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Senate adopts bill to authorize limited sale of future tax credits to raise one‑time revenue
Summary
The Senate took up and approved House Bill 25B‑1004, allowing the Treasury to sell capped future tax credits at a minimum of 80¢ on the dollar and transfer net proceeds to the general fund. Sponsors said the one‑time sale would raise about $100 million for schools and wildfire response; critics warned of long‑term revenue loss and questioned fiscal prudence.
The Senate considered and adopted House Bill 25B‑1004 in committee of the whole and on second reading as part of the special session’s package. The bill authorizes the state treasurer to sell a limited amount of future tax credit certificates at a floor price of at least 80¢ per dollar and directs proceeds, after issuance and administrative costs, into a cash fund and a $100 million transfer to the general fund.
Senator Marchman, speaking on the bill, described three appropriations‑stage amendments: (1) creation of a cash fund to receive sales proceeds and pay issuance costs, (2) making the Treasury’s sale authority permissive to avoid legal pitfalls if credits do not sell, and (3) raising the sale‑price floor from 75% to 80% to protect taxpayers and limit competition with affordable housing credits.
Floor debate featured repeated concerns about using tax‑credit sales as a short‑term financing tool. Critics noted that selling credits at a discount is effectively borrowing against future revenue and could reduce state receipts in later years; some urged pausing or prioritizing existing tax credits instead. Proponents said guardrails — limits, Colorado‑first offers to in‑state insurers, and coordination with CHFA — protect housing credits and investor timing and that the operation is a one‑time, capped transaction.
The committee adopted the Appropriations Committee report, and the measure was adopted on second reading in committee; it was placed on the calendar for third reading and final passage.
