House Bill 25-1296 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the adjustment of certain tax expenditures.

Bill Summary

(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)

The bill adjusts several state tax expenditures as follows:

• Section 2 of the bill increases the amount of a company's total domestic workforce that must be in Colorado for a company to qualify for the insurance premium tax rate tax expenditure for a home office or regional home office;
• Section 3 requires insurance companies, when submitting certain filings with the division of insurance, to submit the total annual dollar amount of premiums collected or contracted for on policies or contracts of insurance covering property or risks in Colorado during the previous calendar year from entities that are exempt from taxation;
• Section 6 limits the existing tax deduction related to expenses, the deduction of which is disallowed by section 280C of the internal revenue code, so that a taxpayer may only claim the tax deduction for income tax years commencing before January 1, 2026;
• Section 10, for income tax years commencing on and after January 1, 2026, creates a new tax deduction related to expenses, the deduction of which is disallowed by section 280C of the internal revenue code, so that a taxpayer may claim the deduction for any expenses that cannot be deducted under section 280C of the internal revenue code;
• Section 7 limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2025;
• Section 8 extends the tax credit for monetary contributions to promote child care, so that the tax credit is available through income tax years commencing before January 1, 2030, rather than January 1, 2028;
• Section 9, for income tax years commencing on and after January 1, 2026, creates an income tax credit for certain individuals who are 65 years of age or older in the income tax year, or who are a surviving spouse of that individual, and who were previously eligible to receive a grant for real property tax assistance and heat or fuel expenses assistance;
• Section 20, beginning January 1, 2026, ends the availability of grants for real property tax assistance and heat or fuel expenses assistance;
• Sections 4, 5, 14, 15, 21, 22, and 23 make conforming amendments for the changes made in sections 9 and 20;
• Section 11 expands the definition of local government to include counties for purposes of the alternative transportation options tax credit;
• Section 12 limits the existing business personal property tax credit so that a taxpayer may only claim the tax deduction for income tax years commencing before January 1, 2026;
• Section 13 modifies the tax credit for qualified costs incurred in preservation of historic structures by removing the 5% increase in the percentage of rehabilitation expenses incurred in a rehabilitation in a disaster area for the rehabilitation of a commercial structure that are applicable for the tax credit;
• Section 16 modifies the downloaded software sales tax exemption so that all software that is available for repeated sale and license and governed by a nonnegotiable license agreement qualifies as tangible property and thus is subject to sales tax;
• Section 17 ensures that, beginning July 1, 2025, interstate telephone and telegraph services are subject to state sales tax;
• Section 18 repeals, effective July 1, 2025, the special fuel excise tax reduction associated with bad debt and the payment of the special fuel excise tax; and
• Section 19 modifies the enterprise zone tax credit for income tax years beginning January 1, 2026, by limiting the total amount of the credit that may be claimed to $2 million, providing an exemption process for that limit, and prohibiting certain taxpayers from claiming that credit.

• Page 3, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 3, Line 2SECTION 1.  Legislative declaration. (1)  The general assembly finds and declares that:

• Page 3, Line 3(a) (I)  The insurance premium tax rate tax expenditure for a home

• Page 3, Line 4office or regional home office was intended to create an incentive for

• Page 3, Line 5insurance companies to maintain a substantial workforce presence in the state, but the tax expenditure has not satisfied this intent;

• Page 3, Line 6(II)  In order to better meet the intended purpose of the tax

• Page 3, Line 7expenditure, the home office or regional home office tax rate exemption

• Page 3, Line 8is modified to increase the amount of a company's total domestic

• Page 3, Line 9workforce that must be in Colorado to qualify for the tax expenditure from 2.5% to 7%; and

• Page 3, Line 10(III)  The modification of the tax expenditure will only cause a de

• Page 3, Line 11minimis revenue gain that is incidental to the primary purpose of modifying the tax expenditure so that it better satisfies its original intent;

• Page 3, Line 12(b) (I)  The Colorado alternative minimum tax, like the federal

• Page 4, Line 1alternative minimum tax, ensures that taxpayers who benefit from certain income tax provisions pay a minimum amount of income tax;

• Page 4, Line 2(II)  A taxpayer's Colorado alternative minimum tax is calculated based on that taxpayer's federal alternative minimum taxable income;

• Page 4, Line 3(III)  A taxpayer may claim the Colorado alternative minimum tax

• Page 4, Line 4credit, like the federal alternative minimum tax credit, if that taxpayer was

• Page 4, Line 5liable for the federal alternative minimum tax in the previous income tax year;

• Page 4, Line 6(IV)  Colorado's tax policy has long been and remains to assess an income tax on individual and corporate taxpayers;

• Page 4, Line 7(V)  Colorado is one of only three states that has an alternative

• Page 4, Line 8minimum tax and an associated tax credit, and the Colorado alternative

• Page 4, Line 9minimum tax is not assessed equally against individual and corporate taxpayers;

• Page 4, Line 10(VI)  In order to achieve greater internal consistency in Colorado

• Page 4, Line 11tax policy and to achieve more consistency between Colorado tax policy

• Page 4, Line 12and the tax policy in other states, this act repeals the alternative minimum tax credit; and

• Page 4, Line 13(VII)   The repeal of the tax expenditure will only cause a de

• Page 4, Line 14minimis revenue gain that is incidental to the primary purpose of ensuring greater tax policy consistency;

• Page 4, Line 15(c) (I)  House Bill 24-1314 substantially modified the tax credit for

• Page 4, Line 16qualified costs incurred in the preservation of historic structures by,

• Page 4, Line 17among other things, expanding the amount of the tax credit available to taxpayers;

• Page 4, Line 18(II)  As part of modifying the tax expenditure, House Bill 24-1314

• Page 4, Line 19also removed the 5% increase in the percentage of rehabilitation expenses

• Page 5, Line 1incurred in a disaster area for the rehabilitation of a residential structure,

• Page 5, Line 2but not a commercial structure, that are considered in determining the amount of the tax expenditure;

• Page 5, Line 3(III)  This act further modifies the tax expenditure by removing the

• Page 5, Line 45% increase in the percentage of rehabilitation expenses incurred in a

• Page 5, Line 5rehabilitation in a disaster area for the rehabilitation of a commercial

• Page 5, Line 6structure that are considered in determining the amount of the tax expenditure;

• Page 5, Line 7(IV)  The primary purpose of the modification of this tax

• Page 5, Line 8expenditure is to decrease administrative burden by aligning the treatment

• Page 5, Line 9of expenses incurred in rehabilitating residential and commercial historic structures; and

• Page 5, Line 10(V)  The modification of this tax expenditure will only cause a de

• Page 5, Line 11minimis revenue gain that is incidental to the primary purpose of modifying the tax expenditure;

• Page 5, Line 12(d) (I)  The downloaded software sales tax exemption, by

• Page 5, Line 13modifying the definition of tangible personal property to not include

• Page 5, Line 14certain types of software, exempts certain software that is downloaded at the time of purchase from sales tax;

• Page 5, Line 15(II)  The primary purpose of this tax expenditure was to resolve

• Page 5, Line 16taxpayer confusion and decrease administrative burden by clarifying the definition of tangible personal property as it relates to software;

• Page 5, Line 17(III)  The primary purpose of modifying this tax expenditure is to

• Page 5, Line 18further resolve taxpayer confusion and decrease administrative burden by

• Page 5, Line 19clarifying that all computer software available for repeated sale and

• Page 5, Line 20governed by a nonnegotiable license agreement qualifies as personal

• Page 5, Line 21tangible property and is subject to sales tax; and

• Page 6, Line 1(IV)  The modification of this tax expenditure will only cause a de

• Page 6, Line 2minimis revenue gain that is incidental to the primary purpose of resolving taxpayer confusion and decreasing administrative burden;

• Page 6, Line 3(e) (I)  One of the 5 primary categories of sales that are subject to state sales tax is intrastate telephone and telegraph services;

• Page 6, Line 4(II)  Interstate telephone and telegraph services are not subject to state sales tax;

• Page 6, Line 5(III)  Unlike Colorado, 28 states subject interstate telephone and

• Page 6, Line 6telegraph services to state sales tax if at least one of the nodes of those services is in the state levying the sales tax;

• Page 6, Line 7(IV)  Like the state, many home rule municipalities in Colorado

• Page 6, Line 8impose sales tax on intrastate telephone and telegraph services, meaning that some telephone and telegraph services are taxed while others are not;

• Page 6, Line 9(V)  The primary purpose of repealing this tax expenditure is to

• Page 6, Line 10further resolve taxpayer confusion and decrease administrative burden by

• Page 6, Line 11repealing the sales tax exemption to make it clear that all telephone and telegraph services are subject to sales tax; and

• Page 6, Line 12(VI)  The repeal of this tax expenditure will only cause a de

• Page 6, Line 13minimis revenue gain that is incidental to the primary purpose of repealing the tax expenditure;

• Page 6, Line 14(f) (I)  The bad debt losses and administrative allowance fuel

• Page 6, Line 15excise tax expenditure allows a taxpayer, after calculating a two-percent

• Page 6, Line 16deduction in net fuel taxes for the loss allowance for the gasoline and

• Page 6, Line 17special fuel excise tax, to reduce the amount of net gasoline and special fuel excise taxes owed by one-half percent;

• Page 6, Line 18(II)  There are two primary purposes for the bad debt losses and

• Page 6, Line 19administrative allowance fuel excise tax expenditure:

• Page 7, Line 1(A)  To cover bad debt losses incurred by the taxpayer by covering

• Page 7, Line 2the costs of the taxes that the taxpayer paid on fuel that customers requested but did not then pay for; and

• Page 7, Line 3(B)  To cover the administrative costs incurred by the taxpayer by

• Page 7, Line 4covering the costs associated with the calculation and payment of fuel excise taxes;

• Page 7, Line 5(III)  The bad debt losses actually incurred by a taxpayer are not

• Page 7, Line 6directly related to the amount of the bad debt and administrative allowance fuel excise tax expenditure;

• Page 7, Line 7(IV)  Other state and federal tax expenditures are available to cover the bad debt losses;

• Page 7, Line 8(V)  Most taxes levied by Colorado, other states, and the federal

• Page 7, Line 9government do not allow for a tax expenditure to compensate vendors for the costs associated with the calculation and payment of those taxes;

• Page 7, Line 10(VI)   The purpose of repealing the bad debts and administrative

• Page 7, Line 11allowance fuel excise tax expenditure is to decrease administrative burden

• Page 7, Line 12by removing a duplicative tax expenditure and to better align the

• Page 7, Line 13administration of the fuel excise tax with other taxes imposed by the state; and

• Page 7, Line 14(VII)  The repeal of this tax expenditure will only cause a de

• Page 7, Line 15minimis revenue gain that is incidental to the primary purpose of repealing the tax expenditure;

• Page 7, Line 16(g) (I)  The purpose of the enterprise zone tax expenditure, which

• Page 7, Line 17awards a tax credit in proportion to the amount of a taxpayer's investment

• Page 7, Line 18within certain areas of Colorado, is to incentivize the formation of

• Page 7, Line 19businesses and the creation of jobs within economically distressed parts

• Page 7, Line 20of Colorado;

• Page 8, Line 1(II)  Some businesses that currently claim the enterprise zone tax

• Page 8, Line 2expenditure are inherently highly location-dependent and therefore are

• Page 8, Line 3not as incentivized or discentivized by a tax expenditure that rewards investment within certain areas of Colorado;

• Page 8, Line 4(III)  The purpose of limiting the amount of, and who may qualify

• Page 8, Line 5for, the enterprise zone tax expenditure is to narrow the scope of the tax

• Page 8, Line 6expenditure so that it will achieve its original purpose of incentivizing the

• Page 8, Line 7formation of businesses and the creation of jobs within economically distressed parts of Colorado; and

• Page 8, Line 8(IV)  The modification of this tax expenditure will only cause a de

• Page 8, Line 9minimis revenue gain that is incidental to the primary purpose of modifying the tax expenditure to better achieve its original purpose; and

• Page 8, Line 10(h)  Therefore, consistent with the Colorado supreme court's

• Page 8, Line 11holding in TABOR Found. v. Reg'l Transp. Dist., 2018 CO 29, that

• Page 8, Line 12legislation that causes only an incidental and de minimis tax revenue

• Page 8, Line 13increase does not amount to a new tax or a tax policy change that requires

• Page 8, Line 14voter approval in advance under section 20 of article V of the state

• Page 8, Line 15constitution, the modifications to tax expenditures in this act are neither new taxes nor tax policy changes that require voter approval.

• Page 8, Line 16SECTION 2.  In Colorado Revised Statutes, 10-3-209, amend (1)(b)(II.5)(B) and (1)(b)(II.5)(C); and add (1)(b)(II.5)(D) as follows:

• Page 8, Line 1710-3-209.  Tax on premiums collected - exemptions - penalties

• Page 8, Line 18- filing system - division to contract with third parties - rules - repeal.

• Page 8, Line 19(1) (b) (II.5)  To be deemed to maintain a home office or regional home

• Page 8, Line 20office in this state, a company must meet one of the criteria set forth in

• Page 8, Line 21subsection (1)(b)(II) of this section and also have a workforce in the state

• Page 8, Line 22that is greater than or equal to:

• Page 9, Line 1(A)  Two percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2022;

• Page 9, Line 2(B)  Two and one-quarter percent of the company's total domestic workforce, for taxes that are due and payable for calendar year 2023; and

• Page 9, Line 3(C)  Two and one-half percent of the company's total domestic

• Page 9, Line 4workforce, for taxes that are due and payable for calendar year 2024; and each calendar year thereafter

• Page 9, Line 5(D)  Seven percent of the company's total domestic

• Page 9, Line 6workforce, for taxes that are due and payable for calendar year 2025 and each calendar year thereafter.

• Page 9, Line 7SECTION 3.  In Colorado Revised Statutes, 10-3-209, add (6)(d) as follows:

• Page 9, Line 810-3-209.  Tax on premiums collected - exemptions - penalties

• Page 9, Line 9- filing system - division to contract with third parties - rules - repeal.

• Page 9, Line 10(6) (d)  In submitting taxes, penalties, fines, fees, and associated

• Page 9, Line 11filings required under this section to the division, an insurance

• Page 9, Line 12company shall identify the total annual dollar amount of

• Page 9, Line 13premiums collected or contracted for on policies or contracts

• Page 9, Line 14of insurance covering property or risks in Colorado during the

• Page 9, Line 15previous calendar year from entities that are exempt from taxation pursuant to section 10-3-209 (1)(d)(IV).

• Page 9, Line 16SECTION 4.  In Colorado Revised Statutes, 38-13-220, amend (1) as follows:

• Page 9, Line 1738-13-220.  Tax refunds. (1)  On and after October 1, 2002, any

• Page 9, Line 18amount due and payable as a refund of Colorado income tax or grant for

• Page 9, Line 19property taxes, rent, or heat or fuel expenses assistance represented by a

• Page 9, Line 20warrant that has not been presented for payment within six months after

• Page 10, Line 1the date of issuance of the warrant and that has been forwarded by the

• Page 10, Line 2department of revenue to the administrator pursuant to section 39-21-108 (5) is presumed abandoned.

• Page 10, Line 3SECTION 5.  In Colorado Revised Statutes, 39-21-108, amend (5) as follows:

• Page 10, Line 439-21-108.  Refunds. (5) (a)  On and after October 1, 2002, any

• Page 10, Line 5warrant representing a refund of income tax imposed by article 22 of this

• Page 10, Line 6title 39 or a grant for property taxes, rent, or heat or fuel expenses

• Page 10, Line 7assistance allowed by article 31 of this title 39 that is not presented for

• Page 10, Line 8payment within six months from its date of issuance shall be is void. On

• Page 10, Line 9and after October 1, 2002, upon the cancellation of a warrant in

• Page 10, Line 10accordance with the standard operating procedures of the department or

• Page 10, Line 11the state controller, the department shall forward to the state treasurer the

• Page 10, Line 12name of the taxpayer as it appears on the warrant, the taxpayer

• Page 10, Line 13identification number, the taxpayer's last-known address, the amount of

• Page 10, Line 14the canceled warrant, and an amount of money equal to the amount

• Page 10, Line 15specified in the warrant so that the state treasurer may make the refund

• Page 10, Line 16pursuant to the "Revised Uniform Unclaimed Property Act", article 13 of title 38.

• Page 10, Line 17(b)  The department may reclaim from the unclaimed property fund

• Page 10, Line 18and credit to the appropriate state revenue fund any amount forwarded by

• Page 10, Line 19the department to the state treasurer pursuant to paragraph (a) of this

• Page 10, Line 20subsection (5) subsection (5)(a) of this section that was based on a

• Page 10, Line 21warrant representing an erroneous refund. or grant If the state treasurer

• Page 10, Line 22issued an erroneous refund or grant to the person named on the warrant,

• Page 10, Line 23the treasurer shall provide proof of that payment to the department and

• Page 10, Line 24the department may assess that amount pursuant to section 39-21-103 (1).

• Page 11, Line 1SECTION 6.  In Colorado Revised Statutes, 39-22-304, amend (3)(i) as follows:

• Page 11, Line 239-22-304.  Net income of corporation - legislative declaration

• Page 11, Line 3- definitions - repeal. (3)  There shall be subtracted from federal taxable income:

• Page 11, Line 4(i) (I)  For income tax years commencing before January 1,

• Page 11, Line 52026, that portion of wages or salaries paid or incurred for the taxable

• Page 11, Line 6year, the deduction for which is disallowed by section 280C of the internal revenue code;

• Page 11, Line 7(II)  This subsection (3)(i) is repealed, effective December 31, 2031.

• Page 11, Line 8SECTION 7.  In Colorado Revised Statutes, 39-22-105, amend (3)(b) and (4); and add (3)(c) as follows:

• Page 11, Line 939-22-105.  Alternative minimum tax - repeal. (3) (b)  For

• Page 11, Line 10taxable years beginning on or after January 1, 2000, but before

• Page 11, Line 11January 1, 2025, each individual, estate, and trust shall be allowed a

• Page 11, Line 12credit against the tax imposed by this part 1 in an amount equal to twelve

• Page 11, Line 13percent of the credit allowed for the same tax year by section 53 of the internal revenue code.

• Page 11, Line 14(c)  This subsection (3) is repealed, effective December 31, 2030.

• Page 11, Line 15(4)  In the case of a nonresident taxpayer, the tax imposed by

• Page 11, Line 16subsections (1) and (1.5) of this section and the credit allowed by

• Page 11, Line 17subsection (3) of this section shall be apportioned in the ratio of the

• Page 11, Line 18modified federal alternative minimum taxable income from Colorado

• Page 11, Line 19sources over the total modified federal alternative minimum taxable

• Page 11, Line 20income.

• Page 12, Line 1SECTION 8.  In Colorado Revised Statutes, 39-22-121, amend (1.5) as follows:

• Page 12, Line 239-22-121.  Credit for child care facilities - legislative

• Page 12, Line 3declaration - definitions - repeal. (1.5)  For income tax years

• Page 12, Line 4commencing prior to January 1, 2028 January 1, 2030, any taxpayer who

• Page 12, Line 5makes a monetary contribution to promote child care in the state is

• Page 12, Line 6allowed a credit against the income tax imposed by this article 22 in an

• Page 12, Line 7amount equal to fifty percent of the total value of the contribution except as otherwise provided in subsections (5) and (6.7) of this section.

• Page 12, Line 8SECTION 9.  In Colorado Revised Statutes, add with amended and relocated provisions 39-22-131 as follows:

• Page 12, Line 939-22-131. [Formerly 39-31-104.5]  Tax credit for assistance

• Page 12, Line 10for elderly individuals and individuals with disabilities - tax

• Page 12, Line 11preference performance statement - legislative declaration -

• Page 12, Line 12definitions. (1) (a)  The general assembly finds and declares that in

• Page 12, Line 13accordance with section 39-21-304, the tax expenditure created in this

• Page 12, Line 14section is intended to reduce net taxes paid by certain individuals.

• Page 12, Line 15Specifically, the tax expenditure is intended to provide assistance through

• Page 12, Line 16an income tax credit for individuals with who do not have an income

• Page 12, Line 17above a certain threshold amount and who are of a certain age

• Page 12, Line 18or have a disability. who do not have income above a certain threshold amount

• Page 12, Line 19(b)  The general assembly and the state auditor shall measure the

• Page 12, Line 20effectiveness of the tax expenditure in achieving the purpose specified in

• Page 12, Line 21subsection (1)(a) of this section based on the number of taxpayers who have claimed the credit and the total amount of credits claimed.

• Page 12, Line 22(2)  As used in this section, unless the context otherwise requires:

• Page 13, Line 1(a)  "Credit" means the credit against income tax that is created in this section.

• Page 13, Line 2(b)  "Inflation" means the annual percentage change in the United

• Page 13, Line 3States department of labor, bureau of labor statistics, consumer price

• Page 13, Line 4index for Denver-Aurora-Lakewood for all items and all urban consumers, or its successor index.

• Page 13, Line 5(c) (I)  "Qualified individual" means a resident individual who has

• Page 13, Line 6a disability during the entire income tax year to a degree sufficient to

• Page 13, Line 7qualify for the payment to the individual of full benefits from any bona

• Page 13, Line 8fide public or private plan or source based solely upon such their

• Page 13, Line 9disability and, for tax years commencing on or after January 1,

• Page 13, Line 102026, a resident individual who is sixty-five years of age or older during the income tax year.

• Page 13, Line 11(II)  An individual has a disability for purposes of subsection

• Page 13, Line 12(2)(c)(I) of this section if the individual is unable to engage in any

• Page 13, Line 13substantial gainful activity by reason of any medically determinable

• Page 13, Line 14physical or mental impairment that can be expected to result in death or that has lasted for a continuous period of not less than twelve months.

• Page 13, Line 15(d)  "Surviving spouse" means a resident individual:

• (I)  Who is fifty-eight years of age or older;

• Page 13, Line 16(II)  Whose spouse is deceased; or

• Page 13, Line 17(III)  Whose spouse was a qualified individual as a result of

• Page 13, Line 18being sixty-five years of age or older during the income tax year.

• Page 13, Line 19(3)  For income tax years commencing on or after January 1, 2025

• Page 13, Line 20a qualified individual or, for tax years commencing on or after

• Page 13, Line 21January 1, 2026, a qualified individual or a surviving spouse is

• Page 14, Line 1allowed a credit against the tax imposed by this article 22 of this title 39 in an amount set forth in subsection (4) of this section.

• Page 14, Line 2(4) (a)  The credit may be claimed in an amount equal to:

• (I)  One thousand two hundred dollars for:

• Page 14, Line 3(A)  A qualified individual or a surviving spouse filing a single

• Page 14, Line 4return who has a federal adjusted gross income less than or equal to ten thousand dollars;

• Page 14, Line 5(B)  Two qualified individuals filing a joint return with a federal adjusted gross income less than or equal to sixteen thousand dollars; or

• Page 14, Line 6(C)  A qualified individual and a nonqualified individual filing a

• Page 14, Line 7joint return with a federal adjusted gross income less than or equal to sixteen thousand dollars;

• Page 14, Line 8(II)  One thousand dollars for:

• Page 14, Line 9(A)  A qualified individual or a surviving spouse filing a single

• Page 14, Line 10return who has a federal adjusted gross income greater than ten thousand dollars but less than or equal to twelve thousand five hundred dollars;

• Page 14, Line 11(B)  Two qualified individuals filing a joint return with a federal

• Page 14, Line 12adjusted gross income greater than sixteen thousand dollars but less than or equal to twenty thousand dollars; or

• Page 14, Line 13(C)  A qualified individual and a nonqualified individual filing a

• Page 14, Line 14joint return with a federal adjusted gross income greater than sixteen thousand dollars but less than or equal to twenty thousand dollars;

• Page 14, Line 15(III)  Eight hundred dollars for:

• Page 14, Line 16(A)  A qualified individual or a surviving spouse filing a single

• Page 14, Line 17return who has a federal adjusted gross income greater than twelve

• Page 14, Line 18thousand five hundred dollars but less than or equal to fifteen thousand

• Page 14, Line 19dollars;

• Page 15, Line 1(B)  Two qualified individuals filing a joint return with a federal

• Page 15, Line 2adjusted gross income greater than twenty thousand dollars but less than or equal to twenty-four thousand dollars; or

• Page 15, Line 3(C)  A qualified individual and a nonqualified individual filing a

• Page 15, Line 4joint return with a federal adjusted gross income greater than twenty thousand dollars but less than or equal to twenty-four thousand dollars;

• Page 15, Line 5(IV)  Six hundred dollars for:

• Page 15, Line 6(A)  A qualified individual or a surviving spouse filing a single

• Page 15, Line 7return who has a federal adjusted gross income greater than fifteen

• Page 15, Line 8thousand dollars but less than or equal to seventeen thousand five hundred dollars;

• Page 15, Line 9(B)  Two qualified individuals filing a joint return with a federal

• Page 15, Line 10adjusted gross income greater than twenty-four thousand dollars but less than or equal to twenty-eight thousand dollars; or

• Page 15, Line 11(C)  A qualified individual and a nonqualified individual filing a

• Page 15, Line 12joint return with a federal adjusted gross income greater than twenty-four

• Page 15, Line 13thousand dollars but less than or equal to twenty-eight thousand dollars; and

• Page 15, Line 14(V)  Four hundred dollars for:

• Page 15, Line 15(A)  A qualified individual or a surviving spouse filing a single

• Page 15, Line 16return who has a federal adjusted gross income greater than seventeen

• Page 15, Line 17thousand five hundred dollars but less than or equal to twenty thousand dollars;

• Page 15, Line 18(B)  Two qualified individuals filing a joint return with a federal

• Page 15, Line 19adjusted gross income greater than twenty-eight thousand dollars but less than or equal to thirty-two thousand dollars; or

• Page 15, Line 20(C)  A qualified individual and a nonqualified individual filing a

• Page 16, Line 1joint return with a federal adjusted gross income greater than twenty-eight thousand dollars but less than or equal to thirty-two thousand dollars.

• Page 16, Line 2(b) (I)  A qualified individual or a surviving spouse who files a

• Page 16, Line 3single return and has a federal adjusted gross income greater than twenty thousand dollars is not allowed a credit under this section.

• Page 16, Line 4(II)  Two qualified individuals, or a qualified individual and a

• Page 16, Line 5nonqualified individual, who file a joint return with a federal adjusted

• Page 16, Line 6gross income greater than thirty-two thousand dollars are not allowed a credit under this section.

• Page 16, Line 7(c) (I)  The department of revenue shall annually adjust for

• Page 16, Line 8inflation the credit amounts set forth in subsection (4)(a) of this section

• Page 16, Line 9if cumulative inflation since the last adjustment, when applied to the

• Page 16, Line 10current credit amounts, results in an increase of at least ten dollars when the adjusted credit amounts are rounded to the nearest ten dollars.

• Page 16, Line 11(II)  The department of revenue shall annually adjust for inflation

• Page 16, Line 12the adjusted gross income amounts set forth in subsections (4)(a) and

• Page 16, Line 13(4)(b) of this section if cumulative inflation since the last adjustment,

• Page 16, Line 14when applied to the current adjusted gross income amounts, results in an

• Page 16, Line 15increase of at least one hundred dollars when the adjusted gross income amounts, as adjusted, are rounded to the nearest one hundred dollars.

• Page 16, Line 16(5) (a)  If the credit exceeds the income taxes due on the qualified

• Page 16, Line 17individual's or surviving spouse's income, the amount of the credit not

• Page 16, Line 18used to offset income taxes is not carried forward and must be refunded to the qualified individual or surviving spouse.

• Page 16, Line 19(b)  A qualified individual or surviving spouse is allowed one credit pursuant to this section per income tax year.

• Page 16, Line 20(6)  A qualified individual who claims the credit cannot in the same tax year also claim the grant allowed pursuant to section 39-31-101.

• Page 17, Line 1(7) (6)  The credit received pursuant to this section is not treated

• Page 17, Line 2as income for purposes of determining the eligibility of any individual for old age pension benefits under article 2 of title 26.

• Page 17, Line 3(8) (7)  Notwithstanding section 39-21-304 (4), the credit continues indefinitely.

• Page 17, Line 4(9)  The credit allowed by this section is administered in the same

• Page 17, Line 5manner as other credits against the tax imposed by article 22 of this title 39.

• Page 17, Line 6(8)  In the case of a part-year resident, the credit allowed

• Page 17, Line 7under this section is apportioned in the ratio determined under section 39-22-110 (1).

• Page 17, Line 8SECTION 10.  In Colorado Revised Statutes, add 39-22-311 as follows:

• Page 17, Line 939-22-311.  Net income subtraction - tax preference

• Page 17, Line 10performance statement - definition. (1)  In accordance with section

• Page 17, Line 1139-21-304 (1), which requires each bill that creates a new tax

• Page 17, Line 12expenditure to include a tax preference performance statement

• Page 17, Line 13as part of a statutory legislative declaration, the general assembly finds and declares that:

• Page 17, Line 14(a)  Section 280C of the internal revenue code prevents a

• Page 17, Line 15taxpayer from subtracting certain expenses that the taxpayer

• Page 17, Line 16uses to qualify for certain federal tax credits from the federal

• Page 17, Line 17taxable income, so that a taxpayer does not receive a duplicative federal tax benefit from these expenses;

• Page 17, Line 18(b)  While Colorado uses federal taxable income as the

• Page 17, Line 19basis for determining Colorado taxable income, there are not

• Page 18, Line 1state tax credits equivalent to the federal tax credits that

• Page 18, Line 2would result in a taxpayer receiving a duplicative tax benefit

• Page 18, Line 3for incurring certain expenses but for section 280C of the internal revenue code;

• Page 18, Line 4(c)  The purpose of the tax expenditure provided for in this

• Page 18, Line 5section is to reduce structural inefficiencies in the tax

• Page 18, Line 6structure and provide a reduction in income tax liability for

• Page 18, Line 7certain taxpayers by allowing a taxpayer who incurs expenses

• Page 18, Line 8that the taxpayer cannot deduct from their federal taxable

• Page 18, Line 9income pursuant to section 280C of the internal revenue code to

• Page 18, Line 10receive a subtraction from state income tax for those expenses; and

• Page 18, Line 11(d)  The general assembly and the state auditor shall

• Page 18, Line 12measure the effectiveness of the tax expenditure provided for in

• Page 18, Line 13this section in achieving the purposes specified in subsection (1)(a)

• Page 18, Line 14of this section based on the number and value of the claimed tax expenditure.

• Page 18, Line 15(2)  Notwithstanding any law to the contrary, beginning

• Page 18, Line 16January 1, 2026, there shall be subtracted from a taxpayer's

• Page 18, Line 17federal taxable income the amount of expenses the taxpayer

• Page 18, Line 18paid or incurred for the taxable year, the deduction for which is disallowed by section 280C of the internal revenue code.

• Page 18, Line 19(3)  As used in this section, unless the context otherwise

• Page 18, Line 20requires, "taxpayer" means any taxpayer subject to the tax

• Page 18, Line 21imposed by this article 22 whose net income and state income tax liability is determined pursuant to this subpart 1.

• Page 18, Line 22SECTION 11.  In Colorado Revised Statutes, 39-22-509, amend (2)(d) as follows:

• Page 19, Line 139-22-509.  Credit against tax - employer expenditures for

• Page 19, Line 2alternative transportation options for employees - legislative

• Page 19, Line 3declaration - definitions - repeal. (2)  As used in this section, unless the context otherwise requires:

• Page 19, Line 4(d)  "Local government" means any home rule city, town, county or city and county, or and any statutory city, or town, or county.

• Page 19, Line 5SECTION 12.  In Colorado Revised Statutes, 39-22-537.5, amend (3)(a); and add (5) as follows:

• Page 19, Line 639-22-537.5.  Credit for personal property taxes paid -

• Page 19, Line 7legislative declaration - definitions - repeal. (3) (a)  For income tax

• Page 19, Line 8years commencing on or after January 1, 2019, but before January 1,

• Page 19, Line 92026, a taxpayer is allowed a credit against the tax imposed by this article

• Page 19, Line 1022 equal to the property tax paid in Colorado during the income tax year

• Page 19, Line 11on up to eighteen thousand dollars of the total actual value of the taxpayer's personal property.

• Page 19, Line 12(5)  This section is repealed, effective December 31, 2036.

• Page 19, Line 13SECTION 13.  In Colorado Revised Statutes, 39-22-514.5, amend (8)(b)(III) introductory portion as follows:

• Page 19, Line 1439-22-514.5.  Tax credit for qualified costs incurred in

• Page 19, Line 15preservation of historic structures - commercial historic preservation

• Page 19, Line 16tax credit program cash fund - tax preference performance statement

• Page 19, Line 17- legislative declaration - short title - definitions. (8) Deadline for

• Page 19, Line 18incurring specified amount of estimated costs of rehabilitation - proof

• Page 19, Line 19of compliance - audit of cost and expense certification - issuance of

• Page 19, Line 20tax credit certificate - commercial structures. (b)  Following the

• Page 19, Line 21completion of a rehabilitation of a qualified commercial structure, the

• Page 20, Line 1owner shall notify the office that the rehabilitation has been completed

• Page 20, Line 2and shall certify the qualified rehabilitation costs and expenses. The

• Page 20, Line 3applicant shall include a review of the certification by a licensed certified

• Page 20, Line 4public accountant that is not affiliated with the qualified applicant, and

• Page 20, Line 5the review of the certification must align with office policies for

• Page 20, Line 6certification of qualified rehabilitation expenditures. The office and the

• Page 20, Line 7historical society shall review the documentation of the rehabilitation and

• Page 20, Line 8the historical society shall verify that the documentation satisfies the

• Page 20, Line 9rehabilitation plan. Within ninety days after receipt of such

• Page 20, Line 10documentation from the owner, the office shall issue a tax credit

• Page 20, Line 11certificate in an amount equal to the following subject to subsection (8)(c) of this section:

• Page 20, Line 12(III)  For income tax years commencing prior to January 1,

• Page 20, Line 132030, and for applications submitted pursuant to subsection (5)

• Page 20, Line 14of this section prior to January 1, 2026, with respect to a certified

• Page 20, Line 15historic structure that is a qualified commercial structure that is located

• Page 20, Line 16in an area that the president of the United States has determined to be a

• Page 20, Line 17major disaster area under section 102 (2) of the federal "Robert T.

• Page 20, Line 18Stafford Disaster Relief and Emergency Assistance Act", 42 U.S.C. sec.

• Page 20, Line 195121 et seq., or that is located in an area that the governor has determined

• Page 20, Line 20to be a disaster area under the "Colorado Disaster Emergency Act", part

• Page 20, Line 217 of article 33.5 of title 24, the tax credit amounts specified in subsections

• Page 20, Line 22(8)(b)(I) and (8)(b)(II) of this section must be increased as follows for an application that is filed within six years after the disaster determination:

• Page 20, Line 23SECTION 14.  In Colorado Revised Statutes, 39-22-544, amend (4)(c) as follows:

• Page 20, Line 2439-22-544.  Credit against tax - qualifying seniors - creation -

• Page 21, Line 1legislative declaration - definitions - repeal. (4) (c) (I)  For the income

• Page 21, Line 2tax year commencing on January 1, 2022, notwithstanding subsections

• Page 21, Line 3(4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant

• Page 21, Line 4under article 31 of this title 39 during calendar year 2022 is eligible to

• Page 21, Line 5receive the full credit without an income-based reduction that otherwise applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.

• Page 21, Line 6(II)  This subsection (4)(c) is repealed, effective December 31, 2026.

• Page 21, Line 7SECTION 15.  In Colorado Revised Statutes, 39-22-2003, amend (5)(c)(I); and add (5)(c)(III) as follows:

• Page 21, Line 839-22-2003.  State sales tax refund - offset against state income

• Page 21, Line 9tax - qualified individuals - definitions - repeal.

• Page 21, Line 10(5) (c) (I)  Notwithstanding any provision of subsection (5)(b) of this

• Page 21, Line 11section to the contrary, before January 1, 2026, a qualified individual

• Page 21, Line 12as defined in subsection (1)(a)(II) or (1)(a)(IV) of this section who claims

• Page 21, Line 13a property tax or heat or fuel assistance grant pursuant to section

• Page 21, Line 1439-31-101 may claim a refund authorized by this section on the assistance

• Page 21, Line 15grant application form described in section 39-31-102 (2). Claiming a

• Page 21, Line 16refund on such assistance grant application form is in lieu of claiming the

• Page 21, Line 17refund on an income tax return pursuant to subsection (5)(b) of this

• Page 21, Line 18section. Any refund claimed pursuant to this subsection (5)(c) must be

• Page 21, Line 19claimed on or before October 15 of the calendar year following the tax year for which the refund is being claimed.

• Page 21, Line 20(III)  This subsection (5)(c) is repealed, effective December 31, 2026.

• Page 21, Line 21SECTION 16.  In Colorado Revised Statutes, 39-26-102, amend

• Page 21, Line 22(5.7) and (15)(c) as follows:

• Page 22, Line 139-26-102.  Definitions. As used in this article 26, unless the context otherwise requires:

• Page 22, Line 2(5.7)  "Mainframe computer access" means the provision of access

• Page 22, Line 3to computer equipment for the purpose of storing or processing data.

• Page 22, Line 4"Mainframe computer access" does not include the provision of access to

• Page 22, Line 5computer equipment for the purpose of examining or acquiring data

• Page 22, Line 6maintained by the vendor. "Mainframe computer access" does not include

• Page 22, Line 7the provision of access to computer equipment incident to electronic

• Page 22, Line 8computer software delivery, as defined in subsection (15)(c)(II)(C) of this

• Page 22, Line 9section, or incident to the use of computer software hosted by an

• Page 22, Line 10application service provider, as defined in subsection (15)(c)(II)(A) of this section.

• Page 22, Line 11(15) (c) (I)  "Tangible personal property", commencing July 1,

• Page 22, Line 122012, shall include includes computer software if the computer software is: meets all of the following criteria

• Page 22, Line 13(A)  The computer software is prepackaged Available for repeated sale or license; and

• Page 22, Line 14(B)  The use of the computer software is Governed by a tear-open nonnegotiable license agreement; and

• Page 22, Line 15(C)  The computer software is delivered to the customer in a

• Page 22, Line 16tangible medium. Computer software is not delivered to the customer in

• Page 22, Line 17a tangible medium if it is provided through an application service

• Page 22, Line 18provider, delivered by electronic computer software delivery, or transferred by load and leave computer software delivery.

• Page 22, Line 19(I.5)  Tangible personal property does not include custom software developed for use by a particular user.

• Page 22, Line 20(II)  As used in this paragraph (c) subsection (15)(c), unless the context otherwise requires:

• Page 23, Line 1(A)  "Application service provider" or "ASP" means an entity that

• Page 23, Line 2retains custody over or hosts computer software for use by third parties.

• Page 23, Line 3Users of the computer software hosted by an ASP typically will access the

• Page 23, Line 4computer software via the internet. The ASP may or may not own or

• Page 23, Line 5license the computer software, but generally will own and maintain

• Page 23, Line 6hardware and networking equipment required for the user to access the

• Page 23, Line 7computer software. Where the ASP owns the computer software, the ASP

• Page 23, Line 8may charge the user a license fee for the computer software or a fee for maintaining the computer software or hardware used by its customer.

• Page 23, Line 9(B)  "Computer software" means a set of coded instructions that

• Page 23, Line 10are both designed to cause a computer or automatic data processing

• Page 23, Line 11equipment to perform a task other electronic device to perform a task and

• Page 23, Line 12are delivered by any means, including compact disc, download,

• Page 23, Line 13or remote access through the internet. Computer software

• Page 23, Line 14includes applications or apps installed on cellular phones, tablets, or other mobile devices.

• Page 23, Line 15(C)  "Electronic computer software delivery" means computer

• Page 23, Line 16software transferred by remote telecommunications to the purchaser's

• Page 23, Line 17computer, where the purchaser does not obtain possession of any tangible medium in the transaction.

• Page 23, Line 18(D)  "Load and leave computer software delivery" means delivery

• Page 23, Line 19of computer software to the purchaser by use of a tangible medium where

• Page 23, Line 20the title to or possession of the tangible medium is not transferred to the

• Page 23, Line 21purchaser, and where the computer software is manually loaded by the vendor, or the vendor's representative, at the purchaser's location.

• Page 23, Line 22(E)  "Prepackaged for repeated sale or license" means computer

• Page 24, Line 1software that is prepackaged for repeated sale or license in the same form

• Page 24, Line 2to multiple users without modification, and is typically sold in a shrink-wrapped box.

• Page 24, Line 3(F)  "Tangible medium" means a tape, disk, compact disc, card, or comparable physical medium.

• Page 24, Line 4(G)  "Tear-open nonnegotiable license agreement" means a license

• Page 24, Line 5agreement contained on or in the package, which by its terms becomes

• Page 24, Line 6effective upon opening of the package and accepting the licensing

• Page 24, Line 7agreement. "Tear-open nonnegotiable license agreement" does not

• Page 24, Line 8include a written license agreement or contract signed by the licensor and the licensee.

• Page 24, Line 9(III)  The internalized instruction code that controls the basic

• Page 24, Line 10operations, such as arithmetic and logic, of the computer causing it to

• Page 24, Line 11execute instructions contained in system programs is an integral part of

• Page 24, Line 12the computer and is not normally accessible or modifiable by the user.

• Page 24, Line 13Such internalized instruction code is considered part of the hardware and

• Page 24, Line 14considered tangible personal property that is taxable pursuant to section

• Page 24, Line 1539-26-104 (1)(a). The fact that the vendor does or does not charge separately for such code is immaterial.

• Page 24, Line 16(IV)  If a retailer sells computer software to a Colorado purchaser

• Page 24, Line 17that is considered tangible personal property taxable pursuant to section

• Page 24, Line 1839-26-104 (1)(a) and the Colorado purchaser pays the retailer for a

• Page 24, Line 19quantity of computer software licenses with the intent to distribute the

• Page 24, Line 20computer software to any of the purchaser's locations outside of

• Page 24, Line 21Colorado, the measure of Colorado sales tax due is the total of the license

• Page 24, Line 22fees associated only with the licenses that are actually used in Colorado.

• Page 24, Line 23The Colorado purchaser shall provide a written statement to the retailer,

• Page 25, Line 1attesting to the amount of the license fees associated with Colorado and

• Page 25, Line 2with points outside of Colorado. The written statement shall relieve the retailer of any liability associated with the proration.

• Page 25, Line 3SECTION 17.  In Colorado Revised Statutes, 39-26-104, add (1)(c.5) as follows:

• Page 25, Line 439-26-104.  Property and services taxed - definitions. (1)  There

• Page 25, Line 5is levied and there shall be collected and paid a tax in the amount stated in section 39-26-106 as follows:

• Page 25, Line 6(c.5)  Beginning July 1, 2025, upon telephone and telegraph

• Page 25, Line 7services, whether furnished by public or private corporations or

• Page 25, Line 8enterprises for interstate telephone and telegraph service, if

• Page 25, Line 9the telephone and telegraph service originates in the state and is charged to a Colorado address.

• Page 25, Line 10SECTION 18.  In Colorado Revised Statutes, 39-27-105, amend (2)(b) as follows:

• Page 25, Line 1139-27-105.  Collection of tax on gasoline and special fuel - rules

• Page 25, Line 12- repeal. (2) (b) (I)  Before July 1, 2025, from the amount of tax

• Page 25, Line 13computed under subsection (2)(a) of this section, the distributor shall

• Page 25, Line 14deduct one-half of one percent to cover expenses of payment of the tax

• Page 25, Line 15and bad debt losses and shall pay the remaining balance to the department

• Page 25, Line 16of revenue and file the statement required by subsection (1) of this section

• Page 25, Line 17on or before the twenty-sixth day of each calendar month. If any

• Page 25, Line 18distributor is delinquent in remitting the tax, except in unusual

• Page 25, Line 19circumstances shown to the satisfaction of the executive director of the

• Page 25, Line 20department of revenue, the retailer shall not be allowed to deduct any amount under this subsection (2)(b).

• Page 25, Line 21(II)  This subsection (2)(b) is repealed, effective July 1, 2029.

• Page 26, Line 1SECTION 19.  In Colorado Revised Statutes, 39-30-104, amend (1)(a) and (2)(c)(IV) as follows:

• Page 26, Line 239-30-104.  Credit against tax - investment in certain property

• Page 26, Line 3- definitions. (1) (a) (I)  There shall be is allowed to any person as a

• Page 26, Line 4credit against the tax imposed by article 22 of this title 39, for income tax

• Page 26, Line 5years commencing on or after January 1, 1986, an amount equal to the

• Page 26, Line 6total of three percent of the total qualified investment, as determined

• Page 26, Line 7under section 46 (c)(2) of the federal "Internal Revenue Code of 1986",

• Page 26, Line 8as amended, in such taxable year in qualified property as defined in

• Page 26, Line 9section 48 of the internal revenue code to the extent that such investment

• Page 26, Line 10is in property that is used solely and exclusively in an enterprise zone for

• Page 26, Line 11at least one year. The references in this subsection (1) to sections 46

• Page 26, Line 12(c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and 48

• Page 26, Line 13of the internal revenue code as they existed immediately prior to the enactment of the federal "Revenue Reconciliation Act of 1990".

• Page 26, Line 14(II) (A)  Notwithstanding subsection (1)(a)(I) of this

• Page 26, Line 15section, for income tax years commencing on or after January

• Page 26, Line 161, 2026, a taxpayer is not allowed to claim a total credit amount

• Page 26, Line 17against the tax imposed by article 22 of this title 39 pursuant to

• Page 26, Line 18subsection (1)(a)(I) of this section in excess of two million

• Page 26, Line 19dollars and a taxpayer may not claim a credit pursuant to this

• Page 26, Line 20section if that taxpayer is involved in: The extraction of oil and

• Page 26, Line 21gas or hard rock minerals, aviation, the retail sale of fuel

• Page 26, Line 22products, or the construction of a wireless telecommunications facility.

• Page 26, Line 23(B)   A taxpayer may seek a waiver of the limitation on the

• Page 26, Line 24amount of credit established in subsection (1)(a)(II)(A) of this

• Page 27, Line 1section by completing a written application to the Colorado

• Page 27, Line 2economic development commission for permission to claim a

• Page 27, Line 3credit in excess of that limitation for the income tax year in

• Page 27, Line 4which the total qualified investment is made. The application

• Page 27, Line 5must include identification of the substantial positive impact

• Page 27, Line 6that the waiver of the limitation would have on investments and

• Page 27, Line 7on well-paying jobs in the enterprise zone, documentation that

• Page 27, Line 8demonstrates that without the waiver of the limitation the

• Page 27, Line 9substantial positive impact on investments and on well-paying

• Page 27, Line 10jobs in the enterprise zone is not likely to occur, and

• Page 27, Line 11information that the waiver of the limitation is a substantial

• Page 27, Line 12factor in the taxpayer's decision to make a qualified investment

• Page 27, Line 13in the start-up, expansion, or relocation of the taxpayer's

• Page 27, Line 14business, such that without the waiver the taxpayer is not likely

• Page 27, Line 15to make the qualified investment. In deciding whether to grant

• Page 27, Line 16the waiver of the limitation, the commission must consider the

• Page 27, Line 17overall economic health of this state and the economic viability

• Page 27, Line 18of the arguments made by the taxpayer in support of the

• Page 27, Line 19taxpayer's application. The Colorado economic development

• Page 27, Line 20commission may require the taxpayer to provide an independent

• Page 27, Line 21analysis, at the taxpayer's expense, that substantiates the

• Page 27, Line 22taxpayer's arguments in support of the application. The

• Page 27, Line 23taxpayer's application must be considered at a regularly

• Page 27, Line 24scheduled meeting of the Colorado economic development commission at which the public is allowed to comment.

• Page 27, Line 25(C)  The Colorado economic development commission may

• Page 27, Line 26allow all, part, or none of a taxpayer's application to waive the

• Page 28, Line 1limitation on the amount of credit established in subsection

• Page 28, Line 2(1)(a)(II)(A) of this section. The Colorado economic development

• Page 28, Line 3commission must issue a credit certificate that sets forth the

• Page 28, Line 4amount of the credit that the taxpayer may claim for the income

• Page 28, Line 5tax year in which the total qualified investment is made. The

• Page 28, Line 6taxpayer shall submit the credit certificate to the department

• Page 28, Line 7of revenue with the taxpayer's income tax return for the tax

• Page 28, Line 8year for which the Colorado economic development commission issued the credit certificate.

• Page 28, Line 9(D)  If the Colorado economic development commission

• Page 28, Line 10approves. in whole or in part, a taxpayer's application to waive

• Page 28, Line 11the limitation on the amount of credit established in subsection

• Page 28, Line 12(1)(a)(II)(A) of this section, the Colorado economic development

• Page 28, Line 13commission shall include its decision in the enterprise zone

• Page 28, Line 14annual report to the general assembly, including the taxpayer's

• Page 28, Line 15name, the amount of the credit that the commission allowed the

• Page 28, Line 16taxpayer to claim, and the Colorado economic development commission's justification for approving the application.

• Page 28, Line 17(E)  For purposes of this subsection (1)(a), "fuel products"

• Page 28, Line 18means all gasoline; aviation gasoline; aviation turbine fuel;

• Page 28, Line 19diesel; jet fuel; fuel oil; biodiesel; biodiesel blends; kerosene;

• Page 28, Line 20all alcohol blended fuels; liquefied petroleum gas; gas or

• Page 28, Line 21gaseous compounds, including hydrogen; natural gas, including

• Page 28, Line 22compressed natural gas and liquefied natural gas; and all

• Page 28, Line 23other volatile, flammable, or combustible liquids that are

• Page 28, Line 24produced, compounded, and offered for sale or used for the

• Page 28, Line 25purpose of generating heat, light, or power in internal

• Page 29, Line 1combustion engines or fuel cells, for cleaning, or for any other similar usage.

• Page 29, Line 2(F)  For purposes of this subsection (1)(a), "wireless

• Page 29, Line 3telecommunications facility" or "facility" means equipment at

• Page 29, Line 4a fixed location that enables wireless communications between

• Page 29, Line 5user equipment and a communications network, including macro

• Page 29, Line 6and small wireless facilities, transceivers, antennas, coaxial or

• Page 29, Line 7fiber-optic cable, regular and backup power supplies, and

• Page 29, Line 8comparable equipment, regardless of technological

• Page 29, Line 9configuration; and the support structure or improvements on, under, or within which the equipment is collocated.

• Page 29, Line 10(2) (c) (IV)  The limitation contained in this paragraph (c)

• Page 29, Line 11subsection (2)(c) on the amount a taxpayer may claim for the income tax

• Page 29, Line 12year in which the total qualified investment is made does not limit the

• Page 29, Line 13total amount of the credit allowed under subsection (1) subsection (1)(a)

• Page 29, Line 14of this section, nor does it limit the ability of a taxpayer to carryover

• Page 29, Line 15carry over a credit to subsequent tax years as allowed in subparagraph

• Page 29, Line 16(III) of this paragraph (c) subsection (2)(c)(III) of this section or previously allowed in subsection (2.5) of this section.

• Page 29, Line 17SECTION 20.  In Colorado Revised Statutes, 39-31-101, amend

• Page 29, Line 18(1)(a) introductory portion, (2)(d), (2.1), (5)(a), (5)(c)(I), (5)(c)(II), (5)(d)(I), (5)(d)(II), and (5)(e) as follows:

• Page 29, Line 1939-31-101.  Real property tax - tax equivalent - assistance -

• Page 29, Line 20heat or fuel expenses assistance - eligibility - applicability - definitions

• Page 29, Line 21- repeal. (1) (a)  Before January 1, 2026, individuals having resided

• Page 29, Line 22within this state for the entire taxable year who are sixty-five years of age

• Page 29, Line 23or older during the taxable year are eligible for a grant to be determined

• Page 30, Line 1with respect to the income taxes imposed by article 22 of this title 39,

• Page 30, Line 2subject to the additional qualification requirements of this section, to aid in the payment by such individuals of:

• Page 30, Line 3(2)  A grant is the amount of the general property taxes actually

• Page 30, Line 4paid on the residence or the amount of taxes actually paid on a mobile

• Page 30, Line 5home, plus any tax-equivalent payments computed pursuant to subsection

• Page 30, Line 6(4) of this section, with respect to the rent of a trailer space during the

• Page 30, Line 7year for which the grant is claimed, the amount of the specific ownership

• Page 30, Line 8tax actually paid on a trailer coach, or the amount of the tax-equivalent

• Page 30, Line 9payments, computed pursuant to subsection (4) of this section, actually

• Page 30, Line 10made during the year for which such grant is claimed, but in no event may it exceed:

• Page 30, Line 11(d)  For a grant claimed for the 2023 calendar year, either eight

• Page 30, Line 12hundred seventy-two dollars reduced by ten percent of the claimant's

• Page 30, Line 13income over the phase-out amount or the property tax flat grant amount,

• Page 30, Line 14whichever amount is greater. For a grant claimed for years commencing

• Page 30, Line 15on or after January 1, 2024, but before January 1, 2026, either the

• Page 30, Line 16maximum grant amount allowed under this subsection (2)(d) for the prior

• Page 30, Line 17year, adjusted for inflation and reduced by ten percent of the claimant's

• Page 30, Line 18income over the phase-out amount, or the property tax flat grant amount, whichever amount is greater.

• Page 30, Line 19(2.1)  For a grant claimed for the 2023 calendar year, either two

• Page 30, Line 20hundred forty dollars reduced by ten percent of the claimant's income

• Page 30, Line 21over the phase-out amount or the heat or fuel expenses flat grant amount,

• Page 30, Line 22whichever amount is greater. For a grant claimed for years commencing

• Page 30, Line 23on or after January 1, 2024, but before January 1, 2026, either the

• Page 30, Line 24maximum grant amount allowed under this subsection (2.1) for the prior

• Page 31, Line 1year, adjusted for inflation and reduced by ten percent of the claimant's

• Page 31, Line 2income over the phase-out amount, or the heat or fuel expenses flat grant amount, whichever amount is greater.

• Page 31, Line 3(5)  As used in this section:

• Page 31, Line 4(a)  "Heat or fuel expenses flat grant amount" means an amount

• Page 31, Line 5equal to ninety-two dollars for the 2023 calendar year, and for each year

• Page 31, Line 6thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation.

• Page 31, Line 7(c)  "Maximum eligible income amount" means:

• Page 31, Line 8(I)  For an individual, income that is less than or equal to eighteen

• Page 31, Line 9thousand twenty-six dollars for the 2023 calendar year and for each year

• Page 31, Line 10thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation; and

• Page 31, Line 11(II)  For spouses, income that is less than or equal to twenty-four

• Page 31, Line 12thousand three hundred forty-five dollars for the 2023 calendar year and

• Page 31, Line 13for each year thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation.

• Page 31, Line 14(d)  "Phase-out amount" means:

• Page 31, Line 15(I)  In the case of an individual, an amount equal to nine thousand

• Page 31, Line 16six hundred ninety-two dollars for the 2023 calendar year and for each

• Page 31, Line 17year thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation; and

• Page 31, Line 18(II)  In the case of spouses, an amount equal to fifteen thousand six

• Page 31, Line 19hundred sixty-eight dollars for the 2023 calendar year and for each year

• Page 31, Line 20thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation.

• Page 31, Line 21(e)  "Property tax flat grant amount" means an amount equal to two

• Page 32, Line 1hundred eighty-two dollars for the 2023 calendar year, and for each year

• Page 32, Line 2thereafter, until January 1, 2026, the amount for the prior year adjusted for inflation.

• Page 32, Line 3SECTION 21.  In Colorado Revised Statutes, 39-31-102, amend (2) and (3) as follows:

• Page 32, Line 439-31-102.  Procedures to obtain grant - department of revenue

• Page 32, Line 5- responsibilities. (2)  The executive director shall prescribe the forms to

• Page 32, Line 6be used for the grants authorized by section 39-31-101 and the credit

• Page 32, Line 7allowed pursuant to section 39-31-104.5 and prepare any instructions

• Page 32, Line 8related to the forms. The executive director may create an electronic form

• Page 32, Line 9to be used in addition to the paper form. If a sales tax refund is allowed

• Page 32, Line 10for any given income tax year in accordance with section 39-22-2002, the

• Page 32, Line 11executive director shall include provisions on the forms to allow qualified

• Page 32, Line 12individuals to apply for the refund pursuant to section 39-22-2003 (5)(c).

• Page 32, Line 13To receive a grant, or credit, an individual must claim the grant or credit on the executive director's form.

• Page 32, Line 14(3) (a)  If two or more individuals, other than spouses, are entitled

• Page 32, Line 15to a grant authorized by section 39-31-101, or a credit allowed pursuant

• Page 32, Line 16to section 39-31-104.5, the grant or credit may be claimed by either or any

• Page 32, Line 17of the individuals. When two or more individuals claim the grant or credit

• Page 32, Line 18for the same residence, the executive director is authorized to determine the proper allocation of the grant. or credit

• Page 32, Line 19(b)  No grant or credit received pursuant to this article 31 is treated

• Page 32, Line 20as income for purposes of determining the eligibility of any individual for old age pension benefits under article 2 of title 26.

• Page 32, Line 21SECTION 22.  Repeal of relocated provisions in this act. In

• Page 32, Line 22Colorado Revised Statutes, repeal 39-31-104.5.

• Page 33, Line 1SECTION 23.  In Colorado Revised Statutes, add 39-31-106 as follows:

• Page 33, Line 239-31-106.  Repeal of article.This article 31 is repealed, effective December 31, 2026.

• Page 33, Line 3SECTION 24.  Effective date. This act takes effect upon passage;

• Page 33, Line 4except that section 16 of this act takes effect on July 1, 2025, and sections 4 and 5 of this act take effect December 31, 2026.

• Page 33, Line 5SECTION 25.  Safety clause. The general assembly finds,

• Page 33, Line 6determines, and declares that this act is necessary for the immediate

• Page 33, Line 7preservation of the public peace, health, or safety or for appropriations for

• Page 33, Line 8the support and maintenance of the departments of the state and state institutions.