Colorado 2026 Regular Session Status: Passed House 14 D cosponsors

HB 1221 — Tax Expenditure Adjustments

Last action — Senate Committee on Finance Postpone Indefinitely

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill has passed the House. Introduced February 17, 2026. It now moves to the second chamber.

Next likely step: consideration and a floor vote in the Senate.

Odds of enactment

Moderate chance

Based on the sponsor, cosponsors, and committee posture, this bill has a moderate chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Advancing 58% · moderate confidence

  • Passed House

    Current position in the legislative process.

  • 16 sponsors

    4 primary, 12 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (14 D).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Summary

The bill adjusts 3 2 existing tax expenditures.      Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026; Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Bill Text

What changed in the latest version

22 added · 17 removed

Plain-language change summary

In the latest version of Bill HB 1221, some language was streamlined regarding existing tax expenditures, specifically limiting the alternative minimum tax credit to income tax years starting before January 1, 2027. This clarification means that individuals will need to adjust their state taxable income by adding certain amounts to their federal taxable income if those years begin on or after that date. This change matters because it sets clear expectations for taxpayers and could impact their tax calculations going forward.

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Latest
Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO.
Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO.
26-0488.03 Pierce Lively x2059 HOUSE BILL 26-1221 HOUSE SPONSORSHIP Zokaie and Sirota, SENATE SPONSORSHIP Amabile and Wallace, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE ADJUSTMENT OF CERTAIN TAX EXPENDITURES .
26-0488.03 Pierce Lively x2059 HOUSE BILL 26-1221 HOUSE SPONSORSHIP Zokaie and Sirota, Bacon, Boesenecker, Brown, Clifford, Lieder, Lindsay, Mabrey, McCormick, Nguyen, Rutinel, Smith, Woodrow SENATE SPONSORSHIP Amabile and Wallace, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE ADJUSTMENT OF CERTAIN TAX EXPENDITURES .
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The bill adjusts 3 existing tax expenditures.
This summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that d applies to the reengrossed version of this bill will be available at d e 6 http://leg.colorado.gov.) E a 0 S U , O i 4 The bill adjusts 3 existing tax expenditures.
! Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026;
H a a ! Section 2 of the bill limits the alternative minimum tax R M r credit to income tax years commencing prior to January 1, 3 2026;
! Section 4 requires a corporation, for purposes of determiningtheir state taxableincomeforstateincometax i years commencing on or after January 1, 2027, to add to a 2 their federal taxable income the amount, if any, that the S R 2 O n 1 Shading denotes HOUSE amendment.
! Section 4 requires a corporation, for purposes of determiningtheir state taxableincomeforstateincometax n years commencing on or after January 1, 2027, to add to d 6 E e 0 their federal taxable income the amount, if any, that the U d , O 2 y Shading denotes HOUSE amendment.
H 2 a Capital letters or bold & italic numbers indicate new material to be added to existingdlaw.
H d M Capital letters or bold & italic numbers indicate new material to be added to existing law.d Dashes through the words or numbers indicate deletions from existing law.
Dashes through the words or numbers indicate deletions from existing law.
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Action History

  1. Senate Committee on Finance Postpone Indefinitely

  2. House Third Reading Passed - No Amendments

  3. Introduced In Senate - Assigned to Finance

  4. House Second Reading Special Order - Passed with Amendments - Committee, Floor

  5. House Second Reading Laid Over Daily - No Amendments

  6. House Committee on Appropriations Refer Unamended to House Committee of the Whole

  7. House Committee on Finance Refer Amended to Appropriations

  8. Introduced In House - Assigned to Finance

Sponsors

Sponsorship breakdown

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4 sponsors · 12 co-sponsors · 85 not signed on · 23 voted No

Sponsors (4)

Co-sponsors (12)

Not signed on (85)

85 members have not signed on to this bill.

Show all 85 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Postpone House Bill 26-1221 indefinitely.

Passed 7 Yea · 1 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 3000
Democrat 3101
Unaffiliated 1000
Total 7101
% of votes cast 78%11%0%11%
How each member voted (9)
Member Party Vote
Adrienne Benavidez — Yea
Cathy Kipp Democrat Nay
Chris Kolker Democrat Yea
Janice Marchman Democrat Yea
Kyle Mullica Democrat Yea
Marc Snyder Democrat Not Voting
Byron Pelton Republican Yea
Cleave Simpson Republican Yea
Lisa Frizell Republican Yea

Official roll call →

BILL

Passed 42 Yea · 23 Nay
Party YeaNayPresentNot Voting
Democrat 40100
Republican 01900
Unaffiliated 2300
Total 422300
% of votes cast 65%35%0%0%
How each member voted (65)
Member Party Vote
Gonzalez R. — Nay
Stewart K. — Yea
Stewart R. — Yea
Winter T. — Nay
Garcia Sander — Nay
Alex Valdez Democrat Yea
Amy Paschal Democrat Yea
Andrew Boesenecker Democrat Yea
Bob Marshall Democrat Nay
Brianna Titone Democrat Yea
Cecelia Espenoza Democrat Yea
Chad Clifford Democrat Yea
Eliza Hamrick Democrat Yea
Elizabeth Velasco Democrat Yea
Emily Sirota Democrat Yea
Gretchen Rydin Democrat Yea
Jacque Phillips Democrat Yea
Jamie Jackson Democrat Yea
Javier Mabrey Democrat Yea
Jennifer Bacon Democrat Yea
Jenny Willford Democrat Yea
Julie McCluskie Democrat Yea
Junie Joseph Democrat Yea
Karen McCormick Democrat Yea
Kenny Nguyen Democrat Yea
Kyle Brown Democrat Yea
Lesley Smith Democrat Yea
Lindsay Gilchrist Democrat Yea
Lisa Feret Democrat Yea
Lorena Garcia Democrat Yea
Lori Goldstein Democrat Yea
Mandy Lindsay Democrat Yea
Manny Rutinel Democrat Yea
Matthew Martinez Democrat Yea
Meg Froelich Democrat Yea
Meghan Lukens Democrat Yea
Michael Carter Democrat Yea
Monica Duran Democrat Yea
Naquetta Ricks Democrat Yea
Regina English Democrat Yea
Sean Camacho Democrat Yea
Sheila Lieder Democrat Yea
Steven Woodrow Democrat Yea
Tammy Story Democrat Yea
Tisha Mauro Democrat Yea
Yara Zokaie Democrat Yea
Anthony Hartsook Republican Nay
Ava Flanell Republican Nay
Brandi Bradley Republican Nay
Carlos Barron Republican Nay
Chris Richardson Republican Nay
Dan Woog Republican Nay
Dusty Johnson Republican Nay
Jarvis Caldwell Republican Nay
Ken DeGraaf Republican Nay
Larry Don Suckla Republican Nay
Mary Bradfield Republican Nay
Matt Soper Republican Nay
Max Brooks Republican Nay
Rebecca Keltie Republican Nay
Rick Taggart Republican Nay
Ron Weinberg Republican Nay
Scott Bottoms Republican Nay
Scott Slaugh Republican Nay
Stephanie Luck Republican Nay

Official roll call →

Refer House Bill 26-1221 to the Committee of the Whole.

Passed 8 Yea · 3 Nay
Party YeaNayPresentNot Voting
Democrat 8000
Republican 0300
Total 8300
% of votes cast 73%27%0%0%
How each member voted (11)
Member Party Vote
Andrew Boesenecker Democrat Yea
Brianna Titone Democrat Yea
Elizabeth Velasco Democrat Yea
Emily Sirota Democrat Yea
Junie Joseph Democrat Yea
Karen McCormick Democrat Yea
Kyle Brown Democrat Yea
Yara Zokaie Democrat Yea
Chris Richardson Republican Nay
Rick Taggart Republican Nay
Scott Bottoms Republican Nay

Official roll call →

Refer House Bill 26-1221, as amended, to the Committee on Appropriations.

Passed 6 Yea · 4 Nay · 1 Other
Party YeaNayPresentNot Voting
Republican 0301
Democrat 6100
Total 6401
% of votes cast 55%36%0%9%
How each member voted (11)
Member Party Vote
Bob Marshall Democrat Nay
Brianna Titone Democrat Yea
Lorena Garcia Democrat Yea
Rebekah Stewart Democrat Yea
Sean Camacho Democrat Yea
Steven Woodrow Democrat Yea
Yara Zokaie Democrat Yea
Anthony Hartsook Republican Nay
Ken DeGraaf Republican Not Voting
Max Brooks Republican Nay
Ryan Gonzalez Republican Nay

Official roll call →

Subjects

taxation
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HB 1221 do?
The bill adjusts 3 2 existing tax expenditures.      Section 2 of the bill limits the alternative minimum tax credit to income tax years commencing prior to January 1, 2026; Section 4 3 requires a corporation, for purposes of determining their state taxable income for state income tax years commencing on or after January 1, 2027, to add to their federal taxable income the amount, if any, that the taxpayer claimed as a deduction on the taxpayer's federal tax return pursuant to the employee remuneration deduction allowed pursuant to section 162 (m) of the internal revenue code; and Section 5 4 limits the period of time that net operating losses generated in income tax years commencing on or after January 1, 2027, can be carried forward from 20 years to 10 years and limits the amount of losses that may be claimed to 70% rather than 80%.      Section 3 2 creates a new tax credit. The new tax credit allows taxpayers to claim a refundable tax credit, in addition to the child tax credit and the family affordability tax credit, in an amount determined by the amount and age of the taxpayer's children and the taxpayer's income. The total amount of the new tax credit is adjusted annually based on legislative council staff projections, such that the total amount of the new tax credit claimed in an income tax year is projected to be the same as the amount of revenue raised in sections 2, 4, 3 and 5 4 .(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)
Who sponsors HB 1221?
HB 1221 is sponsored by K. Wallace, J. Amabile, Emily Sirota (Democrat), Yara Zokaie (Democrat), Jennifer Bacon (Democrat), Andrew Boesenecker (Democrat), Chad Clifford (Democrat), Sheila Lieder (Democrat), Mandy Lindsay (Democrat), Javier Mabrey (Democrat), Karen McCormick (Democrat), Manny Rutinel (Democrat), Lesley Smith (Democrat), Steven Woodrow (Democrat), Kyle Brown (Democrat), and Kenny Nguyen (Democrat).
What is the current status of HB 1221?
This bill has passed the House. Introduced February 17, 2026. It now moves to the second chamber.
Where can I track HB 1221?
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