Colorado Legislature Restores Several CARES Act Tax Deductions

Colorado lawmakers approved a bill Friday that aims to restore some of the tax deductions triggered by federal CARES Act relief law last year which were taken away when the state General Assembly decoupled from the federal tax code.

The bill (H.B. 1002), if signed by Colorado Gov. Jared Polis (D), will restore, over time, certain federal tax deductions related to net operating losses, federal excess business loss rules, interest expenses, and qualified improvement property. The deductions were initially disallowed under a bill (H.B. 1420) approved in July 2020 which protected the state’s tax code from ...