# Colorado HB25-1296: Tax Expenditure Adjustment Colorado HB25-1296, Tax Expenditure Adjustment, is a 2025 Regular Session House bill sponsored by Lorena Garcia (Democratic), Mike Weissman (Democratic), Yara Zokaie (Democratic); status signed, last action 2025-05-16 (Governor Signed); PRIA reads it as touching household money (as of 2026-10-16). - Canonical: https://policyrisk.com/state-bill/CO-HB25-1296-2025A - As of: 2026-10-16 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Colorado HB25-1296 - State: Colorado - Session: 2025 Regular Session - Title: Tax Expenditure Adjustment - Status: signed - Chamber: House - Introduced: 2025-03-05 - Last action: 2025-05-16, Governor Signed - Sponsors: Lorena Garcia (Democratic), Mike Weissman (Democratic), Yara Zokaie (Democratic) - Cosponsors: 15 - Subjects: Fiscal Policy & Taxes - Touches household money: yes - Roll calls: 9 (178 yes, 101 no in all) - Economic provisions PRIA read: 14 ## Summary No summary available. ## Bill overview: provisions PRIA read - Childcare providers keep property investment credits: benefit, high. Licensed childcare centers, family childcare homes, and foster care homes keep a 20% credit for qualifying annual property investments. Qualifying businesses providing licensed employee childcare receive a 10% credit. Investments must be in tangible personal property used in the facility. Credits a… - More childcare workers qualify for credits: benefit, medium. Informal family, friend, or neighbor childcare workers can qualify for the care worker credit without providing care at home. They must care for children other than their own who are five or younger. For licensed programs and family childcare homes, the license only needs to be valid during the tax… - Lower medical marijuana costs for patients: benefit, low. Medical marijuana registry applicants pay no application fee with income at or below 185% of the family-size-adjusted federal poverty line. They must provide a certified Colorado tax return or a federal return copy received from the IRS. Beginning July 1, 2025, qualifying medical marijuana purchase… - Some workers avoid Colorado tax withholding: benefit, low. Employers need not withhold Colorado income tax on compensation identified as eligible for the subtraction under section 39-22-104(4)(u). The employee's withholding certificate must show that eligibility. This changes withholding during the year; it does not itself determine the final tax owed. - Investors can seek credit cap waivers: benefit, low. For tax years starting January 1, 2026, or later, investors can seek enterprise zone credits above the $2 million cap. Applications must show substantial investment and well-paying job gains unlikely without a waiver, and its major role in investment decisions. The Colorado Economic Development Com… - More local governments qualify for transport credits: benefit, low. The alternative transportation options credit includes more types of local government. Statutory cities, towns, and counties now count alongside home rule governments under the credit's definition. - Personal property tax credit ends: cost, medium. The personal property tax credit ends for income tax years starting on or after January 1, 2026. For years starting January 1, 2019, through December 31, 2025, it equals qualifying Colorado property tax paid. It covers tax on up to $18,000 of total actual personal property value—not an $18,000 cred… - Workers owe Colorado tax on overtime: cost, medium. Workers must add back overtime pay excluded or deducted from federal gross income when figuring Colorado taxable income. The federal tax break does not remove that pay from Colorado's income tax base. - Agencies can share childcare credit records: cost, low. Colorado's tax director can share detailed taxpayer information with the Department of Early Childhood. The information must relate to early childhood educator or care worker credit claims. Existing confidentiality limits and penalties still apply. - Special 2022 senior credit rule expires: cost, low. A special rule gives eligible seniors the full 2022 senior tax credit without the usual income-based reduction. It applies to taxpayers who qualified for an Article 31 grant in calendar year 2022. The law repeals this 2022-only rule on December 31, 2026. - Employers face broader tax withholding rules: cost, low. Colorado's tax director can require employers to withhold state income tax from employee compensation other than wages. The amount must approximate the employee's Colorado tax due. Related statements, returns, and nonresident withholding rules also apply. Filing, payment, and reporting generally fo… - Enterprise zone investors face credit limits: cost, low. For tax years starting January 1, 2026, or later, enterprise zone investment credits generally face a $2 million annual taxpayer cap. Property directly used to retail motor vehicle gasoline or diesel, or in wireless telecommunications facilities, is excluded. Beginning January 1, 2040, specified cr… - Interstate phone taxes include double-tax relief: mixed, low. Beginning July 1, 2025, Colorado taxes interstate telephone and telegraph service that starts or ends in Colorado. The service must also be billed to a Colorado address. Mobile service is exempt when the customer's main place of use is outside Colorado. A credit covers tax legally imposed and paid… - Cannabis products enter agricultural tax definition: mixed, low. Beginning July 1, 2025, products regulated under Colorado's marijuana code count as agricultural commodities under state sales tax law. The prior exclusion is repealed effective July 1, 2026. Tax effects depend on the rules that use this definition; this change alone does not establish a tax exempt… ## Sponsors and cosponsors - Sponsor: Lorena Garcia (Democratic), House - Sponsor: Mike Weissman (Democratic), Senate - Sponsor: Yara Zokaie (Democratic), House - Cosponsor: Andrew Boesenecker (Democratic), House - Cosponsor: Brianna Titone (Democratic), House - Cosponsor: Emily Sirota (Democratic), House - Cosponsor: Jennifer Bacon (Democratic), House - Cosponsor: Javier Mabrey (Democratic), House - Cosponsor: Kyle Brown (Democratic), House - Cosponsor: Mandy Lindsay (Democratic), House - Cosponsor: Manny Rutinel (Democratic), House - Cosponsor: Naquetta Ricks (Democratic), House - Cosponsor: Regina English (Democratic), House - Cosponsor: Sean Camacho (Democratic), House - Cosponsor: Tammy Story (Democratic), House - Cosponsor: Cathy Kipp (Democratic), Senate - Cosponsor: Iman Jodeh (Democratic), Senate - Cosponsor: Judy Amabile (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-07 | House | Senate amendments: Repass | pass | 40 | 24 | | | 2025-05-07 | House | Senate amendments: Concur | pass | 42 | 22 | | | 2025-05-06 | Senate | Third reading: Bill | pass | 23 | 12 | | | 2025-05-02 | Senate | Refer House Bill 25-1296 to the Committee of the Whole. | pass | 4 | 3 | | | 2025-05-01 | Senate | Refer House Bill 25-1296, as amended, to the Committee on Appropriations. | pass | 5 | 3 | | | 2025-04-28 | House | Third reading: Bill | pass | 39 | 25 | | | 2025-04-25 | House | Refer House Bill 25-1296 to the Committee of the Whole. | pass | 6 | 5 | | | 2025-04-21 | House | Refer House Bill 25-1296, as amended, to the Committee on Appropriations. | pass | 7 | 6 | | | 2025-04-21 | House | Adopt amendment L.014 (Attachment I). | pass | 12 | 1 | | ## Actions (18) - 2025-05-16: Governor Signed (House) - 2025-05-15: Signed by the Speaker of the House (House) - 2025-05-15: Signed by the President of the Senate (Senate) - 2025-05-15: Sent to the Governor (House) - 2025-05-07: House Considered Senate Amendments - Result was to Concur - Repass (House) - 2025-05-06: Senate Third Reading Passed - No Amendments (Senate) - 2025-05-06: House Considered Senate Amendments - Result was to Laid Over Daily (House) - 2025-05-05: Senate Third Reading Laid Over Daily - No Amendments (Senate) - 2025-05-02: Senate Committee on Appropriations Refer Unamended to Senate Committee of the Whole (Senate) - 2025-05-02: Senate Second Reading Special Order - Passed with Amendments - Committee (Senate) - 2025-05-01: Senate Committee on Finance Refer Amended to Appropriations (Senate) - 2025-04-29: Introduced In Senate - Assigned to Finance (Senate) - 2025-04-28: House Third Reading Passed - No Amendments (House) - 2025-04-25: House Committee on Appropriations Refer Unamended to House Committee of the Whole (House) - 2025-04-25: House Second Reading Special Order - Passed with Amendments - Committee, Floor (House) - 2025-04-21: House Committee on Finance Refer Amended to Appropriations (House) - 2025-03-31: House Committee on Finance Witness Testimony and/or Committee Discussion Only (House) - 2025-03-05: Introduced In House - Assigned to Finance (House) ## Bill text - Engrossed: [PDF](https://leg.colorado.gov/bill_files/82398/download) - Final Act: [PDF](https://leg.colorado.gov/bill_files/82326/download) - House Finance Preamend: [PDF](https://leg.colorado.gov/bill_files/82435/download) - Introduced: [PDF](https://leg.colorado.gov/bill_files/82417/download) - Reengrossed: [PDF](https://leg.colorado.gov/bill_files/82377/download) - Rerevised: [PDF](https://leg.colorado.gov/bill_files/82341/download) - Revised: [PDF](https://leg.colorado.gov/bill_files/82359/download) - Senate Finance Preamend: [PDF](https://leg.colorado.gov/bill_files/82453/download) - Signed Act: [PDF](https://leg.colorado.gov/bill_files/40626/download) ## Related bills - SB25-279: Colorado Code of Military Justice Updates (signed) - HB25-1307: Updating Technical References in Education Law (signed) - HB25-1234: Utility Consumer Protection (signed) - SB25-167: Invest State Funds to Benefit Communities (signed) - SB25-163: Battery Stewardship Programs (signed) - SB25-261: Property Tax Deferral Program Administration (signed) ## Sources - [Engrossed (PDF)](https://leg.colorado.gov/bill_files/82398/download) - [Final Act (PDF)](https://leg.colorado.gov/bill_files/82326/download) - [House Finance Preamend (PDF)](https://leg.colorado.gov/bill_files/82435/download) - [Introduced (PDF)](https://leg.colorado.gov/bill_files/82417/download) - [Reengrossed (PDF)](https://leg.colorado.gov/bill_files/82377/download) - [Rerevised (PDF)](https://leg.colorado.gov/bill_files/82341/download) - [Revised (PDF)](https://leg.colorado.gov/bill_files/82359/download) - [Senate Finance Preamend (PDF)](https://leg.colorado.gov/bill_files/82453/download) - [Signed Act (PDF)](https://leg.colorado.gov/bill_files/40626/download) ## Related - [SB25-279: Colorado Code of Military Justice Updates](https://policyrisk.com/state-bill/CO-SB25-279-2025A) - [HB25-1307: Updating Technical References in Education Law](https://policyrisk.com/state-bill/CO-HB25-1307-2025A) - [HB25-1234: Utility Consumer Protection](https://policyrisk.com/state-bill/CO-HB25-1234-2025A) - [SB25-167: Invest State Funds to Benefit Communities](https://policyrisk.com/state-bill/CO-SB25-167-2025A) - [SB25-163: Battery Stewardship Programs](https://policyrisk.com/state-bill/CO-SB25-163-2025A) - [SB25-261: Property Tax Deferral Program Administration](https://policyrisk.com/state-bill/CO-SB25-261-2025A) - [Colorado bills](https://policyrisk.com/states/colorado/bills) - [Colorado state hub](https://policyrisk.com/states/colorado) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/CO-HB25-1296-2025A (as of 2026-10-16).