HB 25-1001

HB 25-1001 is a Colorado law that extends indefinitely the requirement for certain taxpayers to add back a federal tax benefit called the "qualified business income deduction" when calculating their state taxable income. This means that even after federal rules might change, these taxpayers will still need to include this deduction in their state taxes as if it didn’t exist at the state level. The law was signed by the governor and took effect on August 28, 2025, meaning it is now active and affects how businesses and individuals calculate their Colorado income tax starting from that date.

Official Summary

The act continues indefinitely the existing requirement, which otherwise would have ended for income tax years commencing on or after January 1, 2026, that an amount equal to the federal qualified business income deduction allowed under section 199A of the federal "Internal Revenue Code of 1986" be added back by certain taxpayers to their federal taxable income for the purpose of determining their state taxable income.APPROVED by Governor August 28, 2025EFFECTIVE August 28, 2025(Note: This summary applies to this bill as enacted.)

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