# Colorado HB26-1289: Modification of Certain Tax Expenditures Colorado HB26-1289, Modification of Certain Tax Expenditures, is a 2026 Regular Session House bill sponsored by Kyle Brown (Democratic), Lorena Garcia (Democratic), Mike Weissman (Democratic); status signed, last action 2026-06-03 (Governor Signed); PRIA reads it as touching household money (as of 2026-10-16). - Canonical: https://policyrisk.com/state-bill/CO-HB26-1289-2026A - As of: 2026-10-16 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Colorado HB26-1289 - State: Colorado - Session: 2026 Regular Session - Title: Modification of Certain Tax Expenditures - Status: signed - Chamber: House - Introduced: 2026-02-23 - Last action: 2026-06-03, Governor Signed - Sponsors: Kyle Brown (Democratic), Lorena Garcia (Democratic), Mike Weissman (Democratic) - Cosponsors: 24 - Subjects: Fiscal Policy & Taxes - Touches household money: yes - Roll calls: 21 (342 yes, 238 no in all) - Economic provisions PRIA read: 46 ## Summary No summary available. ## Bill overview: provisions PRIA read - Landowners gain refundable wildfire mitigation credits: benefit, high. Individual owners of record of private Colorado land qualify as landowners even when the land has no home. This includes ownership interests involving an easement, right-of-way, or estate, but excludes partnerships, S corporations, and similar landowning entities. Starting with tax years beginning… - More wildfire tax help for landowners: benefit, high. For tax years beginning in 2026–2030, eligible Colorado landowners can claim up to $2,000 yearly for wildfire or beetle mitigation. The income limit starts at $300,000, with later inflation adjustments rounded to the nearest $100. Work must meet state standards and can include thinning trees at ris… - Refundable tax credit for home caregivers: benefit, high. For tax years beginning in 2026–2028, qualified home caregivers get a credit worth 30% of their qualified caregiver income. The care must serve someone with an intellectual or developmental disability. Caregivers must work the maximum hours allowed by the Office of Community Living. Any credit abov… - More food businesses qualify for equipment credits: benefit, high. Starting in tax year 2027, qualified food distributors join the equipment credit program. They must be Colorado-owned and operated and manage source-identified raw Colorado farm products for a consortium member during the year. Revised farm and retailer definitions include Colorado ownership and sa… - Retailers keep electric lawn equipment credits: benefit, high. Qualified retailers keep the credit for new electric lawn equipment sold in Colorado through tax years starting before January 1, 2030. The prior cutoff was January 1, 2027. The credit equals 33% of the total purchase price of eligible equipment sold. Beginning with tax years starting in 2027, reta… - Zone building owners get bigger credits: benefit, high. Starting with tax years beginning in 2027, owners and tenants receive a 25% enterprise-zone building rehabilitation credit. The per-building cap rises from $50,000 to $200,000. Buildings must be at least 20 years old and vacant for 135 of the 180 days before rehabilitation enters service. This repl… - Zone employers choose health credit years: benefit, high. Eligible enterprise-zone employers can claim $1,000 per covered employee in any two of their first ten full tax years in the zone. Previously, claims were limited to the first two years. Employers must pay at least 50% of the health plan's total cost. Eligible regulated or self-insured plans must i… - Earned income tax help for residents: benefit, medium. Beginning with tax years starting in 2028, eligible Colorado residents can claim a state earned income credit. Its base amount is 25% of the referenced federal credit, ignoring that federal provision's date limit. State percentage-adjustment rules also apply. Your dollar benefit depends on the fede… - Earlier lawn equipment credits for retailers: benefit, medium. Beginning with tax years starting in 2027, qualified retailers can choose advance payments of the electric lawn equipment credit. The law makes quarterly advance payments available. It also extends the credit to January 1, 2030. - More funding for state health programs: benefit, low. For budget year 2026–27, the law adds $21,024 from the primary care fund to its program. That amount is based on the department receiving $20,710 in federal funds. It provides $17,704 from the tobacco education programs fund for education, prevention, and cessation administration. It also provides… - More state funding for universal preschool: benefit, low. For budget year 2026–27, the law provides $996,276 from the preschool programs cash fund for universal preschool. The Department of Early Childhood receives the money. This appropriation does not specify changes to a family's eligibility, preschool access, or out-of-pocket costs. - Businesses get longer investment credit use: benefit, low. Businesses can carry unused Colorado enterprise-zone investment credits forward for up to 14 years. They must apply the credit in the earliest possible tax year. Any amount left after 14 years is not refunded or credited. - Corporate groups remove duplicate foreign income: benefit, low. Starting with tax years beginning in 2027, corporate combined groups must remove specified foreign-company income included between group members. This covers Subpart F income and net controlled foreign corporation tested income. The reporting member must be a U.S. shareholder of the other group mem… - More industrial projects qualify for credits: benefit, low. Starting with tax years beginning in 2027, biomethane-use equipment counts as an eligible industrial clean energy improvement. Tax-exempt people and Colorado political subdivisions also qualify as project owners. They must be exempt under Colorado's income tax exemption law and develop a project fo… - Rail projects get construction tax relief: benefit, low. Starting July 1, 2027, qualifying rail carriers receive a state use-tax exemption for covered construction and building materials. Local use-tax rules also exempt these materials. Carriers must operate in interstate or foreign commerce. The materials must support a government contract allowing publ… - Research tax credits for zone businesses: benefit, low. Beginning with tax years starting in 2027, businesses can claim a credit for qualifying research in an enterprise zone. They must spend at least $150,000 on qualifying research and experimental activities for their business. The credit equals 3% of current zone spending above the average zone spend… - State agencies get tax-law implementation funding: benefit, low. For budget year 2026–27, the Department of Revenue receives $48,482 from the General Fund to carry out the law. That includes $20,024 for GenTax support, $15,338 for tax-services staff, and $13,120 for executive-office staff. The Governor's Office also receives $25,000 from the General Fund for eco… - Tax refunds for cleaner aviation fuel: benefit, low. For tax years beginning in 2027–2032, qualified aviation fuel buyers get at least $1.50 per gallon for Colorado use. The credit adds $0.01 per gallon for each whole percentage point of carbon reduction above 50%. Starting in 2028, the Colorado Energy Office can authorize another $0.50 per gallon fo… - Tax relief continues for beetle-damaged wood: benefit, low. The law extends sales and use tax relief for salvaged wood from Colorado trees killed or infested by mountain pine or spruce beetles. The exemption covers sales, storage, and use during the law's specified periods, including the period before January 1, 2031. The section is repealed July 1, 2034. - Food businesses face tighter credit limits: cost, high. Starting in tax year 2027, food equipment credits must total at least $375 to be claimed. Annual credits are capped at $300,000 per small family farm and $1 million per other taxpayer. The statewide annual certificate cap falls from $10 million to $5 million beginning in 2027. - Higher taxes on out-of-state opportunity gains: cost, medium. Beginning with tax years starting in 2027, investors must add covered federally excluded opportunity gains to Colorado taxable income. The addback covers the gain exceeding the amount invested in a Colorado-qualified opportunity fund. For investments after December 31, 2026, the specified addback a… - Lawn equipment retailers need advance approval: cost, medium. Retailers must register and get Department of Revenue approval before sales they plan to use for electric lawn equipment credits. After notice and a hearing, the department can disqualify retailers for false information, nonqualifying credit claims or advance-payment requests, or losing their sales… - Stricter bicycle credit rules for retailers: cost, medium. Retailers must register and get state approval before selling electric bicycles for which they intend to claim the credit. They must give the Colorado Energy Office bicycle-model details and required updates. After notice and a hearing, the state can disqualify retailers for nonqualifying sales, mi… - Tax-exempt food purchasers must file returns: cost, low. Purchasers exempt from Colorado income tax must file a return to claim the small food business credit. This filing step does not require them to pay income tax. - Clean aviation fuel producers lose credits: cost, low. The sustainable aviation fuel facility credit ends for tax years starting January 1, 2027, or later. Its 30% rate covers Colorado facilities whose construction starts from January 1, 2024, through December 31, 2026. Later rates of 24%, 18%, and 12% are removed. Statewide certificates are capped at… - Corporations lose certain wage tax deductions: cost, low. For tax years starting January 1, 2027, or later, Colorado C corporations lose a state subtraction for certain wages. The change covers wages and salaries whose federal deduction is disallowed under federal tax credit coordination rules. Losing this subtraction can raise affected corporations' Colo… - Foreign corporations face audited income rules: cost, low. Starting with tax years beginning in 2027, covered foreign corporations in Colorado combined groups must calculate income from independently audited statements. Statements must be prepared separately for each company, adjusted to U.S. accounting and tax rules, and translated into U.S. dollars. The… - Fuel distributors lose tax allowances: cost, low. For tax periods starting in 2027, licensed gasoline and special-fuel distributors' transit and unloading loss allowance falls from 2% to 1%. Monthly acquisitions must be documented by terminal manifests. The allowance excludes liquefied petroleum gas and bulk transfers. Distributors also lose the 0… - Larger zone employers lose employee credits: cost, low. Starting with tax years beginning in 2027, businesses with 50 or more facility employees cannot claim the affected enterprise-zone employee credit. Reaching 50 employees at any time during the year blocks the credit for that entire year. - Old zone research credit rules end: cost, low. The prior enterprise-zone research and experimental activities credit provision is repealed December 31, 2033. That provision covers tax years beginning before January 1, 2027. The supplied provision does not explain how unused credits are treated after repeal. - Tobacco businesses lose tax collection discounts: cost, low. Starting in 2027, cigarette wholesalers lose the 3% inventory-tax discount and 0.4% cigarette tax-stamp discount. Tobacco distributors and remote retail sellers lose the 1.6% discount on eligible tax collected January 1, 2027, or later. Nicotine distributors lose the 1.1% discount for tax periods b… - Zone businesses lose vehicle investment credits: cost, low. The enterprise-zone commercial vehicle credit is repealed effective December 31, 2026. Starting with tax years beginning in 2027, the zone investment credit also excludes specified heavy vehicles classified as Class A personal property. This exclusion covers commercial trucks, truck tractors, tract… - Heat pump credits avoid repeated cuts: mixed, high. The law removes repeated June revenue checks through June 2031 for specified heat pump credits. It keeps the June 2025 trigger: forecast revenue growth below 4% cuts covered credits by 50% for the affected year. A reduced credit of $250 or less is unavailable. Qualifying equipment must be installed… - Higher vehicle credits with possible reductions: mixed, high. For qualifying category 1 vehicles sold or leased in 2027, the credit increases from $1,000 to $2,000. For 2028, it increases from $500 to $1,000. The law's revenue-forecast condition can reduce these amounts. - Vehicle buyers face fewer forecast cuts: mixed, high. The law ends repeated June revenue checks through June 2027 for specified category 1 vehicle credits. It keeps the June 2025 forecast trigger. Revenue growth below 4% in that forecast cuts covered credits by 50% for the affected tax year. A reduced credit of $500 or less is unavailable. This provis… - Vehicle buyers get new price limits: mixed, high. For category 1 vehicles bought or leased in 2027–2028, the maximum suggested retail price drops from $80,000 to $50,000. Vehicles priced above $50,000 receive no credit. For tax years starting in 2027–2028, vehicles priced below $40,000 qualify for an extra $2,500 credit. That extra-credit threshol… - Bicycle buyers avoid repeated credit cuts: mixed, medium. The law removes repeated June revenue checks through June 2031 for electric bicycle credits and purchase discounts. It keeps the June 2025 trigger. Forecast revenue growth below 4% cuts the credit, required retailer discount, and administrative fee by 50% for the affected year. The section sunsets… - Children's health funding shifts state accounts: mixed, low. For budget year 2026–27, the law shifts $332 for Children's Basic Health Plan medical and dental costs. General Fund support falls by $332, while support from the plan's trust fund rises by $332. The reduction is not required if the specified General Fund appropriation is below $332 or the departme… - Medicaid funding shifts between state accounts: mixed, low. For budget year 2026–27, the law reduces General Fund support for Medicaid medical and long-term care by $52,560. It adds the same amount from cash funds: $50,900 from the health care expansion fund and $1,660 from the tobacco tax cash fund. The General Fund reduction is not required if its specifi… - Clean energy developers share credit capacity: mixed, low. Beginning July 1, 2026, the Colorado Energy Office can shift unused credit capacity between industrial clean energy and geothermal programs. Each increase requires an equal decrease in the other program; combined limits do not rise. When geothermal spending falls below a reservation, the office can… - Corporate filing choice brings long commitment: mixed, low. Beginning with tax years starting in 2027, qualifying corporate groups can choose water's-edge filing for their Colorado combined report. They must make the choice on a timely original return. The choice generally binds the group for that year and the next nine tax years. Groups must include the sp… - Corporate reporting lists add foreign jurisdictions: mixed, low. For tax years beginning in 2027 or later, Colorado's combined-reporting list adds Hong Kong, Ireland, the Netherlands, and Singapore. Liechtenstein appears on the 2026 list but not the stated 2027-and-later list. These additions and removal change reporting treatment for corporations with affiliate… - Renewable investors can choose smaller refunds: mixed, low. Beginning with tax years starting in 2027, eligible enterprise-zone renewable energy investors can elect an 80% credit refund. The option covers qualifying new investments placed in service during 2015–2020 or on or after January 1, 2027. Investors choosing the refund give up the remaining 20% of t… - Space businesses face temporary sales taxes: mixed, low. Qualified space-flight property is exempt from Colorado sales and use tax from July 1, 2024, through December 31, 2026. The exemption stops from January 1, 2027, through December 31, 2029. It resumes for sales, storage, and use starting January 1, 2030. - Truck buyers face fewer forecast cuts: mixed, low. The law ends repeated June revenue checks through June 2027 for specified innovative truck credits. It keeps the June 2025 forecast trigger. Revenue growth below 4% in that forecast cuts covered credits by 50% for the affected tax year. A reduced credit of $500 or less is unavailable. - Vehicle credit ends; state money shifts: mixed, low. The commercial vehicle fund balance offsets the enterprise-zone commercial vehicle credit on July 1, 2025, and July 1, 2026. The law ends that credit January 1, 2027. On July 1, 2027, all remaining fund money moves to the Colorado Economic Development Fund. Starting that same day, covered traffic-p… ## Sponsors and cosponsors - Sponsor: Kyle Brown (Democratic), House - Sponsor: Lorena Garcia (Democratic), House - Sponsor: Mike Weissman (Democratic), Senate - Cosponsor: Andrew Boesenecker (Democratic), House - Cosponsor: Brianna Titone (Democratic), House - Cosponsor: Cecelia Espenoza (Democratic), House - Cosponsor: Emily Sirota (Democratic), House - Cosponsor: Jennifer Bacon (Democratic), House - Cosponsor: Javier Mabrey (Democratic), House - Cosponsor: Julie McCluskie (Democratic), House - Cosponsor: Jenny Willford (Democratic), House - Cosponsor: Karen McCormick (Democratic), House - Cosponsor: Kenny Nguyen (Democratic), House - Cosponsor: Lesley Smith (Democratic), House - Cosponsor: Mandy Lindsay (Democratic), House - Cosponsor: Manny Rutinel (Democratic), House - Cosponsor: Naquetta Ricks (Democratic), House - Cosponsor: Steven Woodrow (Democratic), House - Cosponsor: Tammy Story (Democratic), House - Cosponsor: Yara Zokaie (Democratic), House - Cosponsor: Sen. A. Benavidez - Cosponsor: Cathy Kipp (Democratic), Senate - Cosponsor: Iman Jodeh (Democratic), Senate - Cosponsor: James Coleman (Democratic), Senate - Cosponsor: Julie Gonzales (Democratic), Senate - Cosponsor: Lisa Cutter (Democratic), Senate - Cosponsor: Marc Snyder (Democratic), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2026-05-13 | Senate | Third reading: Amend (l.082) | pass | 35 | 0 | | | 2026-05-13 | Senate | Third reading: Amend (l.081) | pass | 35 | 0 | | | 2026-05-13 | House | Senate amendments: Concur | pass | 36 | 26 | | | 2026-05-13 | House | Senate amendments: Repass | pass | 37 | 25 | | | 2026-05-13 | Senate | Third reading: Bill | pass | 22 | 13 | | | 2026-05-12 | Senate | Committee of the whole: Cow * (s.001) | fail | 17 | 18 | | | 2026-05-12 | Senate | Committee of the whole: Cow * (s.002) | fail | 17 | 18 | | | 2026-05-11 | Senate | Refer House Bill 26-1289, as amended, to the Committee of the Whole. | pass | 4 | 3 | | | 2026-05-11 | Senate | Adopt amendment L.073 | pass | 4 | 3 | | | 2026-05-07 | Senate | Refer House Bill 26-1289, as amended, to the Committee on Appropriations. | pass | 5 | 4 | | | 2026-05-07 | Senate | Adopt amendment L.068 (Attachment Q) | fail | 3 | 6 | | | 2026-05-07 | Senate | Adopt amendment L.069 (Attachment O) | pass | 6 | 3 | | | 2026-05-04 | House | Third reading: Bill | pass | 42 | 23 | | | 2026-05-01 | House | Committee of the whole: Amd (h.001) | fail | 19 | 36 | | | 2026-05-01 | House | Refer House Bill 26-1289, as amended, to the Committee of the Whole. | pass | 8 | 3 | | | 2026-05-01 | House | Adopt amendment L.035 | pass | 8 | 3 | | | 2026-05-01 | House | Committee of the whole: Amd (h.002) | fail | 21 | 34 | | | 2026-03-23 | House | Adopt amendment L.010 | fail | 5 | 6 | | | 2026-03-23 | House | Adopt amendment L.009 | fail | 5 | 6 | | | 2026-03-23 | House | Adopt amendment L.001 | pass | 7 | 3 | | | 2026-03-23 | House | Refer House Bill 26-1289, as amended, to the Committee on Appropriations. | pass | 6 | 5 | | ## Actions (16) - 2026-06-03: Governor Signed (House) - 2026-05-29: Signed by the Speaker of the House (House) - 2026-05-29: Signed by the President of the Senate (Senate) - 2026-05-29: Sent to the Governor (House) - 2026-05-13: Senate Third Reading Passed with Amendments - Floor (Senate) - 2026-05-13: House Considered Senate Amendments - Result was to Concur - Repass (House) - 2026-05-12: Senate Second Reading Special Order - Passed with Amendments - Committee (Senate) - 2026-05-11: Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole (Senate) - 2026-05-11: Senate Second Reading Special Order - Laid Over Daily - No Amendments (Senate) - 2026-05-07: Senate Committee on Finance Refer Amended to Appropriations (Senate) - 2026-05-04: House Third Reading Passed - No Amendments (House) - 2026-05-04: Introduced In Senate - Assigned to Finance (Senate) - 2026-05-01: House Committee on Appropriations Refer Amended to House Committee of the Whole (House) - 2026-05-01: House Second Reading Special Order - Passed with Amendments - Committee, Floor (House) - 2026-03-23: House Committee on Finance Refer Amended to Appropriations (House) - 2026-02-23: Introduced In House - Assigned to Finance (House) ## Bill text - Engrossed: [PDF](https://leg.colorado.gov/bill_files/115630/download) - Final Act: [PDF](https://leg.colorado.gov/bill_files/116779/download) - House Appropriations Preamend: [PDF](https://leg.colorado.gov/bill_files/115615/download) - House Finance Preamend: [PDF](https://leg.colorado.gov/bill_files/113708/download) - Introduced: [PDF](https://leg.colorado.gov/bill_files/112525/download) - Reengrossed: [PDF](https://leg.colorado.gov/bill_files/115699/download) - Rerevised: [PDF](https://leg.colorado.gov/bill_files/116480/download) - Revised: [PDF](https://leg.colorado.gov/bill_files/116436/download) - Senate Appropriations Preamend: [PDF](https://leg.colorado.gov/bill_files/116321/download) - Senate Finance Preamend: [PDF](https://leg.colorado.gov/bill_files/116164/download) - Signed Act: [PDF](https://leg.colorado.gov/bill_files/117069/download) ## Related bills - HB26-1298: Background Checks for Child Welfare Placements (signed) - HB26-1250: Procedures Related to Civil Asset Forfeiture (signed) - HB26-1414: Medical Record Requests (signed) - SB26-155: Increase Access Homeowner's Insurance Enterprise (signed) - HB26-1430: Transportation Funding Adjustments (signed) - HB26-1429: County Administration Public Assistance Programs (signed) ## Sources - [Engrossed (PDF)](https://leg.colorado.gov/bill_files/115630/download) - [Final Act (PDF)](https://leg.colorado.gov/bill_files/116779/download) - [House Appropriations Preamend (PDF)](https://leg.colorado.gov/bill_files/115615/download) - [House Finance Preamend (PDF)](https://leg.colorado.gov/bill_files/113708/download) - [Introduced (PDF)](https://leg.colorado.gov/bill_files/112525/download) - [Reengrossed (PDF)](https://leg.colorado.gov/bill_files/115699/download) - [Rerevised (PDF)](https://leg.colorado.gov/bill_files/116480/download) - [Revised (PDF)](https://leg.colorado.gov/bill_files/116436/download) - [Senate Appropriations Preamend (PDF)](https://leg.colorado.gov/bill_files/116321/download) - [Senate Finance Preamend (PDF)](https://leg.colorado.gov/bill_files/116164/download) - [Signed Act (PDF)](https://leg.colorado.gov/bill_files/117069/download) ## Related - [HB26-1298: Background Checks for Child Welfare Placements](https://policyrisk.com/state-bill/CO-HB26-1298-2026A) - [HB26-1250: Procedures Related to Civil Asset Forfeiture](https://policyrisk.com/state-bill/CO-HB26-1250-2026A) - [HB26-1414: Medical Record Requests](https://policyrisk.com/state-bill/CO-HB26-1414-2026A) - [SB26-155: Increase Access Homeowner's Insurance Enterprise](https://policyrisk.com/state-bill/CO-SB26-155-2026A) - [HB26-1430: Transportation Funding Adjustments](https://policyrisk.com/state-bill/CO-HB26-1430-2026A) - [HB26-1429: County Administration Public Assistance Programs](https://policyrisk.com/state-bill/CO-HB26-1429-2026A) - [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-HB26-1289-2026A (as of 2026-10-16).