US EditionDemocrats Propose Bills to Decouple Colorado Businesses From New Tax Breaks, Revive Tax Credit for Low-Income Families
Colorado Democrats plan to repeal several business tax breaks to fund a new per-child credit for families earning up to $95,000 amid a $1.2 billion state revenue shortfall.
- On Tuesday, Colorado Democrats unveiled four bills to end business tax breaks and create a new child tax credit, sponsored by Rep. Lorena Garcia and about a dozen lawmakers.
- Because Colorado tax law mirrors federal policy, H.R. 1 sharply cut state revenue by $1.2 billion and forced the Family Affordability Tax Credit to pause in 2026.
- Among the targeted changes are caps on corporate loss deductions and limits on depreciation, curbs on C corporation executive salary deduction up to $1 million, and ending the downloadable/electronically delivered software sales tax exemption expected to raise about $80 million annually.
- Lawmakers say the revenue from rolled-back business tax breaks would fund the New Family Affordability Credit for families earning up to about $95K, but nonpartisan legislative staffers will estimate its size and savings.
- TABOR and looming budget cuts mean Republicans and business leaders warn the rollback will hurt Colorado's competitiveness, opposing bills that build on last summer's special legislative session and broader left-leaning tax reform efforts.
12 Articles
12 Articles
Colorado Democrats propose tax tweaks to help working families amid federal policy fallout
Lelia Hobley of Denver speaks about the family affordability tax credit at the Colorado Capitol on Tuesday. (Photo by Sara Wilson/Colorado Newsline)Lelia Hobley, a single mother of three who lives in Denver, says a state-level child tax credit is one reason she has reliable transportation, “breathing room” in her budget and the ability to pay for extracurricular activities for her children, including football for her 12-year-old son. The Colorad…
Steamboat Pilot & Today
Democrats propose bills to decouple Colorado businesses from new tax breaks, revive tax credit for low-income families
Democratic state lawmakers are preparing to roll out a package of bills that would end a suite of tax breaks for businesses and direct that money to a new child tax credit for lower-income families. The core of the policies would end several tax benefits in Colorado that were created or expanded under the One Big Beautiful Bill Act, the sweeping domestic policy law passed by congressional Republicans’ and signed by President Donald Trump last s…
The Fort Morgan Times
Colorado Democrats propose tax reforms steering impact of federal tax cuts to families
Colorado Democrats are set to unveil a suite of bills Tuesday that aim to divorce the state tax code from recent federal changes — generating extra state revenue that would be used to provide at least some money to low and middle-income families with children. The legislative package sponsored by a dozen lawmakers would repeal a variety of state tax exemptions that mirror tax breaks in the federal code. It puts a particular focus on splitting th…
Democrats aim to roll back business tax breaks to fund new per-child benefit for lower-income Colorado families
Many of the business tax breaks targeted under the plan were created or expanded by Republicans in Congress through their One Big Beautiful Bill Act
Colorado moves to end tax breaks, create new family credit
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