The act adds Hong Kong, Republic of Ireland, Liechtenstein, Netherlands, and Singapore to the list of foreign jurisdictions in which a C corporation is presumptively incorporated for the purpose of avoiding state corporate income tax and allows the executive director of the department of revenue to use discretion to determine that a C corporation is not incorporated in a foreign jurisdiction for the purpose of such tax avoidance without, as had been the case, requiring the C corporation to rebut that presumption by proving to the satisfaction of the executive director that the C corporation is incorporated in the listed foreign jurisdiction for reasons that meet the economic substance doctrine described in the federal internal revenue code.For income tax years commencing on or after January 1, 2026, for the purposes of determining the amount of corporate income tax that a C corporation owes to the state, the act adds to a C corporation's federal taxable income an amount equal to a federal deduction claimed for the income tax year for foreign-derived deduction eligible income.The act modifies the state income tax subtraction for dividends from foreign subsidiaries that must be added to a C corporation's federal taxable income under the federal internal revenue code, which had not allowed subtraction of such dividends received from a C corporation incorporated in a foreign jurisdiction for the purpose of tax avoidance, so that all dividends from foreign subsidiaries that must be added to a C corporation's federal taxable income under the federal internal revenue code may be subtracted from the C corporation's federal taxable income for the purpose of determining the C corporation's Colorado taxable income.APPROVED by Governor August 28, 2025EFFECTIVE August 28, 2025(Note: This summary applies to this bill as enacted.)
The act reduces by $264,268 an appropriation for the 2025-26 state fiscal year from the general fund to the department of natural resources division of parks and wildlife (division) for the reintroduction of gray wolves. The act requires the state treasurer to transfer a corresponding amount from the general fund to the Colorado health insurance affordability enterprise cash fund on September 1, 2025.The act also prohibits the division from using the money appropriated from the general fund in state fiscal year 2025-26 (appropriated money) for the acquisition and reintroduction of gray wolves. The division may use the appropriated money to assist owners of livestock in preventing and resolving conflicts between gray wolves and livestock and to pay fair compensation to owners of livestock for any losses of livestock caused by gray wolves.APPROVED by Governor August 28, 2025EFFECTIVE August 28, 2025(Note: This summary applies to this bill as enacted.)
The act continues indefinitely the existing requirement, which otherwise would have ended for income tax years commencing on or after January 1, 2026, that an amount equal to the federal qualified business income deduction allowed under section 199A of the federal "Internal Revenue Code of 1986" be added back by certain taxpayers to their federal taxable income for the purpose of determining their state taxable income.APPROVED by Governor August 28, 2025EFFECTIVE August 28, 2025(Note: This summary applies to this bill as enacted.)
HR 1001 is a non-binding House resolution condemning former Representative Ryan Armagost for sharing an unauthorized photograph of a female colleague during a legislative debate, accompanied by derogatory comments that led to severe harassment, including racist, misogynistic attacks, and threats against her and her children. The resolution formally declares Armagost’s conduct "incompatible with the dignity of this body" and affirms the House’s commitment to a safe, respectful workplace free from harassment. It does not create new laws but serves as a public statement of the House’s stance, requiring all members to uphold decorum and treat colleagues with dignity. The resolution was passed unanimously on August 25, 2025, following Armagost’s resignation after the incident became public.
SJR 1 is a procedural resolution that directs the First Extraordinary Session of Colorado's 75th General Assembly to adjourn "sine die" (permanently) on August 26, 2025. It does not create new laws or affect any specific people or entities; it solely sets the official end date for this particular legislative session. The bill passed unanimously in both chambers on its introduction date with no amendments. This resolution is a standard procedural step to formally close a legislative session.
The act amends the ballot title language for the ballot issue concerning increasing taxes annually by $95 million to support the healthy school meals for all program (program) that the secretary of state will submit to the voters at the November 2025 statewide election. The amended ballot title language allows the additional tax revenue authorized by the ballot issue to be spent on supporting access to not just the program but to healthy food for Colorado kids and families.The act also modifies the healthy school meals for all program cash fund (fund), as the fund would exist upon voters approving the ballot issue concerning increasing taxes annually by $95 million to support the program that the secretary of state will submit to the voters at the November 2025 statewide election. The act expands the permissible uses of money in the fund. Specifically, the act allows money in the fund to be used for, among other things, supporting the implementation of the supplemental nutritional assistance program, so long as the program is fully funded first. The act also modifies when money can be expended from the fund so that, beyond providing reimbursements to participating school food authorities and covering the costs of administering the program, money can only be expended from the fund beginning July 1, 2026.APPROVED by Governor August 26, 2025PORTIONS EFFECTIVE August 26, 2025(Note: This summary applies to this bill as enacted.)
On and after July 1, 2025, the act requires the department of health care policy and financing (HCPF) to use only state funds to reimburse entities that provide covered services and that are prohibited from receiving reimbursement from the federal centers for medicare and medicaid services (CMS); except that an entity is not eligible to receive state-only funds from HCPF if the entity is eligible for reimbursement from CMS at the time the services are provided.APPROVED by Governor August 26, 2025EFFECTIVE August 26, 2025(Note: This summary applies to this bill as enacted.)
The bill establishes that the use of artificial intelligence systems or required disclosure artificial intelligence systems (artificial intelligence systems) must comply with the "Colorado Consumer Protection Act". The attorney general may bring a claim against a developer or a deployer that uses an artificial intelligence system in a way that violates the "Colorado Consumer Protection Act". A developer or a deployer of an artificial intelligence system must disclose to a consumer when the consumer is interacting with the artificial intelligence system and not with a human in certain circumstances. The bill establishes certain requirements for claims brought by the attorney general and parameters for court orders resulting from those claims. The attorney general may adopt rules for the implementation and enforcement of this provision of the bill.A developer of an artificial intelligence system is also subject to the provisions of the "Colorado Anti-discrimination Act" if the artificial intelligence system is deployed in a way that violates the "Colorado Anti-discrimination Act". An individual may file a complaint with the Colorado civil rights division against the developer if the developer's artificial intelligence system discriminates against the individual in certain circumstances.The bill requires that contracts entered into by a Colorado public school, a state agency, or other public entity comply with the provisions of the "Colorado Consumer Protection Act" or the "Colorado Anti-discrimination Act" in relation to the use and deployment of artificial intelligence systems and that a contractor agrees to indemnify and hold harmless a state agency or public entity.(Note: This summary applies to this bill as introduced.)
Under existing law, the governor is permitted to, by executive order, suspend or discontinue the functions or services of state government for 3 months when there are not sufficient revenues available to carry on the functions of the state government. The governor may extend the executive order every 3 months. The bill requires the governor to formulate a spending reduction plan (discretionary spending reduction plan) if the governor extends the initial executive order. The governor and the office of state planning and budgeting (OSPB) shall present the discretionary spending reduction plan to the joint budget committee (JBC) at a JBC meeting and consult with the JBC about the plan. The heads of departments included in the discretionary spending reduction plan shall be available at the JBC meeting to respond to questions from the JBC.Under existing law, the governor is required to formulate and implement a plan to reduce general fund expenditures (required spending reduction plan) when the governor's regular quarterly revenue estimate indicates that appropriations from the general fund then in effect will result in either using more than one-half of the required amount of general fund reserve (reserve) or the balance of the reserve dropping to below $1 billion. In addition to the regular quarterly revenue estimate trigger, the bill adds as a required spending reduction trigger for the governor that an interim revenue estimate prepared by the governor indicates the same. The bill requires the governor and OSPB to present a required spending reduction plan to the JBC at a JBC meeting and consult with the JBC about the required spending reduction plan before implementing the plan. The heads of departments included in the required spending reduction plan shall be available at the JBC meeting to respond to questions from the JBC.The bill requires the director of OSPB and the chief economist of the legislative council staff to present to the JBC any interim revenue estimates made by their respective agencies.(Note: This summary applies to this bill as introduced.)
The concurrent resolution refers to the voters of the state at the 2026 general election a constitutional amendment to modify existing law to require, when a governor convenes the general assembly by proclamation, that the business specially named in the proclamation must not be so narrowly framed as to impose a particular outcome on the general assembly.The concurrent resolution requires that if the governor convenes the general assembly by proclamation for the purpose of addressing a state revenue shortfall or other state budgetary issue, the governor shall not limit the scope of the special session to only a portion of the budget and shall make the proclamation broad enough so that the general assembly can consider the entirety of the state budget and craft a comprehensive solution to the revenue shortfall or other state budgetary issue.(Note: This summary applies to this concurrent resolution as introduced.)
For tax years commencing on and after January 1, 2026, current law requires taxpayers to add the amount of any overtime compensation excluded or deducted from that taxpayer's federal gross income to that taxpayer's federal taxable income for purposes of determining the taxpayer's state taxable income. The bill repeals this addition and clarifies that this addition is "a tax policy change directly causing a net tax revenue gain to any district", so that reinstating this addition requires voter approval in advance pursuant to section 20 (4)(a) of article X of the state constitution.For tax years commencing before January 1, 2026, current law requires certain taxpayers to add to their federal taxable income, for purposes of determining their state taxable income, an amount equal to the federal qualified business income deduction allowed under section 199A of the federal "Internal Revenue Code of 1986". The bill clarifies that extending this tax policy to apply to any tax year commencing on or after January 1, 2026, would be "a tax policy change directly causing a net tax revenue gain to any district" and requires voter approval in advance pursuant to section 20 (4)(a) of article X of the state constitution.(Note: This summary applies to this bill as introduced.)
Current law requires a retailer to periodically remit to the department of revenue the sales tax revenue that it collects and allows some retailers to retain a sales tax vendor fee to cover the retailer's expenses incurred in collecting and remitting state sales tax (vendor fee).For sales made on or after January 1, 2026, the bill increases the maximum dollar amount that a retailer may retain as a vendor fee from $1,000 to $2,000. Beginning on January 1, 2026, the bill requires that:The percentage of sales tax reported that a retailer may retain as a vendor fee must never fall below 2% of the tax reported; andThe maximum dollar amount that a retailer may retain in any filing period as a vendor fee must never fall below $2,000.(Note: This summary applies to this bill as introduced.)
