HB 24-1065
signedReduction of State Income Tax Rate
Plain-English Summary
AI-generatedHB 24-1065, which has been signed into law, reduces the state income tax rate in Colorado. Starting from January 1, 2025, both individuals and corporations will pay a lower tax rate of 4.0% instead of the current 4.40%. This change means that taxpayers and businesses will see their taxes decrease by 0.4 percentage points starting next year. The bill also removes the requirement for a performance statement when making these changes to the tax code, which simplifies the process for future adjustments.
Official Summary
For income tax years commencing on and after January 1, 2025, the bill reduces both the individual and the corporate state income tax rates from 4.40% to 4.0%. The bill also exempts the rate reductions from the existing statutory requirements that tax expenditure legislation include a tax preference performance statement in a statutory legislative declaration and repeal after a specified period of tax years.
(Note: This summary applies to this bill as introduced.)
Details
- Chamber
- House
- First action
- 2024-02-12
- Latest action
- 2024-01-10
- Last action desc.
- Introduced In House - Assigned to Finance
- OpenStates
- View source ↗
Related Legislation
This bill affects (92)
amendsHB 23-1128(2023A)· signedIncome Tax Credits And Deductions Married Taxpayers
amendsHB 17-1290(2017A)· failedColorado Secure Savings Plan
amendsHB 22-1125(2022A)· signedIncome Tax Rate Reduction
amendsHB 23-1277(2023A)· signedReporting Adjustments To Taxable Income
amendsHB 22-1320(2022A)· signedAchieving A Better Life Experience Savings Accounts
amendsSB 23-290(2023A)· signedNatural Medicine Regulation And Legalization
amendsHB 23B-1005(2023B)· signedMatters Related To Tax Relief For Tax Year 2023
amendsHB 23-1079(2023A)· signedIncome Tax Credits For Nonpublic Education
amendsHB 17-1007(2017A)· failedTax Benefit Employer Collegeinvest Contribution
amendsHB 18-1359(2018A)· signedColorado Charitable Contribution Income Tax Deduction
amendsSB 22-138(2022A)· signedReduce Greenhouse Gas Emissions In Colorado
amendsHB 22-1124(2022A)· signedTax Credit For Recycling An Old Vehicle
amendsHB 23-1281(2023A)· signedAdvance The Use Of Clean Hydrogen
amendsHB 22-1051(2022A)· signedMod Affordable Housing Tax Credit
amendsSB 22-051(2022A)· signedPolicies To Reduce Emissions From Built Environment
amendsHB 23-1129(2023A)· signedTax Credit Lifebuoy Apparatus
amendsHB 23-1240(2023A)· signedSales Use Tax Exemption Wildfire Disaster Construction
amendsSB 18-061(2018A)· signedReduce The State Income Tax Rate
amendsHB 22-1025(2022A)· signedRepeal Of Infrequently Used Tax Expenditures
amendsSB 22-084(2022A)· signed529 Plan Education Loan Payment Eligible Distribution
amendsSB 23-208(2023A)· signedCorrection Of Certain Tax Statute Cross References
amendsHB 18-1209(2018A)· signedNo 529 Account Income Tax Deduction For K-12 Kindergarten Through Twelfth Expenses
amendsHB 18-1060(2018A)· signedIncome Tax Deduction For Military Retirement Benefits
amendsHB 22-1414(2022A)· signedHealthy Meals For All Public School Students
amendsHB 22-1205(2022A)· signedSenior Housing Income Tax Credit
amendsHB 22-1021(2022A)· signedReduce State Income Tax Rate
amendsHB 18-1298(2018A)· signedColorado Secure Savings Plan
amendsHB 22-1163(2022A)· signedState Income Tax Deduction For Medical Expenses
amendsHB 18-1025(2018A)· signedRelocate Title 12 Liquor Laws To Title 44
amendsHB 23-1189(2023A)· signedEmployer Assistance For Home Purchase Tax Credit
amendsSB 23-207(2023A)· signedSales And Use Tax Refund For Data Center Purchases
amendsSB 23-016(2023A)· signedGreenhouse Gas Emission Reduction Measures
amendsSB 23-080(2023A)· signedTax Credit Parental Engagement In Schools
amendsHB 17-1324(2017A)· failedEducational Opportunity Tax Incentives
amendsHB 22-1127(2022A)· signedIncome Tax Deduction For Rent
amendsHB 22-1123(2022A)· signedStandard Deduction Adjustment
amendsSB 23-011(2023A)· signedMinor Driver's Education Requirements
amendsHB 18-1023(2018A)· signedRelocate Title 12 Marijuana To New Title 44
amendsSB 23-106(2023A)· signedIncome Tax Deduction For Military Retirement Benefits
amendsHB 22-1138(2022A)· signedReduce Employee Single-occupancy Vehicle Trips
amendsHB 22-1010(2022A)· signedEarly Childhood Educator Income Tax Credit
amendsHB 23-1309(2023A)· signedFilm Incentive Tax Credit
amendsHB 23-1275(2023A)· signedModification Of The Film Production Incentive
amendsHB 17-1307(2017A)· failedFamily And Medical Leave Insurance Program Wage Replacement
amendsHB 22-1019(2022A)· signedModifications To Qualified State Tuition Programs
amendsHB 22-1007(2022A)· signedAssistance Landowner Wildfire Mitigation
amendsHB 22-1310(2022A)· signed529 Account Apprenticeship Expenses
amendsHB 23-1063(2023A)· signedReduction Of State Income Tax Rate
amendsHB 23-1047(2023A)· signedJoint Filing Deduction Qualified Tuition Program
amendsHB 22-1083(2022A)· signedColorado Homeless Contribution Income Tax Credit
amendsHB 22-1392(2022A)· signedContaminated Land Income Tax & Property Tax Credit
amendsHB 22-1149(2022A)· signedAdvanced Industry Investment Tax Credit
amendsHB 22-1026(2022A)· signedAlternative Transportation Options Tax Credit
amendsHB 23-1208(2023A)· signedIncome Tax Credit For Eligible Teachers
amendsSB 23-196(2023A)· signedIncome Tax Credit For Retrofitting A Home For Health Reasons
amendsHB 18-1221(2018A)· signedIncome Tax Deduction For 529 Account Kindergarten Through Twelfth Grade Expenses
amendsHB 23-1084(2023A)· signedContinuation Of Military Retirement Benefit Deduction
amendsHB 23-1260(2023A)· signedAdvanced Industry and Semiconductor Manufacturing Incentives
amendsHB 22-1166(2022A)· signedIncentives Promote Colorado Timber Industry
amendsHB 22-1109(2022A)· signedOn-demand Air Carrier Aircraft Sales Tax Exemption
amendsHB 22-1005(2022A)· signedHealth-care Preceptors Tax Credit
amendsHB 22-1055(2022A)· signedSales Tax Exemption Essential Hygiene Products
amendsHB 17-1104(2017A)· signedExclude Olympic Medal Income From Taxable Income
amendsSB 17-075(2017A)· signedIncome Tax Deduction For Military Retirement Benefits
amendsHB 18-1001(2018A)· signedFAMLI Family Medical Leave Insurance Program
amendsSB 18-265(2018A)· signedChild Care Savings Account Income Tax Benefits
amendsHB 23-1083(2023A)· signedQualified Higher Education Expenses Aviation Training
amendsSB 23-221(2023A)· signedHealthy School Meals For All Program Fund
amendsHB 23-1046(2023A)· signedTax Credit Pre-adoption Leave
amendsHB 23-1018(2023A)· signedTimber Industry Incentives
amendsHB 23-1272(2023A)· signedTax Policy That Advances Decarbonization
amendsHB 23-1016(2023A)· signedTemp Tax Credit For Public Service Retirees
amendsHB 23-1289(2023A)· signedSustainable Advancements In Aviation Tax Credits
amendsHB 23-1091(2023A)· signedContinuation Of Child Care Contribution Tax Credit
amendsHB 22-1203(2022A)· signedIncome Tax Credits For Nonpublic Education
repealsSB 17-267(2017A)· signedSustainability Of Rural Colorado
repealsSB 18-061(2018A)· signedReduce The State Income Tax Rate
repealsHB 22-1021(2022A)· signedReduce State Income Tax Rate
repealsSB 22-238(2022A)· signed2023 And 2024 Property Tax
repealsSB 23-303(2023A)· signedReduce Property Taxes And Voter-approved Revenue Change
repealsSB 22-233(2022A)· signedTABOR Refund Mechanism For FY 2021-22 Only
repealsHB 23B-1005(2023B)· signedMatters Related To Tax Relief For Tax Year 2023
repealsHB 23-1063(2023A)· signedReduction Of State Income Tax Rate
repealsHB 22-1125(2022A)· signedIncome Tax Rate Reduction
Affected by (81)
amendsHB 25-1012(2025A)· signedIncome Tax Expenditures for Service Members
amendsHB 25-1296(2025A)· signedTax Expenditure Adjustment
amendsHB 26-1289(2026A)· signedModification of Certain Tax Expenditures
amendsHB 24-1036(2024A)· signedAdjusting Certain Tax Expenditures
amendsHB 25-1012(2025B)· failedPrescription Drug Benefit Information Transparency
amendsSB 25-026(2025A)· signedAdjusting Certain Tax Expenditures
relatesHB 26-1223(2026A)· signedModifying Certain Tax Expenditures
relatesHB 26-1004(2026A)· signedContinuation of Child Care Contribution Tax Credit
relatesHB 26-1014(2026A)· signedExtend Colorado Job Growth Incentive Tax Credit
relatesHB 25-1128(2025A)· signedIncome Tax Credit for Firearm Safety Device
relatesHB 25-1021(2025B)· failedRetention of Vendors Fees for Collecting Sales Tax.
relatesSB 25-302(2025A)· signedAchieving a Better Life Experience Tax Deduction
relatesHB 24-1243(2024A)· signedIncome Tax Owed by Minors on Earned Income
relatesHB 26-1062(2026A)· failedExpand Deduction for Retirement Benefits
relatesHB 24-1340(2024A)· signedIncentives for Post-Secondary Education
relatesHB 24-1157(2024A)· signedEmployee-Owned Business Office & Income Tax Credit
relatesHB 24-1268(2024A)· signedFinancial Assistance for Certain Low-Income Individuals
relatesHB 25-1139(2025A)· signedIncome Tax Credit for Eligible Veterans
relatesSB 25-138(2025A)· signedPermanent Reductions to State Income Tax
relatesHB 26-1221(2026A)· failedTax Expenditure Adjustments
relatesHB 24-1314(2024A)· signedModification Tax Credit Preservation Historic Structures
relatesHB 24-1295(2024A)· signedCreative Industry Community Revitalization Incentives
relatesSB 24-190(2024A)· signedRail & Coal Transition Community Economic Measures
relatesHB 24-1434(2024A)· signedExpand Affordable Housing Tax Credit
relatesHB 24-1365(2024A)· signedOpportunity Now Grants & Tax Credit
relatesHB 25-1052(2025A)· signedIncome Tax Credit for Public Employees' Retirement Association Retirees
relatesHB 25-1005(2025A)· signedTax Incentive for Film Festivals
relatesHB 25-1037(2025A)· signedIncome Tax Credit for Eligible Teachers
relatesHB 25-1157(2025A)· signedReauthorize Advanced Industries Tax Credit
relatesHB 25-1005(2025B)· signedEliminate State Sales Tax Vendor Fee
relatesSB 26-128(2026A)· signedSales & Use Tax Destination Management Company
relatesHB 26-1030(2026A)· failedData Center & Utility Modernization
relatesHB 25-1012(2025A)· signedIncome Tax Expenditures for Service Members
relatesHB 25-1012(2025B)· failedPrescription Drug Benefit Information Transparency
relatesHB 24-1352(2024A)· signedAppliance Requirements & Incentives
relatesHB 25-1080(2025A)· signedWireless Telephone Infrastructure Deployment Incentives
relatesSB 25-320(2025A)· signedCommercial Motor Vehicle Transportation
relatesHB 24-1240(2024A)· signedAmeriCorps Education Award Tax Subtraction
relatesHB 24-1142(2024A)· signedReduce Income Tax Social Security Benefits
relatesSB 25-136(2025A)· signedExpand Deduction For Retirement Benefits
relatesHB 25-1021(2025A)· signedTax Incentives for Employee-Owned Businesses
relatesSB 25-310(2025A)· signedProposition 130 Implementation
relatesSB 25-214(2025A)· signedHealthy School Meals for All Program
relatesHB 26-1065(2026A)· signedTransit and Housing Investment Zones
relatesHB 26-1230(2026A)· signedExtend Conservation Easement Tax Credit
relatesHB 24-1311(2024A)· signedFamily Affordability Tax Credit
relatesHB 25-1274(2025A)· signedHealthy School Meals for All Program
relatesHB 24-1439(2024A)· signedFinancial Incentives Expand Apprenticeship Programs
relatesHB 26-1351(2026A)· signedHealthy School Meals for All State Education Fund
relatesSB 24-085(2024A)· signedSales & Use Tax Rebate for Digital Asset Purchases
relatesHB 24-1125(2024A)· signedTax Credit Commercial Building Conversion
relatesHB 24-1221(2024A)· signedIncome Tax Credit for Eligible Teachers
relatesSB 24-044(2024A)· signedPublic Employees' Retirement Association Retiree Refundable Income Tax Credit
relatesHB 24-1316(2024A)· signedMiddle-Income Housing Tax Credit
relatesHB 24-1134(2024A)· signedAdjustments to Tax Expenditures to Reduce Burden
repealsSB 24-228(2024A)· signedTABOR Refund Mechanisms
repealsHB 26-1015(2026A)· signedColorado Homeless Contribution Tax Credit Extension
repealsHB 25-1274(2025A)· signedHealthy School Meals for All Program
repealsHB 26-1289(2026A)· signedModification of Certain Tax Expenditures
repealsHB 26-1048(2026A)· signedBack-to-School Sales Tax Holiday
repealsHB 24-1325(2024A)· signedTax Credits for Quantum Industry Support
repealsSB 24-146(2024A)· signedTax Credit for Qualified Renters
repealsHB 24-1312(2024A)· signedState Income Tax Credit for Careworkers
repealsSB 25-280(2025A)· signedData Center Development & Grid Modernization Act
repealsHB 24-1271(2024A)· signedState Income Tax Credit for Veterinary Professional
repealsHB 24-1235(2024A)· signedReduce Aviation Impacts on Communities
repealsSB 24-214(2024A)· signedImplement State Climate Goals
repealsSB 25-138(2025A)· signedPermanent Reductions to State Income Tax
repealsSB 24-114(2024A)· signedIncome Tax Credit for Parental School Engagement
repealsHB 24-1144(2024A)· signedIncome Tax Credit for Mortgage Rate Buy Downs
repealsHB 24-1061(2024A)· signedMarijuana Industry & Social Equity
repealsHB 24-1249(2024A)· signedTax Credit Agricultural Stewardship Practices
repealsHB 24-1027(2024A)· signedExemption for Children's Products
repealsSB 24-152(2024A)· signedRegenerative Agriculture Tax Credit
repealsHB 24-1138(2024A)· signedTax Credit for Transfer of Agricultural Asset
repealsHB 24-1018(2024A)· signedCollege Textbook Sales Use Tax Exemption