HB 25-1128

House Bill 25-1128 creates a new income tax credit in Colorado for people who buy safety devices for firearms from licensed dealers. The credit can be up to $200 per device and is available for the years 2027 and 2028. This means that if you purchase a gun safety device, you could get back up to $200 on your state income tax. If the credit amount exceeds what you owe in taxes, you can carry it forward for up to five more years. The bill has been signed into law, so this tax credit will be available starting in 2027.

Official Summary

The bill creates a new income tax credit in an amount equal to the purchase price of a firearm safety device, not to exceed $200, that is purchased by an eligible taxpayer from a federally licensed dealer (credit). A firearm safety device is a device that is designed or can be used to store a firearm and is designed to be unlocked only by means of a key, a combination, or by other similar means. The credit is available for income tax years 2027 and 2028, and if the amount of the credit exceeds the eligible taxpayer's tax liability, the credit may be carried forward for a period of 5 income tax years. In addition, the maximum amount of aggregate credits that can be claimed in an income tax year is $5 million.(Note: This summary applies to this bill as introduced.)

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