POLISCOPE
Back to bills

The civic record

Read. Follow. Verify.
Enacted

Colorado Modifies Multiple State Tax Credits, Rail Carrier Use Tax Rules, and Fund Transfers

Original title: Modification of Certain Tax Expenditures

Last action · June 3, 2026: Governor SignedSponsors: Kyle Brown and 26 others

Introduced
Committee
Floor Vote
Passed
Law

Track this bill to get notified when it advances a stage. One tap to stop, anytime.

Public stanceCommunity reactions are separate from the official record and reporting.

What This Bill Does

House Bill 1289 modifies various state s, adjusts corporate and individual income tax rules, revises local use tax exemptions for common rail carriers, alters tax credits for electric vehicles, wildfire mitigation, and renewable energy, and makes specific state fiscal appropriations for 2026-27.

Why it matters

Changes tax credits, deductions, and exemptions for individuals, corporations, and specialized industries across Colorado, while transferring millions of dollars between state funds and altering department-level appropriations.

Background
  • House Bill 1289 was introduced during the 2026 legislative session in Colorado and addresses a wide range of state tax expenditures, credits, and agency funding adjustments. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

Taxpayers

Taxpayers face altered income tax calculations, modified credit thresholds, and new add-back requirements starting in 2027.

Directly affected

Common carriers by rail

Construction and building materials used by common rail carriers under government passenger rail contracts are exempt from certain local use taxes and state storage and consumption taxes.

Directly affected

Cigarette and tobacco distributors

Wholesalers and distributors lose collection and remittance deductions and discounts starting January 1, 2027.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What changes are made to the innovative motor vehicle tax credit?
The credit is increased from $1,000 to $2,000 for certain vehicles sold or leased during the 2027 income tax year, and from $500 to $1,000 for the 2028 income tax year. Additionally, certain vehicles with an MSRP below $40,000 sold or leased between January 1, 2027, and January 1, 2029, become eligible for the additional tax credit.
How does the act affect highway funding?
The act requires the state treasurer to transfer $45.6 million from the general fund to the state highway fund on July 1, 2026, and $96.4 million on each July 1 from 2027 through 2031.
What happens to the sustainable aviation fuel production facility tax credit?
The sustainable aviation fuel production facility tax credit is repealed effective January 1, 2027, and replaced by a new SAF purchase income tax credit.

What else do you want to know?

News Coverage

No news coverage found yet. Articles are indexed twice daily.

Where This Stands

Current status: Signed into law.

Procedural history

16 actions
  1. Jun 3, 2026Office of the GovernorEnrolled
    Governor Signed
  2. May 29, 2026HouseFloor
    Signed by the Speaker of the House
  3. May 29, 2026SenateFloor
    Signed by the President of the Senate
  4. May 29, 2026Office of the GovernorEnrolled
    Sent to the Governor
  5. May 13, 2026SenateFloor
    Senate Third Reading Passed with Amendments - Floor
  6. May 13, 2026House
    House Considered Senate Amendments - Result was to Concur - Repass
Show 10 earlier actions
  1. May 12, 2026Senate
    Senate Second Reading Special Order - Passed with Amendments - Committee
  2. May 11, 2026SenateCommittee
    Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole
  3. May 11, 2026Senate
    Senate Second Reading Special Order - Laid Over Daily - No Amendments
  4. May 7, 2026SenateCommittee
    Senate Committee on Finance Refer Amended to Appropriations
  5. May 4, 2026HouseFloor
    House Third Reading Passed - No Amendments
  6. May 4, 2026SenateIntroduced
    Introduced In Senate - Assigned to Finance
  7. May 1, 2026HouseCommittee
    House Committee on Appropriations Refer Amended to House Committee of the Whole
  8. May 1, 2026House
    House Second Reading Special Order - Passed with Amendments - Committee, Floor
  9. Mar 23, 2026HouseCommittee
    House Committee on Finance Refer Amended to Appropriations
  10. Feb 23, 2026HouseIntroduced
    Introduced In House - Assigned to Finance

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

View official text →

Voting Record

Show 10 earlier roll calls
Motion failedHouse3/23/2026Open StatesOfficial roll call ↗

Adopt amendment L.010

Total

3

Yes
1
No
2
Present
0
Not voting
0
Abstain
0
Motion failedHouse3/23/2026Open StatesOfficial roll call ↗

Adopt amendment L.009

Total

3

Yes
1
No
2
Present
0
Not voting
0
Abstain
0
Motion succeededHouse3/23/2026Open StatesOfficial roll call ↗

Adopt amendment L.001

Total

3

Yes
2
No
1
Present
0
Not voting
0
Abstain
0
Motion succeededHouse3/23/2026Open StatesOfficial roll call ↗

Refer House Bill 26-1289, as amended, to the Committee on Appropriations.

Total

3

Yes
2
No
1
Present
0
Not voting
0
Abstain
0

Lobbying Activity

No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.

Full breakdown

Who this bill affects and the strongest case for and against it, written only from the bill’s own text.

Sponsors

Discoveries

1 pattern noticed across the record

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift95% confidence

Comprehensive State Tax and Credit Restructuring

The act enacts widespread modifications to tax expenditures by repealing certain collection discounts, altering corporate tax calculations regarding foreign income and opportunity funds, and adjusting timelines for renewable energy and vehicle credits.

Connected Entities

Department of Health Care Policy and Financing, Legislative Council Staff, Office of State Planning and Budgeting and 7 more
OrganizationDepartment of Health Care Policy and Financing“Subject to appropriation adjustments for medical and long-term care services”Map →
OrganizationLegislative Council Staff“Provides economic forecasts”Map →
OrganizationOffice of State Planning and Budgeting“Provides economic forecasts affecting tax credits”Map →
OrganizationDepartment of Early Childhood“Receives appropriation for universal preschool program support”Map →
OrganizationDepartment of Revenue“Receives tax credit reports and administers tax provisions”Map →
OrganizationDepartment of Agriculture“Approves or disapproves applications for small food business recovery grant prog”Map →
OrganizationState Treasurer“Transfers funds from the general fund to the state highway fund and other accoun”Map →
OrganizationColorado Energy Office“Reviews applications for tax credits and adjusts aggregate credit limits”Map →
OrganizationColorado State Forest Service“Sets standards for infestation mitigation measures”Map →
OrganizationDepartment of Public Health and Environment“Receives appropriations for tobacco education, grants, and immunization operatin”Map →

Sources

Open source document

leg.colorado.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy40
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz35
    Current news / social attention level

Publisher tools

Share or embed this record

POLISCOPE publisher tools

Share or embed this record