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Senate Finance postpones decoupling bill addressing H.R.1’s tax changes
Summary
Sponsors said HB26‑12‑22 would decouple Colorado from four federal tax expansions to preserve state revenue and fund a family affordability credit; at sponsors’ request the committee postponed the bill indefinitely (7‑1).
Sponsors told the committee that recent federal tax changes in H.R.1 produced an estimated $1.2 billion hit to Colorado’s revenue this fiscal year and that HB26‑12‑22 would decouple Colorado from four federal expansions (bonus depreciation, a new manufacturing expensing rule, R&D expensing and related timing differences) to recapture roughly $800 million for a refundable family affordability credit.
Sen. Kipp said the bill would not prevent businesses from claiming the federal deductions but would decline to automatically extend those new federal windfalls at the state level. She noted 29 states have already decoupled from bonus depreciation alone.
Sponsors moved at their request to postpone the bill indefinitely; the committee approved the motion 7‑1.
