New Colorado Laws Change Corporate Tax Rules, Raise Tax Credits

Colorado will institute a new system for corporate tax reporting in 2026 after Gov. Jared Polis (D) signed a bill Tuesday that requires inclusion of all affiliates in a combined group’s return and makes the process similar to other states.

The measure, HB24-1134, also raises the state earned income tax credit from 38% to 50% starting in 2026 if certain revenue targets are met, and establishes a refundable child and dependent care tax credit. The bill is one of several tax-related bills the governor approved, touting them as historic measures to save Coloradans money.

• Polis also signed HB24-1288, ...