CO HB1223

Creates a new refundable "family affordability credit" for resident individuals with children beginning January 1, 2027, with higher amounts for children 5 and under (100%) versus children ages 6-16 (75%), phasing out as income exceeds $15,000 (single filers) or $25,000 (joint filers)

Credit amounts are determined annually by Legislative Council staff to equal the projected revenue generated by repealing the downloaded software sales tax exemption

Repeals the downloaded software sales and use tax exemption effective January 1, 2027, making all software available for repeated sale and governed by nonnegotiable license agreements subject to state sales and use tax

Maintains sales tax exemptions for software governed by negotiable license agreements or custom software developed for a particular user

Designed as revenue-neutral: the new family tax credit reduces state revenue by an amount equal to or greater than the revenue gained from taxing downloaded software, avoiding TABOR voter approval requirements