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ColoradoHB26-12232026 Regular SessionHouseWALLET

Modifying Certain Tax Expenditures

Sponsored By: Andrew Boesenecker (Democratic), Dylan Roberts (Democratic), Matt Ball (Democratic), Steven Woodrow (Democratic)

Signed by Governor

Fiscal Policy & Taxes

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 2 benefits, 1 costs, 0 mixed.

New refundable tax credit for Colorado families

For tax years starting January 1, 2027, Colorado residents filing single or joint returns get a new refundable child credit. It adds to existing state child and family affordability credits. Children must meet federal dependent-child rules, with ages measured at year-end. Each eligible child ages 0–5 gets the full amount; each child ages 6–16 gets 75%. Starting December 2026, Legislative Council staff sets amounts annually so total credits match the forecasted state revenue gain. Per-child amounts are the same for single and joint filers. The credit drops by 6.875% for each $5,000 of adjusted gross income above the applicable filing-status income base, stopping at zero. Starting in 2028, income bases adjust when accumulated inflation raises them by at least $1,000, rounded to the nearest $1,000. Part-year residents get a prorated credit. Amounts above income tax owed are refunded and may be paid in up to 12 equal monthly installments. These payments do not count as income or resources for public assistance or medical assistance eligibility. The credit has no scheduled expiration.

State tax exemptions for specialized software buyers

The law preserves state sales and use tax exemptions for two types of software transactions. Software qualifies when covered by a negotiable license agreement or developed for a particular user. Covered sales, storage, use, and consumption are exempt. These exemptions remain when Colorado's broader software tax rules change on January 1, 2027.

Local software taxes can raise buyers' costs

Starting December 31, 2026, local sales and use tax authority covers computer software as taxable property. Counties, cities, and specified districts can elect on January 1, 2027, to adopt a software definition for taxation. Their choice must comply with Colorado's constitutional tax rules. The law does not require every locality to impose the tax. Software buyers and users can face higher costs where local tax applies.

Sponsors & Cosponsors

Sponsors

  • Andrew Boesenecker

    Democratic • House

  • Dylan Roberts

    Democratic • Senate

  • Matt Ball

    Democratic • Senate

  • Steven Woodrow

    Democratic • House

Cosponsors

  • Chad Clifford

    Democratic • House

  • Emily Sirota

    Democratic • House

  • Jennifer Bacon

    Democratic • House

  • Julie McCluskie

    Democratic • House

  • Kyle Brown

    Democratic • House

  • Karen McCormick

    Democratic • House

  • Kenny Nguyen

    Democratic • House

  • Lesley Smith

    Democratic • House

  • Monica Duran

    Democratic • House

  • Mandy Lindsay

    Democratic • House

  • Manny Rutinel

    Democratic • House

  • Naquetta Ricks

    Democratic • House

  • Yara Zokaie

    Democratic • House

  • Cathy Kipp

    Democratic • Senate

  • Judy Amabile

    Democratic • Senate

  • Jeff Bridges

    Democratic • Senate

  • James Coleman

    Democratic • Senate

  • Kyle Mullica

    Democratic • Senate

  • Lisa Cutter

    Democratic • Senate

  • Mike Weissman

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 218 • No: 113

House vote • 5/13/2026

Senate amendments: Repass

Yes: 36 • No: 29

House vote • 5/13/2026

Senate amendments: Concur

Yes: 39 • No: 26

Senate vote • 5/13/2026

Third reading: Bill

Yes: 22 • No: 13

Senate vote • 5/13/2026

Third reading: Amend (l.031)

Yes: 35 • No: 0

Senate vote • 5/11/2026

Refer House Bill 26-1223, as amended, to the Committee of the Whole.

Yes: 4 • No: 3

Senate vote • 5/7/2026

Adopt amendment L.015 (Attachment L)

Yes: 8 • No: 1

Senate vote • 5/7/2026

Refer House Bill 26-1223, as amended, to the Committee on Appropriations.

Yes: 6 • No: 3

Senate vote • 5/7/2026

Adopt amendment L.020 (Attachment K)

Yes: 8 • No: 1

House vote • 5/4/2026

Third reading: Bill

Yes: 42 • No: 23

House vote • 4/28/2026

Refer House Bill 26-1223 to the Committee of the Whole.

Yes: 8 • No: 3

House vote • 3/9/2026

Adopt amendment L.001

Yes: 4 • No: 6

House vote • 3/9/2026

Refer House Bill 26-1223, as amended, to the Committee on Appropriations.

Yes: 6 • No: 5

Actions Timeline

  1. Governor Signed

    6/4/2026House

  2. Signed by the Speaker of the House

    6/3/2026House

  3. Signed by the President of the Senate

    6/3/2026Senate

  4. Sent to the Governor

    6/3/2026House

  5. Senate Third Reading Passed with Amendments - Floor

    5/13/2026Senate

  6. House Considered Senate Amendments - Result was to Concur - Repass

    5/13/2026House

  7. Senate Third Reading Passed - No Amendments

    5/13/2026Senate

  8. Senate Third Reading Laid Over Daily - No Amendments

    5/12/2026Senate

  9. Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

    5/11/2026Senate

  10. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/11/2026Senate

  11. Senate Committee on Finance Refer Amended to Appropriations

    5/7/2026Senate

  12. House Third Reading Passed - No Amendments

    5/4/2026House

  13. Introduced In Senate - Assigned to Finance

    5/4/2026Senate

  14. House Second Reading Special Order - Passed with Amendments - Committee, Floor

    5/1/2026House

  15. House Second Reading Laid Over Daily - No Amendments

    4/30/2026House

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

    4/28/2026House

  17. House Committee on Finance Refer Amended to Appropriations

    3/9/2026House

  18. Introduced In House - Assigned to Finance

    2/17/2026House

Bill Text

  • Engrossed

    PDF

  • Final Act

    PDF

  • House Finance Preamend

    PDF

  • Introduced

    PDF

  • Reengrossed

    PDF

  • Rerevised

    PDF

  • Revised

    PDF

  • Senate Appropriations Preamend

    PDF

  • Senate Finance Preamend

    PDF

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