House Committee of Reference Report
Committee on Finance
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April 21, 2025
After consideration on the merits, the Committee recommends the following:
HB25-1296 be amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:
Page 1, Line 1Amend printed bill, strike everything below the enacting clause and
Page 1, Line 2substitute:
Page 1, Line 3"SECTION 1. Legislative declaration. (1) The general
Page 1, Line 4assembly finds and declares that:
Page 1, Line 5(a) (I) House Bill 24-1314 substantially modified the tax credit for
Page 1, Line 6qualified costs incurred in the preservation of historic structures by,
Page 1, Line 7among other things, expanding the amount of the tax credit available to
Page 1, Line 8taxpayers;
Page 1, Line 9(II) As part of modifying the tax expenditure, House Bill 24-1314
Page 1, Line 10also removed the 5% increase in the percentage of rehabilitation expenses
Page 1, Line 11incurred in a disaster area for the rehabilitation of a residential structure,
Page 1, Line 12but not a commercial structure, that are considered in determining the
Page 1, Line 13amount of the tax expenditure;
Page 1, Line 14(III) This act further modifies the tax expenditure by removing the
Page 1, Line 155% increase in the percentage of rehabilitation expenses incurred in a
Page 1, Line 16rehabilitation in a disaster area for the rehabilitation of a commercial
Page 1, Line 17structure that are considered in determining the amount of the tax
Page 1, Line 18expenditure;
Page 1, Line 19(IV) The primary purpose of the modification of this tax
Page 1, Line 20expenditure is to decrease administrative burden by aligning the treatment
Page 1, Line 21of expenses incurred in rehabilitating residential and commercial historic
Page 1, Line 22structures; and
Page 1, Line 23(V) The modification of this tax expenditure will cause only a de
Page 1, Line 24minimis revenue gain that is incidental to the primary purpose of
Page 1, Line 25modifying the tax expenditure;
Page 1, Line 26(b) (I) One of the five primary categories of sales that are subject
Page 1, Line 27to state sales tax is intrastate telephone and telegraph services;
Page 2, Line 1(II) Interstate telephone and telegraph services are not subject to
Page 2, Line 2state sales tax;
Page 2, Line 3(III) Unlike Colorado, twenty-eight states subject interstate
Page 2, Line 4telephone and telegraph services to state sales tax if at least one of the
Page 2, Line 5nodes of those services is in the state levying the sales tax;
Page 2, Line 6(IV) Like the state, many home rule municipalities in Colorado
Page 2, Line 7impose sales tax on intrastate telephone and telegraph services, meaning
Page 2, Line 8that some telephone and telegraph services are taxed while others are not;
Page 2, Line 9(V) The primary purpose of repealing this tax expenditure is to
Page 2, Line 10further resolve taxpayer confusion and decrease administrative burden by
Page 2, Line 11repealing the sales tax exemption to make it clear that all telephone and
Page 2, Line 12telegraph services are subject to sales tax; and
Page 2, Line 13(VI) The repeal of this tax expenditure will cause only a de
Page 2, Line 14minimis revenue gain that is incidental to the primary purpose of
Page 2, Line 15repealing the tax expenditure;
Page 2, Line 16(c) (I) The purpose of the business personal property tax income
Page 2, Line 17tax credit is to minimize the negative impact of the business personal
Page 2, Line 18property tax on businesses;
Page 2, Line 19(II) As referenced in the office of the state auditor's 2024
Page 2, Line 20evaluation of the business personal property tax income tax credit,
Page 2, Line 21Colorado also exempts businesses with business personal property below
Page 2, Line 22a dollar threshold from filing and paying the tax altogether. That
Page 2, Line 23threshold is currently $52,000. Only twelve other states have some type
Page 2, Line 24of exemption for business personal property. Unlike Colorado, no state
Page 2, Line 25has both an exemption and an income tax credit for business personal
Page 2, Line 26property taxes paid.
Page 2, Line 27(III) The office of the state auditor's 2024 evaluation of the
Page 2, Line 28business personal property tax income tax credit indicated that less than
Page 2, Line 291% of business personal property taxpayers in the state claim the income
Page 2, Line 30tax credit and many of those credits were claimed erroneously or were
Page 2, Line 31miscalculated, suggesting that the cost of administering the income tax
Page 2, Line 32credit is larger than its benefit to taxpayers;
Page 2, Line 33(IV) Taxpayers can already deduct property taxes as ordinary and
Page 2, Line 34necessary business expenses on their federal income tax returns, which
Page 2, Line 35also reduces their state tax liability, meaning that the business personal
Page 2, Line 36property tax income tax credit is partially duplicative; and
Page 2, Line 37(V) Therefore, the purpose of repealing the business personal
Page 2, Line 38property tax income tax credit is to reduce administrative burden and
Page 2, Line 39increase administrative efficiency by removing a duplicative tax
Page 2, Line 40expenditure that is rarely being claimed. The repeal of this tax
Page 2, Line 41expenditure will only cause a de minimis revenue gain that is incidental
Page 2, Line 42to the primary purpose of repealing the tax expenditure.
Page 2, Line 43(d) (I) The purpose of the enterprise zone investment tax credit,
Page 3, Line 1which awards a tax credit in proportion to the amount of a taxpayer's
Page 3, Line 2investment within certain areas of Colorado, is to incentivize the
Page 3, Line 3formation of businesses and the creation of jobs within economically
Page 3, Line 4distressed parts of Colorado;
Page 3, Line 5(II) As referenced in the office of the state auditor's 2020
Page 3, Line 6evaluation on the enterprise zone investment tax credit, most businesses
Page 3, Line 7that currently claim the enterprise zone investment tax credit are
Page 3, Line 8inherently highly location-dependent and therefore are not as incentivized
Page 3, Line 9or disincentivized by a tax expenditure that rewards investment within
Page 3, Line 10certain areas of Colorado;
Page 3, Line 11(III) The purpose of limiting the amount of, and who may qualify
Page 3, Line 12for, the enterprise zone investment tax credit is to narrow the scope of the
Page 3, Line 13tax expenditure so that it will achieve its original purpose of incentivizing
Page 3, Line 14the formation of businesses and the creation of jobs within economically
Page 3, Line 15distressed parts of Colorado; and
Page 3, Line 16(IV) The modification of this enterprise zone investment tax credit
Page 3, Line 17will cause only a de minimis revenue gain that is incidental to the primary
Page 3, Line 18purpose of modifying the enterprise zone investment tax credit to better
Page 3, Line 19achieve its original purpose; and
Page 3, Line 20(e) Overall, the purpose of all of the modifications to tax
Page 3, Line 21expenditures in this House Bill 25-1296 is to better align the tax
Page 3, Line 22expenditures with the general assembly's intent in enacting these tax
Page 3, Line 23expenditures, to improve administrative efficiency, to reduce
Page 3, Line 24administrative burden, and to conform Colorado's tax code with
Page 3, Line 25provisions commonly used in other states so that Colorado is less of an
Page 3, Line 26outlier around the country in how taxpayers compute their taxes owed.
Page 3, Line 27Any revenue gained through the modifications to tax expenditures in this
Page 3, Line 28House Bill 25-1296, from modifications that narrow or expand tax
Page 3, Line 29expenditures, is clearly de minimis and incidental.
Page 3, Line 30(f) Therefore, consistent with the Colorado supreme court's
Page 3, Line 31holding in TABOR Found. v. Reg'l Transp. Dist., 2018 CO 29, that
Page 3, Line 32legislation that causes only an incidental and de minimis tax revenue
Page 3, Line 33increase does not amount to a new tax or a tax policy change that requires
Page 3, Line 34voter approval in advance under section 20 of article V of the state
Page 3, Line 35constitution, the modifications to tax expenditures in this act are neither
Page 3, Line 36new taxes nor tax policy changes that require voter approval.
Page 3, Line 37SECTION 2. In Colorado Revised Statutes, 25-1.5-106, amend
Page 3, Line 38(16)(a) as follows:
Page 3, Line 3925-1.5-106. Medical marijuana program - powers and duties
Page 3, Line 40of state health agency - rules - medical review board - medical
Page 3, Line 41marijuana program cash fund - subaccount - created - "Ethan's
Page 3, Line 42Law" - definitions - repeal. (16) Fees. (a) The state health agency may
Page 3, Line 43collect fees from patients who, pursuant to section 14 of article XVIII of
Page 4, Line 1the state constitution or subsection (9) of this section, apply to the medical
Page 4, Line 2marijuana program for a registry identification card for the purpose of
Page 4, Line 3offsetting the state health agency's direct and indirect costs of
Page 4, Line 4administering the program. The amount of the fees shall be set by rule of
Page 4, Line 5the state health agency. The amount of the fees set pursuant to this section
Page 4, Line 6shall reflect the actual direct and indirect costs of the state licensing
Page 4, Line 7authority in the administration and enforcement of this article so that the
Page 4, Line 8fees avoid exceeding the statutory limit on uncommitted reserves in
Page 4, Line 9administrative agency cash funds as set forth in section 24-75-402 (3).
Page 4, Line 10The state health agency shall not assess a medical marijuana registry
Page 4, Line 11application fee to an applicant who demonstrates, pursuant to a copy of
Page 4, Line 12the applicant's state tax return certified by the department of revenue or
Page 4, Line 13a copy of the applicant's federal tax return received from the
Page 4, Line 14internal revenue service, that the applicant's income does not exceed
Page 4, Line 15one hundred eighty-five percent of the federal poverty line, adjusted for
Page 4, Line 16family size. All fees collected by the state health agency through the
Page 4, Line 17medical marijuana program shall be transferred to the state treasurer who
Page 4, Line 18shall credit the same to the medical marijuana program cash fund, which
Page 4, Line 19fund is hereby created.
Page 4, Line 20SECTION 3. In Colorado Revised Statutes, 10-3-209, add (6)(d)
Page 4, Line 21as follows:
Page 4, Line 2210-3-209. Tax on premiums collected - exemptions - penalties
Page 4, Line 23- filing system - division to contract with third parties - rules - repeal.
Page 4, Line 24(6) (d) In submitting taxes, penalties, fines, fees, and associated
Page 4, Line 25filings required under this section to the division, an insurance
Page 4, Line 26company shall identify the total annual dollar amount of
Page 4, Line 27premiums collected or contracted for on policies or contracts
Page 4, Line 28of insurance covering property or risks in Colorado during the
Page 4, Line 29previous calendar year from entities that are exempt from
Page 4, Line 30taxation pursuant to section 10-3-209 (1)(d)(IV).
Page 4, Line 31SECTION 4. In Colorado Revised Statutes, 39-21-113, add (37)
Page 4, Line 32as follows:
Page 4, Line 3339-21-113. Reports and returns - rule - repeal.
Page 4, Line 34(37) Notwithstanding the provisions of this section, the
Page 4, Line 35executive director may provide to the department of early
Page 4, Line 36childhood such detailed taxpayer information pertinent to a
Page 4, Line 37claim for an income tax credit for an early childhood educator
Page 4, Line 38pursuant to section 39-22-547, and such detailed taxpayer
Page 4, Line 39information pertinent to a claim for an income tax credit for a
Page 4, Line 40care worker pursuant to section 39-22-566. Any information
Page 4, Line 41provided pursuant to this subsection (37) must remain
Page 4, Line 42confidential, and all persons are subject to the limitations
Page 4, Line 43specified in subsection (4) of this section and the penalties
Page 5, Line 1specified in subsection (6) of this section.
Page 5, Line 2SECTION 5. In Colorado Revised Statutes, 39-22-104, amend
Page 5, Line 3(3)(t); and add (3)(u) as follows:
Page 5, Line 439-22-104. Income tax imposed on individuals, estates, and
Page 5, Line 5trusts - single rate - report - tax preference performance statement
Page 5, Line 6- legislative declaration - definitions - repeal. (3) There shall be added
Page 5, Line 7to the federal taxable income:
Page 5, Line 8(t) For income tax years commencing on or after January 1, 2025,
Page 5, Line 9an amount equal to the amount of employer contribution that an employee
Page 5, Line 10forfeits pursuant to section 39-22-558 (3)(c) and that the taxpayer had
Page 5, Line 11previously subtracted from the taxpayer's federal taxable income pursuant
Page 5, Line 12to subsection (4)(bb) of this section; and
Page 5, Line 13(u) The amount of any overtime compensation excluded or
Page 5, Line 14deducted from federal gross income.
Page 5, Line 15SECTION 6. In Colorado Revised Statutes, 39-22-509, amend
Page 5, Line 16(2)(d) as follows:
Page 5, Line 1739-22-509. Credit against tax - employer expenditures for
Page 5, Line 18alternative transportation options for employees - legislative
Page 5, Line 19declaration - definitions - repeal. (2) As used in this section, unless the
Page 5, Line 20context otherwise requires:
Page 5, Line 21(d) "Local government" means any home rule city, town, county
Page 5, Line 22or city and county, or and any statutory city, or town, or county.
Page 5, Line 23SECTION 7. In Colorado Revised Statutes, 39-22-514.5, amend
Page 5, Line 24(8)(c)(III) introductory portion as follows:
Page 5, Line 2539-22-514.5. Tax credit for qualified costs incurred in
Page 5, Line 26preservation of historic structures - commercial historic preservation
Page 5, Line 27tax credit program cash fund - tax preference performance statement
Page 5, Line 28- legislative declaration - short title - definitions. (8) Deadline for
Page 5, Line 29incurring specified amount of estimated costs of rehabilitation - proof
Page 5, Line 30of compliance - audit of cost and expense certification - issuance of
Page 5, Line 31tax credit certificate - commercial structures. (c) Notwithstanding
Page 5, Line 32subsection (8)(b) of this section:
Page 5, Line 33(III) For income tax years commencing prior to January 1,
Page 5, Line 342030, and for applications submitted pursuant to subsection (5)
Page 5, Line 35of this section prior to January 1, 2026, with respect to a certified
Page 5, Line 36historic structure that is a qualified commercial structure that is located
Page 5, Line 37in an area that the president of the United States has determined to be a
Page 5, Line 38major disaster area under section 102 (2) of the federal "Robert T.
Page 5, Line 39Stafford Disaster Relief and Emergency Assistance Act", 42 U.S.C. sec.
Page 5, Line 405121 et seq., or that is located in an area that the governor has determined
Page 5, Line 41to be a disaster area under the "Colorado Disaster Emergency Act", part
Page 5, Line 427 of article 33.5 of title 24, the tax credit amounts specified in subsections
Page 5, Line 43(8)(b)(I) and (8)(b)(II) of this section must be increased as follows for an
Page 6, Line 1application that is filed within six years after the disaster determination:
Page 6, Line 2SECTION 8. In Colorado Revised Statutes, 39-22-517, amend
Page 6, Line 3(1), (2), and (4) as follows:
Page 6, Line 439-22-517. Tax credit for child care center investments -
Page 6, Line 5repeal. (1) With respect to taxable years commencing on or after January
Page 6, Line 61, 1992, and prior to January 1, 2026 January 1, 2029, there is allowed
Page 6, Line 7to any person operating a child care center licensed pursuant to section
Page 6, Line 826-6-905 or 26.5-5-309, family child care home licensed pursuant to
Page 6, Line 9section 26.5-5-309, or foster care home licensed pursuant to section
Page 6, Line 1026-6-905 a credit against the tax imposed by this article 22 in the amount
Page 6, Line 11of twenty percent of the taxpayer's annual investment in tangible personal
Page 6, Line 12property to be used in such child care center, family child care home, or
Page 6, Line 13foster care home.
Page 6, Line 14(2) With respect to taxable years commencing on or after July 1,
Page 6, Line 151992, and prior to January 1, 2026 January 1, 2029, there is allowed to
Page 6, Line 16any sole proprietorship, partnership, limited liability corporation,
Page 6, Line 17subchapter S corporation, or regular corporation that provides child care
Page 6, Line 18facilities that are incidental to their business and are licensed pursuant to
Page 6, Line 19section 26-6-905 or 26.5-5-309 for the use of its employees a credit
Page 6, Line 20against the tax imposed by this article 22 in the amount of ten percent of
Page 6, Line 21the taxpayer's annual investment in tangible personal property to be used
Page 6, Line 22in such child care facilities.
Page 6, Line 23(4) This section is repealed, effective December 31, 2033
Page 6, Line 24December 31, 2036.
Page 6, Line 25SECTION 9. In Colorado Revised Statutes, 39-22-537.5, amend
Page 6, Line 26(3)(a); and add (5) as follows:
Page 6, Line 2739-22-537.5. Credit for personal property taxes paid -
Page 6, Line 28legislative declaration - definitions - repeal. (3) (a) For income tax
Page 6, Line 29years commencing on or after January 1, 2019, but before January 1,
Page 6, Line 302026, a taxpayer is allowed a credit against the tax imposed by this article
Page 6, Line 3122 equal to the property tax paid in Colorado during the income tax year
Page 6, Line 32on up to eighteen thousand dollars of the total actual value of the
Page 6, Line 33taxpayer's personal property.
Page 6, Line 34(5) This section is repealed, effective December 31, 2036.
Page 6, Line 35SECTION 10. In Colorado Revised Statutes, 39-22-544, amend
Page 6, Line 36(4)(c) as follows:
Page 6, Line 3739-22-544. Credit against tax - qualifying seniors - creation -
Page 6, Line 38legislative declaration - definitions - repeal. (4) (c) (I) For the income
Page 6, Line 39tax year commencing on January 1, 2022, notwithstanding subsections
Page 6, Line 40(4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant
Page 6, Line 41under article 31 of this title 39 during calendar year 2022 is eligible to
Page 6, Line 42receive the full credit without an income-based reduction that otherwise
Page 6, Line 43applies for the taxpayer under subsection (4)(a) or (4)(b) of this section.
Page 7, Line 1(II) This subsection (4)(c) is repealed, effective December
Page 7, Line 231, 2026.
Page 7, Line 3SECTION 11. In Colorado Revised Statutes, 39-22-566, amend
Page 7, Line 4(2)(j), (2)(k), and (2)(l) as follows:
Page 7, Line 539-22-566. Qualified care worker tax credit - tax preference
Page 7, Line 6performance statement - legislative declaration - definitions - repeal.
Page 7, Line 7(2) As used in this section, unless the context otherwise requires:
Page 7, Line 8(j) "Informal family friend or neighbor child care worker" means
Page 7, Line 9an individual described in section 26.5-5-304 (1)(f) who provides care for
Page 7, Line 10children other than their own who are five years of age or younger,
Page 7, Line 11except that an informal family friend or neighbor child care
Page 7, Line 12worker is not required to provide care in the individual's
Page 7, Line 13permanent place of residence.
Page 7, Line 14(k) "Licensed early childhood education program" means an early
Page 7, Line 15childhood education program, as defined in section 26.5-2-202 (3), that
Page 7, Line 16held a valid license issued pursuant to part 3 of article 5 of title 26.5, for
Page 7, Line 17at least six months during the income tax year.
Page 7, Line 18(l) "Licensed family child care home" means a family child care
Page 7, Line 19home, as defined in section 26.5-5-303 (7), that held a valid license issued
Page 7, Line 20pursuant to part 3 of article 5 of title 26.5, for at least six months during
Page 7, Line 21the income tax year.
Page 7, Line 22SECTION 12. In Colorado Revised Statutes, 39-22-604, amend
Page 7, Line 23(3)(a), (3)(b), (4)(b), (5), (6)(a), (8), (10), (13), (16)(a), (16)(b)(I), and
Page 7, Line 24(20) as follows:
Page 7, Line 2539-22-604. Withholding tax - requirement to withhold - tax
Page 7, Line 26lien - exemption from lien - annual statement - notice - definitions -
Page 7, Line 27repeal. (3) (a) (I) Every employer making payment of wages shall deduct
Page 7, Line 28and withhold from wages an amount measured by a percentage or
Page 7, Line 29percentages of the total amount required to be deducted and withheld by
Page 7, Line 30an employer from wages of an employee for federal income tax purposes,
Page 7, Line 31or measured by withholding tax tables promulgated by the executive
Page 7, Line 32director, or by such other methods as the executive director may prescribe
Page 7, Line 33if such percentage, percentages, tables, or other methods result in the
Page 7, Line 34withholding from the employee's wages during each pay period an
Page 7, Line 35amount which shall approximate as nearly as possible the income tax due
Page 7, Line 36to the state of Colorado by such employee.
Page 7, Line 37(II) In addition to the amount required to be deducted and
Page 7, Line 38withheld pursuant to subsection (3)(a)(I) of this section, the
Page 7, Line 39executive director may require every employer making payment
Page 7, Line 40of compensation other than wages to deduct and withhold an
Page 7, Line 41amount measured by a percentage or percentages, or measured
Page 7, Line 42by withholding tax tables established by the executive
Page 7, Line 43director, or by such other methods as the executive director
Page 8, Line 1may prescribe if such percentage, percentages, tables, or other
Page 8, Line 2methods result in the withholding from the other compensation
Page 8, Line 3paid to an employee during each pay period an amount which
Page 8, Line 4shall approximate as nearly as possible the income tax due to
Page 8, Line 5the state of Colorado by such employee on such other
Page 8, Line 6compensation.
Page 8, Line 7(b) The executive director may, upon written application having
Page 8, Line 8been made to him, approve a method of withholding in lieu of the method
Page 8, Line 9provided in paragraph (a) of this subsection (3) subsection (3)(a) of this
Page 8, Line 10section to authorize a withholding based upon a percentage fixed by the
Page 8, Line 11executive director of the adjusted gross income, which percentage shall
Page 8, Line 12approximate as nearly as possible the amount of income tax due to the
Page 8, Line 13state of Colorado and as nearly as possible the amount so amounts
Page 8, Line 14required to be deducted and withheld in paragraph (a) of this subsection
Page 8, Line 15(3) subsection (3)(a) of this section.
Page 8, Line 16(4) (b) Where practicable, the rules and regulations
Page 8, Line 17promulgated pursuant to this section shall not prescribe filing or
Page 8, Line 18information report, filing, payment, or withholding requirements
Page 8, Line 19which are more frequent or more stringent than corresponding federal
Page 8, Line 20requirements; except the executive director may prescribe
Page 8, Line 21additional or different requirements when necessary for the
Page 8, Line 22efficient administration of differences between the internal
Page 8, Line 23revenue code and this article 22.
Page 8, Line 24(5) All amounts deducted and withheld shall be considered as tax
Page 8, Line 25collected under the provisions of this section and no employee shall have
Page 8, Line 26any right of action against his an employer in respect to any moneys so
Page 8, Line 27amount deducted and withheld from his the employee's wages and
Page 8, Line 28other compensation and paid over to the department in compliance or
Page 8, Line 29in intended compliance with this section.
Page 8, Line 30(6) (a) Every employer shall, in accordance with such rules as
Page 8, Line 31shall be prescribed by the department of revenue, provide each employee
Page 8, Line 32with a statement of the amounts of moneys deducted and withheld from
Page 8, Line 33such employee's wages and other compensation in accordance with
Page 8, Line 34the provisions of this section. Every employer shall also make an annual
Page 8, Line 35statement for each employee to the department of revenue, on such forms
Page 8, Line 36as are provided or approved by the department, a copy of which shall be
Page 8, Line 37provided each employee, summarizing the total compensation paid and
Page 8, Line 38the tax withheld for such employee during the preceding calendar year or
Page 8, Line 39any portion thereof, and the said annual statement shall be filed on or
Page 8, Line 40before the date established pursuant to section 6071 of the internal
Page 8, Line 41revenue code for filing similar federal statements. Failure to file the
Page 8, Line 42statements within the time prescribed therefor, unless shown to have been
Page 8, Line 43due to reasonable cause, or the willful filing or furnishing of false or
Page 9, Line 1fraudulent statements shall subject the employer to a penalty, at the
Page 9, Line 2discretion of the executive director, of not less than five dollars nor more
Page 9, Line 3than fifty dollars, which shall be in addition to any criminal penalty
Page 9, Line 4otherwise provided for failure to file a return or for filing a false or
Page 9, Line 5fraudulent return.
Page 9, Line 6(8) The entire amount of income from wages and other
Page 9, Line 7compensation upon which tax was deducted and withheld shall be
Page 9, Line 8included in the gross income of the income tax return required to be made
Page 9, Line 9by the employee, the recipient of the wages and other compensation,
Page 9, Line 10without exclusion of such amounts deducted and withheld under this
Page 9, Line 11section, and any tax so deducted and withheld shall be credited against the
Page 9, Line 12total income tax, as computed in the employee's return, made in
Page 9, Line 13accordance with the provisions of this section.
Page 9, Line 14(10) In the event the excess tax deducted and withheld is one
Page 9, Line 15dollar or less, no refund shall be made, unless a specific claim for refund
Page 9, Line 16is filed by the taxpayer at the time the return is filed. The excess, subject
Page 9, Line 17to being refunded, shall in no event and under no condition be allowed as
Page 9, Line 18a credit against any tax accruing on a return filed for a year subsequent to
Page 9, Line 19the year during which the wages or other compensation were received,
Page 9, Line 20and can only be credited against a tax accruing upon a return of wages or
Page 9, Line 21other compensation from which such excess was deducted and
Page 9, Line 22withheld.
Page 9, Line 23(13) The department is empowered to make rules and regulations
Page 9, Line 24for the enforcement of the provisions of this section, including rules and
Page 9, Line 25regulations for determining the amount, up to but not exceeding the
Page 9, Line 26amount limited in this section, to be deducted and withheld by employers
Page 9, Line 27from wages of and other compensation paid to nonresident
Page 9, Line 28employees, only a part of whose wages or other compensation are
Page 9, Line 29paid for services performed within the state of Colorado.
Page 9, Line 30(16) (a) On or before the date of the commencement of
Page 9, Line 31employment with an employer, the employee shall furnish the employer
Page 9, Line 32with a signed withholding certificate. Except as provided by rules
Page 9, Line 33established by the executive director pursuant to this section,
Page 9, Line 34a comparable withholding certificate filed pursuant to the internal revenue
Page 9, Line 35code shall be deemed to satisfy the filing requirement under this
Page 9, Line 36subsection (16). Where necessary to cause the proper amount to be
Page 9, Line 37withheld, the executive director may adjust the employee's withholding
Page 9, Line 38to the amount properly allowable under the internal revenue code or this
Page 9, Line 39section.
Page 9, Line 40(b) (I) To enforce the provisions of this section, the executive
Page 9, Line 41director may file with the employer a withholding certificate on behalf of
Page 9, Line 42the employee. Prior to the filing of such certificate, the executive director
Page 9, Line 43shall first notify the employee that the certificate previously filed by the
Page 10, Line 1employee is being examined and that the employee may submit
Page 10, Line 2satisfactory evidence pursuant to the internal revenue code within ten
Page 10, Line 3days of receipt of said notice as to the correct number of withholding
Page 10, Line 4exemptions and allowances. Should the executive director, after
Page 10, Line 5reviewing any evidence so submitted, find the certificate filed by the
Page 10, Line 6employee to be defective, the employer shall accept the certificate filed
Page 10, Line 7by the director in lieu of any certificate previously filed by the employee,
Page 10, Line 8and such certificate filed by the executive director shall thereafter form
Page 10, Line 9the basis for withholding from wages and other compensation as
Page 10, Line 10required by this section. The executive director may also require from the
Page 10, Line 11employer a copy of any withholding certificate signed by the employee.
Page 10, Line 12(20) No amount is required to be deducted and withheld from an
Page 10, Line 13employee's wages or other compensation pursuant to this section for
Page 10, Line 14income tax due to the state if the employee's withholding certificate
Page 10, Line 15indicates that the compensation is eligible to be subtracted from federal
Page 10, Line 16taxable income pursuant to section 39-22-104 (4)(u).
Page 10, Line 17SECTION 13. In Colorado Revised Statutes, 39-26-102, amend
Page 10, Line 18(19)(g) as follows:
Page 10, Line 1939-26-102. Definitions - repeal. As used in this article 26, unless
Page 10, Line 20the context otherwise requires:
Page 10, Line 21(19) (g) (I) (A) For purposes of this subsection (19), before July
Page 10, Line 221, 2025, "agricultural commodities" does not include products regulated
Page 10, Line 23under article 10 of title 44.
Page 10, Line 24(B) This subsection (19)(g)(I) is repealed, effective July 1,
Page 10, Line 252026.
Page 10, Line 26(II) For purposes of this subsection (19), on or afer July1,
Page 10, Line 272025, "agricultural commodities" includes products regulated
Page 10, Line 28under article 10 of title 44.
Page 10, Line 29SECTION 14. In Colorado Revised Statutes, 39-26-104, add
Page 10, Line 30(1)(c.5) as follows:
Page 10, Line 3139-26-104. Property and services taxed - definitions. (1) There
Page 10, Line 32is levied and there shall be collected and paid a tax in the amount stated
Page 10, Line 33in section 39-26-106 as follows:
Page 10, Line 34(c.5) (I) Beginning July 1, 2025, upon telephone and
Page 10, Line 35telegraph services, whether furnished by public or private
Page 10, Line 36corporations or enterprises for interstate telephone and
Page 10, Line 37telegraph service, if the telephone and telegraph service
Page 10, Line 38originates or terminates in the state and is charged to a
Page 10, Line 39Colorado address.
Page 10, Line 40(II) In accordance with the federal "Mobile
Page 10, Line 41Telecommunications Sourcing Act", 4 U.S.C. secs. 116 to 126, as
Page 10, Line 42amended, mobile telecommunication service provided to a
Page 10, Line 43customer whose place of primary use is outside of the borders of
Page 11, Line 1the state of Colorado is exempt from the tax imposed by this
Page 11, Line 2section.
Page 11, Line 3(III) A taxpayer who pays a tax legally imposed by
Page 11, Line 4another state on a telephone or telegraph service that is
Page 11, Line 5taxable pursuant to this subsection (1)(c.5) is allowed a credit
Page 11, Line 6against the tax imposed by this section in an amount equal to the
Page 11, Line 7amount of the tax imposed on a telephone or telegraph service
Page 11, Line 8by the other state. A credit allowed pursuant to this subsection
Page 11, Line 9(1)(c.5)(III) shall not exceed the tax imposed on a telephone or
Page 11, Line 10telegraph service pursuant to this section.
Page 11, Line 11SECTION 15. In Colorado Revised Statutes, amend 39-26-726
Page 11, Line 12as follows:
Page 11, Line 1339-26-726. Medical marijuana - debilitating conditions and
Page 11, Line 14ability to purchase. (1) All sales of medical marijuana to a patient who
Page 11, Line 15is determined to be indigent for purposes of waiving the fee required by
Page 11, Line 16section 25-1.5-106 C.R.S., shall be are exempt from taxation under part
Page 11, Line 171 of this article article 26. If the patient is determined to be indigent, the
Page 11, Line 18state health agency shall mark his or her the patient's registry
Page 11, Line 19identification card as such and the patient shall present the card to the
Page 11, Line 20licensed medical marijuana center to receive the tax exemption.
Page 11, Line 21(2) On or after July 1, 2025, all sales of medical marijuana
Page 11, Line 22to an individual who presents a valid electronic benefits
Page 11, Line 23transfer card or other form of identification used to receive
Page 11, Line 24state or federal benefits at the time of sale to a licensed
Page 11, Line 25medical marijuana center are exempt from taxation under part
Page 11, Line 261 of this article 26.
Page 11, Line 27SECTION 16. In Colorado Revised Statutes, 39-30-104, amend
Page 11, Line 28(1)(a), (2)(c)(I) introductory portion, (2)(c)(I)(B), (2)(c)(III), and
Page 11, Line 29(2)(c)(IV); repeal (2)(b); and repeal and reenact, with amendments,
Page 11, Line 30(2.5) as follows:
Page 11, Line 3139-30-104. Credit against tax - investment in certain property
Page 11, Line 32- definitions. (1) (a) (I) There shall be is allowed to any person as a
Page 11, Line 33credit against the tax imposed by article 22 of this title 39, for income tax
Page 11, Line 34years commencing on or after January 1, 1986, an amount equal to the
Page 11, Line 35total of three percent of the total qualified investment, as determined
Page 11, Line 36under section 46 (c)(2) of the federal "Internal Revenue Code of 1986",
Page 11, Line 37as amended, in such taxable year in qualified property as defined in
Page 11, Line 38section 48 of the internal revenue code to the extent that such investment
Page 11, Line 39is in property that is used solely and exclusively in an enterprise zone for
Page 11, Line 40at least one year. The references in this subsection (1) to sections 46
Page 11, Line 41(c)(2) and 48 of the internal revenue code mean sections 46 (c)(2) and 48
Page 11, Line 42of the internal revenue code as they existed immediately prior to the
Page 11, Line 43enactment of the federal "Revenue Reconciliation Act of 1990".
Page 12, Line 1(II) (A) Notwithstanding subsection (1)(a)(I) of this
Page 12, Line 2section, for credits allowed beginning in income tax years
Page 12, Line 3commencing on or after January 1, 2026, a taxpayer is not
Page 12, Line 4allowed a total credit amount against the tax imposed by
Page 12, Line 5article 22 of this title 39 pursuant to subsection (1)(a)(I) of this
Page 12, Line 6section in excess of two million dollars and a taxpayer may not
Page 12, Line 7claim a credit pursuant to this subsection (1)(a) if the qualified
Page 12, Line 8property is directly used in: the retail sale of gasoline or diesel
Page 12, Line 9fuel for use in motor vehicles or a wireless telecommunications
Page 12, Line 10facility.
Page 12, Line 11(B) A taxpayer may seek a waiver of the limitation on the
Page 12, Line 12amount of credit established in subsection (1)(a)(II)(A) of this
Page 12, Line 13section by completing a written application to the Colorado
Page 12, Line 14economic development commission for permission to be allowed
Page 12, Line 15a credit in excess of that limitation for the income tax year in
Page 12, Line 16which the total qualified investment is made. The application
Page 12, Line 17must include identification of the substantial positive impact
Page 12, Line 18that the waiver of the limitation would have on investments and
Page 12, Line 19on well-paying jobs in the enterprise zone, documentation that
Page 12, Line 20demonstrates that without the waiver of the limitation the
Page 12, Line 21substantial positive impact on investments and on well-paying
Page 12, Line 22jobs in the enterprise zone is not likely to occur, and
Page 12, Line 23information that the waiver of the limitation is a substantial
Page 12, Line 24factor in the taxpayer's decision to make a qualified investment
Page 12, Line 25in the start-up, retention, expansion, or relocation of the
Page 12, Line 26taxpayer's business, such that without the waiver the taxpayer
Page 12, Line 27is not likely to make the qualified investment. In deciding
Page 12, Line 28whether to grant the waiver of the limitation, the commission
Page 12, Line 29must consider the overall economic health of this state and the
Page 12, Line 30economic viability of the arguments made by the taxpayer in
Page 12, Line 31support of the taxpayer's application. The Colorado economic
Page 12, Line 32development commission may require the taxpayer to provide an
Page 12, Line 33independent analysis, at the taxpayer's expense, that
Page 12, Line 34substantiates the taxpayer's arguments in support of the
Page 12, Line 35application. The taxpayer's application must be considered at a
Page 12, Line 36regularly scheduled meeting of the Colorado economic
Page 12, Line 37development commission at which the public is allowed to
Page 12, Line 38comment.
Page 12, Line 39(C) The Colorado economic development commission may
Page 12, Line 40allow all, part, or none of a taxpayer's application to waive the
Page 12, Line 41limitation on the amount of credit established in subsection
Page 12, Line 42(1)(a)(II)(A) of this section. The Colorado economic development
Page 12, Line 43commission must issue a credit certificate that sets forth the
Page 13, Line 1amount of the credit that the taxpayer is allowed for the
Page 13, Line 2income tax year in which the total qualified investment is made.
Page 13, Line 3The taxpayer shall submit the credit certificate to the
Page 13, Line 4department of revenue with the taxpayer's income tax return
Page 13, Line 5for the tax year for which the Colorado economic development
Page 13, Line 6commission issued the credit certificate.
Page 13, Line 7(D) If the Colorado economic development commission
Page 13, Line 8approves, in whole or in part, a taxpayer's application to waive
Page 13, Line 9the limitation on the amount of credit established in subsection
Page 13, Line 10(1)(a)(II)(A) of this section, the Colorado economic development
Page 13, Line 11commission shall include its decision in the enterprise zone
Page 13, Line 12annual report to the general assembly, including the taxpayer's
Page 13, Line 13name, the amount of the credit that the commission allowed,
Page 13, Line 14and the Colorado economic development commission's
Page 13, Line 15justification for approving the application.
Page 13, Line 16(E) For purposes of this subsection (1)(a), "wireless
Page 13, Line 17telecommunications facility" or "facility" means equipment at
Page 13, Line 18a fixed location that enables wireless communications between
Page 13, Line 19user equipment and a communications network, including macro
Page 13, Line 20and small wireless facilities, transceivers, antennas, backup
Page 13, Line 21power supplies, and comparable equipment, regardless of
Page 13, Line 22technological configuration; and the support structure or
Page 13, Line 23improvements on, under, or within which the equipment is
Page 13, Line 24collocated.
Page 13, Line 25(2) (b) In addition to the limitations set forth in paragraph (a) of
Page 13, Line 26this subsection (2), for income tax years commencing on or after January
Page 13, Line 271, 2011, but prior to January 1, 2014, any taxpayer that is eligible to claim
Page 13, Line 28a credit pursuant to subsection (1) of this section in excess of five
Page 13, Line 29hundred thousand dollars shall defer claiming any amount of the credit
Page 13, Line 30allowed pursuant to this section that exceeds five hundred thousand
Page 13, Line 31dollars until an income tax year commencing on or after January 1, 2014.
Page 13, Line 32The five hundred thousand dollar limitation specified in this paragraph
Page 13, Line 33(b) shall apply to any credit allowed in the income tax years commencing
Page 13, Line 34on or after January 1, 2011, but prior to January 1, 2014, including any
Page 13, Line 35amount carried forward from a prior year.
Page 13, Line 36(c) (I) For income tax years commencing on or after January 1,
Page 13, Line 372014, except as provided in section sections 24-46-104.3 and 24-46-108
Page 13, Line 38and subsection (2)(c)(II) of this section, the amount that may be claimed
Page 13, Line 39by a taxpayer for an income tax year and that is not applied or refunded
Page 13, Line 40under section 24-46-108 is limited to the lesser of:
Page 13, Line 41(B) Seven hundred fifty thousand dollars plus any investment tax
Page 13, Line 42credit carryovers previously allowed in subsection (2.5) of this section
Page 13, Line 43for investments made in income tax years commencing before
Page 14, Line 1January 1, 2014.
Page 14, Line 2(III) (A) Except as otherwise provided in sections 24-46-104.3,
Page 14, Line 324-46-107, and 24-46-108 and subsection (2)(c)(III)(B) of this section,
Page 14, Line 4any excess credit allowed pursuant to this subsection (2)(c) shall be an
Page 14, Line 5investment tax credit carryover to each of the fourteen income tax years
Page 14, Line 6following the unused credit year.
Page 14, Line 7(B) Except as otherwise provided in sections section
Page 14, Line 824-46-104.3, and 24-46-107, any excess credit allowed pursuant to this
Page 14, Line 9subsection (2)(c) for a renewable energy investment made in an income
Page 14, Line 10tax year commencing before January 1, 2018, shall be an investment tax
Page 14, Line 11credit carryover for twenty-two income tax years following the year the
Page 14, Line 12credit was originally allowed.
Page 14, Line 13(IV) The limitation contained in this paragraph (c) subsection
Page 14, Line 14(2)(c) on the amount a taxpayer may claim for the income tax year in
Page 14, Line 15which the total qualified investment is made does not limit the total
Page 14, Line 16amount of the credit allowed under subsection (1) subsection (1)(a) of
Page 14, Line 17this section, nor does it limit the ability of a taxpayer to carryover carry
Page 14, Line 18over a credit to subsequent tax years as allowed in subparagraph (III) of
Page 14, Line 19this paragraph (c) subsection (2)(c)(III) of this section or previously
Page 14, Line 20allowed in subsection (2.5) of this section for investments made in
Page 14, Line 21income tax years commencing before January 1, 2014.
Page 14, Line 22(2.5) (a) (I) Notwithstanding section 39-22-507.5 (7)(b), except
Page 14, Line 23as provided in sections section 24-46-107 and 24-46-108, and except as
Page 14, Line 24otherwise provided in subsections (2.5)(a)(II) and (2.5)(b) of this section,
Page 14, Line 25any excess credit allowed pursuant to this section and not applied or
Page 14, Line 26refunded under section 24-46-108 for an investment made in an
Page 14, Line 27income tax year commencing before January 1, 2014, shall be an
Page 14, Line 28investment tax credit carryover to each of the twelve income tax years
Page 14, Line 29following the unused credit year.
Page 14, Line 30(II) Except as provided in section 24-46-107, any excess credit
Page 14, Line 31claimed pursuant to this section for a renewable energy investment made
Page 14, Line 32in an income tax year commencing before January 1, 2018, shall be
Page 14, Line 33January 1, 2014, is an investment tax credit carryover for twenty income
Page 14, Line 34tax years following the year the credit was originally allowed.
Page 14, Line 35(b) (I) For income tax years commencing on or after
Page 14, Line 36January 1, 2011, but prior to January 1, 2014, any taxpayer that
Page 14, Line 37is eligible to claim a credit pursuant to subsection (1) of this
Page 14, Line 38section in excess of five hundred thousand dollars shall defer
Page 14, Line 39claiming any amount of the credit allowed pursuant to this
Page 14, Line 40section that exceeds five hundred thousand dollars until an
Page 14, Line 41income tax year commencing on or after January 1, 2014. The five
Page 14, Line 42hundred thousand dollar limitation specified in this subsection
Page 14, Line 43(2.5)(b) applies to any credit allowed in the income tax years
Page 15, Line 1commencing on or after January 1, 2011, but prior to January 1,
Page 15, Line 22014, including any amount carried forward from a prior year.
Page 15, Line 3(II) Except as provided in section 24-46-107 and subsection
Page 15, Line 4(2.5)(b)(III) of this section, a taxpayer that deferred claiming
Page 15, Line 5any credit in excess of five hundred thousand dollars during an
Page 15, Line 6income tax year commencing on or after January 1, 2011, but
Page 15, Line 7prior to January 1, 2014, pursuant to subsection (2.5)(b)(I) of this
Page 15, Line 8section shall be allowed to claim the deferred credit as an
Page 15, Line 9investment tax credit carryover for twelve income tax years
Page 15, Line 10following the year the credit was originally allowed plus one
Page 15, Line 11additional income tax year for each income tax year that the
Page 15, Line 12credit was deferred pursuant to subsection (2.5)(b)(I) of this
Page 15, Line 13section.
Page 15, Line 14(III) Except as provided in section 24-46-107, a taxpayer is
Page 15, Line 15allowed to claim the deferred credit described in subsection
Page 15, Line 16(2.5)(b)(II) of this section for a renewable energy investment
Page 15, Line 17made in an income tax year commencing before January 1, 2014,
Page 15, Line 18as an investment tax credit carryover for twenty income tax
Page 15, Line 19years following the year the credit was originally allowed plus
Page 15, Line 20one additional income tax year for each income tax year that
Page 15, Line 21the credit was deferred pursuant to subsection (2.5)(b)(I) of this
Page 15, Line 22section.
Page 15, Line 23(c) This subsection (2.5) is repealed, effective January 1,
Page 15, Line 242040.
Page 15, Line 25SECTION 17. Safety clause. The general assembly finds,
Page 15, Line 26determines, and declares that this act is necessary for the immediate
Page 15, Line 27preservation of the public peace, health, or safety or for appropriations for
Page 15, Line 28the support and maintenance of the departments of the state and state
Page 15, Line 29institutions.".