Legislative Oversight Committee Concerning Tax Policy. The bill changes how income tax expenditures that benefit individuals engaged in military service are provided as follows:

• Beginning with income tax years commencing on or after January 1, 2027, section 2 of the bill eliminates the state income tax subtraction for an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in the state to the extent that the compensation is included in federal taxable income; and
• For income tax years commencing on or after January 1, 2027, but before January 1, 2032, section 3 allows a refundable income tax credit (credit) as a form of tuition assistance to an actively serving member of the Colorado National Guard who is eligible for tuition assistance (eligible member) under an existing statutorily-authorized program (program) administered by the department of veterans and military affairs (department).

To claim the credit, an eligible member must obtain a tax credit certificate issued by the department for each academic semester or quarter for which tuition assistance is awarded in the form of the credit.

The criteria for receiving a tax credit certificate are generally the same as the criteria for receiving other tuition assistance under the program; except that, to be eligible for a tax credit certificate, an eligible member must apply for all federal government tuition assistance that is not required to be repaid and that is generally made available to eligible members and not to the general population and must use all federal government tuition assistance received. The total amount of tuition assistance that an eligible member to whom the department has issued a tax credit certificate may obtain under the program, including the credit, is subject to existing program limits. In addition, the department may issue no more than $1 million in tax credit certificates for any income tax year.

Section 1 makes conforming amendments.
(Note: This summary applies to this bill as introduced.)

The act creates 2 income tax subtractions for income tax years commencing on or after January 1, 2027, but before January 1, 2038. The first subtraction is for an amount equal to state capital gains that are realized by a taxpayer, who is the owner of a qualified business, during the taxable year for the conversion by an increment of at least 20% ownership to a qualified employee-owned business. The taxpayers that are eligible for this subtraction are the same taxpayers that would be eligible for the tax credit for conversion costs for employee business ownership. The total amount of capital gains that a taxpayer may subtract is set by and may be annually adjusted by the Colorado office of economic development (office), and is required to be posted on the office's website. The second subtraction is allowed to worker-owned cooperatives in an amount equal to the worker-owned cooperative's federal taxable income for the tax year not to exceed $1 million.

The act also makes changes to the tax credit for conversion or expansion costs for employee business ownership (credit), which has been available through income tax year 2026. The act extends the credit through income tax years commencing in 2031. The act also specifies that the aggregate amount of credits that can be claimed for each income tax year commencing on or after January 1, 2026, but before January 1, 2032, is $3 million. The act also increases the percentage of conversion or expansion costs that are eligible to be claimed for the credit from 50% to 75% beginning in tax year 2026 while maintaining the existing dollar caps for the different methods of conversion.

Additionally, the act revises several definitions to expand eligibility for the credit and allows for qualified support entities, which are businesses or nonprofit organizations that provide services to businesses that qualify under the credit so that those businesses can convert or expand to employee ownership, to be eligible to receive the credit for up to 75% of the costs incurred for providing such support, not to exceed $167,000, including for staff salaries and benefits, marketing and outreach, and consulting and technical assistance. Support costs exclude any costs that are considered conversion or expansion costs that can be claimed in the credit for employee business ownership.

(Note: This summary applies to this bill as enacted.)

Legislative Oversight Committee Concerning Tax Policy. For income tax years commencing on or after January 1, 2025, the bill both:

• Increases the amount of federal taxable income a taxpayer may have and still qualify for the state income tax credit for purchasing long-term care insurance and annually adjusts that federal taxable income amount for inflation; and
• Doubles the amount of the credit a taxpayer may claim and, for income tax years commencing on or after January 1, 2026, annually adjusts the credit amount for inflation.
  (Note: This summary applies to this bill as introduced.)

Legislative Oversight Committee Concerning Tax Policy. The bill creates an online database managed by the department of revenue that includes information on all qualifying state tax expenditures and state grant opportunities. A state grant opportunity is any grant funded by state money or administered by the state. A qualifying state tax expenditure is any state tax expenditure for which at least one of the following applies:

• A limited amount of dollars or credits is available;
• To qualify for the tax expenditure, a discretionary determination made by a state agency is necessary; or
• To qualify for the tax expenditure, a person must submit an application to and receive a certificate or other designation of approval from a state agency.

The database must be created by December 31, 2026, and must be reviewed and updated on an annual basis.

(Note: This summary applies to this bill as introduced.)

Pension Review Commission. The bill creates a refundable income tax credit that is available for income tax years commencing on or after January 1, 2025, but prior to January 1, 2027, for a qualifying public employees' retirement association retiree, which means a full-time Colorado resident individual who:

• Is 65 years of age or older at the end of the 2025 or 2026 income tax year; and
• Has an annual federal adjusted gross income of no more than $38,000 as a single filer or $76,000 as a joint filer.
  (Note: This summary applies to this bill as introduced.)

The act:

• Prohibits a person from offering, displaying, or advertising pricing information for a good, service, or property unless the person clearly and conspicuously discloses the maximum total (total price) of all amounts that a person may pay for the good, service, or property, not including a government charge or shipping charge unless voluntarily included (total price disclosure requirement);
• Prohibits a person from misrepresenting the nature and purpose of pricing information for a good, service, or property;
• Requires a person to clearly and conspicuously disclose the nature and purpose of pricing information for a good, service, or property that is not part of the total price; and
• Prohibits a landlord from requiring a tenant to pay certain fees, charges, or amounts or including in a written rental agreement a provision that requires the tenant to pay a fee, charge, or amount that is prohibited by the act.

A person complies with the disclosure requirements if the person does not use deceptive, unfair, and unconscionable acts or practices related to the pricing of goods, services, or property and if the person:

• Is a food and beverage service establishment that includes a disclosure in the total price for a good or service the amount of any mandatory service charge and how the mandatory service charge is distributed;
• Can demonstrate that the total price of services the person offers is indeterminate at the time of the offer and clearly and conspicuously discloses the factors that determine the total price, any mandatory fees associated with the transaction, and that the total price may vary;
• Can demonstrate that the person is governed by and compliant with applicable federal law, rule, or regulation regarding pricing transparency for the particular transaction at issue;
• Can demonstrate that any fees, costs, or amounts in addition to the total price are associated with real estate settlement services and are not broker commissions or fees;
• Can demonstrate that the person is providing broadband internet access service or is a cable operator or broadcast satellite provider and is compliant with specified federal law; or
• Is a delivery network company that clearly and conspicuously discloses that an additional flat fee, variable fee, or percentage fee is charged, any mandatory fees associated with the transaction, and that the total price for the services may vary and complies with other requirements related to disclosure of the additional fee.

A landlord or landlord's agent is not required to include, in the required disclosure, the actual amount charged for utility services provided to a tenant's dwelling unit. Additionally, a person is exempt from the act if the person is governed by federal law that preempts state law.

A violation of the act constitutes a deceptive, unfair, and unconscionable act or practice and is subject to penalties under the "Colorado Consumer Protection Act". In addition to any other remedies available by law or in equity, in a dispute regarding property, a person aggrieved by a violation may send a written demand to the alleged violator:

• For reimbursement of any fee, charge, or amount unlawfully imposed and for any actual damages suffered; or
• To notify the alleged violator of their refusal to pay a prohibited fee, charge, or amount unlawfully imposed.

If an alleged violator declines to make full legal tender of all fees, charges, amounts, or damages demanded or refuses to cease charging the aggrieved person within 14 days after receiving the written demand, the person is liable for actual damages plus 18% interest, compounded annually.

The attorney general may adopt rules to implement the act.

(Note: This summary applies to this bill as enacted.)

The bill requires each entity that does business in Colorado and has total revenues exceeding $1 billion in the preceding calendar year (reporting entity) to publicly disclose its total greenhouse gas emissions during the preceding calendar year. For scope 1 and scope 2 emissions, the reporting requirements begin January 1, 2028. For scope 3 emissions, the initial reporting requirements begin January 1, 2029, and are updated on January 1 each year thereafter. A reporting entity must have each of its disclosures independently verified by a third-party auditor.

A district attorney or the attorney general may bring a civil action against a reporting entity for failing to comply with the disclosure requirements. A court may require a noncompliant reporting entity to pay a civil penalty in an amount not to exceed $100,000 for each day of noncompliance.

(Note: This summary applies to this bill as introduced.)

The bill creates a new income tax credit in an amount equal to the purchase price of a firearm safety device, not to exceed $200, that is purchased by an eligible taxpayer from a federally licensed dealer (credit). A firearm safety device is a device that is designed or can be used to store a firearm and is designed to be unlocked only by means of a key, a combination, or by other similar means. The credit is available for income tax years 2027 and 2028, and if the amount of the credit exceeds the eligible taxpayer's tax liability, the credit may be carried forward for a period of 5 income tax years. In addition, the maximum amount of aggregate credits that can be claimed in an income tax year is $5 million.
(Note: This summary applies to this bill as introduced.)

The act extends the availability of the advanced industry investment tax credit (credit), which can be claimed by a qualified investor that makes a qualified investment in a qualified small business that is in an advanced industry, from December 31, 2026, through December 31, 2031.

The act expands the definition of "qualified investment" by eliminating prohibitions against a qualified investor having more than 30% of the voting power in a qualified small business before the investor makes a qualified investment in the qualified small business and more than 49% of the voting power in a qualified small business after making a qualified investment in the qualified small business.

The act changes the definition of "qualified investor" by clarifying that an entity subject to income tax may qualify as an investor; except that a C corporation, including any limited liability or other legal entity treated as a C corporation for federal and state income tax purposes, is not a qualified investor. A qualified investor may include a partner, shareholder, or beneficiary that is allocated a credit, but does not include:

• A person that had control of a qualified small business for 6 months preceding or following the date of the investment in the qualified small business;
• A founder, employee, or contractor or a spouse of a founder, employee, or contractor of a qualified small business;
• A person that has invested more than $50,000 in the qualified small business or owns more than 10% of the qualified small business on a fully diluted basis.

The act authorizes the Colorado office of economic development (office), which administers the credit, to certify a small business as a qualified small business through October 1, 2031. A small business certified as a qualified small business must report to the office as requested to confirm the certified small business's status as a qualified small business. The office may require a qualified small business to provide information to confirm that a qualified investment has been made in the qualified small business, the intended use of the qualified investment, and the expected number of new employees that will be hired by the qualified small business as a result of the qualified investment. A qualified small business that receives a qualified investment is required to report data relevant to the impact of the credit and development of the qualified small business annually to the office for 5 years following a qualified investment. The office may assess a penalty against a qualified small business that does not meet this reporting requirement.

The office may issue $4 million in credits per calendar year for the years through the 2026 calendar year for which the credit is currently available. The act decreases the cap to $2.5 million per calendar year beginning with the 2027 calendar year through the 2031 calendar year.

If the qualified investor receiving a credit is a trust, the qualified investor may allocate the credit between the trust and its beneficiaries in any manner determined by the trust. The office shall issue a credit certificate to a trust beneficiary and a trust beneficiary may claim the amount indicated on the credit certificate.

(Note: This summary applies to this bill as enacted.)

The act creates the work-based learning consortium pilot program (pilot program) in the department of higher education (department). The purpose of the 3-year pilot program is to:

• Demonstrate the value of work-based learning in postsecondary curricula by studying the impact of industry-sponsored projects on course objectives and learning outcomes;
• Promote the adoption of work-based learning in higher education by working with faculty at institutions of higher education (institutions) that participate in the pilot program (participating institutions) to embed project-based learning opportunities into credit-bearing programs;
• Provide broader access to collegiate work-based learning for students;
• Measure the impact of work-based learning on participating students; and
• Learn how institutions can increase the value of postsecondary education through career exposure and preparedness.

Pending the receipt of sufficient funds, the department shall convene a consortium (consortium) of representatives from participating institutions, the commission on higher education (commission), the department of labor and employment, the department of education, and a subject matter expert with experience implementing work-based learning. The consortium shall:

• Work with each participating institution's faculty to embed industry-sponsored projects in course curriculum that meet the work-based learning quality standards;
• Work with the department to determine the impact of industry-sponsored projects;
• Work with a third-party platform to connect faculty from participating institutions to employers for the purpose of developing high-quality, project-based learning opportunities for classroom instruction;
• Advise the commission on strategies to improve student access to high-quality, work-based learning opportunities for students based on participating faculty members' experience embedding industry-sponsored projects into curriculum;
• Develop best practices for institutions to expand access to work-based learning in the classroom through industry-sponsored projects; and
• Develop findings and recommendations.

Subject to available appropriations, at the end of the pilot program, the act requires the consortium to complete and submit a report to the education committees of the house of representatives and the senate, or their successor committees. The report must include:

• A description of the consortium's findings and recommendations;
• Details on the consortium's impacts on participating institutions and the effects of creating additional work-based learning activities on students, faculty, and employers; and
• Recommendations for statutory changes, financial resources, department policy changes, and policy changes in institutions that are necessary to improve successful work-based learning opportunities for students in institutions.

The department may seek, accept, and expend gifts, grants, or donations from private or public sources for the pilot program. The department shall transmit all gifts, grants, or donations to the state treasurer, who shall credit the money to the higher education work-based learning consortium fund (fund). If, by June 30, 2028, the money in the fund has never reached or exceeded $2 million dollars, the state treasurer shall return each grantor's or donor's gift, grant, or donation.

On or before November 1, 2026, the commission shall recommend a list of terms used by institutions related to work-based learning to the Colorado workforce development council for inclusion in the talent development glossary (glossary). The purpose of the list of terms is to:

• Augment the glossary so that collegiate work-based learning activities are accurately reflected in statewide efforts to promote work-based learning; and
• Demonstrate to institutions relevant opportunities to participate in statewide efforts to promote work-based learning.

On or before July 1, 2026, the commission shall work with institutions, the Colorado workforce development council, the department of education, the consortium, nonprofit organizations, industry associations, and businesses to develop recommendations on how to best embed work-based learning opportunities into current degree pathways.

On or before December 31, 2026, the department shall work with institutions to identify which work-based learning activities are measurable and how to best report work-based learning activities.

Institutions that are eligible for the work-study program may use work-study program money to cover the costs of work-based learning credits for students who are required to complete credit-bearing work-based learning requirements to graduate from an institution.

The office of economic development (office) administers the universal high school scholarship program (program). The act allows the office to spend unexpended or unencumbered money appropriated in the 2023-24 state fiscal year through the 2025-26 state fiscal year without further appropriation. The act requires that expenditures for the administrative costs of the program not exceed $1.5 million. The act extends the date for the state treasurer to transfer all unexpended and unencumbered money in the universal high school scholarship cash fund from December 30, 2026, to June 30, 2027.

(Note: This summary applies to this bill as enacted.)

The act repeals the current "Money Transmitters Act" and replaces it with the model "Money Transmission Modernization Act" (MTMA). The act adopts the MTMA in part. The act updates outdated or inconsistent regulations relating to money transmitters and money transmission services, including:

• Clarifying the definition of "control" of a licensee and introducing a rebuttable presumption of control;
• Enabling Colorado's participation in multistate licensing initiatives;
• Codifying the agent-to-payee exemption to licensure;
• Revising prudential standards required for licensing and ongoing monitoring, such as tangible net worth and permissible investment calculations;
• Establishing an irrevocable, standby letter of credit as a permissible investment; and
• Expanding the enforcement actions available in case of nonperformance by a money transmitter.
  (Note: This summary applies to this bill as enacted.)

The act refers 2 ballot issues to the voters at the November 2025 statewide election concerning funding for the healthy school meals for all program.

Section 2 refers a ballot issue to the voters at the November 2025 statewide election to allow the state to retain and spend state revenue that would otherwise need to be refunded for exceeding the estimate in the ballot information booklet analysis for Proposition FF and to allow the state to maintain the increases in state taxable income established in Proposition FF that would otherwise need to be decreased. If voters reject the ballot issue, the state will both:

• Refund $12,430,388 to individuals who have a federal taxable income of $300,000 or more and claimed itemized or standard state income tax deductions greater than $12,000 for single tax return filers and $16,000 for joint tax return filers; and
• Adjust the limit on itemized deductions established in Proposition FF to a level that would have reduced the amount of income tax revenue attributable to these itemized deductions by $12,430,388.

If voters approve the ballot measure:

• The state will not refund $12,430,388 to individuals who have a federal taxable income of $300,000 or more and claimed itemized or standard state income tax deductions greater than $12,000 for single tax return filers and $16,000 for joint tax return filers; and
• The increases in federal taxable income as a result of Proposition FF will stay at the levels established by Proposition FF.

Section 3 refers a ballot issue to the voters at the November 2025 statewide election to allow the state to increase taxes by $95 million annually by increasing state taxable income to support the healthy school meals for all program. If voters approve the ballot issue:

• Income tax deductions for individuals who have a federal taxable income of $300,000 or more will be reduced from current levels to $1,000 for single filers and $2,000 for joint filers; and
• The state will allocate the additional revenue generated by the reduction in income tax deductions to the healthy school meals for all program.

If voters reject the ballot issue, income tax deductions will not be reduced, and there will not be any additional revenue to be allocated to the healthy school meals for all program.

In addition to the income tax changes and potential refunds that may result from voters approving or rejecting the ballot issues described in sections 2 and 3, the act also changes the healthy school meals for all program cash fund (fund) and healthy school meals for all programs. If voters approve the ballot issue submitted pursuant to section 2 and reject the ballot issue submitted pursuant to section 3, $1 million is transferred annually from the fund to local school food purchasing programs. If voters approve the ballot issue submitted pursuant to section 3, regardless of whether the voters approve the ballot issue submitted pursuant to section 2:

• The permissible distribution of local food purchasing grants is modified;
• Certain school food authorities are allowed to collaborate to implement advisory committees;
• The duties of an advisory committee are clarified; and
• The distribution of funds from the fund is changed so that the amounts distributed through local food purchasing grants for increasing wages or providing stipends for individuals whom the participating school food authority employs to directly prepare and serve food for school meals and through the local school food purchasing technical assistance and education grant program are modified based on the amount of money in the fund.

NOTE: Certain provisions of the act are contingent on the results a measure concerning Proposition FF refunds or Proposition FF revenue increases being either approved or not approved by a majority of voters at the November 2025 statewide election.
(Note: This summary applies to this bill as enacted.)

The act adjusts several state tax expenditures as follows:

• Section 2 of the act allows an individual to present a copy of their federal tax return to be exempted from the medical marijuana registry application fee;
• Section 3 requires insurance companies, when submitting certain filings with the division of insurance, to submit the total annual dollar amount of premiums collected or contracted for on policies or contracts of insurance covering property or risks in Colorado during the previous calendar year from entities that are exempt from taxation;
• Section 4 ensures that the valuation for assessment for qualified-senior primary residence real property is reduced for the property tax years commencing on January 1, 2025, and January 1, 2026;
• Section 6 adds the amount of any overtime compensation excluded or deducted from a taxpayer's federal gross income to that taxpayer's federal taxable income for purposes of determining the taxpayer's state taxable income;
• Section 7 expands the definition of local government to include counties for purposes of the alternative transportation options tax credit;
• Section 8 modifies the tax credit for qualified costs incurred in preservation of historic structures by removing the 5% increase in the percentage of rehabilitation expenses incurred in a rehabilitation in a disaster area for the rehabilitation of a commercial structure that are applicable for the tax credit;
• Section 9 extends the tax credit for monetary contributions to promote child care, so that the tax credit is available through income tax years commencing before January 1, 2030, rather than January 1, 2026;
• Section 10 limits the existing business personal property tax credit so that a taxpayer may only claim the tax deduction for income tax years commencing before January 1, 2026;
• Section 12 clarifies and modifies definitions for the qualified care worker tax credit;
• Section 13 allows the executive director of the department of revenue to direct employers who make payments of compensation other than wages to withhold an amount that approximates an employee's income tax due to the state from that employee's compensation;
• Section 14 expands the definition of agricultural commodities to include products regulated under article 10 of title 44 for purposes of the pesticides, fertilizers, and spray adjuvants wholesale sales tax exemption;
• Section 15 ensures that, beginning July 1, 2025, interstate telephone and telegraph services are subject to state sales tax;
• Section 16 exempts the sale of medical marijuana to an individual who presents a valid electronic benefits transfer card or certain other identification from sales tax; and
• Section 17 modifies the enterprise zone tax credit for income tax years beginning January 1, 2026, by limiting the total amount of the credit that may be claimed to $2 million, providing an exemption process for that limit, and prohibiting certain taxpayers from claiming that credit.
  (Note: This summary applies to this bill as enacted.)

The availability of both the family affordability tax credit and the earned income tax credit has been determined by the compound annual growth rate between actual state revenue in state fiscal year 2024-25 and projected state revenue for the fiscal year that begins during the relevant state income tax year. Under the act, the availability of both tax credits is determined by the compound annual growth rate between state revenue for state fiscal year 2024-25, as projected in the March 2024 office of state planning and budgeting revenue forecast, and projected state revenue for the fiscal year that begins during the relevant state income tax year.

(Note: This summary applies to this bill as enacted.)

Legislative Oversight Committee Concerning Tax Policy. Section 2 of the bill extends a refundable income tax credit (credit) that is available for the income tax years commencing on January 1, 2022, and January 1, 2024, so that the credit is also available for the income tax years commencing on January 1, 2025, and January 1, 2026.

For each income tax year, the credit is for a qualifying senior, which means a resident individual who:

• Is 65 years of age or older at the end of the income tax year;
• Has federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $125,000 if filing a joint return; and
• Has not claimed the senior property tax exemption for the property tax year that coincides with the income tax year.

The amount of the credit for both the 2025 and 2026 income tax years is:

• $800 for a qualifying senior filing a single return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $8.
• $800 for 2 taxpayers filing a joint return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.
• $400 for each taxpayer, in the case of 2 taxpayers who share the same primary residence, and may legally file a joint return but actually file separate returns and both claim the credit. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.

Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during the calendar year 2025 or 2026 is eligible to receive the full amount of the credit.

Section 1 requires the property tax administrator to provide reports from counties related to taxpayers who are eligible for and actually claim the homestead property tax exemption.
(Note: This summary applies to this bill as introduced.)

The act requires the executive director of the department of revenue to allow a sales and use tax license and a sales and use tax exemption certificate to be searchable by the name and identification number of the sales and use tax licensee or the sales and use tax exemption certificate holder.

(Note: This summary applies to this bill as enacted.)

The act adjusts several tax expenditures and adds purpose statements to other tax expenditures as follows:

• Section 1 of the act disallows the income tax credit for unsalable alcohol after December 31, 2025, and repeals the credit on December 31, 2030;
• Section 2 extends the 10% of purchase price income tax credit for income tax years commencing before January 1, 2025, for a purchaser who installs an energy storage system in a residential dwelling to include subsequent income tax years commencing before January 1, 2027, and extends the repeal of the credit from January 1, 2028, to January 1, 2030.
• By amending a definition of "agricultural compounds" that is incorporated into the definition of "wholesale sale" used for purposes of the sales and use tax statutes, section 3 exempts from sales and use tax soil conditioners, plant amendments, plant growth regulators, mulches, compost, soil used for aboveground production of agricultural commodities, manure, fish for non-stocking purposes, fish embryos, and fish eggs beginning January 1, 2026;
• Section 4 states that the purpose of the insolvency assessments paid insurance premium tax credit is to offset the cost for an insurer paying required assessments into the life and health insurance protection association and that the credit's effectiveness is measured by how many eligible insurers claim the credit and the amount claimed relative to payments into the life and health insurance protection association;
• Sections 5 and 6 state that the purpose of the state refund income tax subtraction is to avoid re-taxing a taxpayer's state income tax refund when a state refund is required to be included as income on the taxpayer's federal return pursuant to the internal revenue code and that the effectiveness of the deduction is measured by the number of taxpayers claiming the deduction and the total amount of state refunds claimed as subtractions from Colorado taxable income;
• Section 7 states that the purpose of the dyed special fuels and off-road fuel tax excise tax exemption is to entirely exclude dyed diesel or kerosene from the special fuels excise tax where the dyed fuel is used for specified off-road purposes or by governmental entities and that the effectiveness of the exemption is measured by the number of taxpayers claiming the exemption and the amount of tax that would have been paid without the exemption;
• Section 8 states that the purpose of the off-road fuel use refund is to compensate taxpayers who buy and pay the tax on otherwise taxable fuels for the purpose of using the fuels for specified non-taxable purposes under federal law and that the effectiveness of the refund is measured by the number of taxpayers claiming a refund and the amount of tax that was already collected and is refunded;
• Section 9 states that the purpose of the wholesale sale exemption from sales tax is to ensure that sales tax is levied and collected only on a final end sale to a retail consumer and not on wholesale sales and that the effectiveness of the wholesale exemption from sales tax is measured by the number of taxpayers claiming the wholesale exemption from tax and the amount of tax liability not paid;
• Section 10 extends the availability of the biotechnology sales and use tax refund by 1 year to include calendar years beginning before January 1, 2027; and
• Section 11 clarifies that the temporary property tax valuation for assessment reduction for qualified-senior primary residence real property is available whether or not the state has sufficient excess revenues to pay for it.

For the 2025-26 state fiscal year, $13,137 is appropriated from the general fund to the department of revenue for implementation of the act.

(Note: This summary applies to this bill as enacted.)

The act establishes uniform confidentiality standards for the protection of taxpayer information used or obtained in connection with a sales or use tax investigation performed by a third-party auditor on behalf of a local taxing jurisdiction. Except for certain limited circumstances, the act prohibits third-party auditors from divulging or making known in any way to any person information that is obtained from a sales or use tax investigation on behalf of a local taxing jurisdiction or disclosed in any document, report, or return filed in connection with local sales or use taxes. Third-party auditors may disclose taxpayer information in certain limited circumstances, including disclosure to:

• An official, employee, hearing officer, attorney, or other public agent of the local taxing jurisdiction who is authorized to receive such information in connection with the local taxing jurisdiction's sales or use tax investigation performed by the third-party auditor;
• A requesting taxpayer, or the taxpayer's authorized agent, of the taxpayer's own tax filings;
• The department of revenue (department) for purposes of statistical analysis and publication as authorized by current law; and
• The department and the federal internal revenue service as necessary and pertinent to a taxpayer's compliance or failure to comply with state or federal tax law.

A taxpayer may waive the confidentiality requirements for the taxpayer's own filings. A violation of the confidentiality provisions is a misdemeanor punishable by a fine of not more than $1,000 per violation.

The act also clarifies the scope of the authority of the executive director of the department to share taxpayer information with statutory local governments, special districts, and requesting home rule jurisdictions as necessary to facilitate dispute resolution, coordination, intergovernmental agreements, and information sharing between the department and such local governments consistent with law, which prohibits the disclosure of any such shared information to any third party.

(Note: This summary applies to this bill as enacted.)

Current law allows any individual to deduct amounts, up to certain caps based on the individual's age, received as pensions or annuities from any source, to the extent included in federal adjusted gross income.

Notwithstanding the caps on the deduction for amounts received as pensions or annuities from other sources, current law allows any individual who is 65 years of age or older at the close of a taxable year to subtract the total amount of social security benefits that the individual received from the individual's federal taxable income, to the extent those benefits were included in federal taxable income, when determining the individual's state taxable income. Beginning January 1, 2025, this subtraction is also allowed to any individual who is 55 years of age or older and has an adjusted gross income for the applicable tax year that is less than or equal to $75,000 if filing individually or $95,000 if filing jointly.

For income tax years commencing on or after January 1, 2026, the bill removes all caps on the deduction for amounts received as pensions and annuities and allows any individual, regardless of age or income, to subtract the total amount that the individual received as pension or annuity income from the individual's federal taxable income, to the extent that income was included in federal taxable income, when determining the individual's state taxable income.

(Note: This summary applies to this bill as introduced.)

The bill authorizes the owner or operator of a water quality green infrastructure project (project) to sell or trade any greenhouse gas credits (GHG credit) created by the project in the GHG credit trading program (trading program) that is established by the air quality control commission (AQCC) by rule.

The owner or operator that is conducting a project shall pay an independent third-party auditor to certify the GHG credits created by the project in order to sell or transfer those GHG credits in the trading program.

The division of administration in the department of public health and environment (division) shall monitor the sale and transfer of the GHG credits created from a project in the trading program and permit owners and operators of facilities that are regulated by the AQCC and the division and participating in the trading program to purchase the GHG credits in order to reach certain greenhouse gas compliance targets.

(Note: This summary applies to this bill as introduced.)

With regard to the family and medical leave insurance program (program), the act extends the duration of paid family and medical leave, up to an additional 12 weeks, for a parent who has a child receiving inpatient care in a neonatal intensive care unit.

The act also changes the premiums financing the program benefits by extending the current premium amount, 0.9% of wages per employee, through 2025 and setting the premium amount for the 2026 calendar year at 0.88% of wages per employee. For each subsequent calendar year, the director of the division of family and medical leave insurance (director) is required set the premium on or before September 1 of the preceding year, in a manner such that:

• At the end of the year, the balance of the family and medical leave insurance fund (fund) is not less than 6 months' worth of projected expenditures from the fund required for performance of the functions and duties of the director;
• The volatility of the premium rate is minimized; and
• The premium amount does not exceed 1.2% of wages per employee.
  (Note: This summary applies to this bill as enacted.)

The bill establishes that certain evidence that a person has engaged in an unfair or deceptive trade practice constitutes a significant impact to the public. The bill also clarifies that a deceptive trade practice claim cannot be based solely on a claim that a person breached a contract or engaged in negligence or on a claim for damages based on the rendering of professional services, unless the claim for damages involves an allegation of a material misrepresentation of fact, a failure to disclose material information, or an action that cannot be characterized as providing advice, judgment, or opinion.
(Note: This summary applies to this bill as introduced.)

The act extends the achieving a better life experience state income tax deduction (ABLE deduction) until December 31, 2030.

The act specifies that the purposes of the ABLE deduction are to provide support to individuals with disabilities and their families and to provide an incentive for individuals with disabilities and their families to set aside money in an account to cover future disability-related expenses.

(Note: This summary applies to this bill as enacted.)