A Bill for an Act
Page 1, Line 101Concerning the decarbonization tax credits administration
Page 1, Line 102cash fund, and, in connection therewith, requiring that
Page 1, Line 103money credited to the fund not exceed the net revenue
Page 1, Line 104from the collection of oil and gas severance tax,
Page 1, Line 105transferring two million five hundred thousand
Page 1, Line 106dollars from the energy and carbon management cash
Page 1, Line 107fund to the fund, and transferring two million five
Page 1, Line 108hundred thousand dollars from the fund to the energy
Page 1, Line 109and carbon management cash fund.
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/.)
Joint Budget Committee. For state fiscal years 2023-24 through 2026-27, current law requires the state treasurer to credit to the decarbonization tax credits administration cash fund (fund) oil and gas severance tax revenue equal to the amount attributable to the decreased severance tax credit allowed for oil and gas production for tax years 2024 through 2026. Section 2 of the bill provides that for state fiscal years 2024-25 and 2025-26, oil and gas severance tax revenue credited to the fund shall not exceed the net revenue from the oil and gas severance tax collection.
Section 3 requires the state treasurer to transfer $2,500,000 from the energy and carbon management cash fund to the fund on June 30, 2025.
Section 1 requires the state treasurer to transfer $2,500,000 from the fund to the energy and carbon management cash fund on January 1, 2026.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 24-38.5-120, add (3.5) as follows:
Page 2, Line 324-38.5-120. Decarbonization tax credits administration cash
Page 2, Line 4fund - definitions - repeal. (3.5) (a) On January 1, 2026, the state
Page 2, Line 5treasurer shall transfer two million five hundred thousand
Page 2, Line 6dollars from the fund to the energy and carbon management cash fund created in section 34-60-122 (5).
Page 2, Line 7(b) This subsection (3.5) is repealed, effective July 1, 2026.
Page 2, Line 8SECTION 2. In Colorado Revised Statutes, 39-29-108, amend (2)(e)(I); and add (2)(e)(IV) as follows:
Page 2, Line 939-29-108. Allocation of severance tax revenues - definitions
Page 2, Line 10- repeal. (2) (e) (I)
Except as provided in subsection (2)(e)(II) of thisPage 2, Line 11
section,Page 2, Line 12treasurer shall credit the discrete increased amount of severance tax for
Page 3, Line 1oil and gas production that is attributable to the reduction of the credit
Page 3, Line 2against tax pursuant to section 39-29-105 (2)(b)(II) and 39-29-105 (2)(c)
Page 3, Line 3to the decarbonization tax credits administration cash fund created in
Page 3, Line 4section 24-38.5-120 (2); except that, for state fiscal years 2024-25
Page 3, Line 5and 2025-26, money credited to the decarbonization tax credits
Page 3, Line 6administration cash fund shall not exceed the net revenue from the oil and gas severance tax collection.
Page 3, Line 7(IV) This subsection (2)(e) is repealed, effective December 31, 2036.
Page 3, Line 8SECTION 3. In Colorado Revised Statutes, 34-60-122, add (5)(f) as follows:
Page 3, Line 934-60-122. Expenses - energy and carbon management cash
Page 3, Line 10fund created - repeal. (5) (f) (I) On June 30, 2025, the state
Page 3, Line 11treasurer shall transfer two million five hundred thousand
Page 3, Line 12dollars from the energy and carbon management cash fund to
Page 3, Line 13the decarbonization tax credits administration cash fund created in section 24-38.5-120 (2).
Page 3, Line 14(II) This subsection (5)(f) is repealed, effective July 1, 2026.
Page 3, Line 15SECTION 4. Safety clause. The general assembly finds,
Page 3, Line 16determines, and declares that this act is necessary for the immediate
Page 3, Line 17preservation of the public peace, health, or safety or for appropriations for
Page 3, Line 18the support and maintenance of the departments of the state and state institutions.