SB 25-307

Senate Bill 25-307 in Colorado creates a new fund called the Decarbonization Tax Credits Administration Cash Fund. The bill directs that money from oil and gas taxes will be put into this fund, which is meant to support efforts to reduce carbon emissions. Specifically, $2.5 million will be moved from another fund to this new decarbonization fund in 2025, and then $2.5 million will go back to the original fund in 2026. Since the bill has been signed into law, these financial transfers are now official state policy starting in 2025.

Official Summary

For state fiscal years 2023-24 through 2026-27, current law requires the state treasurer to credit to the decarbonization tax credits administration cash fund (fund) oil and gas severance tax revenue equal to the amount attributable to the decreased severance tax credit allowed for oil and gas production for tax years 2024 through 2026. For state fiscal years 2024-25 and 2025-26, section 2 of the act specifies that the amount of oil and gas severance tax revenue credited to the fund shall not exceed the net revenue from the oil and gas severance tax collection. Section 3 requires the state treasurer to transfer $2,500,000 from the energy and carbon management cash fund to the fund on June 30, 2025. Section 1 requires the state treasurer to transfer $2,500,000 from the fund to the energy and carbon management cash fund on January 1, 2026. (Note: This summary applies to this bill as enacted.)

Related Legislation

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