summary
Introduced
02/17/2026
02/17/2026
In Committee
02/17/2026
02/17/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
Section 2 of the bill 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 3 and 4. Beginning January 1, 2027, the bill also 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 bill exempts from sales and use tax downloaded software governed by a negotiable license agreement or developed for use by a particular user.
AI Summary
This bill establishes a new refundable tax credit for individuals, in addition to existing child and family affordability tax credits, with the amount determined by the number and age of a taxpayer's children and their income, and this credit's total value will be adjusted annually to match revenue generated by other provisions of the bill. Beginning January 1, 2027, the bill repeals the exemption from sales and use tax for downloaded software, meaning all software available for repeated sale and license will be taxed as tangible property, except for software governed by a negotiable license agreement or developed for a specific user. The new tax credit is intended to offset the reduction in the family affordability tax credit, which is impacted by recent federal changes to income tax calculations, and the repeal of the downloaded software exemption aims to create consistency in how software is taxed across the state, as many other states and some local municipalities already tax downloaded software.
Committee Categories
Budget and Finance
Sponsors (4)
Last Action
House Finance Hearing (13:30:00 3/9/2026 Room 0112) (on 03/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://leg.colorado.gov/bills/HB26-1223 |
| BillText | https://leg.colorado.gov/bill_files/112074/download |
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