JOINT RELEASE: Law Takes Effect to Protect Homeowners in HOA Communities

DENVER, CO - On October 1, legislation goes into effect to strengthen safeguards for homeowners with HOAs to help them retain the equity they built in their property and avoid HOA foreclosures.

“Homeownership is an important way to build generational wealth, but our current laws allow HOAs to strip away everything Coloradans worked hard for, which threatens the stability of hardworking families,” said Rep. Naquetta Ricks, D-Aurora. “If a homeowner suffers from a medical emergency, loses their job, or experiences other financial hardships that impact their HOA payments, their home can be foreclosed and sold for just cents on the dollar, and the owner’s hard-earned equity disappears instantly. This law helps create critical safeguards to ensure better notice, transparency, and accountability around HOA foreclosures so Coloradans can stay safely housed and protect their equity.”

“Homeowners deserve the certainty and stability of knowing that their home will not be sold out from under them without an opportunity to retain their equity - regardless of whether or not they have an HOA,” said Sen. Tony Exum, Sr., D-Colorado Springs. “Becoming a homeowner is a way to build generational wealth and secure housing stability for the long haul. By adding measures to increase transparency, strengthen homeowner protections, and prevent hasty enforcement and foreclosure actions from an HOA, we can keep Colorado families in their homes.”

“Colorado HOA homeowners, especially in my district, have had their largest asset taken from them and sold at an auction for a fraction of its worth over sometimes very small amounts owed to the HOA,” said Assistant Majority Leader Jennifer Bacon, D-Denver. “It can be difficult to recover after a foreclosure, especially with high housing costs and no equity to fall back on from the foreclosed property. With this law going into effect, we’re helping hardworking Coloradans from being senselessly displaced and ensuring that homeowners can recover some equity from the house they paid for.”

In cases where an HOA pursues a foreclosure against a unit owner, HB25-1043 allows an owner to file a motion with the court to delay the sale of their home at auction for up to nine months, during which time the owner could sell the home at market price. Currently, an HOA may sell the unit at auction for only the cost of unpaid assessments and attorneys’ fees, leaving the homeowner with little to no equity from the sale.

Before taking legal action or referring an HOA homeowner to a collection agency, the law strengthens the requirement that an HOA have a written policy of sending a unit owner the HOA’s ledger verifying the amount owed within seven business days after a homeowner requests it. Under HB25-1043, an HOA must also provide information from the HOA Information and Resource Center about its ability to foreclose and force a sale of a unit before taking legal action against a unit owner.

The law also requires an HOA to provide homeowners with a notice regarding the right to participate in credit counseling at least 30 days before initiating a foreclosure.

HOAs are now required to include additional information for the previous year when submitting their annual registration with the Department of Regulatory Affairs. This includes the number of unit owners who were late on payments of assessments, judgments obtained against unit owners, payment plans entered into with unit owners, and foreclosure actions filed by the HOA.

Reps. Ricks and Bacon have passed numerous laws to protect HOA homeowners, including protections to prevent HOAs from quickly foreclosing on homeowners because of late or unpaid HOA fines and fees. Rep. Bacon and Sen. Exum also passed a law to create safeguards against foreclosure and protect HOA residents from having to pay excessive attorney fees that can result from enforcement actions.

Homeowners in Colorado Springs are currently protesting an unexpected $20,000 special assessment fee from their HOA. Under HB25-1043, these homeowners would have additional protections if their HOA pursues foreclosure for nonpayment of the special assessment fee.

Forecast Shows Steady Economy with Strong Headwinds and Difficult Choices Ahead Due to Federal Economic Policies, Tariffs and H.R.1

Special session legislation puts Colorado’s finances in a better position, while impacts of H.R.1 and tariffs continue to put pressure on state budget and economy

DENVER, CO – Today, Democratic members of the Joint Budget Committee released statements after the Legislative Council Staff (LCS) and the Office of State Planning and Budgeting (OSPB) delivered the September quarterly economic forecasts.

”We’re no strangers to difficult budget decisions here in Colorado,” said JBC Chair Jeff Bridges, D-Arapahoe County. “Years of thoughtful, bipartisan budgeting puts us on solid financial footing, but with the devastating impacts of H.R.1 along with tariffs continuing to create uncertainty and raise prices for Colorado families, more tough budget decisions are most certainly ahead.”

“While we face strong economic headwinds and uncertainty driven by the chaos in Washington, Colorado is now in a better position, in a large part due to our special session efforts to fill a $1 billion gap caused by Congressional Republicans,” said JBC Vice Chair Shannon Bird, D-Westminster. “Trump’s tariff taxes are driving up costs for families and businesses, slowing the job market and increasing the risk of a recession. As we look ahead to next year’s budget, I remain steadfast in my commitment to prioritize the programs and services Colorado families, seniors and veterans count on.” 

“Today’s forecast confirms what we already know: the chaotic economic policies of the Trump administration are harming Colorado’s economy and the entire country,” said JBC member Judy Amabile, D-Boulder. “Tariffs are driving up costs in critical industries like housing and increasing costs for consumers, while H.R.1 increased administrative costs and slashed federal assistance for programs like health care and food assistance. Our commitment to serve Colorado families remains steadfast. Presentations like today’s help us be ready for the tough budget conversations that we’ll need to have in the coming months.” 

“Today’s forecast indicates that closing corporate tax loopholes helped address some of the $1 billion budget shortfall caused by the Congressional Republicans,” said JBC Member Emily Sirota, D-Denver. “Colorado Democrats took a responsible approach to minimize the harm of the Congressional GOP budget to protect our schools, roads, health care and food assistance programs. Health care costs are rising faster than forecasted, which combined with federal cuts to Medicaid, means difficult decisions are ahead. But by closing corporate tax loopholes and putting people over profit, we spared some of the more severe cuts to life-saving community programs.” 

The Legislative Council Staff (LCS) forecast anticipates General Fund revenues to be $17.17 billion in FY 2025-2026 – a $400 million decrease for FY 2025-2026 as compared with the June revenue forecast. The Office of State Planning and Budgeting (OSPB) anticipates that General Fund revenue will be $17.0 billion for FY 2025-2026 – a $756 million decrease for FY 2025-2026 as compared with the June revenue forecast. 

In July, Congressional Republicans’ H.R.1 created a $1 billion state budget deficit by allowing corporations to dodge taxes owed to Colorado. Following four consecutive years of corporate income tax revenue growth, corporate tax revenue is projected to decline by 30.1 percent, primarily due to H.R.1, which was partially offset by last month’s special session. This forecast shows that laws passed by Democrats during special session to close corporate tax loopholes closed one-third of the deficit, while additional bipartisan legislation closed another one-third of the deficit by using some of the state’s rainy day fund.
 
Medicaid costs, driven by increasing caseload, health care costs and Colorado’s aging population, are rising at a faster rate than previously forecasted. Medicaid is the fastest-growing part of the state budget, and the forecast indicates an increase of $350 million in the next year. As Medicaid caseloads continue to increase, H.R.1 will increase administrative costs for state and local governments. H.R.1 drastically cuts Medicaid, including limiting provider fee revenue and state-directed payments, which according to LCS, will result in a reduction of $575 million in provider fee revenue and between $900 million and $2.5 billion in federal funds over a five year period. Additionally, the various provisions of H.R.1 will jeopardize Medicaid coverage for about 377,000 Coloradans.

The Trump Administration’s economic policies continue to raise prices for consumers. Tariffs are expected to slow economic activity by weakening consumer demand and limiting business development, which will result in lower spending, falling business profits, and slower wage growth. According to LCS, tariffs paid soared to a near-century high of 8.2 percent in Q2. Additionally, inflation continues to rise, with the U.S. experiencing inflation of 2.9 percent and Denver experiencing 2.1 percent. Slowing price increases in the Denver housing market and lower housing costs are the leading contributors to lower inflation in Denver compared to nationally.

During the special session in August, Colorado Republicans sponsored legislation to balance the budget on the backs of working families by reducing a vital tax credit that puts money directly into the pockets of middle and low income families (Family Affordability Tax Credit). Due to the corporate tax cuts in H.R.1, LCS anticipates the credit will be fully turned off for Tax Year 2026, but will partially return in Tax Year 2027. 

JOINT RELEASE: Bipartisan Senate Leadership Condemns Escalation of Violence in America

DENVER, CO – Today, Senate President James Coleman, D-Denver, and Senate Minority Leader Cleave Simpson, R-Alamosa, issued a joint statement condemning the dangerous escalation of violence in America.

“Violence as a means of settling disagreements is incompatible with freedom and is fundamentally un-American. We must condemn it in all its forms. As elected officials, we carry a solemn responsibility to lead not only with conviction, but also with restraint. None of us are perfect, but we strive every day to be better human beings. We must remember that our words and actions shape the tone of our civic life and the harmful rhetoric that can lead to violence.

Even when we disagree, we believe in the freedom to voice opinions without fear of violence or retribution. Our duty is to uphold this freedom and ensure that every Coloradan can live freely without intimidation. Today, and every day to come, we recommit ourselves to preserving the promise of America and to a future where differences are decided by the power of argument, not the threat of violence.

We are united in our resolve to build a free and safe Colorado for all. That work begins with us.”

Black Coloradan Racial Equity Study Commission Hosts First-Ever Community Listening Session

SB24-053 directed History Colorado to study systemic racism in Colorado

DENVER, CO – On Saturday, the Black Coloradan Racial Equity Study Commission hosted their first community listening session at History Colorado. Participants learned about the study’s progress and provided input based on their own experiences.

Legislative members of the Black Coloradan Racial Equity Study Commission, established by SB24-053, include Senate President James Coleman, D-Denver, House Assistant Majority Leader Jennifer Bacon, D-Denver, Senator Tony Exum, D-Colorado Springs, and Representative Naquetta Ricks, D-Aurora.

“This work is all about community,” said Coleman. “Community members first came together to envision a study on the historical and current experiences of Black Coloradans, which led to the Legislature passing SB24-053. Black Coloradans have lived with the impacts of systemic and historic racism for decades. Now that the study is underway, it’s time to return to where we started by listening directly to our community, our families, and our stories.”

“Community made the Black Coloradan Racial Equity Study Commission possible, and today’s listening session provided valuable insight, feedback and unforgettable oral histories,” said Bacon. “Community has been with us every step of the way as we dove deeper into the racial and systemic inequities that have negatively impacted Black Coloradans for decades. Today’s listening session was an important part of our work, and I will remember the community history shared with us today as we outline upcoming policy recommendations.”  

“We cannot understand the impacts of systemic racism in Colorado without hearing directly from the people most affected,” said Exum. “These listening sessions, which started today in Denver and will span across Colorado, are the very core of this study to uncover past harm and listen deeply to the lived experiences of Black Coloradans. This is a step toward healing and creating a more equitable future for all.”

“The idea for the Black Coloradan Racial Equity Study Commission started in the community, and today’s listening session was another piece of our data-driven collective efforts,” said Ricks. “Thank you to every person who shared their story with the commission; your insights and perspectives are important to highlight the past and current racial inequities in Colorado. Today is only the start; community listening sessions across the state will help guide our future policy recommendations.”

SB24-053 established a commission to direct History Colorado to conduct historical research across areas like economic mobility, housing, K-12 education, health care, and the criminal justice system. The study is funded entirely by grants, gifts, and donations, and they have already secured more than $1 million. Over the span of two years, History Colorado will conduct evidence-based historical research, conduct community engagement sessions, and provide quarterly updates. 

At the conclusion of this research, the Black Coloradan Racial Equity Study Commission will hire a third party to conduct an economic analysis based on the research conclusions. The final report will be made publicly accessible through the General Assembly’s website. 

Learn more about the Colorado Black Equity Study on their website.

Statements from Sen. Cutter and Rep. Story on Shooting at Evergreen High School

DENVER, CO – Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County, and Representative Tammy Story, D-Conifer, today released the following statements on the shooting at Evergreen High School:

Statement from Representative Tammy Story, D-Conifer: 

“I am horrified by the shooting at Evergreen High School, and my heart breaks for the students, educators, families and school personnel whose start to the school year has now been marked by inexplicable violence and harm. I am hoping for the swift recovery of the victims, and my thoughts are with them and their families. I am incredibly grateful to the Jefferson County Sheriff's Office, along with first responders and law enforcement from across the Metro area, for their quick action to protect our community and save lives. 

“No student should ever fear going to school or face danger like this, and parents should never have to worry when their child is at school. Shootings at schools are far too frequent in our country, and I am sickened that this has happened again in Jefferson County. Our community is strong, and I know we will come together to support the Evergreen High School community in this very difficult time. I am closely monitoring the situation, and I will do everything I can to support our community.”

Statement from Senate Assistant Majority Leader Lisa Cutter, D-Jefferson County:

“I am heartbroken by the news of the shooting at Evergreen High School and angered at another senseless act of gun violence in our state. Schools need to be safe places, and this tragedy is yet another reminder that we must do better to protect our kids. I am grateful for the rapid response by first responders, medical teams, school staff, and the students of Evergreen High School. My prayers are with the victims, their friends and families, and the entire Evergreen community. I am hopeful for a quick and full recovery for the victims.”

Bill to Limit Premium Increases, Restore Access to Health Care Becomes Law

Congressional Republican tax bill threatens health care coverage for 112,000 Coloradans, increases premiums by over 28-percent statewide

DENVER, CO – Governor Jared Polis on Thursday signed a bill into law to help blunt health insurance rate increases and significantly reduce the number of Coloradans who could lose their health insurance coverage due to Congress’s refusal to extend the enhanced premium tax credits.

“This legislation will blunt Congressional Republicans’ nearly 30 percent increase in health care premium hikes and prevent 20,000 Coloradans from losing their health care coverage,” said Rep. Kyle Brown, D-Louisville. “If we don’t act now, Republicans’ failure to extend tax credits for people who purchase their health insurance will lead to over 100,000 Coloradans losing coverage next year and increased costs for businesses and families.” 

“Coloradans cannot afford these insurance premium hikes, so we are doing what needs to be done to keep costs down and protect coverage,” said Senator Kyle Mullica, D-Thornton. “Skyrocketing premiums mean that hundreds of thousands of Coloradans will be forced to spend more of their paycheck on essential health care, and many will lose their coverage altogether. We can’t wait. We must act now to shield families from these unaffordable premium increases and keep Coloradans insured.”

“Only Congress can fully prevent 100,000 Coloradans from losing health care next year and stop these outrageous premium increases, but we are doing what we can for one year in Colorado to protect care for as many people as possible,” said Rep. Lindsay Gilchrist, D-Denver. “When people don’t have health insurance, they either aren’t able to see a doctor, or when they do, everyone else has to pay for that care. This drives up costs for everyone and leads to worse health outcomes. Congress must act now to prevent massive price hikes for health insurance.”

“Coloradans in every corner of the state have struggled to make ends meet to pay for costly health care coverage,” said Senator Iman Jodeh, D-Aurora. “Due to Congressional Republicans’ failure to extend premium tax credits that help keep insurance premiums affordable, tens of thousands of lives are at stake. We simply cannot gamble with life-saving health care coverage. That’s why we’re taking action and doing everything we can this year to protect Coloradans’ care.”

“The reinsurance program has saved Coloradans billions on health insurance, especially on the Western Slope, where Congressional Republicans’ inaction will leave us facing nearly 40 percent increases in insurance premiums,” said Speaker Julie McCluskie, D-Dillon. “This law will help us avoid even higher price hikes and preserve coverage for Coloradans who will lose access to health care if we do not act now. Congress has failed our state, and I urge Jeff Hurd, Gabe Evans and the Republicans in our delegation to act now to prevent 100,000 Coloradans from losing access to health care and to stop the 40 percent premium increases on the individual market that are coming next year as a result of their budget.”  

If the federal enhanced premium tax credit is not extended by December 31, 2025, HB25B-1006 will make changes to the Health Insurance Affordability Act by:

• Boosting funds in the Health Insurance Affordability Cash Fund to blunt serious increases in insurance premiums and protect coverage. Funding sources would include up to $110 million, plus administrative costs, from a combination of tax credit pre-sales and the Refinance Discretionary Account. The State Treasurer would manage the tax credit pre-sales; should they not raise $100 million in revenue, the General Fund Reserve would serve as a backstop,

• Giving the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to utilize their reserves to support the Enterprise’s programs,

• Allowing the Board and the Commissioner of Insurance to make changes to the OmniSalud program to maximize the number of Coloradans who can receive insurance coverage, which lowers health insurance premiums for everyone, and 

• Increasing transparency by requiring the HIAE Board to annually report on certain financial metrics and authorizing the State Auditor to audit the programs.

HB25B-1006 helps the reinsurance program buy down premiums and cover the most expensive health care for patients. With Congressional Republicans’ failure to extend the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, average statewide premiums are projected to increase by 28-percent. In the Eastern Plains, premiums are expected to rise more than 33-percent. The Western Slope will see premium increases of about 38-percent. This investment in reinsurance is projected to keep premium increases to a statewide average of only 20-percent.

OmniSalud reduces health care costs for all Coloradans by connecting Coloradans who are not eligible for Medicaid to affordable health insurance. Without this program, there would be an increase in uncompensated care that would increase insurance costs for all Coloradans and force health care providers to close. There are currently over 12,000 Coloradans insured for plan year 2025, and if no action is taken to combat the impacts from the Republican budget bill, nearly all of them will lose their coverage in plan year 2026. When fewer people have health insurance, costs increase for everyone else, and providers struggle to stay afloat. 

Signed! Bill to Auction Future Tax Credits at Discount

DENVER, CO – Governor Jared Polis on Thursday signed legislation to allow businesses to pre-pay taxes at a small discount, after a $1 billion hole was created in Colorado’s budget by recent federal tax changes.

HB25B-1004, sponsored by Senators Janice Marchman, D-Loveland, and Marc Snyder, D-Manitou Springs, and Representatives Rebekah Stewart, D-Lakewood, and Sean Camacho, D-Denver, allows businesses to pre-pay taxes at a discount for future years when Colorado is anticipated to collect more revenue than the state’s spending limit under TABOR. 

“HB25B-1004 gives Colorado businesses a chance to save on future taxes while helping the state manage this year’s billion-dollar budget shortfall,” said Marchman. “It’s a practical approach that supports local economies, protects essential services, and makes sure businesses and communities both come out ahead.”

“The billion-dollar revenue shortfall we’re facing from Congressional Republicans’ corporate tax breaks would require cuts to health care, public education, transportation and other essential services, which is why we took action with this special session to protect Coloradans and core services," said Stewart. “By allowing companies to pre-pay future taxes, we can boost revenue now to fund these services. We’re using all the tools in our tool belt to address the crisis caused by Trump and Congressional Republicans when they passed a budget bill that hands out corporate tax giveaways at the expense of hardworking Coloradans.”

“This new law lets Colorado businesses work with the state to save money now and protect the things we all rely on like K-12 public schools, roads, and health care,” said Snyder. “By prepaying future taxes at a discount, businesses can reduce long-term costs while helping the state weather the budgeting storm caused by Republicans in Congress. This law represents who we are as Colorado, where all of us chip in to keep our communities thriving.”

“Unlike Republicans in Congress, Colorado Democrats are demonstrating that we prioritize the needs of our constituents, not the ultra-wealthy,” said Camacho. “Our legislation will allow businesses to pay their future taxes now, at a discounted price, to save them some money while protecting funding for services that all Coloradans rely on. This law is one of many steps that Colorado Democrats are taking to blunt the destructive impacts of Trump’s tax bill.”

HB25B-1004 allows a one-time auction of future tax credits, giving companies the opportunity to buy tax credits to pre-pay a portion of their future taxes at a small discount. This saves businesses money, allowing companies to pre-pay future taxes now, and bolsters our state revenue to offset the immediate impacts of recent federal tax changes. This does decrease revenue in future years, but after 2025-2026 the state budget is forecast to be limited by the TABOR cap, not the amount of revenue collected, so this won’t cut deeper into state services.

JOINT RELEASE: Bill to Increase Oversight & Collaboration Between Executive & Legislative Branches During Revenue Shortfalls Signed Into Law

DENVER, CO – The Governor on Thursday signed into law legislation that will better balance the authority between the Governor and the General Assembly during times of economic uncertainty.

Previously, the Governor had broad unilateral authority to suspend programs and services during a revenue shortfall via executive order. SB25B-001 now requires the Governor to notify the Joint Budget Committee (JBC) of executive orders to reduce spending and requires the JBC to promptly meet with the executive branch to discuss the plan. Earlier today, JBC met to hear from Governor Polis and the Office of State Planning and Budgeting on his executive order to suspend certain spending during the current fiscal year.

“Strong collaboration between the executive and legislative branches helps to create a more efficient government,” said Senate President James Coleman, D-Denver. “This new law improves collaboration during times when it is arguably most important, times when the state faces revenue shortfalls that require spending reductions. This is a step in the right direction to ensuring the General Assembly has a stronger voice in these critical decision-making processes.”

“When Congressional Republicans passed Trump’s tax bill last month, it immediately blew a billion-dollar hole in this year’s state budget, putting us in a position to make difficult spending cuts,” said Rep. Emily Sirota, D-Denver. “The law signed today strengthens collaboration by bringing the Joint Budget Committee to the table, when previously the Governor had sole power to make cuts to programs and services during a revenue shortfall. With this law, we can encourage a more balanced approach to fill the revenue hole that was caused by the reckless federal GOP budget.”

“In times of economic uncertainty, the executive and legislative branches must work together to do what’s best for the people of Colorado,” said Senator Judy Amabile, D-Boulder. “The Joint Budget Committee works year round to ensure that we’re budgeting responsibly, and it is only right that we have a seat at the table when the Governor is making spending reductions. This legislation is critical to ensuring that collaboration and updating spending reduction triggers to better reflect the current size of our reserves, which Democrats have worked hard to build up since the COVID pandemic.”

“Because of Trump’s corporate giveaways, we are forced to make cuts to our budget. This legislation will help us make well-informed, data-driven decisions to minimize the harm caused by Congressional Republicans,” said Speaker Julie McCluskie, D-Dillon. “Creating a responsible and thoughtful process to reduce state spending is a much better approach than the legislature rebalancing the budget on the fly, without any analysis from our nonpartisan staff, data or input from the Joint Budget Committee. We’re balancing the Governor’s authority, improving transparency and updating spending reduction triggers to better serve the people of Colorado.”

The bill balances the authority between the Governor and the General Assembly by ensuring the JBC is involved in decision-making processes early on and by adding guardrails to the executive branch’s existing authority to help ensure that they continue to meet and implement legislative directives.

The bill also updates the triggers requiring spending reductions to more accurately reflect economic pressures and the current status of the reserve, which Democrats have worked to build up to 15 percent since the COVID pandemic when it fell below four percent. In addition to the triggers in existing law, the bill adds that if a revenue estimate indicates that the state is on track to use an amount of the reserve equal to three percent of the general fund appropriations for that fiscal year (e.g. around $490 million for FY26), the Governor must take action to reduce spending.

Governor Signs Legislation to Close a Special Interest Corporate Tax Loophole

Congressional Republicans’ budget created a $1 billion deficit by allowing corporations to dodge nearly $1 billion in taxes owed to Colorado

DENVER, CO – The Governor on Thursday signed legislation to close a special interest corporate tax loophole for insurance companies after Republicans in Congress created a $1 billion hole in Colorado’s budget with massive corporate tax cuts.

HB25B-1003, sponsored by Senators Mike Weissman, D-Aurora, and Julie Gonzales, D-Denver, and Representatives Javier Mabrey, D-Denver, and Andrew Boesenecker, D-Fort Collins, repeals a special tax break for insurance companies. Before this new law, insurance companies with a headquarters or regional home office (RHO) in Colorado could pay a lower tax rate if at least 2.5 percent of their domestic workforce resides in Colorado. HB25B-1003 repeals this reduction. 

“In H.R. 1, Congressional Republicans doubled down on broken tax laws, rewarding the wealthy and connected instead of supporting families and small businesses,” said Weissman. “But here in Colorado we try to base our choices in the facts. And non-partisan research has shown this outdated corporate tax break doesn't bring jobs to Colorado and has actually rewarded firings, which is why we are putting an end to it.”

“Under Trump’s budget, corporations that are boasting record profits will see special tax breaks while everyday Coloradans are kicked off their health care and kids lose food and nutrition support,” said Mabrey. “Colorado Democrats don’t believe in subsidizing corporations while hardworking people lose access to life-saving health care. This law ends a special insurance industry tax break and protects funding for schools, roads and health care.”

“Insurance companies and billionaires don’t need any more tax handouts – they’ve gotten plenty from the Trump administration and Republicans in Congress,” said Gonzales. “This new law is a step toward making Colorado’s tax code work for our communities and not corporations. It ends a tax giveaway to major insurance companies that tax experts agree isn’t effective, and instead helps protect funding for schools and essential services.” 

“Trump’s budget will increase prices for health care, energy, food, and everyday necessities while slashing taxes for major corporations,” said Boesenecker. “This law ends an outdated and ineffective special tax reduction for insurance companies while protecting the services that matter most to hardworking Coloradans, like health care and public education. While this special tax reduction was meant to create jobs, nonpartisan audits show that insurance companies continue to cut jobs, making it necessary to close this loophole.”

A 2025 report from the Office of the State Auditor found that the tax credit is not achieving its goal of incentivizing job creation in Colorado’s insurance sector, yet it has impacted state revenue by $68 million to $105 million per year. Since the implementation of the workforce percentage requirement, the number of insurers and groups that qualify for the RHO rate reduction has not only decreased, but 15 of the 18 qualifying insurance groups reported a decrease in Colorado jobs while receiving a $17.5 million increase in credits.

Bills to Crack Down on Foreign Tax Havens, Close Tax Breaks for Corporations and Protect Critical Services Become Law

New laws aim to crack down on tax avoidance, tax breaks for corporations and helps fill $1 billion revenue hole created by Congressional Republicans’ budget

DENVER, CO – Governor Jared Polis on Thursday signed two bills into law. These new laws will protect core services and close corporate tax loopholes after Republicans in Congress created a $1 billion hole in Colorado’s budget with massive corporate tax cuts.  

HB25B-1002 cracks down on foreign tax havens and offshore bank accounts, and HB25B-1001 limits tax breaks for higher-earning business owners by permanently decoupling from a federal tax giveaway. 

“This legislation prevents corporations from hiding money overseas so they can dodge paying their fair share of taxes,” said Rep. Yara Zokaie, D-Fort Collins, sponsor of HB25B-1002. “Congressional Republicans’ budget handed billions of dollars in tax breaks to the wealthiest people and corporations, and it’s only fair that we close these loopholes and protect funding for teachers, health care and transportation. Everyday people can’t stash their income overseas to avoid taxes, and neither should billionaires and corporations.”

“In both terms, Donald Trump has given large corporations more leeway to dodge taxes by shifting profits overseas,” said Senator Matt Ball, D-Denver, sponsor of HB25B-1002. “Colorado shouldn’t reward that behavior, and this law makes sure those companies pay their fair share towards Colorado's schools, health care, and roads.”

“The irresponsible Republican tax bill not only runs the largest deficit since World War II to give massive tax giveaways to large corporations, it also undermines the strength of our country and blasts a billion-dollar hole in Colorado's balanced budget,” said Rep. Bob Marshall, D-Highlands Ranch, sponsor of HB25B-1002. “I sponsored this law to close loopholes used by large multinational corporations to shield and hide their income in foreign tax havens, including those that Trump's own Secretary of Commerce has called ‘tax scams’. It is disappointing that some colleagues chose to vote to protect these tax scams used by large multinational companies and ultra-wealthy individuals with access to sophisticated tax planning to avoid paying taxes, which increases the burden upon small businesses and individuals to fund the state's essential services, from roads to schools.”  

HB25B-1002 cracks down on foreign tax havens, offshore bank accounts and other tax loopholes for US companies that dodge Colorado taxes with foreign assets. Unless they can prove legitimate operations in the foreign country, Colorado requires companies incorporated in common tax havens, like Cayman Islands and Panama, to pay Colorado taxes to prevent international tax avoidance. For tax years beginning on or after January 1, 2026, the law expands the list of countries to include Hong Kong, Ireland, Liechtenstein, the Netherlands and Singapore.

In 2017, President Trump created a special tax break, now known as the Foreign-Derived Deduction Eligible Income (FDDEI) deduction, for multi-national businesses that kept their intangible assets in the US. The law decouples the state from the FDDEI to prevent companies from benefiting from larger Colorado tax breaks for investments and assets that are based outside of the state.

President Trump’s 2017 tax cuts also allowed pass-through businesses, like S corporations and real estate investment trusts, to avoid paying taxes on up to 20-percent of qualified business income. In 2020, the Colorado legislature passed the “Tax Fairness Act”, decoupling from this federal tax cut by creating an add-back for this deduction for high-income business owners with an income over $500,000 per year for single filers or $1 million per year for joint filers. 

“These corporate tax breaks show loud and clear that Trump and Congressional Republicans care more about helping their wealthy friends hoard more wealth than providing essential government services to hardworking Americans,” said Senator Nick Hinrichsen, D-Pueblo, sponsor of HB25B-1001. “Legislation like HB25B-1001 will help us stop these corporate giveaways and continue life-saving food assistance and health care programs for Coloradans.”

“Congressional Republicans passed a budget that adds even more tax breaks to high-earning business owners while kicking Coloradans off of their health insurance coverage and raising costs for all Coloradans,” said Rep. Emily Sirota, D-Denver, sponsor of HB25B-1001. “When Trump passed tax breaks in his first term that allowed high-earners to lop 20-percent off their taxable income, Colorado Democrats took action and decoupled from this federal giveaway for the wealthy. This law makes Colorado’s decoupling permanent and prioritizes hardworking Coloradans.”

“In 2021, the Colorado legislature took major strides toward reversing Trump’s corporate tax breaks in order to protect essential services for Coloradans who depend on them,” said Senator Lisa Cutter, D-Jefferson County, sponsor of HB25B-1001. “This year, Trump and Congressional Republicans made those tax breaks permanent, so we're fighting to continue prioritizing the basic services that benefit hardworking Coloradans the most. With this new law, we’re permanently decoupling from these unfair tax breaks to ensure corporations pay their fair share to hardworking Coloradans.”

The legislature previously extended the decoupling and add-back through 2025. HB25B-1001 makes Colorado’s decoupling permanent, responding to the action by Republicans in Congress to make the tax giveaway permanent at the federal level in HR 1.

JOINT RELEASE: SIGNED! Legislation to Restore Access to Medicaid Services for Planned Parenthood Patients, Protect Food Assistance for Coloradans

DENVER, CO – The Governor today signed two bills into law to restore access to Medicaid services for Planned Parenthood patients and to give voters the opportunity to fund food assistance for Colorado students and families. 

SB25B-002, sponsored by Senators Jeff Bridges, D-Arapahoe County, and Lindsey Daugherty, D-Arvada, and House Assistant Majority Leader Jennifer Bacon, D-Denver, and Representative Jenny Willford, D-Northglenn, authorizes state funding for Planned Parenthood and other reproductive health care providers removed from the federal Medicaid program by H.R.1. This action will restore access to health care services for more than 10,000 patients in Colorado. 

“Republicans in Congress want you to believe their budget puts working-class Americans first, but the exact opposite is true – this budget is the largest cut to Medicaid in American history,” Bridges said. “Thousands of Coloradans on Medicaid who rely on Planned Parenthood had to scramble to find different providers or went without care altogether after H.R.1 passed. This legislation will restore access to that care and peace of mind to patients across our state.”

“Health care shouldn't be political,” Bacon said. “The federal GOP budget bill targeted Planned Parenthood, threatening access to low-cost family planning and preventive care for all Coloradans in all corners of our state. All Coloradans, whether or not they are a Medicaid recipient, deserve access to reproductive health care. This new law is an effort to fight back against the largest cut to Medicaid in the history of our country and protect thousands of Coloradans from losing this essential health care coverage and access to the provider of their choice.”

“Time and time again, and most recently, last November, Colorado voters have overwhelmingly said they will support and defend their right to reproductive health care,” Daugherty said. “Amidst a hostile national landscape, this legislation is yet another step we must take to protect Coloradans’ right to safe, accessible and affordable reproductive health care.” 

“Despite Coloradans’ overwhelming support of reproductive freedom, Congressional Republicans continue to attack access to life-saving health care,” Willford said. “When Trump’s budget was signed into law, it forced Planned Parenthood to immediately cancel every appointment for Medicaid recipients. While corporations enjoy their new tax breaks, Coloradans on Medicaid risk losing access to STI testing, cancer screenings and abortion care. I’m proud to stand up for Coloradans with this new law that will restore access to life-saving care.”

SB25B-002 authorizes the Department of Health Care Policy and Financing to use state funds to pay claims to organizations like Planned Parenthood, who were barred from federal Medicaid funding by Congressional Republicans’ H.R. 1, for certain services including cancer screenings, birth control consultations, and STI testing. In the event that federal action renders these entities eligible for reimbursements again, the law would no longer be in effect.

H.R. 1 immediately removed Planned Parenthood from the federal Medicaid program, forcing Planned Parenthood of the Rocky Mountains providers to cancel thousands of appointments. Weeks later, a Temporary Restraining Order reversed this federal prohibition, though the issue is still working its way through the courts. 

SB25B-003, sponsored by Senate President Pro Tempore Dafna Michaelson Jenet, D-Commerce City, and Senator Katie Wallace, D-Longmont, and Representatives Lorena Garcia, D-Unincorporated Adams County, and Katie Stewart, D-Durango, modifies Proposition MM, which the Legislature referred to the November 2025 ballot, to give Colorado voters the opportunity to fund the Supplemental Nutrition Assistance Program (SNAP) in addition to the Healthy School Meals for All program. 

“No child in Colorado should go hungry because they can’t afford a nutritious meal – at school or at home,” said Michaelson Jenet. “By adjusting Proposition MM to include SNAP, Colorado voters will have the opportunity this November to help keep this life-saving program afloat, while fully funding Healthy School Meals for All Colorado students.” 

“Every Coloradan should be outraged that Trump and Congressional Republicans’ budget offers significant tax breaks to mega corporations while jeopardizing food security for children and families,” Garcia said. “SNAP and Healthy School Meals for All are life-saving programs, and there will be crushing consequences if they are not fully funded. I am disappointed in our GOP federal delegation for voting for H.R.1, but this law gives Coloradans the opportunity to combat some of the cuts to food assistance programs and prevent children from going hungry.”

“SB25B-003 builds on the will of the voters to ensure that no child in our state goes hungry, while also supporting our local economies,” said Wallace. “The Healthy School Meals for All program improves educational outcomes, supports farmers and ranchers, and reduces strain on families' budgets. With the additions in this new law, we can also help 300,000 Colorado households afford groceries each month. Ultimately, this legislation empowers Colorado voters to continue our state’s now proud tradition of ensuring none of Colorado’s children go hungry.”

“It breaks my heart that over 600,000 Coloradans, especially children, will be impacted by the SNAP cuts under Trump’s budget bill,” Stewart said. “Families struggling with food insecurity should never have to worry about when their next meal will be, which is why Colorado Democrats helped create the Healthy School Meals for All program and have continuously invested in programs like SNAP and EBT. Our law adds SNAP to Proposition MM, giving Colorado voters the opportunity to continue programs that keep vulnerable Coloradans fed.”

In June, Governor Polis signed HB25-1274 which referred two ballot measures, Propositions LL and MM, to Colorado voters to determine whether or not to continue funding the Healthy School Meals for All program, which offers free, nutritious school meals to all public school students.

In July, Congressional Republicans made unprecedented cuts to SNAP with the passage of H.R. 1, slashing millions from the program that helps families put food on the table. Now, more than 300,000 low-income Colorado families – including children, older adults, and people with disabilities – are at risk of going hungry. By adjusting Proposition MM to include SNAP, voters will have the opportunity this November to fully fund the successful Healthy School Meals for All program and help fund SNAP. 

If Proposition MM passes, it could raise up to $95 million per year by limiting state income tax deductions for households earning over $300,000. These new revenues would first ensure that the Healthy School Meals program is fully funded, and then any remaining funds could support SNAP.

Senate Approves Bill to Limit Premium Increases, Restore Access to Health Care

Congress’s inaction threatens health care coverage for 112,000 Coloradans, increases premiums by over 28 percent statewide

DENVER, CO – Today the Senate approved a bill sponsored by Senators Kyle Mullica, D-Thornton, and Iman Jodeh, D-Aurora, to help blunt health insurance rate increases and significantly reduce the number of Coloradans who could lose their health insurance coverage due to Congress’s refusal to extend premium tax credits.

“Coloradans cannot afford these insurance premium hikes, so we are doing what needs to be done to keep costs down and protect coverage,” said Mullica. “Skyrocketing premiums mean that hundreds of thousands of Coloradans will be forced to spend more of their paycheck on essential health care, and many will lose their coverage altogether. We can’t wait. We must act now to shield families from these unaffordable premium increases and keep Coloradans insured.”

“Coloradans in every corner of the state have struggled to make ends meet to pay for costly health care coverage,” said Jodeh. “Due to Congressional Republicans’ failure to extend premium tax credits that help keep insurance premiums affordable, tens of thousands of lives are at stake. We simply cannot gamble with life-saving health care coverage. That’s why we’re taking action and doing everything we can this year to protect Coloradans’ care.”

If the federal enhanced premium tax credit is not extended by December 31, 2025, HB25B-1006 makes changes to the Health Insurance Affordability Act by:

• Boosting funds in the Health Insurance Affordability Cash Fund to blunt serious increases in insurance premiums and protect coverage. Funding sources would include up to $110 million, plus administrative costs, from a combination of tax credit pre-sales and the Refinance Discretionary Account. The State Treasurer would manage the tax credit pre-sales; should they not raise $100 million in revenue, the General Fund Reserve would serve as a backstop. 

• Giving the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to utilize their reserves to support the Enterprise’s programs.

• Allowing the HIAE and the Commissioner of Insurance to make changes to the OmniSalud program to maximize the number of Coloradans who can receive insurance coverage, which lowers health insurance premiums for everyone, and 

Increasing transparency by requiring the HIAE Board to annually report on certain financial metrics.

HB25B-1006 helps the reinsurance program buy down premiums and cover the most expensive health care for patients. With Congressional Republicans choosing not to extend the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, average statewide premiums are projected to increase by 28 percent. In the Eastern Plains, premiums are expected to rise more than 33 percent. The Western Slope will see premium increases of about 38 percent. This investment in reinsurance should keep premium increases to a statewide average of 20 percent.

OmniSalud reduces health care costs for all Coloradans by connecting Coloradans who are no longer eligible for Medicaid to affordable health insurance. Without this program, there would be an increase in uncompensated care that would increase insurance costs for all Coloradans and force health care providers to close. There are currently over 12,000 Coloradans insured for plan year 2025, and if no action is taken to combat the impacts from the Republican budget bill, nearly 10,000 people will lose their coverage in plan year 2026. When fewer people have health insurance, costs increase for everyone else and providers struggle to stay afloat.

HB25B-1006 now returns to the House for consideration of amendments. Track its progress HERE.

Bill to Auction Future Tax Credits at Discount Passes Senate

DENVER, CO – The Senate today passed legislation to allow businesses to pre-pay taxes at a small discount after a $1 billion hole was created in Colorado’s budget by recent federal tax changes.

HB25B-1004, sponsored by Senators Janice Marchman, D-Loveland, and Marc Snyder, D-Manitou Springs, allows businesses to pre-pay taxes at a discount for future years when Colorado is anticipated to collect more revenue than the state’s spending limit under TABOR. 

“HB25B-1004 gives Colorado businesses a chance to save on future taxes while helping the state manage this year’s billion-dollar budget shortfall,” said Marchman. “It’s a practical approach that supports local economies, protects essential services, and makes sure businesses and communities both come out ahead.”

“This bill lets Colorado businesses work with the state to save money now and protect the things we all rely on like K-12 public schools, roads, and health care,” said Snyder. “By prepaying future taxes at a discount, businesses can reduce long-term costs while helping the state weather the budgeting storm caused by Republicans in Congress. This bill represents who we are as Colorado, where all of us chip in to keep our communities thriving.”

HB25B-1004 would allow a one-time auction of future tax credits, giving companies the opportunity to buy tax credits to pre-pay a portion of their future taxes at a small discount. This saves businesses money, allowing companies to pre-pay future taxes now, and bolsters our state revenue to offset the immediate impacts of recent federal tax changes. This does decrease revenue in future years, but after 2025-2026 the state budget is forecast to be limited by the TABOR cap, not the amount of revenue collected, so this won’t cut deeper into state services.

HB25B-1004 now returns to the House for consideration of amendments.

Legislation to Close Tax Breaks for Corporations Passes Senate

Bill aims to help protect critical services and help to fill the $1 billion budget shortfall created by Congressional Republicans’ budget 

DENVER, CO – Legislation to crack down on corporate tax loopholes to help fill the $1 billion budget shortfall created by Congressional Republicans’ budget passed the Senate today.

HB25B-1001, sponsored by Senators Nick Hinrichsen, D-Pueblo, and Lisa Cutter, D-Jefferson County, would limit tax breaks for higher-earning business owners by permanently decoupling from a federal tax giveaway.

“These corporate tax breaks show loud and clear that Trump and Congressional Republicans care more about helping their wealthy friends hoard more wealth than providing essential government services to hardworking Americans,” Hinrichsen said. “Legislation like HB25B-1001 will help us stop these corporate giveaways and continue life-saving food assistance and health care programs for Coloradans.”

“In 2021, the Colorado legislature took major strides toward reversing Trump’s corporate tax breaks in order to protect essential services for Coloradans who depend on them,” Cutter said. “This year, Trump and Congressional Republicans made those tax breaks permanent, so we're fighting to continue prioritizing the basic services that benefit hardworking Coloradans the most. With this bill, we’re permanently decoupling from these unfair tax breaks to ensure corporations pay their fair share to hardworking Coloradans.”

In 2017, President Trump passed tax cuts that allowed pass-through businesses, like S corporations and real estate investment trusts, to avoid paying taxes on up to 20 percent of qualified business income. In 2020, the Colorado legislature passed the “Tax Fairness Act”, decoupling from this federal tax cut by creating an add-back for this deduction for high-income business owners with an income over $500,000 per year for single filers or $1 million per year for joint filers.

The legislature extended the decoupling and add-back through 2025. HB25B-1001 would make Colorado’s decoupling permanent, responding to the action by Republicans in Congress to make the tax giveaway permanent at the federal level in H.R. 1.

HB25B-1001 now moves to the Governor’s desk for his signature. 

Senate Approves Legislation to Close a Special Interest Corporate Tax Loophole

Congressional Republicans’ budget created a $1 billion deficit by allowing corporations to dodge nearly $1 billion in taxes owed to Colorado

DENVER, CO – The Senate today passed legislation to close a special interest corporate tax loophole for insurance companies after Republicans in Congress created a $1 billion hole in Colorado’s budget with massive corporate tax cuts.

HB25B-1003, sponsored by Senators Mike Weissman, D-Aurora, and Julie Gonzales, D-Denver, would repeal a special tax break for insurance companies. Under the current law established in the 1950s, insurance companies with a headquarters or regional home office (RHO) in Colorado can pay a lower tax rate if at least 2.5 percent of their domestic workforce resides in Colorado. HB25B-1003 repeals this reduction. 

“In H.R. 1, Congressional Republicans doubled down on broken tax laws, rewarding the wealthy and connected instead of supporting families and small businesses,” said Weissman. “But here in Colorado we try to base our choices in the facts. And non-partisan research has shown this outdated corporate tax break doesn't bring jobs to Colorado and has actually rewarded firings, which is why we are putting an end to it.”

“Insurance companies and billionaires don’t need any more tax handouts – they’ve gotten plenty from the Trump administration and Republicans in Congress,” said Gonzales. “This bill is a step toward making Colorado’s tax code work for our communities and not corporations. It ends a tax giveaway to major insurance companies that tax experts agree isn’t effective, and instead helps protect funding for schools and essential services.” 

A 2025 report from the Office of the State Auditor found that the tax credit is not achieving its goal of incentivizing job creation in Colorado’s insurance sector, yet it has impacted state revenue by $68 million to $105 million per year. Since the implementation of the workforce percentage requirement, the number of insurers and groups that qualify for the RHO rate reduction has not only decreased, but 15 of the 18 qualifying insurance groups reported a decrease in Colorado jobs while receiving a $17.5 million increase in credits.

HB25B-1003 now heads to the Governor’s desk for his signature.

Bill to Limit Premium Increases, Restore Access to Health Care Passes Committee

Congress’s inaction threatens health care coverage for 112,000 Coloradans, increases premiums by over 28 percent statewide

DENVER, CO – Today the Senate Appropriations Committee passed a bill sponsored by Senators Kyle Mullica, D-Thornton, and Iman Jodeh, D-Aurora, to help blunt health insurance rate increases and significantly reduce the number of Coloradans who could lose their health insurance coverage due to Congress’s refusal to extend premium tax credits.

“Coloradans cannot afford these insurance premium hikes, so we are doing what needs to be done to keep costs down and protect coverage,” said Mullica. “Skyrocketing premiums mean that hundreds of thousands of Coloradans will be forced to spend more of their paycheck on essential health care, and many will lose their coverage altogether. We can’t wait. We must act now to shield families from these unaffordable premium increases and keep Coloradans insured.”

“Coloradans in every corner of the state have struggled to make ends meet to pay for costly health care coverage,” said Jodeh. “Due to Congressional Republicans’ failure to extend premium tax credits that help keep insurance premiums affordable, tens of thousands of lives are at stake. We simply cannot gamble with life-saving health care coverage. That’s why we’re taking action and doing everything we can this year to protect Coloradans’ care.”

If the federal enhanced premium tax credit is not extended by December 31, 2025, HB25B-1006 would make changes to the Health Insurance Affordability Act by:

• Boosting funds in the health insurance affordability cash fund to blunt serious increases in insurance premiums and protect coverage. Funding sources would include up to $113 million from a combination of tax credit pre-sales and the Refinance Discretionary Account. The State Treasurer would manage the tax credit pre-sales; should they not raise $100 million in revenue, the General Fund Reserve would serve as a backstop. 

• Giving the Department of Insurance and the Health Insurance Affordability Enterprise (HIAE) Board the flexibility to utilize their reserves to support the Enterprise’s programs.

• Allowing the HIAE and the Commissioner of Insurance to make changes to the OmniSalud program to maximize the number of Coloradans who can receive insurance coverage, which lowers health insurance premiums for everyone, and 

• Increasing transparency by requiring the HIAE Board to annually report on certain financial metrics.

HB25B-1006 would help the reinsurance program buy down premiums and cover the most expensive health care for patients. With Congressional Republicans choosing not to extend the enhanced premium tax credits for people who purchase health insurance through the Affordable Care Act marketplace, average statewide premiums are projected to increase by 28 percent. In the Eastern Plains, premiums are expected to rise more than 33 percent. The Western Slope will see premium increases of about 38 percent. This investment in reinsurance should keep premium increases to a statewide average of 20 percent.

OmniSalud reduces health care costs for all Coloradans by connecting Coloradans who are no longer eligible for Medicaid to affordable health insurance. Without this program, there would be an increase in uncompensated care that would increase insurance costs for all Coloradans and force health care providers to close. There are currently over 12,000 Coloradans insured for plan year 2025, and if no action is taken to combat the impacts from the Republican budget bill, nearly 10,000 people will lose their coverage in plan year 2026. When fewer people have health insurance, costs increase for everyone else, and providers struggle to stay afloat.

HB25B-1006 now moves to the Senate floor for further consideration. Track its progress HERE.

Legislation to Crack Down on Foreign Tax Havens Passes Senate

DENVER, CO – The Senate today approved legislation to crack down on foreign tax havens to help fill the $1 billion budget shortfall created by Congressional Republicans’ budget.

HB25B-1002, sponsored by Senator Matt Ball, D-Denver, would address foreign tax havens, offshore bank accounts, and other tax loopholes for US companies that dodge Colorado taxes with foreign assets.

“In both terms, Donald Trump has given large corporations more leeway to dodge taxes by shifting profits overseas,” Ball said. “Colorado shouldn’t reward that behavior, and this bill makes sure those companies pay their fair share towards Colorado's schools, health care, and roads.”

Unless they can prove legitimate operations in the foreign country, Colorado requires companies incorporated in common tax havens, like Cayman Islands and Panama, to pay Colorado taxes to prevent international tax avoidance. For tax years beginning on or after January 1, 2026, the bill would expand the list of countries to include Hong Kong, the Republic of Ireland, Liechtenstein, the Netherlands, and Singapore.

In 2017, President Trump created a special tax break, now known as the Foreign-Derived Deduction Eligible Income (FDDEI) deduction, for multi-national businesses that kept their intangible assets in the US. HB25B-1002 would decouple the state from the FDDEI to prevent companies from benefiting from larger Colorado tax breaks for investments and assets that are based outside of the state.

HB25B-1002 now moves to the Governor’s desk for his signature.

Senate Advances Bill to Auction Future Tax Credits at Discount

DENVER, CO –The Senate Appropriations Committee today passed legislation to allow corporations to pre-pay taxes at a small discount, after a $1 billion hole was created in Colorado’s budget by recent federal tax changes.

HB25B-1004, sponsored by Senators Janice Marchman, D-Loveland, and Marc Snyder, D-Manitou Springs, allows businesses to pre-pay taxes at a discount for future years when Colorado is anticipated to collect more revenue than the state’s spending limit under TABOR. 

“HB25B-1004 gives Colorado businesses a chance to save on future taxes while helping the state manage this year’s billion-dollar budget shortfall,” said Marchman. “It’s a practical approach that supports local economies, protects essential services, and makes sure businesses and communities both come out ahead.”

“This bill lets Colorado businesses work with the state to save money now and protect the things we all rely on like K-12 public schools, roads, and health care,” said Snyder. “By prepaying future taxes at a discount, businesses can reduce long-term costs while helping the state weather the budgeting storm caused by Republicans in Congress. This bill represents who we are as Colorado, where all of us chip in to keep our communities thriving.”

HB25B-1004 would allow a one-time auction of future tax credits, giving companies the opportunity to buy tax credits to pre-pay a portion of their future taxes at a small discount. This saves businesses money, allowing companies to pre-pay future taxes now, and bolsters our state revenue to offset the immediate impacts of recent federal tax changes. This does decrease revenue in future years, but after 2025-2026 the state budget is forecast to be limited by the TABOR cap, not the amount of revenue collected, so this won’t cut deeper into state services.

HB25B-1004 now moves to the Senate floor for further consideration.

Senate Advances Legislation to Close a Special Interest Corporate Tax Loophole

Congressional Republicans’ budget created a $1 billion deficit by allowing corporations to dodge nearly $1 billion in taxes owed to Colorado

DENVER, CO – The Senate Appropriations Committee today passed legislation to close a special interest corporate tax loophole for insurance companies after Republicans in Congress created a $1 billion hole in Colorado’s budget with massive corporate tax cuts.

HB25B-1003, sponsored by Senators Mike Weissman, D-Aurora, and Julie Gonzales, D-Denver, would repeal a special tax break for insurance companies. Under the current law established in the 1950s, insurance companies with a headquarters or regional home office (RHO) in Colorado can pay a lower tax rate if at least 2.5 percent of their domestic workforce resides in Colorado. HB25B-1003 would repeal this reduction. 

“In H.R. 1, Congressional Republicans doubled down on broken tax laws, rewarding the wealthy and connected instead of supporting families and small businesses,” said Weissman. “But here in Colorado we try to base our choices in the facts. And non-partisan research has shown this outdated corporate tax break doesn't bring jobs to Colorado and has actually rewarded firings, which is why we are putting an end to it.”

“Insurance companies and billionaires don’t need any more tax handouts – they’ve gotten plenty from the Trump administration and Republicans in Congress,” said Gonzales. “This bill is a step toward making Colorado’s tax code work for our communities and not corporations. It ends a tax giveaway to major insurance companies that tax experts agree isn’t effective, and instead helps protect funding for schools and essential services.” 

A 2025 report from the Office of the State Auditor found that the tax credit is not achieving its goal of incentivizing job creation in Colorado’s insurance sector, yet it has impacted state revenue by $68 million to $105 million per year. Since the implementation of the workforce percentage requirement, the number of insurers and groups that qualify for the RHO rate reduction has not only decreased, but 15 of the 18 qualifying insurance groups reported a decrease in Colorado jobs while receiving a $17.5 million increase in credits.

HB25B-1003 now moves to the Senate floor for further consideration.

Legislation to Crack Down on Foreign Tax Havens Passes Senate

Bills aim to help protect critical services and help to fill the $1 billion budget shortfall created by Congressional Republicans’ budget 

DENVER, CO – The Senate Appropriations Committee today approved two bills to crack down on corporate tax loopholes to help fill the $1 billion budget shortfall created by Congressional Republicans’ budget. 

HB25B-1002, sponsored by Senator Matt Ball, D-Denver, would crack down on foreign tax havens and offshore bank accounts, and HB25B-1001, sponsored by Senators Nick Hinrichsen, D-Pueblo, and Lisa Cutter, D-Jefferson County, would limit tax breaks for higher-earning business owners by permanently decoupling from a federal tax giveaway. 

“In both terms, Donald Trump has given large corporations more leeway to dodge taxes by shifting profits overseas,” Ball said. “Colorado shouldn’t reward that behavior, and this bill makes sure those companies pay their fair share towards Colorado's schools, health care, and roads.”

HB25B-1002 would crack down on foreign tax havens, offshore bank accounts and other tax loopholes for US companies that dodge Colorado taxes with foreign assets. Unless they can prove legitimate operations in the foreign country, Colorado requires companies incorporated in common tax havens, like Cayman Islands and Panama, to pay Colorado taxes to prevent international tax avoidance. For tax years beginning on or after January 1, 2026, the bill would expand the list of countries to include Hong Kong, The Republic of Ireland, Liechtenstein, the Netherlands, and Singapore.

In 2017, President Trump created a special tax break, now known as the Foreign-Derived Deduction Eligible Income (FDDEI) deduction, for multi-national businesses that kept their intangible assets in the US. HB25B-1002 would decouple the state from the FDDEI to prevent companies from benefiting from larger Colorado tax breaks for investments and assets that are based outside of the state.

Trump’s 2017 tax cuts also allowed pass-through businesses, like S corporations and real estate investment trusts, to avoid paying taxes on up to 20 percent of qualified business income. In 2020, the Colorado legislature passed the “Tax Fairness Act”, decoupling from this federal tax cut by creating an add-back for this deduction for high-income business owners with an income over $500,000 per year for single filers or $1 million per year for joint filers.

The legislature extended the decoupling and add-back through 2025. HB25B-1001 would make Colorado’s decoupling permanent, responding to the action by Republicans in Congress to make the tax giveaway permanent at the federal level in H.R. 1.

“These corporate tax breaks show loud and clear that Trump and Congressional Republicans care more about helping their wealthy friends hoard more wealth than providing essential government services to hardworking Americans,” Hinrichsen said. “Legislation like HB25B-1001 will help us stop these corporate giveaways and continue life-saving food assistance and health care programs for Coloradans.”

“In 2021, the Colorado legislature took major strides toward reversing Trump’s corporate tax breaks in order to protect essential services for Coloradans who depend on them,” Cutter said. “This year, Trump and Congressional Republicans made those tax breaks permanent, so we're fighting to continue prioritizing the basic services that benefit hardworking Coloradans the most. With this bill, we’re permanently decoupling from these unfair tax breaks to ensure corporations pay their fair share to hardworking Coloradans.”

HB25B-1002 and HB25B-1001 now head to the Senate floor for further consideration.