HB21-1002
Reductions Certain Taxpayers' Income Tax Liability
Concerning reductions to certain taxpayers' state income tax liability related to state tax law changes made in 2020, and, in connection therewith, making an appropriation.
Session:
2021 Regular Session
Subject:
Bill Summary
Fiscal Policy & Taxes
Sections 1 and 3 of the act restore, over time, certain business deductions to federal taxable income that were disallowed in Colorado by operation of a department of revenue rule and by House Bill 20-1420. The specific deductions are related to net operating losses, the application of the federal excess business loss rules, interest expenses, and qualified improvement property.
The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 2 allows taxpayers filing with an individual taxpayer identification number to claim the earned income tax credit for income tax years commencing on or after January 1, 2020.
(Note: This summary applies to this bill as enacted.)