HB 23-1121

House Bill 23-1121, which has been approved by the governor and will take effect on August 7, 2023, removes several tax breaks that are rarely used in Colorado. These include exemptions for crop insurance premiums, certain oil shale production taxes, and credits for mining impact assistance. This bill affects specific industries like agriculture, oil and gas, and mining but does not broadly impact most taxpayers. Once effective, these tax breaks will no longer be available to companies or individuals who previously qualified for them.

Official Summary

The act repeals the following infrequently used tax expenditures: The crop hail insurance premium tax exemption (section 1 of the act); The in-state investment pre-1959 insurance premium tax deduction (section 1); The corporate condemnation capital gains income tax deduction (section 2); The oil shale excess percentage depletion income tax deduction (section 2); The mining and milling impact assistance corporate income tax credit (section 3); The oil shale equipment and machinery severance tax deduction (section 4); The oil shale processing severance tax deduction (section 4); The oil shale severance tax rate reductions (section 4); The oil shale noncommercial production severance tax exemption (section 4); and The mineral and mineral fuels impact assistance severance tax credit (section 5). APPROVED by Governor March 23, 2023 EFFECTIVE August 7, 2023 NOTE: This act was passed without a safety clause and takes effect 90 days after sine die. (Note: This summary applies to this bill as enacted.)

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