Senate committee backs continuing state limit on federal QBI deduction

The Senate Committee on Appropriations on Thursday voted 5–2 to advance HB25B‑1001, a bill that continues the state’s current limitation on the federal qualified business income (QBI) deduction for non‑corporate filers, keeping the $500,000 single and $1,000,000 joint income thresholds. The measure’s sponsors said the change preserves state policy as the corresponding federal deduction was altered by federal legislation.

Why it matters: Committee sponsors and witnesses said continuing the limitation prevents a large share of the QBI benefit from flowing to very high‑income taxpayers and protects state revenue used to fund programs such as Medicaid and SNAP. Opponents said the bill is effectively a tax policy change that produces new net revenue in the short term and therefore should be referred to voters under the Taxpayer Bill of Rights (TABOR).

Sponsors explained HB25B‑1001 as a continuation of existing…