Colorado creates new family tax credit, repeals software tax exemption, and provides sales tax relief for food and drink retailers

Original title: Modifying Certain Tax Expenditures

Last action · June 4, 2026: Governor SignedSponsors: Andy Boesenecker and 23 others

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

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What This Bill Does

The act creates a new for families with children, funded by repealing the sales and use tax exemption for downloaded software starting January 1, 2027. It also allows qualifying food and drink retailers to claim sales tax deductions and energy tax exemptions, while modifying housing fund s and appropriating $48,326 for tax administration.

Why it matters

Taxpayers with children gain access to a new refundable credit, software purchasers face new sales taxes, and food and drink retailers receive temporary sales tax deductions and energy exemptions.

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 with children

Taxpayers with children become eligible to claim a new refundable tax credit based on income, child age, and number of children.

Directly affected

Retailers in the food or drink industry

Food and drink retailers are allowed temporary sales deductions, gas and electricity tax exemptions, or tax credits based on prepared food sales percentages.

Directly affected

Software purchasers

Purchasers of downloaded software available for repeated sale and license face new sales and use taxes 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

Who qualifies for the new refundable tax credit?

Taxpayers with children qualify, with the credit amount determined by the taxpayer's income as well as the amount and age of their children.

What software remains exempt from sales and use tax?

Downloaded software governed by a negotiable license agreement or developed for use by a particular user remains exempt.

What tax relief is available for food and drink retailers?

Qualifying retailers can deduct up to $14,000 of state net taxable sales during specific months in 2027 and 2028, and receive gas and electricity tax exemptions or credits based on their prepared food sales percentage.

What else do you want to know?

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Where This Stands

Current status: Signed into law.

Procedural history

18 actions

Jun 4, 2026Office of the GovernorEnrolled
Governor Signed
Jun 3, 2026HouseFloor
Signed by the Speaker of the House
Jun 3, 2026SenateFloor
Signed by the President of the Senate
Jun 3, 2026Office of the GovernorEnrolled
Sent to the Governor
May 13, 2026SenateFloor
Senate Third Reading Passed with Amendments - Floor
May 13, 2026House
House Considered Senate Amendments - Result was to Concur - Repass

Show 12 earlier actions

May 13, 2026SenateFloor
Senate Third Reading Passed - No Amendments
May 12, 2026Senate
Senate Third Reading Laid Over Daily - No Amendments
May 11, 2026SenateCommittee
Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole
May 11, 2026Senate
Senate Second Reading Special Order - Passed with Amendments - Committee, Floor
May 7, 2026SenateCommittee
Senate Committee on Finance Refer Amended to Appropriations
May 4, 2026HouseFloor
House Third Reading Passed - No Amendments
May 4, 2026SenateIntroduced
Introduced In Senate - Assigned to Finance
May 1, 2026House
House Second Reading Special Order - Passed with Amendments - Committee, Floor
Apr 30, 2026House
House Second Reading Laid Over Daily - No Amendments
Apr 28, 2026HouseCommittee
House Committee on Appropriations Refer Unamended to House Committee of the Whole
Mar 9, 2026HouseCommittee
House Committee on Finance Refer Amended to Appropriations
Feb 17, 2026HouseIntroduced
Introduced In House - Assigned to Finance

Version history

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