Under current law, for income tax years commencing prior to January 1, 2028, a taxpayer who makes a qualifying monetary contribution to promote child care in the state is allowed an income tax credit that is equal to 50% of the total value of the contribution, not to exceed $100,000. The bill extends this tax credit for 10 years.

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

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 bill amends the Colorado job growth incentive tax credit to authorize the commission to allow new credit awards through state income tax year 2034.

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

The bill authorizes a county or municipality (local government), after approval by the electors of the local government, to impose an excise or a property tax, or both, on vacant residential properties within the boundaries of the local government (local taxes on vacant residential properties) ( sections 1 and 3 of the bill). A local government may use the revenues collected from either tax only for affordable, attainable, or workforce housing. A county assessor has no duty in implementing local taxes on vacant residential properties, but in an assessor's discretion, the assessor may assist by providing data and information to a local government or local housing tax authority, and may enter into an intergovernmental agreement that provides for compensation in exchange for the assessor's assistance.

The bill also creates a process for the creation of a local housing tax authority (authority) by intergovernmental agreement to allow 2 or more counties, cities and counties, or municipalities to form a joint taxing authority to collectively establish, levy, collect, and enforce local taxes on vacant residential properties within the boundaries of the authority ( section 2 ).
(Note: This summary applies to this bill as introduced.)

The bill requires a person to obtain a license to provide earned-wage access services (provider) but allows current providers to continue providing the services without a license until a license is issued or denied. The licensing, administrative, and disciplinary functions of the regulation of providers are performed by the assistant attorney general (administrator) who administers the "Uniform Consumer Credit Code". The administrator is given several powers, including adopting rules, related to this regulation.

License application and issuance standards and procedures are established. A provider is issued a license if the administrator finds that the financial responsibility, character, and fitness of the applicant and of the applicant's members, managers, partners, officers, and directors are sufficient to demonstrate that the applicant will operate the business honestly and fairly and in compliance with the bill.

The license fee is set by the administrator to cover the cost of regulating providers. Administrative procedures are established. A license is valid for one year, and to renew a license, a licensee must file a renewal form annually. If a licensee fails to pay the prescribed renewal fee on or before May 1 of each year, the licensee must pay a penalty of $5 per day per license until the license is renewed, but if a licensee fails to pay the appropriate renewal and penalty fees by May 15, the licensee's license automatically expires.

The administrator may deny an application for a license or take disciplinary action against a licensee for failing to meet the standards set in the bill.

To discipline a provider, the administrator may deny an application for licensure, revoke the license, suspend the license, issue a cease-and-desist order, impose a civil penalty of up to $1,000 per violation, bar the person from applying for or holding a license for 5 years after a revocation, issue a letter of admonition, or impose a penalty of $200 per day for records violations. A respondent aggrieved by an action or order of the administrator may obtain judicial review of the action or order in the Colorado court of appeals.

A licensee is required to maintain records in conformity with the bill, rules adopted under the bill, and generally accepted accounting principles and practices in a manner that will enable the administrator to determine if the licensee is complying with the bill. A licensee shall give the administrator free access to the records in the licensee's storage location. A licensee need not preserve records pertaining to an earned-wage access services transaction for more than one year. Standards are set for this access.

A licensee must file an annual report that includes all relevant information that the bill and the administrator reasonably require concerning the business and operations conducted during the preceding calendar year. Standards are set for the report. The administrator must keep the report confidential and not open it to the public for inspection pursuant to the "Colorado Open Records Act". If a licensee fails to file an annual report by April 15, the administrator may impose a penalty of $5 per day until the report is filed, but if the licensee fails to file the report and pay this penalty by May 1 of the same year, the licensee's license automatically expires.

After the administrator has examined a licensee's records, the administrator shall provide a report of the examination to the licensee and may require the licensee to take corrective action. The licensee shall take the corrective action and provide proof that the corrective action was taken. The administrator is prohibited from disclosing the name or identity of a person whose acts or conduct is under investigation or examination or the facts disclosed in the investigation or examination, except for disclosures in actions or enforcement proceedings.

A provider has the duty to:

• Develop and implement policies and procedures to respond to questions raised by consumers and address complaints from consumers;
• If the provider offers a consumer the option to receive proceeds for a service fee (proceeds), offer to the consumer at least one reasonable option to obtain proceeds at no cost to the consumer and clearly explain how to elect the no-cost option;
• Make certain disclosures about the earned-wage access services to the consumer;
• Inform the consumer before implementing material changes to the terms and conditions of the earned-wage access services agreement;
• Allow the consumer to cancel use of the earned-wage access services at any time without incurring a cancellation fee;
• Provide proceeds to a consumer by the means mutually agreed upon by the consumer and the provider; and
• To be repaid for outstanding proceeds or payment of service fees or other amounts owed in connection with earned-wage access services from a consumer's account at a depository institution, comply with federal law and reimburse the consumer for the full amount of any overdraft or insufficient funds fees imposed on the consumer that were caused by the provider attempting to seek payment on a date before the date or in an amount different from the amount disclosed to the consumer.

A provider shall not:

• Share with an employer a portion of a service fee that was received from or charged to a consumer for earned-wage access services;
• Require a consumer's credit score provided by a consumer reporting agency to determine the consumer's eligibility for earned-wage access services;
• Accept payment of outstanding proceeds or service fees from a consumer by means of a credit card or charge card;
• Charge a consumer a late fee, a deferral fee, interest, or any other penalty or charge for failure to pay outstanding proceeds or service fees;
• Report to a collection agency or to a debt collector information about a consumer regarding the inability of the provider to be repaid outstanding proceeds or service fees;
• Impose a service fee in excess of $5 for an advance of proceeds in an amount less than $75 or $7 for an advance of proceeds in an amount more than $75; except that the fee may be increased for inflation;
• Enter into an agreement with an employer that would require a consumer who is an employee of the employer to use earned-wage access services as a necessary condition of receiving payment of wages;
• Compel a consumer to pay outstanding proceeds or service fees to the provider through a lawsuit, the use of a third party to pursue collection from the consumer, or the sale of outstanding proceeds to a third-party collector or debt buyer. The collection limitations do not apply to the act of compelling payment of outstanding proceeds paid through fraudulent or other unlawful means or to pursuing an employer for breach of its contractual obligations to the provider.
• Solicit a tip, gratuity, or donation during the time between when a consumer requests proceeds and when the provider confirms that a transfer of proceeds has been approved and provides a listing of the fees that will be charged.

The administrator may bring a civil action to recover a civil penalty of up to $5,000 for willfully violating the bill, and, if the court finds that the defendant has engaged in a course of repeated and willful violations, the court may assess a civil penalty of up to $10,000 per violation. In addition, the administrator may recover reasonable costs of the investigation and action and may request an order for reimbursement of reasonable attorney fees.

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

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 bill creates a targeted allocation priority within Colorado's administration of federal and state affordable housing tax credits to support development of integrated, community-based housing for persons with intellectual and developmental disabilities. The bill requires a set aside of at least 10% of the state's annual allocation of competitive federal low-income housing tax credits (federal tax credits) for "community integration housing". To qualify, a development must comply with federal tax credit requirements, meet federal home- and community-based services settings standards, reserve at least 20% of its units for persons with intellectual and developmental disabilities, and partner with a community-centered board or certified case-management agency. The bill authorizes the Colorado housing and finance authority (authority) to reallocate unused credits from the set aside at the end of a calendar year for allocation to any eligible project.

The bill amends the state affordable housing tax credit (state tax credit) to require the authority to provide priority scoring or preference to qualified developments that have received a federal tax credit as a qualified community integration housing development and that continue to meet all requirements for community integration housing. The requirement for priority scoring or preference does not waive or otherwise limit the authority's ability to enforce all applicable eligibility requirements or to determine the amount of the state tax credit to be allocated to any qualified development.

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

Current law allows any individual to deduct amounts, up to certain caps based on the individual's age, received as pensions or annuities from any source, to the extent included in federal adjusted gross income.

Notwithstanding the caps on the deduction for amounts received as pensions or annuities from other sources, current law allows any individual who is 65 years old or older at the close of a taxable year to subtract the total amount of social security benefits that the individual received from the individual's federal taxable income, to the extent those benefits were included in federal taxable income, when determining the individual's state taxable income. This subtraction is also allowed to any individual who is 55 years old or older and has an adjusted gross income for the applicable tax year that is less than or equal to $75,000 if filing individually or $95,000 if filing jointly.

For income tax years commencing on or after January 1, 2027, the bill removes all caps on the deduction for amounts received as pensions and annuities and allows any individual who is 55 years old or older, regardless of income, to subtract the total amount that the individual received as pension or annuity income from the individual's federal taxable income, to the extent that income was included in federal taxable income, when determining the individual's state taxable income.

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

Section 2 of the bill creates the "Transit Investment Area Act" and:

• Creates a mechanism for a local government and transit agency, subject to state approval, to undertake a transit investment project (project), to designate a transit investment area (area) in which the project will be built, and to create a transit investment authority (authority) or to designate other financing entities with the power to receive and use the increment of revenue derived from the state sales tax collected in the area that is equal to the amount of state sales tax revenue collected in an area above a designated base amount plus 20% of that same revenue (state sales tax increment revenue) to be used to finance eligible improvements related to the project;
• Allows a local government to apply to the office of economic development and the Colorado economic development commission (commission) to undertake a project, and, in connection with the project, to form an authority or to designate a county revitalization authority, metropolitan district, or urban renewal authority as the approved financing entity;
• Specifies the information that a local government is required to include in the application for a project and the criteria that the project is required to satisfy to be approved;
• Requires the director of the office of economic development (director) to review each application for a project and to make an initial determination regarding whether the application meets the specified criteria;
• Requires the director to forward each application to the commission with a recommendation regarding whether the project should be approved;
• Directs the commission to review each application and to approve or reject the project and, as part of the approval of a project, allows the commission to authorize the collection and use of the state sales tax increment revenue for a designated number of years not to exceed 30 years;
• Allows the commission to approve no more than 3 transit investment projects in any calendar year and no more than 6 in total;
• Allows the commission to dedicate no more than $75 million in a fiscal year to the transit investment projects it approves;
• If requested by the local government, allows the commission to authorize the creation of an authority to receive and spend state sales tax increment revenue;
• Specifies that an authority is governed by a board consisting of a certain number of members appointed by the commission and a certain number of members appointed by the local government;
• Specifies the powers of the authority and the manner in which the state sales tax increment revenue is divided and used;
• Requires the financing entity for a project to submit a report containing specified information to the commission; and
• Authorizes a county revitalization authority, an urban renewal authority, or a metropolitan district to receive and disburse the state sales tax increment revenue generated within an area and to act as the financing entity for the area.

Section 9 creates the Colorado affordable housing in transit investment zones tax credit (tax credit). The tax credit is administered in the same manner as the Colorado affordable housing in transit-oriented communities tax credit; except that the tax credit is awarded in connection with qualified low- and middle-income housing projects in transit and housing zones. The bill allows $50 million of credits to be awarded each calendar year beginning in the 2027 calendar year through the 2033 calendar year.
(Note: This summary applies to this bill as introduced.)

Current law provides an exemption for taxation on property acquired and developed for low-income housing by nonprofit housing providers, community land trusts, and nonprofit affordable homeownership developers. The bill expands the exemption to also include property intended for low-income residential rental property.

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

      Currently, the governing body of a home rule county or a municipality may not sell or dispose of a county or municipal public building or real property held for government purposes if the sale or disposition is for the development of affordable housing. The bill allows a governing body to sell and dispose of such property if the sale and disposition is to provide property to be used for the development of affordable housing or housing identified in a housing needs assessment conducted pursuant to statute. A municipality is also authorized to enter into a long-term rental or lease agreement for the development of affordable housing.

Currently, the voters in a proposed multijurisdictional housing authority may approve the establishment of the authority only at a general election or any election to be held on the first Tuesday in November of an odd-numbered year. The bill allows for the approval at a biennial local election. The contract establishing the authority may be conditioned upon voter approval. The question of establishing the authority may be combined with a question about a tax, impact fee, multiple-fiscal year debt, or other financial obligation required by statute.

Currently, a board of county commissioners (board) may not appropriate general fund money from ad valorem taxes for multijurisdictional housing authorities or other housing authorities established in statute (housing authorities). The bill allows a board to use revenue generated by ad valorem taxes that is in the county's general fund or in other specified county funds for housing authorities. In addition, the bill allows a board to use county general fund money from ad valorem taxes or money from other county funds for workforce housing.

Currently, a middle-income housing tax credit (credit) may be transferred from a governmental entity or quasi-governmental entity to a qualified taxpayer. A qualified taxpayer must own an interest in a qualified project to claim the credit. The bill entitles an individual, person, firm, corporation, or other entity subject to income tax and transferred a credit by a governmental entity or quasi-governmental entity (transferee) to claim the credit without owning an interest in a qualified project.

The bill provides that a credit allocated to a governmental or quasi-governmental entity or transferee thereof is subject to recapture if, as of the last day of any taxable year occurring during a compliance period, the qualified basis of the governmental or quasi-governmental entity is less than the amount of the qualified basis with respect to such entity as of the last day of the prior taxable year. A transferee whose credit is subject to recapture must increase their income tax liability as provided in statute in the same manner and to the same extent as a partner, shareholder, member, or other qualified taxpayer of an owner allocated a credit must increase their tax liability pursuant to statute.

Currently, all sales of construction and building materials to contractors and subcontractors for use in the building, erection, alteration, or repair of structures, highways, roads, streets and other public works (construction) owned and used by the state in the state's governmental capacity only. The bill provides that "governmental capacity" includes the construction of workforce housing projects undertaken by counties.

(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.)

Charitable organizations are exempt from state sales and use tax. Under current law, the definition of charitable organization for purposes of state sales and use tax includes criteria that mirror the federal definition of a 501(c)(3) organization. The bill requires the department to presume that an organization that presents the department with a 501(c)(3) determination letter from the internal revenue service is a charitable organization for purposes of state sales and use tax.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Water Resources and Agriculture Review Committee. The bill broadens the definition of "ranch" for purposes of property taxation to mean a parcel of land that is predominantly used for grazing livestock for the primary purpose of obtaining a monetary profit. A ranch must operate through a pasture-based operation, which is newly defined as a method of livestock management where pasture-grazed livestock have regular access to open pasture and derive a majority of their diet through grazing.

The bill also broadens the definition of "farm" for purposes of property taxation to mirror the predominant use language in the definition of "ranch". With this change, a farm means a parcel of land that is predominantly used to produce agricultural products that originate from the land's productivity for the primary purpose of obtaining a monetary profit.

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

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.)