| Summary |
Legislative Oversight Committee Concerning Tax Policy. The
bill repeals the following infrequently used tax expenditures:
•
The catastrophic health insurance income tax deduction
(sections 2 and 3 of the bill);
•
The non-resident disaster relief worker income tax
subtraction (sections 4, 5, and 6);
•
The medical savings account income tax deduction
(sections 7, 8, 9, and 10);
•
The childcare facility investment income tax credit (section
11);
•
The school to career expenses income tax credit (section
12);
•
The Colorado works program employer income tax credit
(section 13);
•
The income tax credit for purchase of uniquely valuable
motor vehicle registration numbers (section 14);
•
The low-emitting vehicles and commercial vehicles used in
interstate commerce sales and use tax exemptions (sections
15, 16, 17, and 18);
•
The biotechnology sales and use tax refund (sections 19
and 20);
•
The rural broadband equipment sales and use tax refund
(section 21);
•
The first time home buyer savings account income tax
deduction (sections 22, 23, 24, and 25);
•
The tangible personal property affixed to aircraft sales and
use tax exemption (section 26);
•
The non-resident aircraft sales and aircraft parts sales and
use tax exemption (section 27);
•
The aircraft gasoline and special fuel tax exemption
(section 28); and
•
The cigarette and tobacco bad debt tax credit for cigarette
and tobacco wholesalers, distributors, and retailers that
write off bad cigarette and tobacco tax debts (sections 29
and 30).
The bill also modifies several tax expenditures as follows:
•
Section 31 of the bill eliminates the requirement that the
executive director of the department of revenue present the
tax profile and expenditure report to the finance
committees of the house of representatives and the senate;
•
Section 32 clarifies that the purpose of the college tuition
program income tax deduction is to create additional
incentives for saving for college tuition not already created
by other state or federal law and ends the wildfire
mitigation deduction one year earlier than provided for in
current law;
•
Section 33 increases the maximum amount of a health-care
preceptor income tax credit from $1,000 to $2,000, allows
for a maximum of 3 credits per income tax year, and
increases the maximum aggregate amount of the credit
awarded to any one taxpayer from $1,000 to $6,000 for any
income tax year;
•
Currently, the maximum amount a taxpayer may claim for
the wildfire hazard mitigation income tax credit is 25% of
$2,500 in mitigation costs, for a total tax credit maximum
of $625 per income tax year. Section 34 changes the
maximum amount a taxpayer may claim for the credit to
$1,000 per income tax year for income tax years
commencing on or after January 1, 2025, but prior to
January 1, 2028.
•
Section 35 requires a local government and a nonprofit to
file an informational tax return as prescribed by the
executive director of the department of revenue
(informational tax return) rather than a corporate tax return
when claiming an alternative transportation options income
tax credit;
•
Section 36 requires a local government and a nonprofit to
file an informational tax return when claiming a
conservation easement income tax credit;
•
Section 37 requires a local government and a nonprofit to
file an informational tax return when claiming an income
tax credit for environmental remediation of contaminated
land;
•
On and after January 1, 2025, section 38 exempts from
sales and use tax the sale, storage, usage, or consumption
of a modular home;
•
Section 40 states that the purpose of the renewable energy
source sales and use tax exemption is to create additional
incentives for developing renewable energy projects not
already created by other state or federal law;
•
Section 41 repeals detailed required reporting for
enterprise zone tax credits; and
•
Sections 39 and 42 make conforming amendments.
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