Colorado Amends Certain Sales Tax Expenditures, Adds New Child Tax Credit

The Colorado Governor signed a law amending certain sales and use tax expenditures. The law includes: 1) creating a new refundable child tax credit in addition to the existing child tax credits; 2) narrowing the sales and use tax exemption for certain software, including downloaded software, effective Jan. 1, 2027; and 3) providing a sales tax deduction for qualifying retailers engaging in food services. The law generally takes effect upon passage, while the child tax credit provisions take effect only if H.B. 26-1221 and H.B. 26-1222 do not become law. [H.B. 1223, enacted 06/04/26]

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