Rep. Javier Mabrey

The bill adjusts 3 2 existing tax expenditures.      Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026; Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Recent changes to the federal income tax code significantly increased the amount of business-related expenses that may be deducted for federal income tax purposes as follows:Expanded the business interest deduction limitation pursuant to section 163 (j) of the internal revenue code (IRC) by adding back depreciation, amortization, and depletion for calculation of adjusted taxable income and determination of the deduction base, resulting in many taxpayers, especially capital intensive businesses, being able to deduct a larger portion of their business interest expense; Expanded the bonus depreciation deduction pursuant to section 168 (k) of the IRC by permanently restoring the 100% first-year bonus depreciation deduction for 'qualified property' acquired and placed in service on or after January 20, 2025;Created an elective 100% depreciation deduction in section 168 (n) of the IRC for 'qualified production property', which is property largely tied to manufacturing, production, or refining facilities and that would not otherwise qualify for section 168 (k) bonus depreciation; andCreated a new section 174A of the IRC that allows taxpayers to immediately deduct domestic research and experimental expenditures paid or incurred during the taxable year, rather than requiring such costs to be capitalized and amortized over time.     Because the state income tax is imposed on federal taxable income, these changes to the definition of federal income also exclude these business-related expenses from state income taxation. The bill reverses these changes to the federal tax code for purposes of the state income tax code and creates a new tax credit using the resulting revenue.      Sections 2 and 4 of the bill provide, for income tax years commencing on or after January 1, 2027, that individual and corporate state income taxpayers must add the following to their federal taxable income for purposes of applying the state income tax: An amount equal to the federal deduction claimed by the taxpayer for business interest pursuant to the limitation in section 163 (j) of the IRC to the extent the amount exceeds the amount the taxpayer would have been allowed to claim before the limitation was changed as described above;An amount equal to the federal deduction claimed by the taxpayer for qualified property depreciation pursuant to section 168 (k) of the IRC to the extent the amount claimed exceeds the amount the taxpayer would have been allowed to claim under section 168 (k) prior to the change described above; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal changes;An amount equal to the federal deduction claimed by the taxpayer for qualified production property depreciation pursuant to section 168 (n) of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of depreciation the taxpayer would have been allowed to claim for the taxable year with respect to the same property pursuant to any section other than section 168 (k) of the IRC prior to the recent federal change; andAn amount equal to the federal deduction claimed by the taxpayer for the income tax year for domestic research and experimental expenditures pursuant to section 174A of the IRC; except that, the taxpayer may reduce the amount required to be added back by the amount of the deduction the taxpayer would have been allowed to claim for the taxable year with respect to the same research and experimental expenditures pursuant to section 174 of the IRC prior to the recent federal changes.      Sections 2 and 4 allow taxpayers who are required to make additions to their federal taxable income pursuant to the new provisions to subtract the amounts of their disallowed federal deductions over time, starting in income tax years commencing on or after January 1, 2028, using time periods that reflect how the property or expense would have been treated prior to the recent changes to the federal tax code. If the amount of the allowed subtraction exceeds the taxpayer's federal taxable income, the excess amount not subtracted may be carried forward for up to 10 years.      Section 3 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2 and 4.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The act makes changes and clarifications in the provisions related to the department of early childhood (department). The act:Eliminates the scheduled repeal of licensing exemptions for certain in-home child care arrangements in which the children are related to the caregiver, are siblings, or number fewer than five;Updates provisions related to early care and education provider reimbursement for services performed before final eligibility determinations in the Colorado child care assistance program;Lowers the age limit for children served by the early childhood mental health consultation program from 8 years old to 6 years old and adjusts that program's reporting requirements;Clarifies the sources of money appropriated to the universal preschool program;Requires the department to keep confidential identifying records and facts regarding children and their relatives;Clarifies that child care facilities approved, certified, or licensed by tribal governments are exempt from the department's licensing rules; andAdjusts the membership requirements and duties of the early childhood leadership commission and subcommittee membership requirements for the rules advisory council.(Note: This summary applies to this bill as enacted.)

The act declares emergency medical services as an essential service in the state and an integral part of the state's health-care infrastructure.      The act also declares that emergency medical service providers, whether responding on duty or as a volunteer and regardless of location, provide essential services when providing emergency ambulance services and nonemergency ambulance services.      The act also updates certain definitions related to emergency medical services, including the addition of a definition of 'out-of-hospital services', which term is defined to mean the furnishing of necessary health-care goods and services outside of a hospital setting but does not include prehospital setting transports.     The act clarifies that an off-duty emergency medical service provider is not obligated to respond to the scene of a medical emergency or provide emergency medical services.(Note: This summary applies to this bill as enacted.)

Beginning on July 1, 2027 January 1, 2028 , the bill requires a building with an indoor restroom that is open to the public, including to customers or public visitors, and that does not include private offices or workspaces that are but that is not in a private office or workspace that is generally not open to customers or public visitors (restroom accessible to the public), to have safe, sanitary, and convenient baby diaper changing tables (baby diaper changing station) as follows:At least one baby diaper changing station in each gender-specific one restroom designated for each gender on each floor;At least one baby diaper changing station in a non-gendered single-stall restroom on each floor; orAt least one baby diaper changing station in a non-gendered multi-stall restroom on each floor.     The owner or manager of a building with a restroom accessible to the public is required to ensure that each baby diaper changing station is cleaned with the same frequency as the restroom in which it is located and maintained, repaired, and replaced as necessary to ensure safety and ease of use.      Beginning on July 1, 2027, for each restroom accessible to the public with a baby diaper changing station, the owner or manager of a building is required to display: A pictogram, void of gender, at or near the restroom accessible to the public that indicates the presence of a baby diaper changing station; and Signage, at or near the entrance to the building, indicating the location of each restroom accessible to the public and each baby diaper changing station in the building.     Providing a baby diaper changing station in a restroom accessible to the public and providing the corresponding signage is not required if: a local building permitting entity or building inspector determines thatThe installation of a baby diaper changing station in a restroom accessible to the public would result in a failure to comply with applicable building standards governing the right of access for individuals with disabilities or the 'Americans with Disabilities Act of 1990' , or if the building is a certified historic structure; The building is owned or managed by a state department or state agency, state institution of higher education, a county, a city and county, or a municipality; The building is owned by an employer with 25 or fewer employees that generates no more than $3.5 million in annual gross income and the building has an occupancy of fewer than 25 people; or A portion of the building is occupied by a business that does not admit individuals who are under 21 years old, but only with respect to that portion of the building.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The act requires measures to improve equity in maternal health, including:Requiring the Colorado medical board to consider, as part of its stakeholder process for continuing medical education, a requirement that a physician complete continuing medical education on cultural competence and equity in maternal care;Requiring the state board of nursing rules relating to continuing education to include rules relating to health-care provider attention to cultural competence and equity in providing health-care services;Authorizing the department of public health and environment (CDPHE), subject to available appropriations, to provide a health survey to additional birthing parents, beyond those currently surveyed, and to compile the data if surveyed;Requiring a health facility that provides labor and childbirth services to make available to a birthing parent and a birthing parent's companion, electronically or in writing, a statement on respectful labor and childbirth regarding rights and components, including freedom from harm, privacy and confidentiality, informed consent, and allowing a birthing parent to have a birthing companion present at the birth, and to make available information, including telephone contact information, for the appropriate state or federal agency to receive a complaint alleging discrimination in labor and childbirth services;Subject to available federal grant funding for the maternal health task force (task force) established by CDPHE, ensuring that the maternal health task force includes at least one advocate representing populations with the worst maternal mortality outcomes in the state; andBeginning October 1, 2026, with respect to CDPHE's Colorado maternal mortality review committee, changing the reporting to the general assembly every 3 years concerning maternal health outcomes and equity from July to October and requiring the reporting of certain maternal health outcomes for populations known to have the worst maternal mortality outcomes in the state.(Note: This summary applies to this bill as enacted.)

A person who, under color of any law, subjects, or causes to be subjected, another person to the deprivation of any rights, privileges, or immunities secured by the United States constitution is liable to the injured party for legal or equitable relief. A defendant may assert a defense of absolute or qualified immunity to the same extent as in certain federal actions alleging a deprivation of rights. An action alleging a deprivation of constitutional rights must be commenced within 2 years after the cause of action accrues.(Note: This summary applies to this bill as introduced.)

The act continues the regulation of cash-bonding and professional cash-bail agents for 8 years, until 2034.(Note: This summary applies to this bill as enacted.)

Under current law, courts may not assess or collect administrative fees, costs, and surcharges in juvenile delinquency cases involving a juvenile under the jurisdiction of the juvenile court when a juvenile has been charged with or adjudicated of certain crimes. The act adds that courts or the state is prohibited from assessing or collecting administrative fees, costs, and surcharges assessed against a juvenile or the juvenile's parents, guardian, or legal custodian when the juvenile was under 18 years old when the crime was committed.(Note: This summary applies to this bill as enacted.)

The act requires a law enforcement entity that receives a report alleging an offense involving sexual assault or abuse of a child to conduct a minimal facts interview and record certain information, including the child's name, the alleged offender's name, and a summary of the alleged incident. After receiving the report, a law enforcement entity must notify a child advocacy center within the judicial district where the alleged crime occurred, or another appropriate child advocacy center, within one week after taking the report. The law enforcement entity is required to collaborate with the child advocacy center in requesting a forensic interview for the alleged child victim if the law enforcement entity deems a forensic interview is necessary and appropriate.     The act changes the definition of a child witness for purposes of testifying using closed-circuit television from a person who is 12 years old or younger, to a person who is younger than 18 years old. The act requires a judge to make findings on the record regarding a witness who is a child or a person who has an intellectual and developmental disability, specifically, if the witness will suffer serious emotional distress or trauma from courtroom testimony when the defendant is present.(Note: This summary applies to this bill as enacted.)