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ColoradoHB25-11572025 Regular SessionHouseWALLET

Reauthorize Advanced Industries Tax Credit

Sponsored By: Brianna Titone (Democratic), Marc Snyder (Democratic), Mark Baisley (Republican), William Lindstedt (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 3 costs, 1 mixed.

Longer tax breaks for small-business investors

Colorado extends its advanced industry investment tax credit through December 31, 2031. Qualified investments made from July 1, 2014, through that date are eligible. Beginning January 1, 2028, eligibility also covers investments in certain small manufacturers outside advanced industries. These manufacturers must earn operating revenue, be primary employers, and make products distributed outside Colorado. The state economic development office must find them commercially scalable, capital-intensive, and likely to bring new income into the local economy.

Trust beneficiaries can receive investment credits

A qualified trust can divide its investment tax credit between itself and its beneficiaries in any way it chooses. The state office issues each beneficiary a certificate for their share, which reduces Colorado income tax. Qualified partnerships and S corporations can also allocate credits to partners and shareholders, with allocations certified to the office. Each qualified investment supports up to $100,000 in credits, including the combined shares claimed by partners or shareholders. A qualified investor can claim only one credit per qualified small business, but can receive credits for different businesses.

Investors face revised tax credit limits

The law removes voting-power limits that barred investors and affiliates holding more than 30% before investing or at least 50% afterward. But investors with more than $50,000 invested or more than 10% ownership, counting potential shares, do not qualify. C corporations, including businesses taxed as C corporations, are excluded. Founders, employees, contractors, and their spouses also cannot qualify. Anyone who controlled the business during the six months before or after the investment is excluded.

Investors face credit deadlines and paperwork

Businesses must apply for state certification; the office can certify qualified small businesses through October 1, 2031. Investors must submit completed credit applications within 90 days after investing in a certified business. The office can require investment proof, its intended use, and the expected number of new employees. Applicants and entities claiming allocated credits must authorize tax-data sharing for two prior years through the investment year, plus credit-claim years. Missing required tax authorizations or reports makes applicants ineligible for the credit.

Small businesses face five-year reporting rules

Certified businesses receiving qualified investments must report annually for five years after their first qualified investment. Reports must cover the credit’s impact and the business’s development. The state office can assess penalties for missing reports; penalty payments go to the state general fund. If the office revokes certification, future investments no longer qualify, but previously issued credits remain valid.

Less tax credit money for investors

The state office’s annual credit cap is $4 million through 2026 and $2.5 million for each year from 2027 through 2031. That cuts annual credit availability by $1.5 million. Credits are awarded first-come, first-served, and the office can partially approve the last credit to stay within the cap. Unused credit authority from the 2018–2022 limits can carry forward to increase a later year’s maximum.

Sponsors & Cosponsors

Sponsors

  • Brianna Titone

    Democratic • House

  • Marc Snyder

    Democratic • Senate

  • Mark Baisley

    Republican • Senate

  • William Lindstedt

    Democratic • Senate

Cosponsors

  • Andrew Boesenecker

    Democratic • House

  • Alex Valdez

    Democratic • House

  • Chad Clifford

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Matt Soper

    Republican • House

  • Naquetta Ricks

    Democratic • House

  • Regina English

    Democratic • House

  • Rick Taggart

    Republican • House

  • Rep. S. Bird

    Affiliation unavailable

  • Cleave Simpson

    Republican • Senate

  • Dylan Roberts

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • Janice Marchman

    Democratic • Senate

  • Marc Catlin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 126 • No: 13

Senate vote • 5/5/2025

Third reading: Bill

Yes: 35 • No: 0

Senate vote • 5/2/2025

Refer House Bill 25-1157 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.

Yes: 7 • No: 0

Senate vote • 5/1/2025

Refer House Bill 25-1157 to the Committee on Appropriations.

Yes: 8 • No: 0

House vote • 4/30/2025

Third reading: Bill

Yes: 57 • No: 8

House vote • 4/29/2025

Refer House Bill 25-1157 to the Committee of the Whole.

Yes: 9 • No: 2

House vote • 2/6/2025

Refer House Bill 25-1157 to the Committee on Appropriations.

Yes: 10 • No: 3

Actions Timeline

  1. Governor Signed

    5/19/2025House

  2. Signed by the Speaker of the House

    5/7/2025House

  3. Signed by the President of the Senate

    5/7/2025Senate

  4. Sent to the Governor

    5/7/2025House

  5. Senate Third Reading Passed - No Amendments

    5/5/2025Senate

  6. Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole

    5/2/2025Senate

  7. Senate Second Reading Special Order - Passed - No Amendments

    5/2/2025Senate

  8. Senate Committee on Finance Refer Unamended to Appropriations

    5/1/2025Senate

  9. House Third Reading Passed - No Amendments

    4/30/2025House

  10. Introduced In Senate - Assigned to Finance

    4/30/2025Senate

  11. House Committee on Appropriations Refer Unamended to House Committee of the Whole

    4/29/2025House

  12. House Second Reading Special Order - Passed with Amendments - Floor

    4/29/2025House

  13. House Committee on Finance Refer Unamended to Appropriations

    2/6/2025House

  14. Introduced In House - Assigned to Finance

    1/29/2025House

Bill Text

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