Colorado ends tax breaks for wealthy and some industries

Colorado changed its tax code with a few signatures from Gov. Jared Polis on Wednesday.

Gone are some tax breaks for wealthy Coloradans and the large insurance and oil and gas sectors, among other businesses. Here to stay, at least for a couple of years, are $200 million in property tax cuts. All three new laws take effect immediately.

HB21-1311 and HB21-1312 are intended to tax higher earners and companies more than lower earners, while also helping small businesses and working families.

HB21-1311 reduces tax credits for people who make at least $400,000 by capping deductions at $30,000 for individuals and $60,000 for joint filers. The resulting state money will be used to expand the Earned Income Tax Credit and fund the Colorado Child Tax Credit.

HB21-1312 will remove tax breaks for certain industries, including large insurance companies (estimated $80 million a year); coal, oil and gas industries ($25 million a year); and large retailers that generate at least $1 million a month in sales ($17 million a year).

The new law also requires companies to have a minimum amount of their total domestic workforce located in the state to get certain tax credits. And, as a means of helping small businesses, lawmakers increased the business personal property tax exemption to $50,000.

Read More: Colorado ends tax breaks for wealthy and some industries

2021-06-23 19:52:28

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