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Senate adopts bill curbing an insurance premium tax break after auditorreport
Summary
The Senate adopted House Bill 1003 on Aug. 24 to adjust or end the Regional Home Office (RHO) insurance premium tax reduction after nonpartisan audits raised doubts about job benefits; sponsors cited OSA analysis saying 15 of 18 beneficiary groups cut jobs while claiming credits.
The Senate moved House Bill 1003 forward Aug. 24 to reduce or curtail a longstanding insurance premium tax break that allowed qualifying insurers to claim a reduced rate for regional home offices.
Sponsor Senator Wiseman described the insurance RHO as a long-standing break that has not demonstrably produced job growth, citing an Office of State Auditor review that found 15 of 18 qualifying groups reported net job losses while claiming $17.5 million in benefits during the studied period. "The data continues to be really mixed," she said, and urged colleagues to reconsider whether the state should continue the credit.
Opponents said the credit encourages insurer operations in Colorado and warned that removing it could increase premiums or encourage firms to relocate jobs. Debate touched on whether the credits benefits flow to workers or mainly to corporate shareholders and executives; one senator cited per-employee subsidy calculations exceeding $40,000 for a named company in 2024.
The Senate adopted the measure on second reading and ordered it for third reading and final passage, where further amendments and final votes may be recorded.
What happens next: HB1003 is on the calendar for final passage; lawmakers and industry representatives said they expect continued negotiations about impacts and possible phase-in timelines.
