Colorado Adds Back FDDEI Corporate Income Tax Deduction, Expands Tax Haven Countries

The Colorado Governor signed a law concerning corporate income taxation related to foreign jurisdictions. The law includes: 1) expanding Colorado’s list of tax haven countries to Hong Kong, Ireland, Liechtenstein, Netherlands, and Singapore for taxable years beginning on or after Jan. 1, 2026; and 2) adding back the foreign-derived deduction eligible income (FDDEI) deduction under I.R.C. §250 to federal taxable income for state corporate income tax purposes for taxable years beginning on or after Jan. 1, 2026. The law took effect on Aug. 28. [H.B. 1002, enacted 08/28/25]

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