HB 20-1024 Summary

• Limits corporate net operating loss carryforwards to twenty years for losses generated in income tax years commencing on or after January 1, 2021, decoupling Colorado from unlimited federal carryforward periods.

• Maintains existing carryforward rules for losses generated before January 1, 2021, allowing them to be carried forward for the same number of years as permitted federally.

• Modifies financial institution net operating loss rules to align with general corporate taxpayers by limiting carryforwards to fifteen years for losses before January 1, 2021, and implicitly to twenty years thereafter.

• Takes effect August 5, 2020, unless a referendum petition is filed, in which case it requires voter approval at the November 2020 general election to become effective.