Colorado 2022 Regular Session Status: Enacted 1 D cosponsors

SB 22-124 — SALT Parity Act

Last action — Governor Signed

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

This bill has been enacted into law. Introduced February 03, 2022. Enacted.

Prognosis

Likely to advance 78% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 6 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

The "SALT Parity Act" was enacted in 2021 and, for income tax years commencing on or after January 1, 2022, it allowed pass-through entities to elect to pay state income tax at the entity level, which allows the entity to claim an unlimited deduction at the federal level for state and local taxes paid. While this election reduces federal taxable income for the pass-through entity, it does not reduce or increase Colorado taxable income under current law based on additions and subtractions (deductions) to the state income tax. The act converts the state income tax deductions created to keep state revenue neutrality into a tax credit and makes provisions of the "SALT Parity Act" retroactive to January 1, 2018. An S corporation or a partnership must make the retroactive election on or after September 1, 2023, but before July 1, 2024, in a composite amended tax return for all of the years for which the election is made that is filed on behalf of the S corporation or partnership and the electing pass-through entity owners. (Note: This summary applies to this bill as enacted.)

Bill Text

What changed in the latest version

24 added · 17 removed

Plain-language change summary

The latest version of SB 22-124 fixes the language to clarify that pass-through entities can now elect to pay state income tax at the entity level. This change is important because it allows these entities to benefit from unlimited deductions for state and local taxes on their federal tax returns. Ultimately, this shift aims to provide substantial tax relief and simplify tax obligations for certain businesses.

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Previous
Latest
Second Regular Session Seventy-third 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-third General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO.
22-0769.01 Ed DeCecco x4216 SENATE BILL 22-124 SENATE SPONSORSHIP Woodward and Kolker, Hisey, Holbert, Kirkmeyer, Rankin HOUSE SPONSORSHIP Ortiz and Van Winkle, Lynch, Van Beber Senate Committees House Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE AUTHORITY OF A PASS -THROUGH BUSINESS ENTITY TO ELECT TO PAY STATE INCOME TAXES AT THE ENTITY LEVEL , AND ,INCONNECTIONTHEREWITH ,MAKINGANAPPROPRIATION .
22-0769.01 Ed DeCecco x4216 SENATE BILL 22-124 SENATE SPONSORSHIP WoodwardandKolker, Hisey,Holbert,Kirkmeyer,Rankin,Ginal,Hinrichsen,Pettersen, Zenzinger HOUSE SPONSORSHIP Ortiz and Van Winkle, Lynch, Van Beber Senate Committees House Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE AUTHORITY OF A PASS -THROUGH BUSINESS ENTITY TO ELECT TO PAY STATE INCOME TAXES AT THE ENTITY LEVEL , AND ,INCONNECTIONTHEREWITH ,MAKINGANAPPROPRIATION .
Bill Summary (Note:
Bill Summary d (Note:
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"SALTParityAct"(act)wasenactedin2021and,forincome tax years commencing on or after January 1, 2022, the act allows pass-through entities to elect to pay state income tax at the entity level, g which allows the entity to claim an unlimited deduction at the federal d e 2 level for state and local taxes paid.
This summary applies to this bill as introduced and does d notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill e 2 E a 0 passes third reading in the house of introduction, a bill summary that A U , applies to the reengrossed version of this bill will be available at N i l S a p http://leg.colorado.gov.) R A r The"SALTParityAct"(act)wasenactedin2021and,forincome tax years commencing on or after January 1, 2022, the act allows pass-through entities to elect to pay state income tax at the entity level, i which allows the entity to claim an unlimited deduction at the federal a 2 level for state and local taxes paid.
While this election reduces federal T R 2 A n 6 Shading denotes HOUSE amendment.
While this election reduces federal E R 0 T d , N 2 2 Shading denotes HOUSE amendment.
E d i Capital letters or bold & italic numbers indicate new material to be added to existing statute.
S e r Capital letters or bold & italic numbers indicate new material to be added to existing statun Ap Dashes through the words indicate deletions from existing statute.
Dashes through the words indicate deletions from existing statute.
e A taxable income for the pass-through entity, it does not reduce Colorado taxable income under current law.
e A A taxable income for the pass-through entity, it does not reduce Colorado taxable income under current law.
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Amendments

1 amendment

Click Show changes on an amendment above to see how it modifies the bill.

Action History

  1. Governor Signed

  2. Signed by the President of the Senate

  3. Signed by the Speaker of the House

  4. Sent to the Governor

  5. House Third Reading Passed with Amendments - Floor

  6. Senate Considered House Amendments - Result was to Concur - Repass

  7. House Third Reading Laid Over Daily - No Amendments

  8. House Committee on Appropriations Refer Amended to House Committee of the Whole

  9. House Second Reading Special Order - Passed with Amendments - Committee

  10. House Committee on Business Affairs & Labor Refer Amended to Appropriations

  11. Senate Third Reading Passed - No Amendments

  12. Introduced In House - Assigned to Business Affairs & Labor

  13. Senate Committee on Appropriations Refer Amended - Consent Calendar to Senate Committee of the Whole

  14. Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

  15. Senate Committee on Finance Refer Amended to Appropriations

  16. Introduced In Senate - Assigned to Finance

Sponsors

Sponsorship breakdown

Export CSV (upgrade) →

4 sponsors · 0 co-sponsors · 98 not signed on · 6 voted No

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (98)

98 members have not signed on to this bill.

Show all 98 →

"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

CONCUR

Passed 35 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 8000
Unaffiliated 23000
Republican 4000
Total 35000
% of votes cast 100%0%0%0%
How each member voted (35)
Member Party Vote
Buckner — Yea
Cooke — Yea
Coram — Yea
Donovan — Yea
Fields — Yea
Gardner — Yea
Ginal — Yea
Hansen — Yea
Hisey — Yea
Holbert — Yea
Lee — Yea
Lundeen — Yea
Moreno — Yea
Pettersen — Yea
Priola — Yea
Rankin — Yea
Scott — Yea
Smallwood — Yea
Sonnenberg — Yea
Woodward — Yea
Zenzinger — Yea
Fenberg — Yea
Jaquez Lewis — Yea
Chris Kolker Democrat Yea
James Coleman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Julie Gonzales Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tammy Story Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Larry Liston Republican Yea
Ty Winter Republican Yea

Official roll call →

REPASS

Passed 35 Yea · 0 Nay
Party YeaNayPresentNot Voting
Democrat 8000
Unaffiliated 23000
Republican 4000
Total 35000
% of votes cast 100%0%0%0%
How each member voted (35)
Member Party Vote
Buckner — Yea
Cooke — Yea
Coram — Yea
Donovan — Yea
Fields — Yea
Gardner — Yea
Ginal — Yea
Hansen — Yea
Hisey — Yea
Holbert — Yea
Lee — Yea
Lundeen — Yea
Moreno — Yea
Pettersen — Yea
Priola — Yea
Rankin — Yea
Scott — Yea
Smallwood — Yea
Sonnenberg — Yea
Woodward — Yea
Zenzinger — Yea
Fenberg — Yea
Jaquez Lewis — Yea
Chris Kolker Democrat Yea
James Coleman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Julie Gonzales Democrat Yea
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tammy Story Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Larry Liston Republican Yea
Ty Winter Republican Yea

Official roll call →

BILL

Passed 59 Yea · 6 Nay
Party YeaNayPresentNot Voting
Democrat 20300
Republican 8000
Unaffiliated 31300
Total 59600
% of votes cast 91%9%0%0%
How each member voted (65)
Member Party Vote
Bernett — Yea
Bird — Yea
Bockenfeld — Yea
Caraveo — Yea
Carver — Yea
Esgar — Yea
Geitner — Yea
Gonzales-Gutierrez — Yea
Gray — Yea
Hanks — Yea
Herod — Yea
Holtorf — Yea
Hooton — Nay
Larson — Yea
Lontine — Yea
Lynch — Yea
McKean — Yea
McLachlan — Yea
Neville — Yea
Ortiz — Yea
Pico — Yea
Ransom — Yea
Sandridge — Nay
Tipper — Yea
Will — Yea
Young — Yea
Garnett — Yea
Adrienne Benavidez — Nay
Michaelson Jenet — Yea
Valdez D. — Yea
Van Beber — Yea
Van Winkle — Yea
Williams D. — Yea
deGruy Kennedy — Yea
Alex Valdez Democrat Yea
Andrew Boesenecker Democrat Nay
Brianna Titone Democrat Yea
Cathy Kipp Democrat Yea
Dylan Roberts Democrat Yea
Emily Sirota Democrat Nay
Iman Jodeh Democrat Yea
Jennifer Bacon Democrat Yea
Judy Amabile Democrat Yea
Julie McCluskie Democrat Yea
Karen McCormick Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Mandy Lindsay Democrat Yea
Marc Snyder Democrat Yea
Meg Froelich Democrat Yea
Mike Weissman Democrat Yea
Monica Duran Democrat Yea
Naquetta Ricks Democrat Yea
Steven Woodrow Democrat Nay
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
Dan Woog Republican Yea
Janice Rich Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Mary Bradfield Republican Yea
Matt Soper Republican Yea
Rod Pelton Republican Yea
Stephanie Luck Republican Yea

Official roll call →

PERM

Passed 62 Yea · 3 Nay
Party YeaNayPresentNot Voting
Democrat 22100
Republican 7100
Unaffiliated 33100
Total 62300
% of votes cast 95%5%0%0%
How each member voted (65)
Member Party Vote
Bernett — Yea
Bird — Yea
Bockenfeld — Yea
Caraveo — Yea
Carver — Yea
Esgar — Yea
Geitner — Yea
Gonzales-Gutierrez — Yea
Gray — Yea
Hanks — Yea
Herod — Yea
Holtorf — Yea
Hooton — Yea
Larson — Yea
Lontine — Yea
Lynch — Yea
McKean — Yea
McLachlan — Yea
Neville — Yea
Ortiz — Yea
Pico — Yea
Ransom — Yea
Sandridge — Nay
Tipper — Yea
Will — Yea
Young — Yea
Garnett — Yea
Adrienne Benavidez — Yea
Michaelson Jenet — Yea
Valdez D. — Yea
Van Beber — Yea
Van Winkle — Yea
Williams D. — Yea
deGruy Kennedy — Yea
Alex Valdez Democrat Yea
Andrew Boesenecker Democrat Yea
Brianna Titone Democrat Yea
Cathy Kipp Democrat Yea
Dylan Roberts Democrat Yea
Emily Sirota Democrat Yea
Iman Jodeh Democrat Yea
Jennifer Bacon Democrat Yea
Judy Amabile Democrat Yea
Julie McCluskie Democrat Yea
Karen McCormick Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Mandy Lindsay Democrat Yea
Marc Snyder Democrat Yea
Meg Froelich Democrat Yea
Mike Weissman Democrat Yea
Monica Duran Democrat Yea
Naquetta Ricks Democrat Yea
Steven Woodrow Democrat Yea
Tom Sullivan Democrat Nay
Tony Exum Democrat Yea
Dan Woog Republican Yea
Janice Rich Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Mary Bradfield Republican Yea
Matt Soper Republican Yea
Rod Pelton Republican Yea
Stephanie Luck Republican Nay

Official roll call →

AMD

Passed 64 Yea · 1 Nay
Party YeaNayPresentNot Voting
Democrat 23000
Republican 8000
Unaffiliated 33100
Total 64100
% of votes cast 98%2%0%0%
How each member voted (65)
Member Party Vote
Bernett — Yea
Bird — Yea
Bockenfeld — Yea
Caraveo — Yea
Carver — Yea
Esgar — Yea
Geitner — Yea
Gonzales-Gutierrez — Yea
Gray — Yea
Hanks — Yea
Herod — Yea
Holtorf — Yea
Hooton — Yea
Larson — Yea
Lontine — Yea
Lynch — Yea
McKean — Yea
McLachlan — Yea
Neville — Yea
Ortiz — Yea
Pico — Yea
Ransom — Yea
Sandridge — Nay
Tipper — Yea
Will — Yea
Young — Yea
Garnett — Yea
Adrienne Benavidez — Yea
Michaelson Jenet — Yea
Valdez D. — Yea
Van Beber — Yea
Van Winkle — Yea
Williams D. — Yea
deGruy Kennedy — Yea
Alex Valdez Democrat Yea
Andrew Boesenecker Democrat Yea
Brianna Titone Democrat Yea
Cathy Kipp Democrat Yea
Dylan Roberts Democrat Yea
Emily Sirota Democrat Yea
Iman Jodeh Democrat Yea
Jennifer Bacon Democrat Yea
Judy Amabile Democrat Yea
Julie McCluskie Democrat Yea
Karen McCormick Democrat Yea
Kyle Mullica Democrat Yea
Lindsey Daugherty Democrat Yea
Lisa Cutter Democrat Yea
Mandy Lindsay Democrat Yea
Marc Snyder Democrat Yea
Meg Froelich Democrat Yea
Mike Weissman Democrat Yea
Monica Duran Democrat Yea
Naquetta Ricks Democrat Yea
Steven Woodrow Democrat Yea
Tom Sullivan Democrat Yea
Tony Exum Democrat Yea
Dan Woog Republican Yea
Janice Rich Republican Yea
Marc Catlin Republican Yea
Mark Baisley Republican Yea
Mary Bradfield Republican Yea
Matt Soper Republican Yea
Rod Pelton Republican Yea
Stephanie Luck Republican Yea

Official roll call →

BILL

Passed 33 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democrat 7001
Unaffiliated 22001
Republican 4000
Total 33002
% of votes cast 94%0%0%6%
How each member voted (35)
Member Party Vote
Buckner — Yea
Cooke — Yea
Coram — Yea
Donovan — Yea
Fields — Yea
Gardner — Yea
Ginal — Yea
Hansen — Yea
Hisey — Yea
Holbert — Yea
Lee — Yea
Lundeen — Yea
Moreno — Yea
Pettersen — Yea
Priola — Yea
Rankin — Yea
Scott — Yea
Smallwood — Yea
Sonnenberg — Not Voting
Woodward — Yea
Zenzinger — Yea
Fenberg — Yea
Jaquez Lewis — Yea
Chris Kolker Democrat Yea
James Coleman Democrat Yea
Jeff Bridges Democrat Yea
Jessie Danielson Democrat Yea
Julie Gonzales Democrat Not Voting
Nick Hinrichsen Democrat Yea
Robert Rodriguez Democrat Yea
Tammy Story Democrat Yea
Barbara Kirkmeyer Republican Yea
Cleave Simpson Republican Yea
Larry Liston Republican Yea
Ty Winter Republican Yea

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 SB 22-124 do?
The "SALT Parity Act" was enacted in 2021 and, for income tax years commencing on or after January 1, 2022, it allowed pass-through entities to elect to pay state income tax at the entity level, which allows the entity to claim an unlimited deduction at the federal level for state and local taxes paid. While this election reduces federal taxable income for the pass-through entity, it does not reduce or increase Colorado taxable income under current law based on additions and subtractions (deductions) to the state income tax. The act converts the state income tax deductions created to keep state revenue neutrality into a tax credit and makes provisions of the "SALT Parity Act" retroactive to January 1, 2018. An S corporation or a partnership must make the retroactive election on or after September 1, 2023, but before July 1, 2024, in a composite amended tax return for all of the years for which the election is made that is filed on behalf of the S corporation or partnership and the electing pass-through entity owners. (Note: This summary applies to this bill as enacted.)
Who sponsors SB 22-124?
SB 22-124 is sponsored by David Ortiz, Chris Kolker (Democrat), Rob Woodward, and Van Winkle.
What is the current status of SB 22-124?
This bill has been enacted into law. Introduced February 03, 2022. Enacted.
Where can I track SB 22-124?
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