House Bill 25-1045 Introduced

A Bill for an Act

• Page 1, Line 101Concerning the modification of the state income tax credit

• Page 1, Line 102for purchasing long-term care insurance.

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/.)

Legislative Oversight Committee Concerning Tax Policy. For income tax years commencing on or after January 1, 2025, the bill both:

• Increases the amount of federal taxable income a taxpayer may have and still qualify for the state income tax credit for purchasing long-term care insurance and annually adjusts that federal taxable income amount for inflation; and
• Doubles the amount of the credit a taxpayer may claim and, for income tax years commencing on or after January 1, 2026, annually adjusts the credit amount for inflation.

• Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:

• Page 2, Line 2SECTION 1.  In Colorado Revised Statutes, 39-22-122, amend

• Page 2, Line 3(2) and (3); and add (3.5) as follows:

• Page 2, Line 439-22-122.  Long-term care insurance credit - definitions.

• Page 2, Line 5(2)  Notwithstanding any other provision of this section, to the contrary,

• Page 2, Line 6a credit shall only be allowed: to

• Page 2, Line 7(a)  For income tax years commencing prior to January 1,

• Page 2, Line 82025, to:

• Page 2, Line 9(a)  (I)  An individual filing a single return with a federal taxable

• Page 2, Line 10income of less than fifty thousand dollars for the tax year for which the

• Page 2, Line 11credit is claimed;

• Page 2, Line 12(b)  (II)  Two individuals filing a joint return with a federal taxable

• Page 2, Line 13income of less than fifty thousand dollars for the tax year for which the

• Page 2, Line 14credit is claimed if claiming the credit for one policy; or

• Page 2, Line 15(c)  (III)  Two individuals filing a joint return with a federal taxable

• Page 2, Line 16income of less than one hundred thousand dollars for the tax year for

• Page 2, Line 17which the credit is claimed if claiming the credit for two policies or for

• Page 2, Line 18a joint policy that covers each individual separately;

• Page 2, Line 19(b)  For income tax years commencing on or after January

• Page 2, Line 201, 2025, to:

• Page 2, Line 21(I)  An individual filing a single return with a federal

• Page 2, Line 22taxable income of less than one hundred thousand dollars for

• Page 2, Line 23the tax year for which the credit is claimed;

• Page 2, Line 24(II)  Two individuals filing a joint return with a federal

• Page 3, Line 1taxable income of less than one hundred thousand dollars for

• Page 3, Line 2the tax year for which the credit is claimed if claiming the

• Page 3, Line 3credit for one policy; or

• Page 3, Line 4(III)  Two individuals filing a joint return with a federal

• Page 3, Line 5taxable income of less than two hundred thousand dollars for

• Page 3, Line 6the tax year for which the credit is claimed if claiming the

• Page 3, Line 7credit for two policies or for a joint policy that covers each

• Page 3, Line 8individual separately.

• Page 3, Line 9(3)  Notwithstanding any other provision of this section, to the

• Page 3, Line 10contrary, for income tax years commencing:

• Page 3, Line 11(a)  Prior to January 1, 2025, the amount of credit claimed

• Page 3, Line 12pursuant to this section shall not exceed one hundred fifty dollars for each

• Page 3, Line 13policy for which a credit is claimed pursuant to this section; and

• Page 3, Line 14(b)  On or after January 1, 2025, the amount of the credit

• Page 3, Line 15claimed pursuant to this section shall not exceed three hundred

• Page 3, Line 16dollars for each policy for which a credit is claimed pursuant to

• Page 3, Line 17this section.

• Page 3, Line 18(3.5) (a)  For income tax years commencing on or after

• Page 3, Line 19January 1, 2026, the executive director or the executive

• Page 3, Line 20director's designee shall adjust the following to reflect

• Page 3, Line 21inflation for each income tax year in which the credit described

• Page 3, Line 22in this section is allowed:

• Page 3, Line 23(I)  The federal taxable income limits set forth in

• Page 3, Line 24subsection (2)(b) of this section; and

• Page 3, Line 25(II)  The maximum amount of credit that a taxpayer may

• Page 3, Line 26claim as set forth in subsection (3) of this section.

• Page 3, Line 27(b)  As used in this subsection (3.5), "inflation" means the

• Page 4, Line 1annual percentage change in the United States department of

• Page 4, Line 2labor's bureau of labor statistics consumer price index, or a

• Page 4, Line 3successor index, for Denver-Aurora-Lakewood for all items

• Page 4, Line 4paid by urban consumers.

• Page 4, Line 5SECTION 2.  Act subject to petition - effective date. This act

• Page 4, Line 6takes effect at 12:01 a.m. on the day following the expiration of the

• Page 4, Line 7ninety-day period after final adjournment of the general assembly; except

• Page 4, Line 8that, if a referendum petition is filed pursuant to section 1 (3) of article V

• Page 4, Line 9of the state constitution against this act or an item, section, or part of this

• Page 4, Line 10act within such period, then the act, item, section, or part will not take

• Page 4, Line 11effect unless approved by the people at the general election to be held in

• Page 4, Line 12November 2026 and, in such case, will take effect on the date of the

• Page 4, Line 13official declaration of the vote thereon by the governor.