Overview

• Democratic lawmakers ended a special session by approving five revenue bills expected to raise about $250–253 million this fiscal year.
• The largest measure, HB 1004, authorizes auctioning future state tax credits to bring in roughly $100 million now at an estimated cost of about $125 million over the next decade.
• Other changes include a state add-back of the federal qualified business income deduction, an addition tied to foreign-derived deduction-eligible income, elimination of the insurance home‑office premium rate reduction, and removal of the sales‑tax vendor fee.
• Gov. Jared Polis is preparing a plan to cover the remaining roughly $500 million through reserve draws and midyear reductions, with the Joint Budget Committee set to hear details Thursday.
• The gap stems from H.R. 1 cutting an estimated $1.2 billion from state income-tax revenue and producing a roughly $783 million deficit, while Republicans warn of TABOR lawsuits targeting the new revenue measures.