Overview

• Lawmakers approved five tax measures projected to generate about $250–253 million, covering roughly one-third of a $750–800 million deficit tied to Colorado’s coupling with recent federal tax changes.
• The largest move authorizes selling state tax credits to corporations for about $100 million in immediate cash at an estimated future cost of roughly $125 million.
• Other revenue steps include ending the home‑office insurance premium tax break, repealing the sales‑tax vendor fee, adding back qualified business income for high‑earning pass‑through owners, and creating additions tied to foreign‑derived deductions.
• The legislature set aside $100 million for individual‑market health subsidies, reinsurance and OmniSalud via separate tax‑credit sales, authorized Medicaid reimbursements to Planned Parenthood for non‑abortion services, and shifted a small amount from wolf reintroduction funds.
• Negotiations to rewrite the 2024 AI law collapsed, so implementation was delayed to June 30, 2026, as Republicans warned of planned TABOR lawsuits against several tax measures and the Joint Budget Committee set a Thursday briefing on the governor’s cut plan.