" means an entity that2
retains custody over or hosts computer software for use by third parties.3
Users of the computer software hosted by an ASP typically will access the4
computer software via the internet. The ASP may or may not own or5
license the computer software, but generally will own and maintain6
hardware and networking equipment required for the user to access the7
computer software. Where the ASP owns the computer software, the ASP8
may charge the user a license fee for the computer software or a fee for9
maintaining the computer software or hardware used by its customer.10
(B) "Computer software" means a set of coded instructions
THAT11
ARE BOTH designed to cause a computer or automatic data processing
12
equipment to perform a task other electronic device to perform a task AND13
ARE DELIVERED BY ANY MEANS , INCLUDING COMPACT DISC, DOWNLOAD,14
OR REMOTE ACCESS THROUGH THE INTERNET . COMPUTER SOFTWARE15
INCLUDES APPLICATIONS OR A PPS INSTALLED ON CELLULAR PHONES ,16
TABLETS, OR OTHER MOBILE DEVICES.17
(C) "Electronic computer software delivery" means computer 18
software transferred by remote telecommunications to the purchaser's19
computer, where the purchaser does not obtain possession of any tangible20
medium in the transaction.21
(D) "Load and leave computer software delivery" means delivery22
of computer software to the purchaser by use of a tangible medium where23
the title to or possession of the tangible medium is not transferred to the24
purchaser, and where the computer software is manually loaded by the25
vendor, or the vendor's representative, at the purchaser's location.26
(E) "Prepackaged for repeated sale or license" means computer27
HB25-1296
-23- software that is prepackaged for repeated sale or license in the same form1
to multiple users without modification, and is typically sold in a2
shrink-wrapped box.3
(F) "Tangible medium" means a tape, disk, compact disc, card, or4
comparable physical medium.5
(G) "Tear-open nonnegotiable license agreement" means a license6
agreement contained on or in the package, which by its terms becomes7
effective upon opening of the package and accepting the licensing8
agreement. "Tear-open nonnegotiable license agreement" does not9
include a written license agreement or contract signed by the licensor and10
the licensee.11
(III) The internalized instruction code that controls the basic12
operations, such as arithmetic and logic, of the computer causing it to13
execute instructions contained in system programs is an integral part of14
the computer and is not normally accessible or modifiable by the user.15
Such internalized instruction code is considered part of the hardware and16
considered tangible personal property that is taxable pursuant to section17
39-26-104 (1)(a). The fact that the vendor does or does not charge18
separately for such code is immaterial.19
(IV) If a retailer sells computer software to a Colorado purchaser20
that is considered tangible personal property taxable pursuant to section21
39-26-104 (1)(a) and the Colorado purchaser pays the retailer for a22
quantity of computer software licenses with the intent to distribute the23
computer software to any of the purchaser's locations outside of24
Colorado, the measure of Colorado sales tax due is the total of the license25
fees associated only with the licenses that are actually used in Colorado.26
The Colorado purchaser shall provide a written statement to the retailer,27
HB25-1296
-24- attesting to the amount of the license fees associated with Colorado and1
with points outside of Colorado. The written statement shall relieve the2
retailer of any liability associated with the proration.3
SECTION 17. In Colorado Revised Statutes, 39-26-104, add4
(1)(c.5) as follows:5
39-26-104. Property and services taxed - definitions. (1) There6
is levied and there shall be collected and paid a tax in the amount stated7
in section 39-26-106 as follows:8
(c.5) B
EGINNING JULY 1, 2025, UPON TELEPHONE AND TELEGRAPH9
SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR10
ENTERPRISES FOR INTERSTATE TELEPHONE AND TELEGRAPH SERVICE , IF11
THE TELEPHONE AND TELEGRAPH SERVICE ORIGINATES IN THE STATE AND12
IS CHARGED TO A COLORADO ADDRESS.13
SECTION 18. In Colorado Revised Statutes, 39-27-105, amend14
(2)(b) as follows:15
39-27-105. Collection of tax on gasoline and special fuel - rules16
- repeal. (2) (b) (I) B
EFORE JULY 1, 2025, from the amount of tax17
computed under subsection (2)(a) of this section, the distributor shall18
deduct one-half of one percent to cover expenses of payment of the tax19
and bad debt losses and shall pay the remaining balance to the department20
of revenue and file the statement required by subsection (1) of this section21
on or before the twenty-sixth day of each calendar month. If any22
distributor is delinquent in remitting the tax, except in unusual23
circumstances shown to the satisfaction of the executive director of the24
department of revenue, the retailer shall not be allowed to deduct any25
amount under this subsection (2)(b).26
(II) T
HIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2029.27
HB25-1296
-25- SECTION 19. In Colorado Revised Statutes, 39-30-104, amend1
(1)(a) and (2)(c)(IV) as follows:2
39-30-104. Credit against tax - investment in certain property3
- definitions. (1) (a) (I) There shall be IS allowed to any person as a4
credit against the tax imposed by article 22 of this title 39, for income tax5
years commencing on or after January 1, 1986, an amount equal to the6
total of three percent of the total qualified investment, as determined7
under section 46 (c)(2) of the federal "Internal Revenue Code of 1986",8
as amended, in such taxable year in qualified property as defined in9
section 48 of the internal revenue code to the extent that such investment10
is in property that is used solely and exclusively in an enterprise zone for11
at least one year. The references in this subsection (1) to sections 4612
(c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and 4813
of the internal revenue code as they existed immediately prior to the14
enactment of the federal "Revenue Reconciliation Act of 1990".15
(II) (A) N
OTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS16
SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY17
1,
2026, A TAXPAYER IS NOT ALLOWED TO CLAIM A TOTAL CREDIT AMOUNT18
AGAINST THE TAX IMPOSED BY ARTICLE 22 OF THIS TITLE 39 PURSUANT TO19
SUBSECTION (1)(a)(I) OF THIS SECTION IN EXCESS OF TWO MILLION20
DOLLARS AND A TAXPAYER MAY NOT CLAIM A CREDIT PURSUANT TO THIS21
SECTION IF THAT TAXPAYER IS INVOLVED IN: THE EXTRACTION OF OIL AND22
GAS OR HARD ROCK MINERALS , AVIATION, THE RETAIL SALE OF FUEL23
PRODUCTS, OR THE CONSTRUCTION OF A WIRELESS TELECOMMUNICATIONS24
FACILITY.25
(B) A
TAXPAYER MAY SEEK A WAIVER OF THE LIMITATION ON THE26
AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION (1)(a)(II)(A) OF THIS27
HB25-1296
-26- SECTION BY COMPLETING A WRITTEN APPLICATION TO THE COLORADO1
ECONOMIC DEVELOPMENT COMMISSION FOR PERMISSION TO CLAIM A2
CREDIT IN EXCESS OF THAT LIMITATION FOR THE INCOME TAX YEAR IN3
WHICH THE TOTAL QUALIFIED INVESTMENT IS MADE . THE APPLICATION4
MUST INCLUDE IDENTIFICATION OF THE SUBSTANTIAL POSITIVE IMPACT5
THAT THE WAIVER OF THE LIMITATION WOULD HAVE ON INVESTMENTS AND6
ON WELL-PAYING JOBS IN THE ENTERPRISE ZONE, DOCUMENTATION THAT7
DEMONSTRATES THAT WITHOUT THE WAIVER OF THE LIMITATION THE8
SUBSTANTIAL POSITIVE IMPACT ON INVESTMENTS AND ON WELL -PAYING9
JOBS IN THE ENTERPRISE ZONE IS NOT LIKELY TO OCCUR , AND10
INFORMATION THAT THE WAIVER OF THE LIMITATION IS A SUBSTANTIAL11
FACTOR IN THE TAXPAYER'S DECISION TO MAKE A QUALIFIED INVESTMENT12
IN THE START-UP, EXPANSION, OR RELOCATION OF THE TAXPAYER 'S13
BUSINESS, SUCH THAT WITHOUT THE WAIVER THE TAXPAYER IS NOT LIKELY14
TO MAKE THE QUALIFIED INVESTMENT . IN DECIDING WHETHER TO GRANT15
THE WAIVER OF THE LIMITATION, THE COMMISSION MUST CONSIDER THE16
OVERALL ECONOMIC HEALTH OF THIS STATE AND THE EC ONOMIC VIABILITY17
OF THE ARGUMENTS MADE BY THE TAXPAYER IN SUPPORT OF THE18
TAXPAYER'S APPLICATION. THE COLORADO ECONOMIC DEVELOPMENT19
COMMISSION MAY REQUIRE THE TAXPAYER TO PROVIDE AN INDEPENDENT20
ANALYSIS, AT THE TAXPAYER'S EXPENSE, THAT SUBSTANTIATES THE21
TAXPAYER'S ARGUMENTS IN SUPPORT OF THE APPLICATION . THE22
TAXPAYER'S APPLICATION MUST BE CONSIDERED AT A REGULARLY23
SCHEDULED MEETING OF THE COLORADO ECONOMIC DEVELOPMENT24
COMMISSION AT WHICH THE PUBLIC IS ALLOWED TO COMMENT .25
(C) T
HE COLORADO ECONOMIC DEVELOPMENT COMMISSION MAY26
ALLOW ALL, PART, OR NONE OF A TAXPAYER'S APPLICATION TO WAIVE THE27
HB25-1296
-27- LIMITATION ON THE AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION1
(1)(a)(II)(A)
OF THIS SECTION. THE COLORADO ECONOMIC DEVELOPMENT2
COMMISSION MUST ISSUE A CREDIT CERTIFICATE THAT SETS FORTH THE3
AMOUNT OF THE CREDIT THAT THE TAXPAYER MAY CLAIM FOR THE INCOME4
TAX YEAR IN WHICH THE TOTAL QUALIFIED INVESTMENT IS MADE . THE5
TAXPAYER SHALL SUBMIT THE CREDIT CERTIFICATE TO THE DEPARTMENT6
OF REVENUE WITH THE TAXPAYER 'S INCOME TAX RETURN FOR THE TAX7
YEAR FOR WHICH THE COLORADO ECONOMIC DEVELOPMENT COMMISSION8
ISSUED THE CREDIT CERTIFICATE.9
(D) I
F THE COLORADO ECONOMIC DEVELOPMENT COMMISSION10
APPROVES. IN WHOLE OR IN PART, A TAXPAYER'S APPLICATION TO WAIVE11
THE LIMITATION ON THE AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION12
(1)(a)(II)(A)
OF THIS SECTION, THE COLORADO ECONOMIC DEVELOPMENT13
COMMISSION SHALL INCLUDE ITS DECISION IN THE ENTERPRISE ZONE14
ANNUAL REPORT TO THE GENERAL ASSEMBLY , INCLUDING THE TAXPAYER'S15
NAME, THE AMOUNT OF THE CREDIT THAT THE COMMISSION ALLOWED THE16
TAXPAYER TO CLAIM, AND THE COLORADO ECONOMIC DEVELOPMENT17
COMMISSION'S JUSTIFICATION FOR APPROVING THE APPLICATION .18
(E) F
OR PURPOSES OF THIS SUBSECTION (1)(a), "FUEL PRODUCTS"19
MEANS ALL GASOLINE; AVIATION GASOLINE; AVIATION TURBINE FUEL;20
DIESEL; JET FUEL; FUEL OIL; BIODIESEL; BIODIESEL BLENDS; KEROSENE;21
ALL ALCOHOL BLENDED FUELS ; LIQUEFIED PETROLEUM GAS ; GAS OR22
GASEOUS COMPOUNDS , INCLUDING HYDROGEN; NATURAL GAS, INCLUDING23
COMPRESSED NATURAL GAS AND LIQUEFIED NATURAL GAS ; AND ALL24
OTHER VOLATILE, FLAMMABLE, OR COMBUSTIBLE LIQUIDS THAT ARE25
PRODUCED, COMPOUNDED, AND OFFERED FOR SALE OR USED FOR THE26
PURPOSE OF GENERATING HEAT , LIGHT, OR POWER IN INTERNAL27
HB25-1296
-28- COMBUSTION ENGINES OR FUEL CELLS, FOR CLEANING, OR FOR ANY OTHER1
SIMILAR USAGE.2
(F) F
OR PURPOSES OF THIS SUBSECTION (1)(a), "WIRELESS3
TELECOMMUNICATIONS FACILITY " OR "FACILITY" MEANS EQUIPMENT AT4
A FIXED LOCATION THAT ENABLES WIRELESS COMMUNICATIONS BETWEEN5
USER EQUIPMENT AND A COMMUNICATIONS NETWORK , INCLUDING MACRO6
AND SMALL WIRELESS FACILITIES, TRANSCEIVERS, ANTENNAS, COAXIAL OR7
FIBER-OPTIC CABLE, REGULAR AND BACKUP POWER SUPPLIES , AND8
COMPARABLE EQUIPMENT , REGARDLESS OF TECHNOLOGICAL9
CONFIGURATION; AND THE SUPPORT STRUCTURE OR IMPROVEMENTS ON ,10
UNDER, OR WITHIN WHICH THE EQUIPMENT IS COLLOCATED .11
(2) (c) (IV) The limitation contained in this paragraph (c)
12
SUBSECTION (2)(c) on the amount a taxpayer may claim for the income tax13
year in which the total qualified investment is made does not limit the14
total amount of the credit allowed under subsection (1) SUBSECTION (1)(a)15
of this section, nor does it limit the ability of a taxpayer to carryover16
CARRY OVER a credit to subsequent tax years as allowed in subparagraph17
(III) of this paragraph (c) SUBSECTION (2)(c)(III) OF THIS SECTION or18
previously allowed in subsection (2.5) of this section.19
SECTION 20. In Colorado Revised Statutes, 39-31-101, amend20
(1)(a) introductory portion, (2)(d), (2.1), (5)(a), (5)(c)(I), (5)(c)(II),21
(5)(d)(I), (5)(d)(II), and (5)(e) as follows:22
39-31-101. Real property tax - tax equivalent - assistance -23
heat or fuel expenses assistance - eligibility - applicability - definitions24
- repeal. (1) (a) B
EFORE JANUARY 1, 2026, individuals having resided25
within this state for the entire taxable year who are sixty-five years of age26
or older during the taxable year are eligible for a grant to be determined27
HB25-1296
-29- with respect to the income taxes imposed by article 22 of this title 39,1
subject to the additional qualification requirements of this section, to aid2
in the payment by such individuals of:3
(2) A grant is the amount of the general property taxes actually4
paid on the residence or the amount of taxes actually paid on a mobile5
home, plus any tax-equivalent payments computed pursuant to subsection6
(4) of this section, with respect to the rent of a trailer space during the7
year for which the grant is claimed, the amount of the specific ownership8
tax actually paid on a trailer coach, or the amount of the tax-equivalent9
payments, computed pursuant to subsection (4) of this section, actually10
made during the year for which such grant is claimed, but in no event may11
it exceed:12
(d) For a grant claimed for the 2023 calendar year, either eight13
hundred seventy-two dollars reduced by ten percent of the claimant's14
income over the phase-out amount or the property tax flat grant amount,15
whichever amount is greater. For a grant claimed for years commencing16
on or after January 1, 2024,
BUT BEFORE JANUARY 1, 2026, either the17
maximum grant amount allowed under this subsection (2)(d) for the prior18
year, adjusted for inflation and reduced by ten percent of the claimant's19
income over the phase-out amount, or the property tax flat grant amount,20
whichever amount is greater.21
(2.1) For a grant claimed for the 2023 calendar year, either two22
hundred forty dollars reduced by ten percent of the claimant's income23
over the phase-out amount or the heat or fuel expenses flat grant amount,24
whichever amount is greater. For a grant claimed for years commencing25
on or after January 1, 2024,
BUT BEFORE JANUARY 1, 2026, either the26
maximum grant amount allowed under this subsection (2.1) for the prior27
HB25-1296
-30- year, adjusted for inflation and reduced by ten percent of the claimant's1
income over the phase-out amount, or the heat or fuel expenses flat grant2
amount, whichever amount is greater.3
(5) As used in this section:4
(a) "Heat or fuel expenses flat grant amount" means an amount5
equal to ninety-two dollars for the 2023 calendar year, and for each year6
thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior year adjusted7
for inflation.8
(c) "Maximum eligible income amount" means:9
(I) For an individual, income that is less than or equal to eighteen10
thousand twenty-six dollars for the 2023 calendar year and for each year11
thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior year adjusted12
for inflation; and13
(II) For spouses, income that is less than or equal to twenty-four14
thousand three hundred forty-five dollars for the 2023 calendar year and15
for each year thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior16
year adjusted for inflation.17
(d) "Phase-out amount" means:18
(I) In the case of an individual, an amount equal to nine thousand19
six hundred ninety-two dollars for the 2023 calendar year and for each20
year thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior year21
adjusted for inflation; and22
(II) In the case of spouses, an amount equal to fifteen thousand six23
hundred sixty-eight dollars for the 2023 calendar year and for each year24
thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior year adjusted25
for inflation.26
(e) "Property tax flat grant amount" means an amount equal to two27
HB25-1296
-31- hundred eighty-two dollars for the 2023 calendar year, and for each year1
thereafter,
UNTIL JANUARY 1, 2026, the amount for the prior year adjusted2
for inflation.3
SECTION 21. In Colorado Revised Statutes, 39-31-102, amend4
(2) and (3) as follows:5
39-31-102. Procedures to obtain grant - department of revenue6
- responsibilities. (2) The executive director shall prescribe the forms to7
be used for the grants authorized by section 39-31-101 and the credit
8
allowed pursuant to section 39-31-104.5 and prepare any instructions9
related to the forms. The executive director may create an electronic form10
to be used in addition to the paper form. If a sales tax refund is allowed11
for any given income tax year in accordance with section 39-22-2002, the12
executive director shall include provisions on the forms to allow qualified13
individuals to apply for the refund pursuant to section 39-22-2003 (5)(c).14
To receive a grant, or credit, an individual must claim the grant or credit15
on the executive director's form.16
(3) (a) If two or more individuals, other than spouses, are entitled17
to a grant authorized by section 39-31-101, or a credit allowed pursuant18
to section 39-31-104.5, the grant or credit may be claimed by either or any19
of the individuals. When two or more individuals claim the grant or credit20
for the same residence, the executive director is authorized to determine21
the proper allocation of the grant. or credit22
(b) No grant or credit received pursuant to this article 31 is treated23
as income for purposes of determining the eligibility of any individual for24
old age pension benefits under article 2 of title 26.25
SECTION 22. Repeal of relocated provisions in this act. In26
Colorado Revised Statutes, repeal 39-31-104.5.27
HB25-1296
-32- SECTION 23. In Colorado Revised Statutes, add 39-31-106 as1
follows:2
39-31-106. Repeal of article. T
HIS ARTICLE 31 IS REPEALED,3
EFFECTIVE DECEMBER 31, 2026.4
SECTION 24. Effective date. This act takes effect upon passage;5
except that section 16 of this act takes effect on July 1, 2025, and sections6
4 and 5 of this act take effect December 31, 2026.7
SECTION 25. Safety clause. The general assembly finds,8
determines, and declares that this act is necessary for the immediate9
preservation of the public peace, health, or safety or for appropriations for10
the support and maintenance of the departments of the state and state11
institutions.12
HB25-1296
-33-