Colorado 2025 Bills

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

Cost Recovery Cash Fund Consolidation

House Bill 26-1059 consolidates multiple cost recovery funds into a single fund managed by the state treasurer. This means that instead of having separate funds for different fees like oil and gas production or retail delivery fees, there will be one unified fund to cover administrative costs related to collecting these fees. The bill also requires the Department of Revenue to report annually on how much it costs to manage these fees. Since the bill has been signed into law, this consolidation is now in effect, simplifying financial management for the state and potentially making it easier to track expenses associated with fee collection.

Last action: 2026-01-14 · House

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

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

Colorado Homeless Contribution Tax Credit Extension

HB 26-1015, also known as the Colorado Homeless Contribution Tax Credit Extension, extends a tax credit for people who donate money or services to help homeless individuals in Colorado. This extension allows taxpayers to claim this credit until the year 2030 instead of stopping it after 2026. The bill has been signed into law, meaning that donors can now receive tax benefits for their contributions to address homelessness up to and including state income tax year 2030.

Last action: 2026-01-14 · House

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

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

Sale of Tax Credits

HB 25-1004 allows the Colorado Department of Treasury to sell tax credits to insurance companies and large corporations that owe state taxes. These companies can use these tax credits to reduce their tax bills, and any unused portion can be carried over to future years until December 31, 2033. The bill also creates a special fund to manage the proceeds from selling these tax credits, which will help cover administrative costs related to implementing this program. This law is now in effect after being signed by the governor on August 28, 2025.

Last action: 2025-08-21 · House

Eliminate State Sales Tax Vendor Fee

House Bill 25-1005 eliminates a state sales tax vendor fee that retailers can currently keep to cover the costs of collecting and remitting sales taxes, starting January 1, 2026. This means retailers will no longer be able to retain this fee for their expenses related to handling sales tax. The bill also adjusts how certain tourism funds are calculated and ensures a specific amount of housing development grants remain unchanged. It has been signed into law by the governor and is now effective as of August 28, 2025, although the main provision about the vendor fee won't take effect until early next year.

Last action: 2025-08-21 · House

Income Tax Credit Adjustment

HB 25-1018 is a Colorado bill that adjusts income tax credits by allowing the state to suspend or reduce them based on revenue forecasts. This means if there's more money than expected but voters haven't approved keeping it, some tax credits might be reduced or eliminated except for affordable housing and earned income credits. The bill also makes changes to specific tax credits related to electric equipment sales and installations, limiting when they can be claimed and allowing the state to sell them in 2025-26 with proceeds going to the general fund. Since it has been signed into law, these changes will now take effect as outlined.

Last action: 2025-08-21 · House

Voter Approval Additions to Federal Taxable Income

SCR 25-1 is a bill that would require Colorado voters to approve any changes to how federal taxable income is defined when calculating state taxes. This means that if the federal government makes changes to what counts as taxable income for tax purposes, Colorado wouldn't automatically adopt those changes without voter consent. The bill affects all taxpayers in Colorado and aims to give more control to voters over their tax definitions. However, since it has failed at this stage, it won’t move forward unless reintroduced and passed through the legislative process again.

Last action: 2025-08-21 · Senate

Retention of Vendors Fees for Collecting Sales Tax.

House Bill 25-1021 would increase the amount retailers can keep from sales tax collections to cover their costs of handling and remitting that tax. Currently, they can retain up to $1,000; starting in 2026, this limit would rise to $2,000, with a minimum retention rate of 2% of the total sales tax collected. This bill affects businesses that collect state sales taxes and would help them offset some administrative expenses related to managing these taxes. However, since the bill failed at the Introduced In House stage, it won't become law unless reintroduced and passed in future legislative sessions.

Last action: 2025-08-21 · House

Corporate Income Tax Foreign Jurisdictions

This Colorado bill adds five countries—Hong Kong, Ireland, Liechtenstein, the Netherlands, and Singapore—to a list of foreign jurisdictions where corporations are presumed to be avoiding state corporate income tax. It gives the executive director of the Department of Revenue more flexibility to determine if a corporation is using these places just to avoid taxes. The law also changes how certain types of income from foreign subsidiaries are treated for tax purposes, starting in 2026. This bill was signed into law on August 28, 2025, and took effect immediately on that date.

Last action: 2025-08-21 · House

Tax Credit for Health Savings Accounts

Senate Bill 25-6 in Colorado creates a tax credit for individuals who contribute to health savings accounts (HSAs) that are paired with 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, which is 25% of the contribution amount. This means taxpayers can reduce their state income tax by this percentage based on how much they put into their HSA. The bill has been signed into law, so Colorado residents who qualify can now claim these credits when filing their taxes.

Last action: 2025-08-21 · Senate

Voter Approval for State Vendor Fee Reductions

House Concurrent Resolution 25-1001 is a bill that proposes asking Colorado voters in the 2026 general election if they want to require voter approval before any changes can be made to state law that would reduce the fees retailers receive when collecting state sales tax. This affects businesses and consumers who pay sales tax, as it could impact how much money retailers keep from sales tax collections. The bill has been signed into action but is still in the early stages of review by a committee focused on civic affairs.

Last action: 2025-08-21 · House

Income Tax Credit Adjustment

Senate Bill 25-9 in Colorado adjusts the state's income tax credit system by creating a mechanism to temporarily suspend or reduce certain credits based on the state’s revenue forecasts. This affects most income tax credits except for those related to affordable housing and earned income. The bill also makes changes to specific tax credits, such as those for electric lawn equipment, heat pump technology installation, and electric bicycles, limiting their availability starting in 2025. Additionally, it allows the state to sell up to $40 million worth of these credits in fiscal year 2025-26. The bill has been signed into law, meaning its provisions will take effect as specified.

Last action: 2025-08-21 · Senate

Additions to Definition Federal Taxable Income

House Bill 25-1020 in Colorado changes how certain types of income are taxed by the state. It removes a requirement that people add overtime pay excluded from federal taxes to their state taxable income starting January 1, 2026. Additionally, it requires voter approval before extending a rule that adds certain business income deductions back into state taxable income after 2025. The bill has been signed into law, meaning these changes will take effect as specified unless further action is needed for implementation details.

Last action: 2025-08-21 · House

Qualified Business Income Deduction Add-Back

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.

Last action: 2025-08-21 · House