HB25B-1020 Summary

• Repeals the requirement for taxpayers to add overtime compensation excluded or deducted from federal gross income to their state taxable income, effective January 1, 2026.

• Clarifies that the overtime compensation addition qualifies as "a tax policy change directly causing a net tax revenue gain to any district" and requires voter approval in advance under Colorado Constitution Article X, Section 20(4)(a).

• Clarifies that extending the Section 199A federal qualified business income deduction addition to tax years commencing on or after January 1, 2026 would require voter approval in advance for taxpayers with adjusted gross income exceeding $500,000 (single) or $1,000,000 (joint).

• Repeals section 18 of chapter 202 of the 2025 Session Laws of Colorado.

• Includes a safety clause declaring the act necessary for preservation of public peace, health, or safety and support of state departments and institutions.