Bill > HB1004

This bill authorizes the Colorado Department of the Treasury to sell tax credits to qualified taxpayers in two categories: insurance premium tax credits and corporate income tax credits. Under these programs, insurance companies and C corporations can purchase tax credits at a discounted rate, which they can then use to reduce their future tax liabilities. The bill allows for the sale of up to $125 million in tax credits with total sales proceeds of up to $100 million, plus administrative costs. The proceeds from these tax credit sales will be deposited into a Tax Credit Sale Proceeds Cash Fund and ultimately transferred to the General Fund. Qualified taxpayers can use these credits against their tax liabilities over multiple years, with credits expiring on December 31, 2033. The bill includes provisions for transferring credits in case of mergers or acquisitions and establishes penalties for taxpayers who fail to pay for their allocated credits. The legislation is designed to generate immediate revenue for the state while providing businesses with a mechanism to prepay future tax obligations. The bill includes reporting requirements to track the effectiveness of the tax credit program and is set to be repealed on December 31, 2040. Additionally, the bill appropriates $3,173,500 to the Department of Treasury for administering the tax credit program in the 2025-26 fiscal year.

Budget and Finance

https://leg.colorado.gov/bills/hb25b-1004