HB 20-1420

  • Colorado House Bill
  • 2020 Regular Session
  • Introduced in House Jun 11, 2020
  • Passed House Jun 11, 2020
  • Passed Senate Jun 15, 2020
  • Signed by Governor Jul 11, 2020

Adjust Tax Expenditures For State Education Fund

Abstract

Section 1 of the act specifies that the act shall be known as the "Tax Fairness Act". Sections 2 and 3 of the act require taxpayers to add to federal taxable income: For income tax years ending on and after the enactment of the March 2020 "Coronavirus Aid, Relief, and Economic Security Act" (CARES Act), but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the difference between a taxpayer's net operating loss deduction as determined under federal law before the amendments made by section 2303 of the CARES Act and the taxpayer's net operating loss deduction as determined under federal law after the amendments made by section 2303 of the CARES Act; For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to a taxpayer's excess business loss as determined under federal law without regard to the amendments made by section 2304 of the CARES Act, but with regard to the technical amendment made in that section of the CARES Act; For income tax years ending on and after the enactment of the CARES Act, but before January 1, 2021, and for income tax years beginning on and after the enactment of the CARES Act, but before January 1, 2021, an amount equal to the amount in excess of the limitation on business interest under federal law without regard to the amendments made by section 2306 of the CARES Act; and For income tax years commencing on or after January 1, 2021, but before January 1, 2023, an amount equal to the deduction for qualified business income for an individual taxpayer who files a single return and whose adjusted gross income is greater than $500,000, and for an individual taxpayer who files a joint return and whose adjusted gross income is greater than $1 million. This federal deduction may be claimed for income tax years commencing prior to January 1, 2026, except that the add-back is not required for a taxpayer who files a schedule F, profit or loss from farming, or successor form, as an attachment to a federal income tax return. Section 4 of the act specifies that for net operating losses incurred after December 31, 2017, the 80% limitation set forth in federal law applies without regard to the amendments made in section 2303 of the CARES Act. The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 5 of the act increases the percentage from 10% to 15% beginning in 2022. Section 5 also specifies that for income tax years commencing on or after January 1, 2021, taxpayers filing with an individual taxpayer identification number are eligible for the earned income tax credit. Section 6 of the act specifies that the state treasurer shall transfer $113 million on March 1, 2021, and $23 million on March 1, 2022, from the general fund to the state education fund created in section 17 (4) of article IX of the state constitution. Section 7 of the act makes an appropriation. (Note: This summary applies to this bill as enacted.)

Bill Sponsors (4)

Votes


Actions


Jul 11, 2020

Office of the Governor

Governor Signed

Jun 19, 2020

Senate

Signed by the President of the Senate

Office of the Governor

Sent to the Governor

House

Signed by the Speaker of the House

Jun 15, 2020

House

House Considered Senate Amendments - Result was to Concur - Repass

Senate

Senate Third Reading Passed with Amendments - Floor

Jun 13, 2020

Senate

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

Jun 12, 2020

Senate

Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole

  • Committee-Passage
  • Referral-Committee
Senate Committee of the Whole Appropriations

Senate

Senate Committee on Finance Refer Amended to Appropriations

  • Referral-Committee
Appropriations Finance

Jun 11, 2020

Senate

Introduced In Senate - Assigned to Finance

  • Introduction
Finance

House

House Third Reading Passed with Amendments - Floor

Jun 10, 2020

House

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

House

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

  • Committee-Passage
  • Referral-Committee
House Committee of the Whole Appropriations

Jun 09, 2020

House

House Committee on Finance Refer Amended to Appropriations

  • Referral-Committee
Appropriations Finance

Jun 08, 2020

House

Introduced In House - Assigned to Finance + Appropriations

  • Introduction
Appropriations Finance

Bill Text

Bill Text Versions Format
Signed Act (07/11/2020) PDF
Final Act (06/19/2020) PDF
Rerevised (06/15/2020) PDF
Revised (06/13/2020) PDF
Reengrossed (06/11/2020) PDF
Engrossed (06/10/2020) PDF
Introduced (06/08/2020) PDF
PA3 (06/12/2020) PDF
PA4 (06/12/2020) PDF
PA1 (06/10/2020) PDF
PA2 (06/10/2020) PDF
Committee Amendment PDF

Related Documents

Document Format
Fiscal Note SA1 (06/10/2020) PDF
Fiscal Note SA2 (06/12/2020) PDF
Fiscal Note FN1 (06/09/2020) PDF
Fiscal Note FN2 (06/11/2020) PDF
Fiscal Note FN3 (06/12/2020) PDF
Fiscal Note FN4 (06/13/2020) PDF
Fiscal Note FN5 (07/28/2020) PDF

Sources

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