CO HB1263

Increases Colorado taxable income by the amount of salary or other compensation exceeding $250,000 paid to individuals that is claimed as a federal deduction by a taxpayer, effective for tax years beginning January 1, 2011

Applies the $250,000 limit to both individual income tax (section 39-22-104) and corporate net income tax (section 39-22-304)

Limits the state income tax deduction for wages or salaries disallowed under federal law to $250,000 per individual, effective for tax years beginning January 1, 2010

Applies to compensation deducted under Internal Revenue Code section 162(a)(1) or any other section of the Internal Revenue Code