ICYMI: SIGNED! Tax Credits to Boost Jobs, Clean Energy, Wildfire Mitigation

DENVER, CO – Yesterday, legislation sponsored by Senator Mike Weissman, D-Aurora, and Representatives Lorena García, D-Unincorporated Adams County, and Kyle Brown, D-Louisville, to update Colorado’s tax code was signed into law.

HB26-1289 will modernize and simplify the tax code by eliminating ineffective or unnecessary special tax exemptions and deductions to expand and extend tax credits for food access, wildfire and beetle kill mitigation, job creation, and investments in clean energy. This new law will make Colorado’s tax code more consistent and efficient.

"Our tax laws must be continually reviewed and updated to make sure they are working for Coloradans," said Weissman. “Particularly as federal law changes in recent years have negatively impacted Colorado, we must use this moment as an opportunity to revise or eliminate ineffective tax laws, continue or extend those that work, and make sure our tax laws work in service of our bigger goals of supporting working people, saving Coloradans money on energy, and managing wildfire risk. At the end of the day, tightening up ineffective tax laws to continue impactful tax credits for working families is an easy choice."

“When Trump’s H.R. 1 slashed tax credits for working families, we knew we needed to step up and support everyday hardworking Coloradans,” said García. “Our law cleans up our tax code to continue tax credits for food, wildfire mitigation and economic development. Without this law, families could face food insecurity and locally operated farms could miss out on important tax credits that help them feed their communities.” 

“We’re making necessary changes to create a tax code that focuses on hardworking Coloradans, affordability and climate resilience,” said Brown. “Our law repeals tax loopholes and tax breaks to strengthen our economy and provide tax credits to small businesses, renewable energy and economic development to lower costs for consumers and businesses. While Congressional Republicans put corporations first, Colorado Democrats are finding every opportunity to simplify Colorado’s tax code to create jobs, fund essential services and save hardworking Coloradans and small businesses money.”

HB26-1289 will eliminate ineffective tax exemptions for purchases regarding space flight and vendor discounts for cigarettes, nicotine, and tobacco products.

It will also make changes to existing tax credits, including:

• Increasing access to the Community Food Access Tax Credit that offers small food retailers and family farms a refundable tax credit,

• Renewing the Renewable Energy Enterprise Zone Investment Tax Credit to reward businesses that invest in projects that generate renewable energy,

• Expanding the Wildfire Mitigation Tax Credit, allowing it to be carried forward to count against future tax liability, and broadening eligibility to boost wildfire mitigation efforts, and

• Expanding a tax credit for businesses that rehabilitate vacant properties.