Colorado 2025 Regular Session

Colorado House Bill HB1296 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	First Regular Session
2	2	Seventy-fifth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 25-0888.02 Pierce Lively x2059
8	8	HOUSE BILL 25-1296
9	9	House Committees Senate Committees
10	10	Finance
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE ADJUSTMENT OF CERTAIN TAX EXPENDITURES .101
14	14	Bill Summary
15	15	(Note: This summary applies to this bill as introduced and does
16	16	not reflect any amendments that may be subsequently adopted. If this bill
17	17	passes third reading in the house of introduction, a bill summary that
18	18	applies to the reengrossed version of this bill will be available at
19	19	http://leg.colorado.gov
20	20	.)
21	21	The bill adjusts several state tax expenditures as follows:
22	22	! Section 2 of the bill increases the amount of a company's
23	23	total domestic workforce that must be in Colorado for a
24	24	company to qualify for the insurance premium tax rate tax
25	25	expenditure for a home office or regional home office;
26	26	! Section 3 requires insurance companies, when submitting
27	27	certain filings with the division of insurance, to submit the
28	28	total annual dollar amount of premiums collected or
29	29	HOUSE SPONSORSHIP
30	30	Garcia and Zokaie,
31	31	SENATE SPONSORSHIP
32	32	Weissman,
33	33	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
34	34	Capital letters or bold & italic numbers indicate new material to be added to existing law.
35	35	Dashes through the words or numbers indicate deletions from existing law. contracted for on policies or contracts of insurance
36	36	covering property or risks in Colorado during the previous
37	37	calendar year from entities that are exempt from taxation;
38	38	! Section 6 limits the existing tax deduction related to
39	39	expenses, the deduction of which is disallowed by section
40	40	280C of the internal revenue code, so that a taxpayer may
41	41	only claim the tax deduction for income tax years
42	42	commencing before January 1, 2026;
43	43	! Section 10, for income tax years commencing on and after
44	44	January 1, 2026, creates a new tax deduction related to
45	45	expenses, the deduction of which is disallowed by section
46	46	280C of the internal revenue code, so that a taxpayer may
47	47	claim the deduction for any expenses that cannot be
48	48	deducted under section 280C of the internal revenue code;
49	49	! Section 7 limits the alternative minimum tax credit to
50	50	income tax years commencing prior to January 1, 2025;
51	51	! Section 8 extends the tax credit for monetary contributions
52	52	to promote child care, so that the tax credit is available
53	53	through income tax years commencing before January 1,
54	54	2030, rather than January 1, 2028;
55	55	! Section 9, for income tax years commencing on and after
56	56	January 1, 2026, creates an income tax credit for certain
57	57	individuals who are 65 years of age or older in the income
58	58	tax year, or who are a surviving spouse of that individual,
59	59	and who were previously eligible to receive a grant for real
60	60	property tax assistance and heat or fuel expenses
61	61	assistance;
62	62	! Section 20, beginning January 1, 2026, ends the
63	63	availability of grants for real property tax assistance and
64	64	heat or fuel expenses assistance;
65	65	! Sections 4, 5, 14, 15, 21, 22, and 23 make conforming
66	66	amendments for the changes made in sections 9 and 20;
67	67	! Section 11 expands the definition of local government to
68	68	include counties for purposes of the alternative
69	69	transportation options tax credit;
70	70	! Section 12 limits the existing business personal property
71	71	tax credit so that a taxpayer may only claim the tax
72	72	deduction for income tax years commencing before January
73	73	1, 2026;
74	74	! Section 13 modifies the tax credit for qualified costs
75	75	incurred in preservation of historic structures by removing
76	76	the 5% increase in the percentage of rehabilitation expenses
77	77	incurred in a rehabilitation in a disaster area for the
78	78	rehabilitation of a commercial structure that are applicable
79	79	for the tax credit;
80	80	HB25-1296
81	81	-2- ! Section 16 modifies the downloaded software sales tax
82	82	exemption so that all software that is available for repeated
83	83	sale and license and governed by a nonnegotiable license
84	84	agreement qualifies as tangible property and thus is subject
85	85	to sales tax;
86	86	! Section 17 ensures that, beginning July 1, 2025, interstate
87	87	telephone and telegraph services are subject to state sales
88	88	tax;
89	89	! Section 18 repeals, effective July 1, 2025, the special fuel
90	90	excise tax reduction associated with bad debt and the
91	91	payment of the special fuel excise tax; and
92	92	! Section 19 modifies the enterprise zone tax credit for
93	93	income tax years beginning January 1, 2026, by limiting the
94	94	total amount of the credit that may be claimed to $2
95	95	million, providing an exemption process for that limit, and
96	96	prohibiting certain taxpayers from claiming that credit.
97	97	Be it enacted by the General Assembly of the State of Colorado:1
98	98	SECTION 1. Legislative declaration. (1) The general assembly2
99	99	finds and declares that:3
100	100	(a) (I) The insurance premium tax rate tax expenditure for a home4
101	101	office or regional home office was intended to create an incentive for5
102	102	insurance companies to maintain a substantial workforce presence in the6
103	103	state, but the tax expenditure has not satisfied this intent;7
104	104	(II) In order to better meet the intended purpose of the tax8
105	105	expenditure, the home office or regional home office tax rate exemption9
106	106	is modified to increase the amount of a company's total domestic10
107	107	workforce that must be in Colorado to qualify for the tax expenditure11
108	108	from 2.5% to 7%; and12
109	109	(III) The modification of the tax expenditure will only cause a de13
110	110	minimis revenue gain that is incidental to the primary purpose of14
111	111	modifying the tax expenditure so that it better satisfies its original intent;15
112	112	(b) (I) The Colorado alternative minimum tax, like the federal16
113	113	HB25-1296-3- alternative minimum tax, ensures that taxpayers who benefit from certain1
114	114	income tax provisions pay a minimum amount of income tax;2
115	115	(II) A taxpayer's Colorado alternative minimum tax is calculated3
116	116	based on that taxpayer's federal alternative minimum taxable income;4
117	117	(III) A taxpayer may claim the Colorado alternative minimum tax5
118	118	credit, like the federal alternative minimum tax credit, if that taxpayer was6
119	119	liable for the federal alternative minimum tax in the previous income tax7
120	120	year;8
121	121	(IV) Colorado's tax policy has long been and remains to assess an9
122	122	income tax on individual and corporate taxpayers;10
123	123	(V) Colorado is one of only three states that has an alternative11
124	124	minimum tax and an associated tax credit, and the Colorado alternative12
125	125	minimum tax is not assessed equally against individual and corporate13
126	126	taxpayers;14
127	127	(VI) In order to achieve greater internal consistency in Colorado15
128	128	tax policy and to achieve more consistency between Colorado tax policy16
129	129	and the tax policy in other states, this act repeals the alternative minimum17
130	130	tax credit; and18
131	131	(VII) The repeal of the tax expenditure will only cause a de19
132	132	minimis revenue gain that is incidental to the primary purpose of ensuring20
133	133	greater tax policy consistency;21
134	134	(c) (I) House Bill 24-1314 substantially modified the tax credit for22
135	135	qualified costs incurred in the preservation of historic structures by,23
136	136	among other things, expanding the amount of the tax credit available to24
137	137	taxpayers;25
138	138	(II) As part of modifying the tax expenditure, House Bill 24-131426
139	139	also removed the 5% increase in the percentage of rehabilitation expenses27
140	140	HB25-1296
141	141	-4- incurred in a disaster area for the rehabilitation of a residential structure,1
142	142	but not a commercial structure, that are considered in determining the2
143	143	amount of the tax expenditure;3
144	144	(III) This act further modifies the tax expenditure by removing the4
145	145	5% increase in the percentage of rehabilitation expenses incurred in a5
146	146	rehabilitation in a disaster area for the rehabilitation of a commercial6
147	147	structure that are considered in determining the amount of the tax7
148	148	expenditure;8
149	149	(IV) The primary purpose of the modification of this tax9
150	150	expenditure is to decrease administrative burden by aligning the treatment10
151	151	of expenses incurred in rehabilitating residential and commercial historic11
152	152	structures; and12
153	153	(V) The modification of this tax expenditure will only cause a de13
154	154	minimis revenue gain that is incidental to the primary purpose of14
155	155	modifying the tax expenditure;15
156	156	(d) (I) The downloaded software sales tax exemption, by16
157	157	modifying the definition of tangible personal property to not include17
158	158	certain types of software, exempts certain software that is downloaded at18
159	159	the time of purchase from sales tax;19
160	160	(II) The primary purpose of this tax expenditure was to resolve20
161	161	taxpayer confusion and decrease administrative burden by clarifying the21
162	162	definition of tangible personal property as it relates to software;22
163	163	(III) The primary purpose of modifying this tax expenditure is to23
164	164	further resolve taxpayer confusion and decrease administrative burden by24
165	165	clarifying that all computer software available for repeated sale and25
166	166	governed by a nonnegotiable license agreement qualifies as personal26
167	167	tangible property and is subject to sales tax; and27
168	168	HB25-1296
169	169	-5- (IV) The modification of this tax expenditure will only cause a de1
170	170	minimis revenue gain that is incidental to the primary purpose of2
171	171	resolving taxpayer confusion and decreasing administrative burden;3
172	172	(e) (I) One of the 5 primary categories of sales that are subject to4
173	173	state sales tax is intrastate telephone and telegraph services;5
174	174	(II) Interstate telephone and telegraph services are not subject to6
175	175	state sales tax;7
176	176	(III) Unlike Colorado, 28 states subject interstate telephone and8
177	177	telegraph services to state sales tax if at least one of the nodes of those9
178	178	services is in the state levying the sales tax;10
179	179	(IV) Like the state, many home rule municipalities in Colorado11
180	180	impose sales tax on intrastate telephone and telegraph services, meaning12
181	181	that some telephone and telegraph services are taxed while others are not;13
182	182	(V) The primary purpose of repealing this tax expenditure is to14
183	183	further resolve taxpayer confusion and decrease administrative burden by15
184	184	repealing the sales tax exemption to make it clear that all telephone and16
185	185	telegraph services are subject to sales tax; and17
186	186	(VI) The repeal of this tax expenditure will only cause a de18
187	187	minimis revenue gain that is incidental to the primary purpose of19
188	188	repealing the tax expenditure;20
189	189	(f) (I) The bad debt losses and administrative allowance fuel21
190	190	excise tax expenditure allows a taxpayer, after calculating a two-percent22
191	191	deduction in net fuel taxes for the loss allowance for the gasoline and23
192	192	special fuel excise tax, to reduce the amount of net gasoline and special24
193	193	fuel excise taxes owed by one-half percent;25
194	194	(II) There are two primary purposes for the bad debt losses and26
195	195	administrative allowance fuel excise tax expenditure:27
196	196	HB25-1296
197	197	-6- (A) To cover bad debt losses incurred by the taxpayer by covering1
198	198	the costs of the taxes that the taxpayer paid on fuel that customers2
199	199	requested but did not then pay for; and3
200	200	(B) To cover the administrative costs incurred by the taxpayer by4
201	201	covering the costs associated with the calculation and payment of fuel5
202	202	excise taxes;6
203	203	(III) The bad debt losses actually incurred by a taxpayer are not7
204	204	directly related to the amount of the bad debt and administrative8
205	205	allowance fuel excise tax expenditure;9
206	206	(IV) Other state and federal tax expenditures are available to10
207	207	cover the bad debt losses;11
208	208	(V) Most taxes levied by Colorado, other states, and the federal12
209	209	government do not allow for a tax expenditure to compensate vendors for13
210	210	the costs associated with the calculation and payment of those taxes;14
211	211	(VI) The purpose of repealing the bad debts and administrative15
212	212	allowance fuel excise tax expenditure is to decrease administrative burden16
213	213	by removing a duplicative tax expenditure and to better align the17
214	214	administration of the fuel excise tax with other taxes imposed by the state;18
215	215	and19
216	216	(VII) The repeal of this tax expenditure will only cause a de20
217	217	minimis revenue gain that is incidental to the primary purpose of21
218	218	repealing the tax expenditure;22
219	219	(g) (I) The purpose of the enterprise zone tax expenditure, which23
220	220	awards a tax credit in proportion to the amount of a taxpayer's investment24
221	221	within certain areas of Colorado, is to incentivize the formation of25
222	222	businesses and the creation of jobs within economically distressed parts26
223	223	of Colorado;27
224	224	HB25-1296
225	225	-7- (II) Some businesses that currently claim the enterprise zone tax1
226	226	expenditure are inherently highly location-dependent and therefore are2
227	227	not as incentivized or discentivized by a tax expenditure that rewards3
228	228	investment within certain areas of Colorado;4
229	229	(III) The purpose of limiting the amount of, and who may qualify5
230	230	for, the enterprise zone tax expenditure is to narrow the scope of the tax6
231	231	expenditure so that it will achieve its original purpose of incentivizing the7
232	232	formation of businesses and the creation of jobs within economically8
233	233	distressed parts of Colorado; and9
234	234	(IV) The modification of this tax expenditure will only cause a de10
235	235	minimis revenue gain that is incidental to the primary purpose of11
236	236	modifying the tax expenditure to better achieve its original purpose; and12
237	237	(h) Therefore, consistent with the Colorado supreme court's13
238	238	holding in TABOR Found. v. Reg'l Transp. Dist., 2018 CO 29, that14
239	239	legislation that causes only an incidental and de minimis tax revenue15
240	240	increase does not amount to a new tax or a tax policy change that requires16
241	241	voter approval in advance under section 20 of article V of the state17
242	242	constitution, the modifications to tax expenditures in this act are neither18
243	243	new taxes nor tax policy changes that require voter approval.19
244	244	SECTION 2. In Colorado Revised Statutes, 10-3-209, amend20
245	245	(1)(b)(II.5)(B) and (1)(b)(II.5)(C); and add (1)(b)(II.5)(D) as follows:21
246	246	10-3-209. Tax on premiums collected - exemptions - penalties22
247	247	- filing system - division to contract with third parties - rules - repeal.23
248	248	(1) (b) (II.5) To be deemed to maintain a home office or regional home24
249	249	office in this state, a company must meet one of the criteria set forth in25
250	250	subsection (1)(b)(II) of this section and also have a workforce in the state26
251	251	that is greater than or equal to:27
252	252	HB25-1296
253	253	-8- (A) Two percent of the company's total domestic workforce, for1
254	254	taxes that are due and payable for calendar year 2022;2
255	255	(B) Two and one-quarter percent of the company's total domestic3
256	256	workforce, for taxes that are due and payable for calendar year 2023; and4
257	257	(C) Two and one-half percent of the company's total domestic5
258	258	workforce, for taxes that are due and payable for calendar year 2024; and6
259	259	each calendar year thereafter7
260	260	(D) S
261	261	EVEN PERCENT OF THE COMPANY 'S TOTAL DOMESTIC8
262	262	WORKFORCE, FOR TAXES THAT ARE DUE AND PAYABLE FOR CALENDAR9
263	263	YEAR 2025 AND EACH CALENDAR YEAR THEREAFTER .10
264	264	SECTION 3. In Colorado Revised Statutes, 10-3-209, add (6)(d)11
265	265	as follows:12
266	266	10-3-209. Tax on premiums collected - exemptions - penalties13
267	267	- filing system - division to contract with third parties - rules - repeal.14
268	268	(6) (d) I
269	269	N SUBMITTING TAXES, PENALTIES, FINES, FEES, AND ASSOCIATED15
270	270	FILINGS REQUIRED UNDER THIS SECTION TO THE DIVISION, AN INSURANCE16
271	271	COMPANY SHALL IDENTIFY THE TOTAL ANNUAL DOLLAR AMOUNT OF17
272	272	PREMIUMS COLLECTED OR CONTRACTED FOR ON POLICIES OR CONTRACTS18
273	273	OF INSURANCE COVERING PROPERTY OR RISKS IN COLORADO DURING THE19
274	274	PREVIOUS CALENDAR YEAR FROM ENTITIES THAT ARE EXEMPT FROM20
275	275	TAXATION PURSUANT TO SECTION 10-3-209 (1)(d)(IV).21
276	276	SECTION 4. In Colorado Revised Statutes, 38-13-220, amend22
277	277	(1) as follows:23
278	278	38-13-220. Tax refunds. (1) On and after October 1, 2002, any24
279	279	amount due and payable as a refund of Colorado income tax or grant for
280	280	25
281	281	property taxes, rent, or heat or fuel expenses assistance represented by a26
282	282	warrant that has not been presented for payment within six months after27
283	283	HB25-1296
284	284	-9- the date of issuance of the warrant and that has been forwarded by the1
285	285	department of revenue to the administrator pursuant to section 39-21-1082
286	286	(5) is presumed abandoned.3
287	287	SECTION 5. In Colorado Revised Statutes, 39-21-108, amend4
288	288	(5) as follows:5
289	289	39-21-108. Refunds. (5) (a) On and after October 1, 2002, any6
290	290	warrant representing a refund of income tax imposed by article 22 of this7
291	291	title 39 or a grant for property taxes, rent, or heat or fuel expenses8
292	292	assistance allowed by article 31 of this title 39 that is not presented for9
293	293	payment within six months from its date of issuance shall be IS void. On10
294	294	and after October 1, 2002, upon the cancellation of a warrant in11
295	295	accordance with the standard operating procedures of the department or12
296	296	the state controller, the department shall forward to the state treasurer the13
297	297	name of the taxpayer as it appears on the warrant, the taxpayer14
298	298	identification number, the taxpayer's last-known address, the amount of15
299	299	the canceled warrant, and an amount of money equal to the amount16
300	300	specified in the warrant so that the state treasurer may make the refund17
301	301	pursuant to the "Revised Uniform Unclaimed Property Act", article 13 of18
302	302	title 38.19
303	303	(b) The department may reclaim from the unclaimed property fund20
304	304	and credit to the appropriate state revenue fund any amount forwarded by21
305	305	the department to the state treasurer pursuant to paragraph (a) of this22
306	306	subsection (5) SUBSECTION (5)(a) OF THIS SECTION that was based on a23
307	307	warrant representing an erroneous refund. or grant If the state treasurer24
308	308	issued an erroneous refund or grant to the person named on the warrant,25
309	309	the treasurer shall provide proof of that payment to the department and26
310	310	the department may assess that amount pursuant to section 39-21-103 (1). 27
311	311	HB25-1296
312	312	-10- SECTION 6. In Colorado Revised Statutes, 39-22-304, amend1
313	313	(3)(i) as follows:2
314	314	39-22-304. Net income of corporation - legislative declaration3
315	315	- definitions - repeal. (3) There shall be subtracted from federal taxable4
316	316	income:5
317	317	(i) (I) F
318	318	OR INCOME TAX YEARS COMMENCING BEFORE JANUARY 1,6
319	319	2026, that portion of wages or salaries paid or incurred for the taxable7
320	320	year, the deduction for which is disallowed by section 280C of the8
321	321	internal revenue code;9
322	322	(II) T
323	323	HIS SUBSECTION (3)(i) IS REPEALED, EFFECTIVE DECEMBER10
324	324	31,
325	325	2031.11
326	326	SECTION 7. In Colorado Revised Statutes, 39-22-105, amend12
327	327	(3)(b) and (4); and add (3)(c) as follows:13
328	328	39-22-105. Alternative minimum tax - repeal. (3) (b) For14
329	329	taxable years beginning on or after January 1, 2000,
330	330	BUT BEFORE15
331	331	J
332	332	ANUARY 1, 2025, each individual, estate, and trust shall be allowed a16
333	333	credit against the tax imposed by this part 1 in an amount equal to twelve17
334	334	percent of the credit allowed for the same tax year by section 53 of the18
335	335	internal revenue code.19
336	336	(c) T
337	337	HIS SUBSECTION (3) IS REPEALED, EFFECTIVE DECEMBER 31,20
338	338	2030.21
339	339	(4) In the case of a nonresident taxpayer, the tax imposed by22
340	340	subsections (1) and (1.5) of this section and the credit allowed by
341	341	23
342	342	subsection (3) of this section shall be apportioned in the ratio of the24
343	343	modified federal alternative minimum taxable income from Colorado25
344	344	sources over the total modified federal alternative minimum taxable26
345	345	income.27
346	346	HB25-1296
347	347	-11- SECTION 8. In Colorado Revised Statutes, 39-22-121, amend1
348	348	(1.5) as follows:2
349	349	39-22-121. Credit for child care facilities - legislative3
350	350	declaration - definitions - repeal. (1.5) For income tax years4
351	351	commencing prior to January 1, 2028 JANUARY 1, 2030, any taxpayer who5
352	352	makes a monetary contribution to promote child care in the state is6
353	353	allowed a credit against the income tax imposed by this article 22 in an7
354	354	amount equal to fifty percent of the total value of the contribution except8
355	355	as otherwise provided in subsections (5) and (6.7) of this section.9
356	356	SECTION 9. In Colorado Revised Statutes, add with amended10
357	357	and relocated provisions 39-22-131 as follows:11
358	358	39-22-131. [Formerly 39-31-104.5] Tax credit for assistance12
359	359	for elderly individuals and individuals with disabilities - tax13
360	360	preference performance statement - legislative declaration -14
361	361	definitions. (1) (a) The general assembly finds and declares that in15
362	362	accordance with section 39-21-304, the tax expenditure created in this16
363	363	section is intended to reduce net taxes paid by certain individuals.17
364	364	Specifically, the tax expenditure is intended to provide assistance through18
365	365	an income tax credit for individuals with WHO DO NOT HAVE AN INCOME19
366	366	ABOVE A CERTAIN THRESHOLD AMOUNT AND WHO ARE OF A CERTAIN AGE20
367	367	OR HAVE a disability. who do not have income above a certain threshold21
368	368	amount22
369	369	(b) The general assembly and the state auditor shall measure the23
370	370	effectiveness of the tax expenditure in achieving the purpose specified in24
371	371	subsection (1)(a) of this section based on the number of taxpayers who25
372	372	have claimed the credit and the total amount of credits claimed.26
373	373	(2) As used in this section, unless the context otherwise requires:27
374	374	HB25-1296
375	375	-12- (a) "Credit" means the credit against income tax that is created in1
376	376	this section.2
377	377	(b) "Inflation" means the annual percentage change in the United3
378	378	States department of labor, bureau of labor statistics, consumer price4
379	379	index for Denver-Aurora-Lakewood for all items and all urban5
380	380	consumers, or its successor index.6
381	381	(c) (I) "Qualified individual" means a resident individual who has7
382	382	a disability during the entire income tax year to a degree sufficient to8
383	383	qualify for the payment to the individual of full benefits from any bona9
384	384	fide public or private plan or source based solely upon such THEIR10
385	385	disability
386	386	AND, FOR TAX YEARS COMMENCING ON OR AFTER JANUARY 1,11
387	387	2026,
388	388	A RESIDENT INDIVIDUAL WHO IS SIXTY-FIVE YEARS OF AGE OR OLDER12
389	389	DURING THE INCOME TAX YEAR .13
390	390	(II) An individual has a disability for purposes of subsection14
391	391	(2)(c)(I) of this section if the individual is unable to engage in any15
392	392	substantial gainful activity by reason of any medically determinable16
393	393	physical or mental impairment that can be expected to result in death or17
394	394	that has lasted for a continuous period of not less than twelve months.18
395	395	(d) "S
396	396	URVIVING SPOUSE" MEANS A RESIDENT INDIVIDUAL:19
397	397	(I) W
398	398	HO IS FIFTY-EIGHT YEARS OF AGE OR OLDER;20
399	399	(II) W
400	400	HOSE SPOUSE IS DECEASED; OR21
401	401	(III) W
402	402	HOSE SPOUSE WAS A QUALIFIED INDIVIDUAL AS A RESULT OF22
403	403	BEING SIXTY-FIVE YEARS OF AGE OR OLDER DURING THE INCOME TAX23
404	404	YEAR.24
405	405	(3) For income tax years commencing on or after January 1, 202525
406	406	a qualified individual
407	407	OR, FOR TAX YEARS COMMENCING ON OR AFTER26
408	408	J
409	409	ANUARY 1, 2026, A QUALIFIED INDIVIDUAL OR A SURVIVING SPOUSE is27
410	410	HB25-1296
411	411	-13- allowed a credit against the tax imposed by THIS article 22 of this title 391
412	412	in an amount set forth in subsection (4) of this section.2
413	413	(4) (a) The credit may be claimed in an amount equal to:3
414	414	(I) One thousand two hundred dollars for:4
415	415	(A) A qualified individual
416	416	OR A SURVIVING SPOUSE filing a single5
417	417	return who has a federal adjusted gross income less than or equal to ten6
418	418	thousand dollars;7
419	419	(B) Two qualified individuals filing a joint return with a federal8
420	420	adjusted gross income less than or equal to sixteen thousand dollars; or9
421	421	(C) A qualified individual and a nonqualified individual filing a10
422	422	joint return with a federal adjusted gross income less than or equal to11
423	423	sixteen thousand dollars;12
424	424	(II) One thousand dollars for:13
425	425	(A) A qualified individual
426	426	OR A SURVIVING SPOUSE filing a single14
427	427	return who has a federal adjusted gross income greater than ten thousand15
428	428	dollars but less than or equal to twelve thousand five hundred dollars;16
429	429	(B) Two qualified individuals filing a joint return with a federal17
430	430	adjusted gross income greater than sixteen thousand dollars but less than18
431	431	or equal to twenty thousand dollars; or19
432	432	(C) A qualified individual and a nonqualified individual filing a20
433	433	joint return with a federal adjusted gross income greater than sixteen21
434	434	thousand dollars but less than or equal to twenty thousand dollars;22
435	435	(III) Eight hundred dollars for:23
436	436	(A) A qualified individual
437	437	OR A SURVIVING SPOUSE filing a single24
438	438	return who has a federal adjusted gross income greater than twelve25
439	439	thousand five hundred dollars but less than or equal to fifteen thousand26
440	440	dollars;27
441	441	HB25-1296
442	442	-14- (B) Two qualified individuals filing a joint return with a federal1
443	443	adjusted gross income greater than twenty thousand dollars but less than2
444	444	or equal to twenty-four thousand dollars; or3
445	445	(C) A qualified individual and a nonqualified individual filing a4
446	446	joint return with a federal adjusted gross income greater than twenty5
447	447	thousand dollars but less than or equal to twenty-four thousand dollars;6
448	448	(IV) Six hundred dollars for:7
449	449	(A) A qualified individual
450	450	OR A SURVIVING SPOUSE filing a single8
451	451	return who has a federal adjusted gross income greater than fifteen9
452	452	thousand dollars but less than or equal to seventeen thousand five10
453	453	hundred dollars;11
454	454	(B) Two qualified individuals filing a joint return with a federal12
455	455	adjusted gross income greater than twenty-four thousand dollars but less13
456	456	than or equal to twenty-eight thousand dollars; or14
457	457	(C) A qualified individual and a nonqualified individual filing a15
458	458	joint return with a federal adjusted gross income greater than twenty-four16
459	459	thousand dollars but less than or equal to twenty-eight thousand dollars;17
460	460	and18
461	461	(V) Four hundred dollars for:19
462	462	(A) A qualified individual
463	463	OR A SURVIVING SPOUSE filing a single20
464	464	return who has a federal adjusted gross income greater than seventeen21
465	465	thousand five hundred dollars but less than or equal to twenty thousand22
466	466	dollars;23
467	467	(B) Two qualified individuals filing a joint return with a federal24
468	468	adjusted gross income greater than twenty-eight thousand dollars but less25
469	469	than or equal to thirty-two thousand dollars; or26
470	470	(C) A qualified individual and a nonqualified individual filing a27
471	471	HB25-1296
472	472	-15- joint return with a federal adjusted gross income greater than twenty-eight1
473	473	thousand dollars but less than or equal to thirty-two thousand dollars.2
474	474	(b) (I) A qualified individual
475	475	OR A SURVIVING SPOUSE who files a3
476	476	single return and has a federal adjusted gross income greater than twenty4
477	477	thousand dollars is not allowed a credit under this section.5
478	478	(II) Two qualified individuals, or a qualified individual and a6
479	479	nonqualified individual, who file a joint return with a federal adjusted7
480	480	gross income greater than thirty-two thousand dollars are not allowed a8
481	481	credit under this section.9
482	482	(c) (I) The department of revenue shall annually adjust for10
483	483	inflation the credit amounts set forth in subsection (4)(a) of this section11
484	484	if cumulative inflation since the last adjustment, when applied to the12
485	485	current credit amounts, results in an increase of at least ten dollars when13
486	486	the adjusted credit amounts are rounded to the nearest ten dollars.14
487	487	(II) The department of revenue shall annually adjust for inflation15
488	488	the adjusted gross income amounts set forth in subsections (4)(a) and16
489	489	(4)(b) of this section if cumulative inflation since the last adjustment,17
490	490	when applied to the current adjusted gross income amounts, results in an18
491	491	increase of at least one hundred dollars when the adjusted gross income19
492	492	amounts, as adjusted, are rounded to the nearest one hundred dollars.20
493	493	(5) (a) If the credit exceeds the income taxes due on the qualified21
494	494	individual's
495	495	OR SURVIVING SPOUSE'S income, the amount of the credit not22
496	496	used to offset income taxes is not carried forward and must be refunded23
497	497	to the qualified individual
498	498	OR SURVIVING SPOUSE.24
499	499	(b) A
500	500	QUALIFIED INDIVIDUAL OR SURVIVING SPOUSE IS ALLOWED25
501	501	ONE CREDIT PURSUANT TO THIS SECTION PER INCOME TAX YEAR .26
502	502	(6) A qualified individual who claims the credit cannot in the
503	503	27
504	504	HB25-1296
505	505	-16- same tax year also claim the grant allowed pursuant to section 39-31-101.1
506	506	(7) (6) The credit received pursuant to this section is not treated2
507	507	as income for purposes of determining the eligibility of any individual for3
508	508	old age pension benefits under article 2 of title 26.4
509	509	(8) (7) Notwithstanding section 39-21-304 (4), the credit5
510	510	continues indefinitely.6
511	511	(9) The credit allowed by this section is administered in the same7
512	512	manner as other credits against the tax imposed by article 22 of this title8
513	513	39.9
514	514	(8) I
515	515	N THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED10
516	516	UNDER THIS SECTION IS APPORTIONED IN THE RATIO DETERMINED UNDER11
517	517	SECTION 39-22-110 (1).12
518	518	SECTION 10. In Colorado Revised Statutes, add 39-22-311 as13
519	519	follows: 14
520	520	39-22-311. Net income subtraction - tax preference15
521	521	performance statement - definition. (1) I
522	522	N ACCORDANCE WITH SECTION16
523	523	39-21-304 (1),
524	524	WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX17
525	525	EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT18
526	526	AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL19
527	527	ASSEMBLY FINDS AND DECLARES THAT :20
528	528	(a) S
529	529	ECTION 280C OF THE INTERNAL REVENUE CODE PREVENTS A21
530	530	TAXPAYER FROM SUBTRACTING CERTAIN EXPENSES THAT THE TAXPAYER22
531	531	USES TO QUALIFY FOR CERTAIN FEDERAL TAX CREDITS FROM THE FEDERAL23
532	532	TAXABLE INCOME, SO THAT A TAXPAYER DOES NOT RECEIVE A24
533	533	DUPLICATIVE FEDERAL TAX BENEFIT FROM THESE EXPENSES ; 25
534	534	(b) W
535	535	HILE COLORADO USES FEDERAL TAXABLE INCOME AS THE26
536	536	BASIS FOR DETERMINING COLORADO TAXABLE INCOME , THERE ARE NOT27
537	537	HB25-1296
538	538	-17- STATE TAX CREDITS EQUIVALENT TO THE FEDERAL TAX CREDITS THAT1
539	539	WOULD RESULT IN A TAXPAYER RECEIVING A DUPLICATIVE TAX BENEFIT2
540	540	FOR INCURRING CERTAIN EXPENSES BUT FOR SECTION 280C OF THE3
541	541	INTERNAL REVENUE CODE;4
542	542	(c) T
543	543	HE PURPOSE OF THE TAX EXPENDITURE PROVIDED FOR IN THIS5
544	544	SECTION IS TO REDUCE STRUCTURAL INEFFICIENCIES IN THE TAX6
545	545	STRUCTURE AND PROVIDE A REDUCTION IN INCOME TAX LIABILITY FOR7
546	546	CERTAIN TAXPAYERS BY ALLOWING A TAXPAYER WHO INCURS EXPENSES8
547	547	THAT THE TAXPAYER CANNOT DEDUCT FROM THEIR FEDERAL T AXABLE9
548	548	INCOME PURSUANT TO SECTION 280C OF THE INTERNAL REVENUE CODE TO10
549	549	RECEIVE A SUBTRACTION FROM STATE INCOME TAX FOR THOSE EXPENSES ;11
550	550	AND12
551	551	(d) T
552	552	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL13
553	553	MEASURE THE EFFECTIVENESS OF THE TAX EXPENDITURE PROVIDED FOR IN14
554	554	THIS SECTION IN ACHIEVING THE PURPOSES SPECIFIED IN SUBSECTION (1)(a)15
555	555	OF THIS SECTION BASED ON THE NUMBER AND VALUE OF THE CLAIMED TAX16
556	556	EXPENDITURE.17
557	557	(2) N
558	558	OTWITHSTANDING ANY LAW TO THE CONTRARY , BEGINNING18
559	559	J
560	560	ANUARY 1, 2026, THERE SHALL BE SUBTRACTED FROM A TAXPAYER 'S19
561	561	FEDERAL TAXABLE INCOME THE AMOUNT OF EXPENSES THE TAXPAYER20
562	562	PAID OR INCURRED FOR THE TAXABLE YEAR , THE DEDUCTION FOR WHICH21
563	563	IS DISALLOWED BY SECTION 280C OF THE INTERNAL REVENUE CODE.22
564	564	(3) A
565	565	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
566	566	REQUIRES, "TAXPAYER" MEANS ANY TAXPAYER SUBJECT TO THE TAX24
567	567	IMPOSED BY THIS ARTICLE 22 WHOSE NET INCOME AND STATE INCOME TAX25
568	568	LIABILITY IS DETERMINED PURSUANT TO THIS SUBPART 1.26
569	569	SECTION 11. In Colorado Revised Statutes, 39-22-509, amend27
570	570	HB25-1296
571	571	-18- (2)(d) as follows:1
572	572	39-22-509. Credit against tax - employer expenditures for2
573	573	alternative transportation options for employees - legislative3
574	574	declaration - definitions - repeal. (2) As used in this section, unless the4
575	575	context otherwise requires:5
576	576	(d) "Local government" means any home rule city, town,
577	577	COUNTY6
578	578	or city and county, or
579	579	AND ANY statutory city, or town, OR COUNTY. 7
580	580	SECTION 12. In Colorado Revised Statutes, 39-22-537.5,8
581	581	amend (3)(a); and add (5) as follows:9
582	582	39-22-537.5. Credit for personal property taxes paid -10
583	583	legislative declaration - definitions - repeal. (3) (a) For income tax11
584	584	years commencing on or after January 1, 2019,
585	585	BUT BEFORE JANUARY 1,12
586	586	2026, a taxpayer is allowed a credit against the tax imposed by this article13
587	587	22 equal to the property tax paid in Colorado during the income tax year14
588	588	on up to eighteen thousand dollars of the total actual value of the15
589	589	taxpayer's personal property.16
590	590	(5) T
591	591	HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2036.17
592	592	SECTION 13. In Colorado Revised Statutes, 39-22-514.5,18
593	593	amend (8)(b)(III) introductory portion as follows:19
594	594	39-22-514.5. Tax credit for qualified costs incurred in20
595	595	preservation of historic structures - commercial historic preservation21
596	596	tax credit program cash fund - tax preference performance statement22
597	597	- legislative declaration - short title - definitions. (8) Deadline for23
598	598	incurring specified amount of estimated costs of rehabilitation - proof24
599	599	of compliance - audit of cost and expense certification - issuance of25
600	600	tax credit certificate - commercial structures. (b) Following the26
601	601	completion of a rehabilitation of a qualified commercial structure, the27
602	602	HB25-1296
603	603	-19- owner shall notify the office that the rehabilitation has been completed1
604	604	and shall certify the qualified rehabilitation costs and expenses. The2
605	605	applicant shall include a review of the certification by a licensed certified3
606	606	public accountant that is not affiliated with the qualified applicant, and4
607	607	the review of the certification must align with office policies for5
608	608	certification of qualified rehabilitation expenditures. The office and the6
609	609	historical society shall review the documentation of the rehabilitation and7
610	610	the historical society shall verify that the documentation satisfies the8
611	611	rehabilitation plan. Within ninety days after receipt of such9
612	612	documentation from the owner, the office shall issue a tax credit10
613	613	certificate in an amount equal to the following subject to subsection (8)(c)11
614	614	of this section:12
615	615	(III) F
616	616	OR INCOME TAX YEARS COMMENCING PRIOR TO JANUARY 1,13
617	617	2030,
618	618	AND FOR APPLICATIONS SUBMITTED PURSUANT TO SUBSECTION (5)14
619	619	OF THIS SECTION PRIOR TO JANUARY 1, 2026, with respect to a certified15
620	620	historic structure that is a qualified commercial structure that is located16
621	621	in an area that the president of the United States has determined to be a17
622	622	major disaster area under section 102 (2) of the federal "Robert T.18
623	623	Stafford Disaster Relief and Emergency Assistance Act", 42 U.S.C. sec.19
624	624	5121 et seq., or that is located in an area that the governor has determined20
625	625	to be a disaster area under the "Colorado Disaster Emergency Act", part21
626	626	7 of article 33.5 of title 24, the tax credit amounts specified in subsections22
627	627	(8)(b)(I) and (8)(b)(II) of this section must be increased as follows for an23
628	628	application that is filed within six years after the disaster determination:24
629	629	SECTION 14. In Colorado Revised Statutes, 39-22-544, amend25
630	630	(4)(c) as follows:26
631	631	39-22-544. Credit against tax - qualifying seniors - creation -27
632	632	HB25-1296
633	633	-20- legislative declaration - definitions - repeal. (4) (c) (I) For the income1
634	634	tax year commencing on January 1, 2022, notwithstanding subsections2
635	635	(4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant3
636	636	under article 31 of this title 39 during calendar year 2022 is eligible to4
637	637	receive the full credit without an income-based reduction that otherwise5
638	638	applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.6
639	639	(II) T
640	640	HIS SUBSECTION (4)(c) IS REPEALED, EFFECTIVE DECEMBER7
641	641	31,
642	642	2026.8
643	643	SECTION 15. In Colorado Revised Statutes, 39-22-2003, amend9
644	644	(5)(c)(I); and add (5)(c)(III) as follows:10
645	645	39-22-2003. State sales tax refund - offset against state income11
646	646	tax - qualified individuals - definitions - repeal.12
647	647	(5) (c) (I) Notwithstanding any provision of subsection (5)(b) of this13
648	648	section to the contrary,
649	649	BEFORE JANUARY 1, 2026, a qualified individual14
650	650	as defined in subsection (1)(a)(II) or (1)(a)(IV) of this section who claims15
651	651	a property tax or heat or fuel assistance grant pursuant to section16
652	652	39-31-101 may claim a refund authorized by this section on the assistance17
653	653	grant application form described in section 39-31-102 (2). Claiming a18
654	654	refund on such assistance grant application form is in lieu of claiming the19
655	655	refund on an income tax return pursuant to subsection (5)(b) of this20
656	656	section. Any refund claimed pursuant to this subsection (5)(c) must be21
657	657	claimed on or before October 15 of the calendar year following the tax22
658	658	year for which the refund is being claimed.23
659	659	(III) T
660	660	HIS SUBSECTION (5)(c) IS REPEALED, EFFECTIVE DECEMBER24
661	661	31,
662	662	2026.25
663	663	SECTION 16. In Colorado Revised Statutes, 39-26-102, amend26
664	664	(5.7) and (15)(c) as follows:27
665	665	HB25-1296
666	666	-21- 39-26-102. Definitions. As used in this article 26, unless the1
667	667	context otherwise requires:2
668	668	(5.7) "Mainframe computer access" means the provision of access3
669	669	to computer equipment for the purpose of storing or processing data.4
670	670	"Mainframe computer access" does not include the provision of access to5
671	671	computer equipment for the purpose of examining or acquiring data6
672	672	maintained by the vendor. "Mainframe computer access" does not include7
673	673	the provision of access to computer equipment incident to electronic8
674	674	computer software delivery, as defined in subsection (15)(c)(II)(C) of this9
675	675	section, or incident to the use of computer software hosted by an10
676	676	application service provider, as defined in subsection (15)(c)(II)(A) of11
677	677	this section.12
678	678	(15) (c) (I) "Tangible personal property", commencing July 1,13
679	679	2012, shall include INCLUDES computer software if the computer software14
680	680	is: meets all of the following criteria15
681	681	(A) The computer software is prepackaged AVAILABLE for16
682	682	repeated sale or license;
683	683	AND17
684	684	(B) The use of the computer software is
685	685	Governed by a tear-open18
686	686	nonnegotiable license agreement; and19
687	687	(C) The computer software is delivered to the customer in a20
688	688	tangible medium. Computer software is not delivered to the customer in21
689	689	a tangible medium if it is provided through an application service22
690	690	provider, delivered by electronic computer software delivery, or23
691	691	transferred by load and leave computer software delivery.24
692	692	(I.5) T
693	693	ANGIBLE PERSONAL PROPERTY DOES NOT INCLUDE CUSTOM25
694	694	SOFTWARE DEVELOPED FOR USE BY A PARTICULAR USER .26
695	695	(II) As used in this paragraph (c)
696	696	SUBSECTION (15)(c), unless the27
697	697	HB25-1296
698	698	-22- context otherwise requires:1
699	699	(A) "Application service provider" or "ASP" means an entity that2
700	700	retains custody over or hosts computer software for use by third parties.3
701	701	Users of the computer software hosted by an ASP typically will access the4
702	702	computer software via the internet. The ASP may or may not own or5
703	703	license the computer software, but generally will own and maintain6
704	704	hardware and networking equipment required for the user to access the7
705	705	computer software. Where the ASP owns the computer software, the ASP8
706	706	may charge the user a license fee for the computer software or a fee for9
707	707	maintaining the computer software or hardware used by its customer.10
708	708	(B) "Computer software" means a set of coded instructions
709	709	THAT11
710	710	ARE BOTH designed to cause a computer or automatic data processing
711	711	12
712	712	equipment to perform a task other electronic device to perform a task AND13
713	713	ARE DELIVERED BY ANY MEANS , INCLUDING COMPACT DISC, DOWNLOAD,14
714	714	OR REMOTE ACCESS THROUGH THE INTERNET . COMPUTER SOFTWARE15
715	715	INCLUDES APPLICATIONS OR A PPS INSTALLED ON CELLULAR PHONES ,16
716	716	TABLETS, OR OTHER MOBILE DEVICES.17
717	717	(C) "Electronic computer software delivery" means computer 18
718	718	software transferred by remote telecommunications to the purchaser's19
719	719	computer, where the purchaser does not obtain possession of any tangible20
720	720	medium in the transaction.21
721	721	(D) "Load and leave computer software delivery" means delivery22
722	722	of computer software to the purchaser by use of a tangible medium where23
723	723	the title to or possession of the tangible medium is not transferred to the24
724	724	purchaser, and where the computer software is manually loaded by the25
725	725	vendor, or the vendor's representative, at the purchaser's location.26
726	726	(E) "Prepackaged for repeated sale or license" means computer27
727	727	HB25-1296
728	728	-23- software that is prepackaged for repeated sale or license in the same form1
729	729	to multiple users without modification, and is typically sold in a2
730	730	shrink-wrapped box.3
731	731	(F) "Tangible medium" means a tape, disk, compact disc, card, or4
732	732	comparable physical medium.5
733	733	(G) "Tear-open nonnegotiable license agreement" means a license6
734	734	agreement contained on or in the package, which by its terms becomes7
735	735	effective upon opening of the package and accepting the licensing8
736	736	agreement. "Tear-open nonnegotiable license agreement" does not9
737	737	include a written license agreement or contract signed by the licensor and10
738	738	the licensee.11
739	739	(III) The internalized instruction code that controls the basic12
740	740	operations, such as arithmetic and logic, of the computer causing it to13
741	741	execute instructions contained in system programs is an integral part of14
742	742	the computer and is not normally accessible or modifiable by the user.15
743	743	Such internalized instruction code is considered part of the hardware and16
744	744	considered tangible personal property that is taxable pursuant to section17
745	745	39-26-104 (1)(a). The fact that the vendor does or does not charge18
746	746	separately for such code is immaterial.19
747	747	(IV) If a retailer sells computer software to a Colorado purchaser20
748	748	that is considered tangible personal property taxable pursuant to section21
749	749	39-26-104 (1)(a) and the Colorado purchaser pays the retailer for a22
750	750	quantity of computer software licenses with the intent to distribute the23
751	751	computer software to any of the purchaser's locations outside of24
752	752	Colorado, the measure of Colorado sales tax due is the total of the license25
753	753	fees associated only with the licenses that are actually used in Colorado.26
754	754	The Colorado purchaser shall provide a written statement to the retailer,27
755	755	HB25-1296
756	756	-24- attesting to the amount of the license fees associated with Colorado and1
757	757	with points outside of Colorado. The written statement shall relieve the2
758	758	retailer of any liability associated with the proration.3
759	759	SECTION 17. In Colorado Revised Statutes, 39-26-104, add4
760	760	(1)(c.5) as follows:5
761	761	39-26-104. Property and services taxed - definitions. (1) There6
762	762	is levied and there shall be collected and paid a tax in the amount stated7
763	763	in section 39-26-106 as follows:8
764	764	(c.5) B
765	765	EGINNING JULY 1, 2025, UPON TELEPHONE AND TELEGRAPH9
766	766	SERVICES, WHETHER FURNISHED BY PUBLIC OR PRIVATE CORPORATIONS OR10
767	767	ENTERPRISES FOR INTERSTATE TELEPHONE AND TELEGRAPH SERVICE , IF11
768	768	THE TELEPHONE AND TELEGRAPH SERVICE ORIGINATES IN THE STATE AND12
769	769	IS CHARGED TO A COLORADO ADDRESS.13
770	770	SECTION 18. In Colorado Revised Statutes, 39-27-105, amend14
771	771	(2)(b) as follows:15
772	772	39-27-105. Collection of tax on gasoline and special fuel - rules16
773	773	- repeal. (2) (b) (I) B
774	774	EFORE JULY 1, 2025, from the amount of tax17
775	775	computed under subsection (2)(a) of this section, the distributor shall18
776	776	deduct one-half of one percent to cover expenses of payment of the tax19
777	777	and bad debt losses and shall pay the remaining balance to the department20
778	778	of revenue and file the statement required by subsection (1) of this section21
779	779	on or before the twenty-sixth day of each calendar month. If any22
780	780	distributor is delinquent in remitting the tax, except in unusual23
781	781	circumstances shown to the satisfaction of the executive director of the24
782	782	department of revenue, the retailer shall not be allowed to deduct any25
783	783	amount under this subsection (2)(b).26
784	784	(II) T
785	785	HIS SUBSECTION (2)(b) IS REPEALED, EFFECTIVE JULY 1, 2029.27
786	786	HB25-1296
787	787	-25- SECTION 19. In Colorado Revised Statutes, 39-30-104, amend1
788	788	(1)(a) and (2)(c)(IV) as follows:2
789	789	39-30-104. Credit against tax - investment in certain property3
790	790	- definitions. (1) (a) (I) There shall be IS allowed to any person as a4
791	791	credit against the tax imposed by article 22 of this title 39, for income tax5
792	792	years commencing on or after January 1, 1986, an amount equal to the6
793	793	total of three percent of the total qualified investment, as determined7
794	794	under section 46 (c)(2) of the federal "Internal Revenue Code of 1986",8
795	795	as amended, in such taxable year in qualified property as defined in9
796	796	section 48 of the internal revenue code to the extent that such investment10
797	797	is in property that is used solely and exclusively in an enterprise zone for11
798	798	at least one year. The references in this subsection (1) to sections 4612
799	799	(c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and 4813
800	800	of the internal revenue code as they existed immediately prior to the14
801	801	enactment of the federal "Revenue Reconciliation Act of 1990".15
802	802	(II) (A) N
803	803	OTWITHSTANDING SUBSECTION (1)(a)(I) OF THIS16
804	804	SECTION, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY17
805	805	1,
806	806	2026, A TAXPAYER IS NOT ALLOWED TO CLAIM A TOTAL CREDIT AMOUNT18
807	807	AGAINST THE TAX IMPOSED BY ARTICLE 22 OF THIS TITLE 39 PURSUANT TO19
808	808	SUBSECTION (1)(a)(I) OF THIS SECTION IN EXCESS OF TWO MILLION20
809	809	DOLLARS AND A TAXPAYER MAY NOT CLAIM A CREDIT PURSUANT TO THIS21
810	810	SECTION IF THAT TAXPAYER IS INVOLVED IN: THE EXTRACTION OF OIL AND22
811	811	GAS OR HARD ROCK MINERALS , AVIATION, THE RETAIL SALE OF FUEL23
812	812	PRODUCTS, OR THE CONSTRUCTION OF A WIRELESS TELECOMMUNICATIONS24
813	813	FACILITY.25
814	814	(B) A
815	815	TAXPAYER MAY SEEK A WAIVER OF THE LIMITATION ON THE26
816	816	AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION (1)(a)(II)(A) OF THIS27
817	817	HB25-1296
818	818	-26- SECTION BY COMPLETING A WRITTEN APPLICATION TO THE COLORADO1
819	819	ECONOMIC DEVELOPMENT COMMISSION FOR PERMISSION TO CLAIM A2
820	820	CREDIT IN EXCESS OF THAT LIMITATION FOR THE INCOME TAX YEAR IN3
821	821	WHICH THE TOTAL QUALIFIED INVESTMENT IS MADE . THE APPLICATION4
822	822	MUST INCLUDE IDENTIFICATION OF THE SUBSTANTIAL POSITIVE IMPACT5
823	823	THAT THE WAIVER OF THE LIMITATION WOULD HAVE ON INVESTMENTS AND6
824	824	ON WELL-PAYING JOBS IN THE ENTERPRISE ZONE, DOCUMENTATION THAT7
825	825	DEMONSTRATES THAT WITHOUT THE WAIVER OF THE LIMITATION THE8
826	826	SUBSTANTIAL POSITIVE IMPACT ON INVESTMENTS AND ON WELL -PAYING9
827	827	JOBS IN THE ENTERPRISE ZONE IS NOT LIKELY TO OCCUR , AND10
828	828	INFORMATION THAT THE WAIVER OF THE LIMITATION IS A SUBSTANTIAL11
829	829	FACTOR IN THE TAXPAYER'S DECISION TO MAKE A QUALIFIED INVESTMENT12
830	830	IN THE START-UP, EXPANSION, OR RELOCATION OF THE TAXPAYER 'S13
831	831	BUSINESS, SUCH THAT WITHOUT THE WAIVER THE TAXPAYER IS NOT LIKELY14
832	832	TO MAKE THE QUALIFIED INVESTMENT . IN DECIDING WHETHER TO GRANT15
833	833	THE WAIVER OF THE LIMITATION, THE COMMISSION MUST CONSIDER THE16
834	834	OVERALL ECONOMIC HEALTH OF THIS STATE AND THE EC ONOMIC VIABILITY17
835	835	OF THE ARGUMENTS MADE BY THE TAXPAYER IN SUPPORT OF THE18
836	836	TAXPAYER'S APPLICATION. THE COLORADO ECONOMIC DEVELOPMENT19
837	837	COMMISSION MAY REQUIRE THE TAXPAYER TO PROVIDE AN INDEPENDENT20
838	838	ANALYSIS, AT THE TAXPAYER'S EXPENSE, THAT SUBSTANTIATES THE21
839	839	TAXPAYER'S ARGUMENTS IN SUPPORT OF THE APPLICATION . THE22
840	840	TAXPAYER'S APPLICATION MUST BE CONSIDERED AT A REGULARLY23
841	841	SCHEDULED MEETING OF THE COLORADO ECONOMIC DEVELOPMENT24
842	842	COMMISSION AT WHICH THE PUBLIC IS ALLOWED TO COMMENT .25
843	843	(C) T
844	844	HE COLORADO ECONOMIC DEVELOPMENT COMMISSION MAY26
845	845	ALLOW ALL, PART, OR NONE OF A TAXPAYER'S APPLICATION TO WAIVE THE27
846	846	HB25-1296
847	847	-27- LIMITATION ON THE AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION1
848	848	(1)(a)(II)(A)
849	849	OF THIS SECTION. THE COLORADO ECONOMIC DEVELOPMENT2
850	850	COMMISSION MUST ISSUE A CREDIT CERTIFICATE THAT SETS FORTH THE3
851	851	AMOUNT OF THE CREDIT THAT THE TAXPAYER MAY CLAIM FOR THE INCOME4
852	852	TAX YEAR IN WHICH THE TOTAL QUALIFIED INVESTMENT IS MADE . THE5
853	853	TAXPAYER SHALL SUBMIT THE CREDIT CERTIFICATE TO THE DEPARTMENT6
854	854	OF REVENUE WITH THE TAXPAYER 'S INCOME TAX RETURN FOR THE TAX7
855	855	YEAR FOR WHICH THE COLORADO ECONOMIC DEVELOPMENT COMMISSION8
856	856	ISSUED THE CREDIT CERTIFICATE.9
857	857	(D) I
858	858	F THE COLORADO ECONOMIC DEVELOPMENT COMMISSION10
859	859	APPROVES. IN WHOLE OR IN PART, A TAXPAYER'S APPLICATION TO WAIVE11
860	860	THE LIMITATION ON THE AMOUNT OF CREDIT ESTABLISHED IN SUBSECTION12
861	861	(1)(a)(II)(A)
862	862	OF THIS SECTION, THE COLORADO ECONOMIC DEVELOPMENT13
863	863	COMMISSION SHALL INCLUDE ITS DECISION IN THE ENTERPRISE ZONE14
864	864	ANNUAL REPORT TO THE GENERAL ASSEMBLY , INCLUDING THE TAXPAYER'S15
865	865	NAME, THE AMOUNT OF THE CREDIT THAT THE COMMISSION ALLOWED THE16
866	866	TAXPAYER TO CLAIM, AND THE COLORADO ECONOMIC DEVELOPMENT17
867	867	COMMISSION'S JUSTIFICATION FOR APPROVING THE APPLICATION .18
868	868	(E) F
869	869	OR PURPOSES OF THIS SUBSECTION (1)(a), "FUEL PRODUCTS"19
870	870	MEANS ALL GASOLINE; AVIATION GASOLINE; AVIATION TURBINE FUEL;20
871	871	DIESEL; JET FUEL; FUEL OIL; BIODIESEL; BIODIESEL BLENDS; KEROSENE;21
872	872	ALL ALCOHOL BLENDED FUELS ; LIQUEFIED PETROLEUM GAS ; GAS OR22
873	873	GASEOUS COMPOUNDS , INCLUDING HYDROGEN; NATURAL GAS, INCLUDING23
874	874	COMPRESSED NATURAL GAS AND LIQUEFIED NATURAL GAS ; AND ALL24
875	875	OTHER VOLATILE, FLAMMABLE, OR COMBUSTIBLE LIQUIDS THAT ARE25
876	876	PRODUCED, COMPOUNDED, AND OFFERED FOR SALE OR USED FOR THE26
877	877	PURPOSE OF GENERATING HEAT , LIGHT, OR POWER IN INTERNAL27
878	878	HB25-1296
879	879	-28- COMBUSTION ENGINES OR FUEL CELLS, FOR CLEANING, OR FOR ANY OTHER1
880	880	SIMILAR USAGE.2
881	881	(F) F
882	882	OR PURPOSES OF THIS SUBSECTION (1)(a), "WIRELESS3
883	883	TELECOMMUNICATIONS FACILITY " OR "FACILITY" MEANS EQUIPMENT AT4
884	884	A FIXED LOCATION THAT ENABLES WIRELESS COMMUNICATIONS BETWEEN5
885	885	USER EQUIPMENT AND A COMMUNICATIONS NETWORK , INCLUDING MACRO6
886	886	AND SMALL WIRELESS FACILITIES, TRANSCEIVERS, ANTENNAS, COAXIAL OR7
887	887	FIBER-OPTIC CABLE, REGULAR AND BACKUP POWER SUPPLIES , AND8
888	888	COMPARABLE EQUIPMENT , REGARDLESS OF TECHNOLOGICAL9
889	889	CONFIGURATION; AND THE SUPPORT STRUCTURE OR IMPROVEMENTS ON ,10
890	890	UNDER, OR WITHIN WHICH THE EQUIPMENT IS COLLOCATED .11
891	891	(2) (c) (IV) The limitation contained in this paragraph (c)
892	892	12
893	893	SUBSECTION (2)(c) on the amount a taxpayer may claim for the income tax13
894	894	year in which the total qualified investment is made does not limit the14
895	895	total amount of the credit allowed under subsection (1) SUBSECTION (1)(a)15
896	896	of this section, nor does it limit the ability of a taxpayer to carryover16
897	897	CARRY OVER a credit to subsequent tax years as allowed in subparagraph17
898	898	(III) of this paragraph (c) SUBSECTION (2)(c)(III) OF THIS SECTION or18
899	899	previously allowed in subsection (2.5) of this section.19
900	900	SECTION 20. In Colorado Revised Statutes, 39-31-101, amend20
901	901	(1)(a) introductory portion, (2)(d), (2.1), (5)(a), (5)(c)(I), (5)(c)(II),21
902	902	(5)(d)(I), (5)(d)(II), and (5)(e) as follows:22
903	903	39-31-101. Real property tax - tax equivalent - assistance -23
904	904	heat or fuel expenses assistance - eligibility - applicability - definitions24
905	905	- repeal. (1) (a) B
906	906	EFORE JANUARY 1, 2026, individuals having resided25
907	907	within this state for the entire taxable year who are sixty-five years of age26
908	908	or older during the taxable year are eligible for a grant to be determined27
909	909	HB25-1296
910	910	-29- with respect to the income taxes imposed by article 22 of this title 39,1
911	911	subject to the additional qualification requirements of this section, to aid2
912	912	in the payment by such individuals of:3
913	913	(2) A grant is the amount of the general property taxes actually4
914	914	paid on the residence or the amount of taxes actually paid on a mobile5
915	915	home, plus any tax-equivalent payments computed pursuant to subsection6
916	916	(4) of this section, with respect to the rent of a trailer space during the7
917	917	year for which the grant is claimed, the amount of the specific ownership8
918	918	tax actually paid on a trailer coach, or the amount of the tax-equivalent9
919	919	payments, computed pursuant to subsection (4) of this section, actually10
920	920	made during the year for which such grant is claimed, but in no event may11
921	921	it exceed:12
922	922	(d) For a grant claimed for the 2023 calendar year, either eight13
923	923	hundred seventy-two dollars reduced by ten percent of the claimant's14
924	924	income over the phase-out amount or the property tax flat grant amount,15
925	925	whichever amount is greater. For a grant claimed for years commencing16
926	926	on or after January 1, 2024,
927	927	BUT BEFORE JANUARY 1, 2026, either the17
928	928	maximum grant amount allowed under this subsection (2)(d) for the prior18
929	929	year, adjusted for inflation and reduced by ten percent of the claimant's19
930	930	income over the phase-out amount, or the property tax flat grant amount,20
931	931	whichever amount is greater.21
932	932	(2.1) For a grant claimed for the 2023 calendar year, either two22
933	933	hundred forty dollars reduced by ten percent of the claimant's income23
934	934	over the phase-out amount or the heat or fuel expenses flat grant amount,24
935	935	whichever amount is greater. For a grant claimed for years commencing25
936	936	on or after January 1, 2024,
937	937	BUT BEFORE JANUARY 1, 2026, either the26
938	938	maximum grant amount allowed under this subsection (2.1) for the prior27
939	939	HB25-1296
940	940	-30- year, adjusted for inflation and reduced by ten percent of the claimant's1
941	941	income over the phase-out amount, or the heat or fuel expenses flat grant2
942	942	amount, whichever amount is greater.3
943	943	(5) As used in this section:4
944	944	(a) "Heat or fuel expenses flat grant amount" means an amount5
945	945	equal to ninety-two dollars for the 2023 calendar year, and for each year6
946	946	thereafter,
947	947	UNTIL JANUARY 1, 2026, the amount for the prior year adjusted7
948	948	for inflation.8
949	949	(c) "Maximum eligible income amount" means:9
950	950	(I) For an individual, income that is less than or equal to eighteen10
951	951	thousand twenty-six dollars for the 2023 calendar year and for each year11
952	952	thereafter,
953	953	UNTIL JANUARY 1, 2026, the amount for the prior year adjusted12
954	954	for inflation; and13
955	955	(II) For spouses, income that is less than or equal to twenty-four14
956	956	thousand three hundred forty-five dollars for the 2023 calendar year and15
957	957	for each year thereafter,
958	958	UNTIL JANUARY 1, 2026, the amount for the prior16
959	959	year adjusted for inflation.17
960	960	(d) "Phase-out amount" means:18
961	961	(I) In the case of an individual, an amount equal to nine thousand19
962	962	six hundred ninety-two dollars for the 2023 calendar year and for each20
963	963	year thereafter,
964	964	UNTIL JANUARY 1, 2026, the amount for the prior year21
965	965	adjusted for inflation; and22
966	966	(II) In the case of spouses, an amount equal to fifteen thousand six23
967	967	hundred sixty-eight dollars for the 2023 calendar year and for each year24
968	968	thereafter,
969	969	UNTIL JANUARY 1, 2026, the amount for the prior year adjusted25
970	970	for inflation.26
971	971	(e) "Property tax flat grant amount" means an amount equal to two27
972	972	HB25-1296
973	973	-31- hundred eighty-two dollars for the 2023 calendar year, and for each year1
974	974	thereafter,
975	975	UNTIL JANUARY 1, 2026, the amount for the prior year adjusted2
976	976	for inflation.3
977	977	SECTION 21. In Colorado Revised Statutes, 39-31-102, amend4
978	978	(2) and (3) as follows:5
979	979	39-31-102. Procedures to obtain grant - department of revenue6
980	980	- responsibilities. (2) The executive director shall prescribe the forms to7
981	981	be used for the grants authorized by section 39-31-101 and the credit
982	982	8
983	983	allowed pursuant to section 39-31-104.5 and prepare any instructions9
984	984	related to the forms. The executive director may create an electronic form10
985	985	to be used in addition to the paper form. If a sales tax refund is allowed11
986	986	for any given income tax year in accordance with section 39-22-2002, the12
987	987	executive director shall include provisions on the forms to allow qualified13
988	988	individuals to apply for the refund pursuant to section 39-22-2003 (5)(c).14
989	989	To receive a grant, or credit, an individual must claim the grant or credit15
990	990	on the executive director's form.16
991	991	(3) (a) If two or more individuals, other than spouses, are entitled17
992	992	to a grant authorized by section 39-31-101, or a credit allowed pursuant18
993	993	to section 39-31-104.5, the grant or credit may be claimed by either or any19
994	994	of the individuals. When two or more individuals claim the grant or credit20
995	995	for the same residence, the executive director is authorized to determine21
996	996	the proper allocation of the grant. or credit22
997	997	(b) No grant or credit received pursuant to this article 31 is treated23
998	998	as income for purposes of determining the eligibility of any individual for24
999	999	old age pension benefits under article 2 of title 26.25
1000	1000	SECTION 22. Repeal of relocated provisions in this act. In26
1001	1001	Colorado Revised Statutes, repeal 39-31-104.5.27
1002	1002	HB25-1296
1003	1003	-32- SECTION 23. In Colorado Revised Statutes, add 39-31-106 as1
1004	1004	follows:2
1005	1005	39-31-106. Repeal of article. T
1006	1006	HIS ARTICLE 31 IS REPEALED,3
1007	1007	EFFECTIVE DECEMBER 31, 2026.4
1008	1008	SECTION 24. Effective date. This act takes effect upon passage;5
1009	1009	except that section 16 of this act takes effect on July 1, 2025, and sections6
1010	1010	4 and 5 of this act take effect December 31, 2026.7
1011	1011	SECTION 25. Safety clause. The general assembly finds,8
1012	1012	determines, and declares that this act is necessary for the immediate9
1013	1013	preservation of the public peace, health, or safety or for appropriations for10
1014	1014	the support and maintenance of the departments of the state and state11
1015	1015	institutions.12
1016	1016	HB25-1296
1017	1017	-33-