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HB 20-1420 - Amends State Tax Breaks - Colorado Key Vote

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Title: Amends State Tax Breaks

Vote Smart's Synopsis:

Vote to amend and pass a bill that amends previous state tax breaks, including those passed that pertain to the COVID-19 pandemic.

Highlights:

Vote Smart staff and volunteers have provided this synopsis based on an initial review of the text and voting record of HB 20-1420. We will continue to analyze the contents of this bill and will have more information available as soon as possible.

For further status information, email us at votes@votesmart.org or call the Voter's Research Hotline at 1-888-VOTE-SMART (1-888-868-3762).

See How Your Politicians Voted

Title: Amends State Tax Breaks

Vote Smart's Synopsis:

Vote to pass a bill that amends previous state tax breaks, including those passed that pertain to the COVID-19 pandemic.

Highlights:

 

  • Establishes that for income tax years coming on or after the enactment of the March 2020 “Coronavirus Aid, Relief, and Economic Security Act” (CARES Act) but before January 1, 2021, the taxpayer’s net operating income loss or excess business loss shall be determined under federal law (Sec. 2).

  • Amends previous tax code to specify that for any income tax year coming on or after January 1, 2021, equal to the deductions for qualified business income for an individual taxpayer who files a single return greater than $75,000 or whose adjusted gross income is greater than $150,000 this federal deduction may be claimed (Sec. 3).

  • Reduces the amount of net operating loss that a corporation can carry forward to the following tax year to $400,000 (Sec. 4).

  • Repeals the state income tax modification for qualifying net capital gains for income tax years commencing on or after January 2021 (Sec. 5).

  • Repeals the exemption from state sales and use taxes for the sales, purchase, storage, use, or consumption of electricity, coal, gas, fuel oil, steam, coke, or nuclear fuel, for use in processing, manufacturing, mining, refining, irrigation, and construction services for filing periods on or after August 2020 (Sec. 6).

  • Establishes a sales and use tax refund, not to exceed $1,000 but specifies that the refund shall not apply to the following, including (Sec. 8):

    • Diesel fuel purchased for off-road use; or

    • Electricity, coal, gas, fuel, oil, steam, coke, or nuclear fuel purchased for agricultural purposes, generating electricity or railroad transportation services.

  • Prohibits the elimination of the sales tax exemption and specifies that the creation of a sales tax refund shall not affect the county and municipal sales tax (Sec. 9).

  • Repeals the statutes that provide an insurance rate tax reduction for insurance companies maintaining a home office or regional home office (Sec. 11).

  • Specifies that the earned income tax credit shall be equal to a percentage of the federal earned income tax credit and increases the percentage from 10 percent to 20 percent beginning in 2023 (Sec. 12).

  • Authorizes the state treasurer to transfer the following amounts from the general fund to the state education fund for the following fiscal years (Sec. 13):

    • $150 million for the fiscal year 2021-22;

    • $200 million for the fiscal year 2022-23;

    • $200 million for the fiscal year 2023-24; and

    • $200 million for the fiscal year 2024-25.

Committee Sponsors

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