Colorado 2025 Bills

Health Savings Account Tax Credit

Senate Bill 26-29 in Colorado introduces a tax credit for individuals who contribute to health savings accounts (HSAs) that support high-deductible health plans. The credit is worth up to $500 for single filers, $1,000 for joint filers, and $1,500 for family plans, amounting to 25% of the contribution. This benefit will be available from January 1, 2027, through December 31, 2032. The bill has been signed into law, meaning taxpayers who qualify can start claiming this credit when they file their taxes in 2028 for contributions made in 2027.

Last action: 2026-01-14 · Senate

Agricultural Property Tax Definitions

Senate Bill 26-10, which has been signed into law in Colorado, updates the definitions of "ranch" and "farm" for property tax purposes. Under this new law, a ranch is now defined as land primarily used for grazing livestock to earn money, where animals have regular access to open pastures. Similarly, a farm is defined as land mainly used to produce agricultural products for profit. This change affects how agricultural properties are taxed and aims to better reflect the modern practices of farming and ranching in Colorado. Since it has been signed, this bill is now law and impacts property tax assessments for farms and ranches in the state.

Last action: 2026-01-14 · Senate

Back-to-School Sales Tax Holiday

HB 26-1048, also known as the Back-to-School Sales Tax Holiday bill, creates a special weekend in late July each year from 2027 to 2029 where certain school-related items are tax-free. This includes clothing up to $100, school supplies up to $50, and learning aids up to $30 for individuals under 21 years old. The bill allows local governments to also offer this tax break during the same period. Since it has been signed into law, shoppers can look forward to these tax-free weekends starting in 2027.

Last action: 2026-01-14 · House

Local Taxes on Vacant Residential Property

HB 26-1036 allows local governments in Colorado to impose taxes on vacant residential properties if approved by voters. The collected funds must be used for affordable housing initiatives. This bill also enables multiple local governments to form a joint authority to manage and enforce these taxes together. Since the bill has been signed, it is now law and local governments can start implementing it according to voter approval.

Last action: 2026-01-14 · House

Community Integration Housing Tax Credits

HB 26-1061, also known as the Community Integration Housing Tax Credits bill, aims to support the development of housing that integrates people with intellectual and developmental disabilities into their communities. The bill requires at least 10% of Colorado’s affordable housing tax credits to be reserved for these community-based housing projects, which must reserve a minimum of 20% of their units for individuals with disabilities and meet specific federal standards. Once signed into law, this measure ensures that more resources are dedicated to creating inclusive living environments, benefiting those who need accessible and supportive housing options. Since the bill has been signed, it is now law and its provisions will be implemented by the Colorado Housing and Finance Authority.

Last action: 2026-01-14 · House

Workforce Housing & Housing Tax Credit

Senate Bill 26-1, which has been signed into law in Colorado, aims to make it easier for local governments to develop affordable housing. It allows counties and cities to sell or lease public property for the purpose of creating more affordable homes and gives municipalities flexibility in how they fund these projects through taxes and fees. Additionally, the bill helps businesses claim tax credits without needing to own a stake in specific housing developments, encouraging private investment in middle-income housing. This law is now active and will help local governments create workforce housing by using tax revenues and exempting construction materials from taxation when used for government-led affordable housing projects.

Last action: 2026-01-14 · Senate

Continuation of Child Care Contribution Tax Credit

House Bill 26-1004 extends a tax credit for people who donate money to support child care programs in Colorado. This means that if you give money to help with child care, the state will give you back 50% of what you donated as a tax credit, up to $100,000. The bill has been signed into law and is now active, so this tax benefit will continue for another ten years beyond its original expiration date. This affects anyone who makes qualifying donations to child care initiatives in the state.

Last action: 2026-01-14 · House

Expand Deduction for Retirement Benefits

House Bill 26-1062, which has been signed into law, removes age-based and income caps for deducting pension and annuity benefits from Colorado state taxable income. Starting in 2027, any individual aged 55 or older can fully exclude their pension and annuity income from state taxes, regardless of how much they earn. This change will benefit older Coloradans by potentially lowering their state tax liability based on their retirement income.

Last action: 2026-01-14 · House