All Roll Calls
Yes: 195 • No: 10
ColoradoSB25-0402025 Regular SessionSenate
Future of Severance Taxes & Water Funding Task Force
Sponsored By: Cleave Simpson (Republican), Dylan Roberts (Democratic), Karen McCormick (Democratic), Matthew Martinez (Democratic)
Signed by Governor
AgricultureWater
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 2 benefits, 0 costs, 1 mixed.
Colorado studies future water funding sources
The law creates a nine-member task force, with appointments due September 1, 2025, and public meetings allowing public testimony. Colorado’s Department of Natural Resources must hire an outside party to study funding water needs and local energy-impact grants without severance taxes. The study must address reducing General Fund reliance on severance taxes and starting repayment of past budget-backfill transfers. A draft is due January 15, 2026, and a final report incorporating task force input is due July 15, 2026. A summary must reach lawmakers during the 2026 interim; the task force ends December 31, 2026. The department provides staff, and members serve unpaid but can receive reasonable expense reimbursements. Task force funding must come only from the Severance Tax Perpetual Base Fund. Separately, the department receives $198,592 from the Severance Tax Operational Fund for fiscal year 2025–26: $192,566 for staff and $6,026 for operations. Unspent money remains available for the same work through December 31, 2026.
Oil and gas tax credits change
Oil and gas producers get severance tax credits for qualifying property taxes on leaseholds and royalty interests. The credit equals 75% of qualifying taxes for tax years starting in 2024–2026 and 87.5% for 2027. Taxes on specified drilling, production, storage, and pipeline equipment and facilities do not qualify. Separate per-well calculations use 0.65625 × gross income × mill levies for 2026 and 0.7656 × gross income × mill levies for 2028. These calculations use the well’s current-year gross income and local mill levies fixed by December 22 of the prior year.
Producer tax revenue funds clean-energy credits
For state fiscal years 2023–24 through 2026–27, Colorado redirects specified extra oil and gas severance tax revenue. The money goes to the Decarbonization Tax Credits Administration Cash Fund, which pays for administering those credits. It includes revenue tied to a 12.5% credit reduction for tax years starting in 2024–2025. It also includes revenue tied to a 10.935% credit reduction for tax years starting in 2026. Affected producers receive smaller credits; the law states no total dollar amount for this transfer.
Sponsors & Cosponsors
Sponsors
Cleave Simpson
Republican • Senate
Dylan Roberts
Democratic • Senate
Karen McCormick
Democratic • House
Matthew Martinez
Democratic • House
Cosponsors
Andrew Boesenecker
Democratic • House
Brianna Titone
Democratic • House
Chad Clifford
Democratic • House
Dusty Johnson
Republican • House
Elizabeth Velasco
Democratic • House
Jennifer Bacon
Democratic • House
Jarvis Caldwell
Republican • House
Jamie Jackson
Democratic • House
Junie Joseph
Democratic • House
Julie McCluskie
Democratic • House
Kyle Brown
Democratic • House
Katie Stewart
Democratic • House
Lesley Smith
Democratic • House
Larry Don Suckla
Republican • House
Monica Duran
Democratic • House
Mandy Lindsay
Democratic • House
Meghan Lukens
Democratic • House
Naquetta Ricks
Democratic • House
Rep. R. Pugliese
Affiliation unavailable
Rep. S. Bird
Affiliation unavailable
Sheila Lieder
Democratic • House
Tisha Mauro
Democratic • House
Tammy Story
Democratic • House
Ty Winter
Republican • House
Judy Amabile
Democratic • Senate
Marc Catlin
Republican • Senate
Rod Pelton
Republican • Senate
Roll Call Votes
Senate vote • 5/5/2025
House amendments: Repass
Yes: 35 • No: 0
Senate vote • 5/5/2025
House amendments: Concur
Yes: 35 • No: 0
House vote • 5/2/2025
Third reading: Bill
Yes: 57 • No: 7
House vote • 5/1/2025
Refer Senate Bill 25-040 to the Committee of the Whole.
Yes: 8 • No: 3
House vote • 4/21/2025
Refer Senate Bill 25-040 to the Committee on Appropriations.
Yes: 13 • No: 0
Senate vote • 4/15/2025
Third reading: Bill
Yes: 34 • No: 0
Senate vote • 4/11/2025
Refer Senate Bill 25-040, as amended, to the Committee of the Whole.
Yes: 7 • No: 0
Senate vote • 1/29/2025
Refer Senate Bill 25-040, as amended, to the Committee on Appropriations.
Yes: 6 • No: 0
Actions Timeline
Governor Signed
5/15/2025HouseSigned by the President of the Senate
5/12/2025SenateSent to the Governor
5/12/2025HouseSigned by the Speaker of the House
5/12/2025HouseSenate Considered House Amendments - Result was to Concur - Repass
5/5/2025SenateHouse Third Reading Passed - No Amendments
5/2/2025HouseHouse Committee on Appropriations Refer Unamended to House Committee of the Whole
5/1/2025HouseHouse Second Reading Special Order - Passed with Amendments - Floor
5/1/2025HouseHouse Committee on Agriculture, Water & Natural Resources Refer Unamended to Appropriations
4/21/2025HouseSenate Third Reading Passed - No Amendments
4/15/2025SenateIntroduced In House - Assigned to Agriculture, Water & Natural Resources
4/15/2025HouseSenate Second Reading Special Order - Passed with Amendments - Committee, Floor
4/14/2025SenateSenate Committee on Appropriations Refer Amended to Senate Committee of the Whole
4/11/2025SenateSenate Committee on Agriculture & Natural Resources Refer Amended to Appropriations
1/29/2025SenateIntroduced In Senate - Assigned to Agriculture & Natural Resources
1/8/2025Senate
Bill Text
Engrossed
Final Act
Introduced
Reengrossed
Rerevised
Revised
Signed Act