CO HB1202

Repeals the income tax deduction for previously taxed income or gain for C corporations under Colorado Revised Statutes 39-22-304(3)(e)

Eliminates C corporations' ability to deduct from federal taxable income any income or gain that was taxed by Colorado prior to January 1, 1965, when included in current federal taxable income

Legislative findings indicate the deduction was a structural provision enacted in 1965 when Colorado established federal taxable income as the basis for state taxable income to prevent double taxation

Takes effect January 1, 2021, subject to a referendum petition filed within 90 days after final adjournment of the general assembly; requires voter approval at the November 2020 general election if petitioned

Intended to simplify Colorado tax administration by repealing obsolete tax expenditures that can no longer be claimed