Bill > SB056

This bill modifies the state's income tax law by changing when taxpayers must add back overtime compensation that was excluded or deducted from their federal gross income. Currently, this add-back requirement applies broadly, but this bill limits it to only the 2026 income tax year. This means that for the 2026 tax year, any overtime pay that a taxpayer did not report on their federal income tax return will need to be added back when calculating their state income tax liability. After the 2026 tax year, this specific add-back requirement will no longer apply, and the provision is set to be repealed entirely on December 31, 2032. The bill also specifies that it will take effect after the normal legislative session, with a provision for a potential referendum vote in November 2026.

Military Affairs and Security

https://leg.colorado.gov/bills/SB26-056