CO HB1106

Allows Colorado taxpayers to claim a state income tax deduction equal to any penalty paid under section 5000A of the Internal Revenue Code for failing to maintain minimum essential health coverage under the Patient Protection and Affordable Care Act

Applies to tax years commencing on or after January 1, 2015, and covers penalties assessed for any month during the taxable year

The deduction is subtracted from federal taxable income when calculating Colorado taxable income, which is then multiplied by the state's 4.63% income tax rate

Declares the purpose of the deduction is to lessen the impact of what the legislature characterizes as an unfair federal law requiring penalties for individuals without health insurance

Takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly, or if a referendum petition is filed, upon approval by voters at the November 2014 general election