HB 20-1205 Summary

• Repeals the pre-1987 net operating loss deduction for individuals, estates, and trusts under Colorado Revised Statutes 39-22-104(4)(d)

• Eliminates the ability to deduct Colorado net operating losses carried forward from tax years beginning before January 1, 1987

• The deduction became obsolete because the 15-year carryforward period expired in 2002, making the last year of use 2002

• Takes effect January 1, 2021, subject to referendum petition procedures under Colorado law; would require voter approval in November 2020 if petitioned

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