The act extends for an additional 10 years the availability of the state income tax credit allowed to a taxpayer who makes a qualifying monetary contribution to promote child care in the state equal to 50% of the total value of the contribution, not to exceed $100,000, through income tax years commencing prior to January 1, 2038.


(Note: This summary applies to this bill as enacted.)

     Under current law, the Colorado job growth incentive tax credit (credit) may only be allowed by the economic development commission (commission) through state income tax year 2026. The act amends the Colorado job growth incentive tax credit to authorize the commission to allow new credit awards through state income tax year 2034. The act also extends the commission's annual reporting requirement through September 1, 2042.


(Note: This summary applies to this bill as enacted.)

     Under current law, the Colorado homeless contribution tax credit (credit) may only be claimed through state income tax year 2026. The act amends the credit to allow taxpayers to claim the credit through state income tax year 2030.


(Note: This summary applies to this bill as enacted.)

Section 1 of the bill creates a time-limited state sales and use tax exemption (tax holiday) for back-to-school items. The tax holiday applies to the last weekend of July 2027 and reoccurs at approximately the same time in 2028 and 2029. A "back-to-school item" means an article of clothing, a school supply, or a learning aid that is purchased primarily for use by an individual who is under 21 years old. The exemption for each item is limited by cost as follows:

• $100 for an article of clothing;
• $50 for a school supply; and
• $30 for a learning aid.

Section 2 permits a town, city, or county to create a tax holiday for back-to-school items that is identical to the state tax holiday.
(Note: This summary applies to this bill as introduced.)

     The act requires, beginning July 1, 2027, a private entity conducting business in the state that employs 100 or more workers (employer) to include demographic workforce data collected through the United States equal employment opportunity commission's 'Employer Information Report' (EEO-1 data) in periodic reports to the secretary of state. An employer is required to provide the EEO-1 data to the secretary of state even if the federal government repeals or discontinues the federal requirement to submit the EEO-1 data to the United States equal employment opportunity commission.


(Note: This summary applies to this bill as enacted.)

     The bill adjusts 3 2 existing tax expenditures.

     

• Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026;
• Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and
• Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.

      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

     Recent changes to the federal income tax code significantly increased the amount of business-related expenses that may be deducted for federal income tax purposes as follows:

• Expanded the business interest deduction limitation pursuant to section 163 (j) of the internal revenue code (IRC) by adding back depreciation, amortization, and depletion for calculation of adjusted taxable income and determination of the deduction base, resulting in many taxpayers, especially capital intensive businesses, being able to deduct a larger portion of their business interest expense;
• Expanded the bonus depreciation deduction pursuant to section 168 (k) of the IRC by permanently restoring the 100% first-year bonus depreciation deduction for 'qualified property' acquired and placed in service on or after January 20, 2025;
• Created an elective 100% depreciation deduction in section 168 (n) of the IRC for 'qualified production property', which is property largely tied to manufacturing, production, or refining facilities and that would not otherwise qualify for section 168 (k) bonus depreciation; and
• Created a new section 174A of the IRC that allows taxpayers to immediately deduct domestic research and experimental expenditures paid or incurred during the taxable year, rather than requiring such costs to be capitalized and amortized over time.

     Because the state income tax is imposed on federal taxable income, these changes to the definition of federal income also exclude these business-related expenses from state income taxation. The bill reverses these changes to the federal tax code for purposes of the state income tax code and creates a new tax credit using the resulting revenue.

      Sections 2 and 4 of the bill provide, for income tax years commencing on or after January 1, 2027, that individual and corporate state income taxpayers must add the following to their federal taxable income for purposes of applying the state income tax:

• An amount equal to the federal deduction claimed by the taxpayer for business interest pursuant to the limitation in section 163 (j) of the IRC to the extent the amount exceeds the amount the taxpayer would have been allowed to claim before the limitation was changed as described above;
• An amount equal to the federal deduction claimed by the taxpayer for qualified property depreciation pursuant to section 168 (k) of the IRC to the extent the amount claimed exceeds the amount the taxpayer would have been allowed to claim under section 168 (k) prior to the change described above; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal changes;
• An amount equal to the federal deduction claimed by the taxpayer for qualified production property depreciation pursuant to section 168 (n) of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal change; and
• An amount equal to the federal deduction claimed by the taxpayer for the income tax year for domestic research and experimental expenditures pursuant to section 174A of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of the deduction the taxpayer would have been allowed to claim for the taxable year with respect to the same research and experimental expenditures pursuant to section 174 of the IRC prior to the recent federal changes.

      Sections 2 and 4 allow taxpayers who are required to make additions to their federal taxable income pursuant to the new provisions to subtract the amounts of their disallowed federal deductions over time, starting in income tax years commencing on or after January 1, 2028, using time periods that reflect how the property or expense would have been treated prior to the recent changes to the federal tax code. If the amount of the allowed subtraction exceeds the taxpayer's federal taxable income, the excess amount not subtracted may be carried forward for up to 10 years.

      Section 3 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2 and 4.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

     The act creates and allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised by the repeal of the downloadable software sales and use tax exemption elsewhere in the act.

     Beginning January 1, 2027, the act repeals the downloaded software sales and use tax exemption so that all software that is available for repeated sale and license qualifies as tangible property and thus is subject to sales and use tax. The act exempts from sales and use tax downloaded software governed by a negotiable license agreement or developed for use by a particular user.

     For each July, August, November, and December in 2027 and 2028, the act allows a qualifying retailer in the food or drink industry to deduct from state net taxable sales the lesser of state net taxable sales or $14,000.

     Currently, 15% of the net revenue collected as sales and use tax is credited to the general fund, less 1.655% (allocation percentage), which is credited to the housing development grant fund. Beginning January 1, 2027, and until December 31, 2028, the act reduces the allocation percentage to 1.629%. Beginning January 1, 2029, the allocation percentage is 1.625%.

     Beginning July 1, 2026, the act creates a sales and use tax exemption for a retailer selling food or drink (retailer) whose sales of prepared food exceed 25% of the retailer's sales revenue equal to 100% of the price the retailer paid for gas and electricity. A retailer whose sales of prepared food are 25% or less of the retailer's sales revenue is allowed a credit against the sales taxes otherwise due equal to 0.5% of the retailer's prepared food sales revenue.

     The repeal of the downloadable software sales and use tax exemption applies to the sale, storage, use, and consumption of tangible personal property on or after January 1, 2027.

     Provisions of the act are contingent upon House Bill No. 26-1221 and House Bill No. 26-1222 not becoming law.

     For the 2026-27 state fiscal year, the act appropriates $48,326 from the general fund to the department of revenue for tax administration system support and personal services.


(Note: This summary applies to this bill as enacted.)

     The act adjusts several state tax expenditures as follows:

• Requires the state treasurer to transfer $45.6 million from the general fund to the state highway fund on July 1, 2026, and $96.4 million on each July 1 from July 1, 2027, through July 1, 2031;
• Prohibits certain local use tax ordinances, resolutions, or proposals from applying to construction and building materials used by a common rail carrier pursuant to a contract with the state, a political subdivision of the state, or a special district allowing the contracting government to use the carrier's property or tracks for the provision of public passenger rail service;
• For income tax years commencing on and after January 1, 2027, requires a taxpayer to add to the taxpayer's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the gain invested by the taxpayer in a Colorado-qualified opportunity fund in a manner that qualifies for exclusion from federal gross income pursuant to the same section of the internal revenue code;
• For income tax years commencing on or after January 1, 2027, allows a combined group to elect to make a water's-edge filing election and describes what should be taken into account in such a filing;
• For income tax years commencing on and after January 1, 2027, requires a corporation to add to the corporation's federal taxable income the excess of any gain excluded from federal gross income pursuant to section 1400Z-2 (a)(1)(A) of the internal revenue code over the amount of that gain invested in a Colorado qualified opportunity fund and the amount of any gain excluded from federal gross income as a result of an election made pursuant to section 1400Z-2(c) of the internal revenue code for amounts invested in a qualified opportunity fund that is not a Colorado qualified opportunity fund; allows a corporation to subtract from federal taxable income the amount of gain included in federal gross income pursuant to section 1400Z-2(b) of the internal revenue code to the extent that the gain was added to federal taxable income pursuant to the opportunity fund add-backs for a prior tax year; changes the definition of federal taxable income for a C corporation that is in a combined group; repeals the state corporate income tax deduction for wages or salaries paid that are not allowed to be deducted at the federal level pursuant to section 280C of the internal revenue code; and eliminates the ability of corporations to deduct from their income tax liability any amount included in federal taxable income pursuant to sections 951 (a) or 951A (a) of the internal revenue code with respect to a controlled foreign corporation incorporated in a foreign jurisdiction for the purpose of tax avoidance;
• Eliminates a potential reduction in the amount available for the heat pump technology and thermal energy network tax credit, for years following 2025 based on an economic forecast by the office of state planning and budgeting or legislative council staff;
• Increases the innovative motor vehicle tax credit from $1,000 to $2,000 for certain vehicles sold or leased during the 2027 income tax year, and from $500 to $1,000 for certain vehicles sold or leased during the 2028 income tax year, and provides that certain vehicles with an manufacturer's suggested retail price (MSRP) below $40,000 that are sold or leased on or after January 1, 2027, but before January 1, 2029, are eligible for the additional tax credit.
• Clarifies that a potential 50% reduction in the innovative motor vehicle tax credit and the innovative trucks tax credit, triggered by certain state revenue forecasts, applies to the income tax year;
• For income tax years commencing on or after January 1, 2027, modifies the income tax credit for wildfire hazard mitigation expenses by adding a definition of 'infestation mitigation measures' that includes the thinning of woody vegetation that is at risk of mountain pine beetle or spruce beetle infestation or that has been killed by mountain pine beetles or spruce beetles, if such activities meet or exceed any state forest service standards or any other applicable state rules, and modifies the amount of the credit available to be fully refundable without being carried forward;
• For income tax years commencing on or after January 1, 2027, expands the income tax credit for the purchase of small food business recovery grant program equipment to be available for additional food distributors and producers, adjusts the amount of the tax credit that may be offered and claimed for the purchase of small food business recovery grant program equipment or participation in the supplemental food assistance benefit program, requires the department of agriculture to approve or disapprove an application for a credit within a reasonable time, which shall not exceed 150 days after the filing of the application, caps the amount of credits issued at $10 million for calendar years commencing before January 1, 2027, $5 million for the calendar year commencing on January 1, 2027, and a total of $5 million for calendar years commencing on or after January 1, 2028, and allows a purchaser that is not subject to income tax to be eligible for the credit.
• Extends the electric-powered lawn equipment tax credit until January 1, 2030, and allows a qualified retailer to elect advance payments of the credit;
• For income tax years commencing on or after January 1, 2027, allows an entity not subject to income tax to be eligible for an income tax credit for developing a qualified industrial facility, allows a taxpayer to claim the credit for installing equipment used for utilization of biomethane, requires the Colorado energy office (CEO) to review applications for the credit within 120, rather than 90, days, and for any semi-annual application period commencing on or after July 1, 2026, allows the CEO to adjust the limits on the aggregate amount of tax credits available to be reserved.
• Changes the reservation process for a tax credit made in connection with a geothermal energy project beginning on July 1, 2026;
• Provides that the department may disqualify a retailer of electric bicycles from the electric bicycle tax credit if the retailer requested advance payment of the credit or claimed a credit for a transaction that does not qualify for the credit, the retailer provided false information to the department of revenue or CEO, the retailer did not comply with the statutory requirements for the credit, or the retailer does not hold a sales tax license;
• Allows the executive director of the department of revenue to share taxpayer information with the CEO relating to a claim for an income tax credit for the retail sale of a qualified electric bicycle or the sale of a heat pump, which must remain confidential;
• Repeals the sustainable aviation fuel (SAF) production facility tax credit, effective January 1, 2027;
• Establishes the sustainable aviation fuel purchase income tax credit for income tax years beginning on or after January 1, 2027, and before December 31, 2032, where the amount of the credit is initially $1.50, increased by $.01 for each whole percentage of carbon intensity reduction in excess of 50%, but no greater than 100%, per gallon of SAF purchased for use in the state by the taxpayer, and the CEO may adjust that amount annually;
• Beginning January 1, 2028, the CEO may allow an additional credit of 50 cents for each gallon of SAF produced in the state that a qualified taxpayer purchased for use in the state during the income tax year, except as provided by the cap and reservation system, the total amount of credits issued cannot exceed $3 million per tax year, taxpayers must apply to the CEO for a tax credit certificate and CEO verifies eligibility and reports approved credits to the department of revenue, and the credit is refundable but may not be carried forward.
• For tax periods commencing on or after July 1, 2027, exempts from tax the storage, use, or consumption of construction and building materials by or on behalf of a common carrier by rail operating in interstate or foreign commerce when the storage, use, or consumption of the construction and building materials is pursuant to a contract with the state, a political subdivision of the state, or a special district that allows the contracting government to use the railroad's property or tracks for public passenger rail service;
• Extends the expiring sales and use tax exemption for wood from salvaged trees killed or infested in Colorado by mountain pine beetles or spruce beetles prior to the calendar year commencing on January 1, 2031;
• Repeals the sales and use tax exemption for property used in space flight, effective January 1, 2027, and reinstates the exemption beginning January 1, 2030;
• Change from 2% to 1.5% the allowance to cover losses in transit and in unloading gasoline or special fuel and repeals the 0.5% allowance for the costs of collecting the gasoline or special fuel excise tax and for uncollectible bad debts for tax periods beginning on or after January 1, 2027;
• Repeals the 3% deduction for collecting and remitting the tax on the inventory of cigarette wholesalers for tax periods beginning on or after January 1, 2027;
• Repeals the 0.4% discount on the face value of tax stamps affixed to packages containing cigarettes for tax periods beginning on or after January 1, 2027;
• Repeals the 1.6% discount for expenses in the collection and remittance of the tax on the sale, use, consumption, handling, and distribution of tobacco for tax periods beginning on or after January 1, 2027;
• Repeals the 1.1% discount for expenses in the collection and remittance of the nicotine product distributors tax for tax periods beginning on or after January 1, 2027;
• Allows an income tax credit to a taxpayer who places a new renewable energy investment in service on or after January 1, 2027, and provides a 14-year carryover of any amount of the credit not used to offset the income taxes otherwise due; except that, beginning in the tax year commencing on January 1, 2027, a taxpayer is not allowed a credit with respect to a qualified investment in a commercial truck, truck tractor, tractor, or semitrailer with a gross vehicle rating of at least 54,000 pounds that is designated as Class A personal property pursuant to statute;
• Provides that on or after January 1, 2027, a taxpayer with more than 50 business facility employees during an income tax year is ineligible for the new enterprise zone business employee tax credit in that same income tax year;
• Requires, beginning January 1, 2027, a taxpayer to make at least $150,000 in expenditures in research and experimental activities to be eligible for the enterprise zone research and experimental activities tax credit;
• Modifies the enterprise zone vacant building rehabilitation income tax credit so that the credit only applies to buildings that have been unoccupied for any 135 calendar days within the 180 calendar days preceding when the rehabilitation is placed in service and is available in an amount equal to 25% of the aggregate qualified expenditures per building or $200,000 per building, whichever is less;
• Beginning on January 1, 2028, provides that a resident individual is allowed an earned income tax credit that equals the applicable percentage, as set forth in statute, of the amount the individual would be have been allowed under the internal revenue code;
• Removes Liechtenstein as a jurisdiction recognized as a tax shelter by the state and requires the department of revenue to engage a contractor to study whether the countries currently listed as tax shelters should remain designated as tax shelters;
• Requires the state treasurer to transfer all money in the commercial vehicle enterprise tax fund to the Colorado economic development fund on July 1, 2027;
• Requires the state treasurer to transfer the remainder of the penalty assessed for certain traffic violations that is not transferred to local jurisdictions to the general fund on or after July 1, 2027;
• Extends the residential energy storage system income tax credit to December 31, 2029; and
• Provides that the film festival incentive tax credit begins on January 1, 2026, instead of January 1, 2027, and ends on December 31, 2035, instead of December 31, 2036.

     For the 2026-27 state fiscal year, the act makes the following appropriation adjustments to the department of health care policy and financing:

• $52,560 decrease from the general fund and a $52,560 increase from cash funds for medical and long-term care services for Medicaid eligible individuals;
• $21,024 increase from the primary care fund for the primary care fund program; and
• $332 decrease from the general fund and a $332 increase from the children's basic health plan trust fund for children's basic health plan medical and dental costs.

     $38,432 is appropriated from the general fund to the department of revenue for tax administration system support and personal services.

     $25,000 is appropriated from the general fund to the office of the governor for use by economic development programs.

     $996,276 is appropriated from the preschool programs cash fund to the department of early childhood for support of the universal preschool program.

     $35,741 is appropriated from various cash funds to the department of public health and environment for tobacco education, cancer and cardiovascular disease grants, and transfers to the general fund.

     $333 is appropriated from the general fund exempt account to the department of public health and environment for immunization operating expenses.

     The act takes effect upon passage; except that the appropriation adjustments to the department of health care policy and financing take effect only if the annual general appropriation act for the 2026-27 state fiscal year becomes law, and certain appropriation decreases are subject to the available amounts in the annual general appropriation act.


(Note: This summary applies to this bill as enacted.)

The bill prohibits an employer from:

• Subjecting an employee to an adverse employment action in response to the employee's disclosure of, or communication about, the employee's sexual orientation, gender identity, or gender expression or to the employee's status as a transgender, nonbinary, or transitioning individual; or
• Retaliating against an employee who supports, assists, or advocates for a coworker, student, or client in exercising their right to nondiscrimination, including by referring to an individual by their chosen names, pronouns, or personal titles.

The bill allows an employee to determine the names, pronouns, and personal titles that are used to refer to the employee in the workplace, and the bill requires an employer, upon notification by an employee, to update all internal and public-facing records to reflect the employee's chosen name. If an employee chooses a name other than the employee's legal name, an employer must use the employee's legal name only where such use is required by law.

The bill prohibits an employer from having a workplace dress code that imposes different requirements on the basis of an individual's sexual orientation, gender identity, or gender expression. An employer must allow each employee access to a restroom and changing facility that corresponds with the employee's gender identity.

An employer operating a public building must ensure that the building includes at least one restroom that is compliant with the federal "Americans with Disabilities Act of 1990" and accessible to all individuals, regardless of the individual's sexual orientation, gender identity, or gender expression. An employer must provide private, nonbathroom spaces for nursing or pumping, which spaces are available to all parents regardless of their sexual orientation, gender identity, or gender expression.

An employer must ensure equal access to certain employment benefits without regard to an employee's sexual orientation, gender identity, or gender expression.

The bill requires every public employer to provide a voluntary, employee-initiated process for the development and implementation of a written transition plan for a transgender or transitioning employee. Upon request by an employee, a public employer shall promptly engage in good faith discussions with the employee, and, if applicable, the employee's designated union representative, to develop a transition plan. A transition plan may include consideration of:

• Internal and external communications regarding the employee's transition;
• Scheduling and approval of any absences related to the transition process;
• Procedures for updating and using the employee's chosen names, pronouns, and personal titles in employment contexts; and
• Training or educational opportunities for coworkers, students, or other stakeholders to promote understanding of the experiences in the workplace of transgender individuals and individuals who are transitioning.

An employee of a private employer may request to collaborate with their employer to develop and implement a transition plan.

The bill requires an employer to permit an employee to use the employee's available sick or personal leave time for the purpose of changing the employee's legal name or obtaining gender-affirming medical care, including recovery time.

The bill requires a public employer to provide annual training to all employees regarding inclusive workplaces and support for LGBTQ+ employees. The department of labor and employment (department), in consultation with labor unions and LGBTQ+ advocacy organizations, must develop and make available training materials for this purpose.

The department may receive and investigate complaints alleging violations, issue findings and orders to provide relief, and refer cases involving egregious or willful violations to the Colorado civil rights division or to the attorney general. The types of relief that the department may order include a fine in an amount not to exceed $5,000 for each violation.

The department is required to adopt rules to implement and enforce the bill.

The bill takes effect June 1, 2028.

(Note: This summary applies to this bill as introduced.)

     The act implements recommendations of the department of regulatory agencies' (department) sunset review and report on the division of professions and occupations in the department.

     Sections 1 and 2 of the act allow a regulator to delegate authority for administrative tasks authorized by statute or other tasks specifically authorized through the policy of a board or commission to a designee at the regulator's discretion.

     Section 3 changes the amount of time a licensee, certificate holder, or registrant (licensee) who receives a letter of admonition has to request a hearing to within 25 days after the date of issuance of the letter of admonition, rather than within 20 days after receipt of the letter.

     Sections 3 through 22 clarify that a regulator may provide communications to licensees through email.

     In current law, the executive director of the department collects an excise tax of $1 upon the payment of fees for the renewal of a license, registration, or certificate. Section 23 changes the term used to refer to this payment from an 'excise tax' to an 'additional fee'.

     Sections 25 through 30 restore provisions repealed in 2024 by House Bill 24-1329 concerning the continuation of the state board of licensure for architects, professional engineers, and professional land surveyors, regarding enrollment by endorsement for engineer-interns and land surveyor-interns and licensure by endorsement for professional engineers and professional land surveyors.


(Note: This summary applies to this bill as enacted.)

     The act allows a board of county commissioners and the governing body of a municipality to sell and dispose of property owned by the county or municipality, as applicable, to provide for affordable housing and allows a municipality to enter into a long-term rental or lease agreement for the development of affordable housing.

     The act allows for the approval of a mutijurisdictional housing authority at a biennial local election instead of only during a general election or an election held on the first Tuesday in November of an odd-numbered year. The ballot question about establishing the authority may be combined with a question about a tax, impact fee, multiple-fiscal year debt, or other financial obligation.

     The act allows a board of county commissioners to use ad valorem tax revenue for housing authorities, housing programs, and workforce housing.

     The act entitles an entity subject to income tax to which a middle-income housing tax credit is transferred by a governmental entity or quasi-governmental entity to claim the credit without owning an interest in a qualified project.

     The sale and use of construction materials by contractors is exempt from taxation if the materials are used by the state in its governmental capacity only. The act provides that 'governmental capacity' includes the construction of workforce housing projects undertaken by counties.


(Note: This summary applies to this bill as enacted.)

The bill creates an income tax credit for a resident individual's contributions to a health savings account that supports a high deductible health plan, as defined pursuant to federal law (credit). The credit is an amount equal to 25% of the amount of the contribution, limited to:

• $500 for a single filer;
• $1,000 for joint filers; and
• $1,500 for contributions to a family health plan.

The credit is available beginning January 1, 2027, through December 31, 2032.

If the credit exceeds the income taxes due on the resident individual's income, the amount of the credit not used to offset income taxes is not carried forward as tax credits against the resident individual's subsequent years' income tax liability and is not refunded to the individual.

(Note: This summary applies to this bill as introduced.)

     Section 20 of article X of the state constitution (the Taxpayer's Bill of Rights or TABOR) defines 'fiscal year spending' as excluding 'collections for another government' and 'damage awards'. Although TABOR does not define either 'collections for another government' or 'damage awards', the TABOR implementing statutes define both terms. The act clarifies both of these definitions for state fiscal years commencing on or after July 1, 2025.

     The act clarifies that 'collections for another government', as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes:

• Revenue from the excise tax and sales and use tax on gasoline used as fuel for the propulsion of specified aircraft that is collected by the state and distributed to governmental or airport entities operating a federal aviation administration-designated public use airport; and
• Revenue from fees that are collected by the department of public safety for the purpose of criminal history record checks and that is transmitted to the federal bureau of investigation for a required federal component of such criminal history record checks.

     The act also clarifies that 'damage award', as used for the purpose of determining whether specific money received by the state is subject to the TABOR limitation on state fiscal year spending, includes money from certain sources that is deposited in the crime victim compensation fund of each judicial district.

     The act specifies that for fiscal years commencing on or after July 1, 2026, the general assembly shall appropriate money to the district attorney in each judicial district in an amount equal to 20% of the total amount of money in the fund in that judicial district for administrative costs and to the court executive in each judicial district in an amount equal to 2.5% of the total amount of money in the fund in that judicial district for administrative costs.

     For the 2026-27 state fiscal year, the act appropriates $2,250,000 from the general fund to the judicial department for use by state courts administration for victim's compensation administration.


(Note: This summary applies to this bill as enacted.)

     The act expands the ways in which individuals may become eligible for certification as a certified public accountant (CPA) in Colorado by creating 3 new education and experience pathways that may satisfy the requirements for CPA certification. The pathways become available for applicants beginning on January 1, 2027. The 3 pathways are:

• Obtaining a baccalaureate degree, completing 2 years of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam;
• Obtaining a baccalaureate degree, completing 30 additional semester hours, completing one year of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam; and
• Obtaining a post-baccalaureate degree, completing one year of accounting-related work experience, completing a professional ethics course, and passing the written CPA exam.

     For each pathway, an applicant's work experience must:

• Meet the requirements set by the Colorado state board of accountancy (board) by rule;
• Include any type of service or advice representing certain accounting-related skills needed to serve the public at the time of initial certification; and
• Be verified by an actively licensed CPA who meets board requirements.

     Section 2 of the act conforms statutory provisions relating to an applicant's eligibility to sit for a CPA examination with the pathways to certification created by the act. Section 2 also reinforces that, regardless of an applicant's eligibility to sit for an exam, the applicant must complete one of the specified pathways in order to obtain a CPA certificate.

     Section 4 establishes that an individual CPA who is licensed or certified in good standing in another state or jurisdiction of the United States and whose principle place of business is located in another state or jurisdiction of the United States (out-of-state CPA) has all the same practice privileges as Colorado certificate holders, without the need to obtain a Colorado certificate, if the individual was required at their initial licensure or certification in the other state or jurisdiction of the United States to pass the uniform CPA examination and obtain a baccalaureate degree conferred by an accredited college or university. Additionally, the act continues the practice privileges of out-of-state CPAs who held practice privileges in Colorado as of December 31, 2024. Finally, the conferral of practice privileges upon out-of-state CPAs must be conducted in conformity with rules adopted by the board; except that the board shall not require an out-of-state CPA to provide a notice, fee, or other submission as a condition of exercising such practice privileges in Colorado.


(Note: This summary applies to this bill as enacted.)

     In 2024, the general assembly enacted Senate Bill 24-205, which created consumer protections in interactions with artificial intelligence systems. The act repeals and reenacts those provisions with new requirements regarding the use of automated decision-making technology in consequential decisions.

     The act defines an 'automated decision-making technology' (ADMT) as a technology that processes personal data and uses computation to generate output, including predictions, recommendations, classifications, rankings, scores, or other information that is used to make, guide, or assist a decision, judgment, or determination concerning an individual. The act defines a 'consequential decision' as a decision that relates to an individual's access to, eligibility for, or compensation related to education, employment, housing, financial or lending services, insurance, health-care services, or essential government services and public benefits.

     The act requires the developer of an ADMT (developer) that is used to materially influence a consequential decision (covered ADMT), starting January 1, 2027, to provide a deployer of a covered ADMT (deployer) with technical documentation describing the covered ADMT's intended uses, categories of training data, known limitations, and instructions for appropriate use and human review. Developers must notify deployers of material updates or modifications to the covered ADMT. Both developers and deployers are required to retain records necessary to demonstrate compliance with the act for at least 3 years.

     The act establishes consumer notice requirements, mandating that deployers provide clear and conspicuous notice to consumers at the point of interaction with a covered ADMT. A deployer is required to provide a consumer with a plain language description of a covered ADMT's role within 30 days after the covered ADMT makes a consequential decision that results in an adverse outcome for the consumer. The attorney general must adopt rules to clarify these post-adverse outcome disclosure requirements by January 1, 2027.

     Consumers have the right to request personal data and correction of factually incorrect personal data used by a covered ADMT. The act also grants consumers the right to request meaningful human review and reconsideration following a covered ADMT making a consequential decision resulting in an adverse outcome.

     The attorney general is directed to enforce the act through the 'Colorado Consumer Protection Act', and a violation of the act is deemed a deceptive trade practice. Before initiating an action before January 1, 2030, the attorney general must provide the developer or deployer with a 60-day notice and opportunity to cure the alleged violation, if a cure is deemed possible. The act does not create a new private right of action but establishes how fault is allocated between developers and deployers in civil actions alleging unlawful discrimination under existing law.

     Specified entities are exempted from the requirements of the act to the extent the entities comply with other legal obligations.


(Note: This summary applies to this bill as enacted.)