HB 1003: Insurance Premium Tax Rate for Home Offices - Colorado

Final Act → Signed Act · 4 edits · Aug 28, 2025

MODERATE

This bill repeals Colorado's reduced insurance premium tax rate for companies with home offices or regional home offices. The change is based on state auditor findings that the tax incentive failed to achieve its purpose, with many insurers reducing their Colorado workforce while receiving increased tax benefits. The repeal aims to align Colorado's tax code with other states and streamline insurance statutes.

Scope change

The bill removes the tax incentive that previously applied to insurance companies maintaining home offices or regional home offices in Colorado, affecting how these companies calculate their premium taxes.

ELIGIBILITY

Eliminates the reduced insurance premium tax rate for companies with home offices or regional home offices in Colorado

TIMELINE

Changes tax rate from one percent to two percent for direct written premiums on and after January 1, 2026

Repeals the provision that would have maintained the reduced tax rate through December 31, 2026

REQUIREMENT

Adds legislative findings that the tax expenditure failed its intended purpose based on state auditor evaluations showing workforce reductions despite tax benefits

Rerevised → Final Act · 4 edits · Aug 26, 2025

MODERATE

This bill repeals Colorado's reduced insurance premium tax rate for companies with home offices or regional home offices in the state. The change is based on findings that the tax incentive failed to attract or retain insurance companies, as most claimed the benefit while simultaneously reducing their Colorado workforces. The repeal aims to align Colorado's tax code with other states and streamline statutes by removing a provision that is not meeting its intended purpose.

Scope change

The bill removes eligibility for the reduced insurance premium tax rate for companies maintaining a home office or regional home office in Colorado, effective December 31, 2026.

ELIGIBILITY

Eliminates the reduced insurance premium tax rate for companies with home offices or regional home offices in Colorado, which previously allowed a one percent tax rate in 2025 and two percent starting January 1, 2026.

TIMELINE

Sets the effective date for the repeal as December 31, 2026, meaning the reduced tax rate will no longer apply to premiums collected on or after that date.

REQUIREMENT

Includes legislative findings that the tax expenditure did not meet its intended purpose, citing evidence that 15 of 18 insurers claiming the benefit reduced their Colorado workforces by approximately 4,300 employees while receiving increased tax benefits from 2022 through 2024.

TECHNICAL

Updates the bill format from a revised version to a final act, including signatures from legislative officers and the Governor, indicating the bill has been enacted into law.

Revised → Rerevised · 3 edits · Aug 25, 2025

MINOR

The bill title was updated from 'Revised' to 'Rerevised' to reflect its current legislative status. Senate sponsorship was expanded to include five additional senators, and the legislative history section was updated to show that the Senate approved the bill without amendments during its third reading on August 25, 2025, while retaining the second reading date from August 24, 2025.

TECHNICAL

Bill title changed from 'Revised' to 'Rerevised' to indicate a new version of the text.

Five additional senators (Coleman, Cutter, Jodeh, Kipp, Michaelson Jenet, Sullivan, Wallace, Winter F.) were added to the Senate sponsorship list.

The legislative history note was updated to clarify that the Senate approved the bill unamended during its third reading on August 25, 2025, while keeping the second reading date unchanged.

Reengrossed → Revised · 4 edits · Aug 24, 2025

MODERATE

This bill repeals a tax break for insurance companies that claim to have home offices in Colorado. The change removes the reduced insurance premium tax rate for these companies starting in 2026, based on findings that the tax break failed to encourage companies to maintain workforces in the state. The revision also updates the bill's formatting and committee information to reflect its amended status.

Scope change

The bill's scope remains focused on repealing the insurance premium tax rate tax expenditure for home offices or regional home offices, but the legislative history and formatting have been updated to reflect amendments adopted during the House second reading.

TIMELINE

Removed specific line-by-line page and line number references that were part of the reengrossed version's markup system.

TECHNICAL

Added revised header information indicating this version includes all amendments adopted on second reading in the second house.

Updated committee listings and reading dates to reflect the bill's progression from House 2nd Reading (August 22, 2025) to House 3rd Reading (August 23, 2025).

SCOPE

The substantive policy change remains the same: repealing the tax expenditure for home offices or regional home offices beginning in 2026.

Engrossed → Reengrossed · 2 edits · Aug 23, 2025

MINOR

The bill was reengrossed to include additional co-sponsors and updated the bill summary to reflect that it is now in its third reading unamended version. This change adds more legislative supporters and clarifies the current status of the bill in the House.

TECHNICAL

Added 12 new co-sponsors to the House sponsorship list (Bacon, Brown, Camacho, Clifford, Duran, Froelich, Garcia, Lieder, Lindsay, McCluskie, McCormick, Sirota, Smith, Story, Titone, Willford, Zokaie).

Updated the bill summary header from 'ENGROSSED' to 'REENGROSSED' and changed the date to August 23, 2025, indicating the bill has been re-introduced with amendments.

Introduced → Engrossed · 4 edits · Aug 22, 2025

MODERATE

The bill was renumbered from HB 1003 to HB 25b-1003 and updated to reflect engrossed status with all amendments. The legislative declaration section was expanded with detailed findings from the Office of the State Auditor's 2020 and 2025 evaluations, showing that insurance companies claiming the tax break have reduced Colorado workforces while increasing tax benefits. The tax rate schedule was modified to clarify that the one percent rate applies to 2025 premiums, with a two percent rate starting January 1, 2026, and the repeal of the tax expenditure was set to take effect December 31, 2026.

Scope change

The bill's scope remains focused on repealing the insurance premium tax rate tax expenditure for home offices or regional home offices, but the legislative findings were expanded to include specific data about workforce reductions and tax benefit increases.

TIMELINE

The effective date for repealing the tax expenditure was clarified as December 31, 2026, and the new two percent tax rate begins January 1, 2026.

REQUIREMENT

New legislative findings were added detailing that 15 of 18 insurers claiming the tax expenditure reduced their Colorado workforces by approximately 4,300 employees between 2022-2024 while receiving increased tax benefits.

DEFINITION

The tax rate language was updated to specify that the one percent rate applies to direct written premiums in 2025, with the rate changing to two percent on and after January 1, 2026.

TECHNICAL

The bill was renumbered from HB 1003 to HB 25b-1003 and updated to reflect engrossed status with all amendments adopted on second reading in the House.

Insurance Premium Tax Rate for Home Offices

What changed between versions

How they voted

Actions timeline

Sponsors