CO HB1221

Eliminates the alternative minimum tax credit for individuals, estates, and trusts for tax years beginning on or after January 1, 2026

Requires corporations to add back to their state taxable income any federal deductions claimed for executive compensation under IRC Section 162(m), effective for tax years beginning January 1, 2027

Reduces the net operating loss carryforward period for corporations from 20 years to 10 years and lowers the deduction limit from 80% to 70% for losses generated after December 31, 2026

Creates a new refundable family affordability tax credit for families with children, with higher amounts for children age 5 and under (100%) compared to children ages 6-16 (75%), phasing out as income increases above $15,000 (single filers) or $25,000 (joint filers)

Directs Legislative Council staff to annually calculate the new credit amount so that total credits claimed equal the projected revenue gained from the other tax changes in the bill