HB 24-1271

House Bill 24-1271 creates a new state income tax credit for veterinarians and veterinary technicians who work full-time in underserved areas of Colorado starting from January 1, 2026. It also provides tax credits to buyers purchasing a veterinary practice in these areas. The bill aims to help attract and retain veterinary professionals where they are needed most by offering financial incentives through refundable tax credits ranging from $5,000 to $30,000 for individuals and $10,000 to $200,000 for practice buyers. The Colorado Department of Agriculture will oversee the implementation and certification process, ensuring that no more than $2 million in tax credits are issued each year. Since the bill has been signed into law, it is now official state policy and will begin its phased implementation starting in 2026, with rules and guidelines to be established by July 1, 2025.

Official Summary

For income tax years commencing on or after January 1, 2026, but before January 1, 2033, the bill creates a new refundable state income tax credit for a qualified licensed veterinarian and a registered veterinary technician (veterinary professional) working full-time in an underserved area or under-resourced area (underserved area) and for a buyer of a veterinary practice in an underserved area. The department of agriculture (department) is required to certify tax credits for eligible veterinary professionals and buyers of a veterinary practice in an underserved area in an amount not to exceed, in aggregate, $2 million in any tax year. No later than July 1, 2025, the department is required to promulgate rules for issuing a tax credit certificate to an eligible veterinary professional working full-time in an underserved area and for a buyer of a veterinary practice in an underserved area using the recommendations of an advisory board (board) that consists of 3 licensed veterinarians, 3 registered veterinary technicians, 3 agricultural animal producers, and 3 representatives from animal welfare nonprofits chosen by the commissioner of agriculture. The department must promulgate rules that include criteria for the determination of which geographic areas of the state fall within the definition of an underserved or under-resourced area. The department must also promulgate rules that determine a mechanism to determine the tax credit amount the department is able to certify to an eligible veterinary professional working full-time in an underserved area that is no less than $5,000 and no more than $30,000 and to a buyer of a veterinary practice in an underserved or under-resourced area that is no less than $10,000 and no more than $200,000. (Note: This summary applies to this bill as introduced.)