In addressing the Colorado Chamber of Commerce’s Tax Council at its meeting on March 1, 2024, Colorado Senate Finance Committee Chair Sen. Kyle Mullica (D) identified affordability as one of the major themes of the 2024 Colorado legislative session.

As a participant of the Chamber’s Tax Council, COCPA CEO Alicia Gelinas, CPA, notes that several 2024 proposed bills attempt to make Colorado a more affordable place to live and do business. At the same time, some proposed bills promote certain social initiatives (for example, environmental protections) that seemingly come with a cost that could jeopardize long-term affordability.

At the Tax Council meeting, Mullica acknowledged that in today’s political environment, it is challenging to strike the right balance of regulation and positive market forces to achieve both the economic and social objectives of delegation members, who are representing their local communities.

With recent TABOR surpluses in Colorado and the limit on government spending as a result of TABOR laws, many legislators are turning to tax credits to meet the needs of targeted groups of individuals in offering greater affordability. In the past few years, we have seen a record number of tax credits issued in Colorado. In the 2024 legislative session so far, 23 proposed bills (see list below) introduce new, or address existing, tax credits, whose volume represents almost 65% of the current available tax credits as listed on the Department of Revenue’s Income Tax Credits page.

The next few months will require a focused effort on the part of legislators to evaluate and consider which of these proposed tax credits will provide the most benefit and ultimately be affordable for the state of Colorado.

As a non-partisan advocate for the accounting profession, the COCPA focuses its advocacy efforts by providing education and information on the administration and implementation of proposed and enacted legislation. You can help advance the COCPA’s advocacy efforts by donating to the CPA-PAC, which allows the Society to support candidates who promote a positive legislative environment.

Each of the following proposed bills from the 2024 Colorado legislative session introduces new or addresses existing tax credits. (Those with an asterisk are already signed into law; click on the corresponding links for more information.)

*House 002 | Local Govt Property Tax Credits Rebates

House 16 | Tax Credits for Contributions via Intermediaries

House 44 | PERA Retiree Refundable Income Tax Credit

House 114 | Income Tax Credit for Parental School Engagement

House 126 | Conservation Easement Income Tax Credit

House 146 | Tax Credit for Qualified Renters

House 152 | Regenerative Agriculture Tax Credit

Senate 1052 | Senior Housing Income Tax Credit

*Senate 1084 | Repeal & Reenact Earned Income Tax Credit Increase

Senate 1116 | Extend Contaminated Land Income Tax Credit

Senate 1125 | Tax Credit Commercial Building Conversion

Senate 1138 | Tax Credit for Transfer of Agricultural Asset

Senate 1144 | Income Tax Credit for Mortgage Rate Buy Downs

Senate 1157 | Employee-Owned Bus Office & Income Tax Credit

Senate 1221 | Income Tax Credit for Eligible Teachers

Senate 1249 | Tax Credit Agricultural Stewardship Practices

Senate 1271 | State Income Tax Credit for Veterinary Profl

Senate 1288 | Earned Income Tax Credit Data Sharing

Senate 1311 | Family Affordability Tax Credit

Senate 1312 | State Income Tax Credit for Careworkers

Senate 1314 | Mod Tax Credit Preservation Historic Structures

Senate 1316 | Middle-Income Housing Tax Credit

Senate 1325 | Tax Credits for Quantum Industry Support