HB25B-1018 Summary

• Creates a mechanism to temporarily suspend or prorate most income tax credits based on state revenue estimates, beginning December 2025, excluding the Colorado affordable housing tax credit and earned income tax credits.

• Establishes that credit availability is determined by comparing two revenue forecasts (one assuming all credits available, one assuming none) and applying whichever scenario results in the least excess state revenue.

• Makes the family affordability tax credit nonrefundable beginning in tax year 2025.

• Authorizes the Department of Revenue to sell up to $40 million in income tax credit certificates in fiscal year 2025-26 for three green energy credits (electric lawn equipment, heat pump technology, and electric bicycles), with proceeds going to the general fund and credits claimable starting in tax year 2030.

• Limits the effective dates of three refundable green energy tax credits to tax year 2025, after which they can only be claimed through the purchased certificate program until December 31, 2055.