CO legislature on recess until Feb 16 Email
Written by Colorado Green NOW   
Wednesday, January 27, 2021 05:00 AM

Colorado Green Now

The Colorado state 2021 legislative session convened on January 13 for three days and is currently on a temporary recess. The Colorado General Assembly is expected to reconvene on February 16 and tackle many of the issues left on the table last year amid the pandemic.

In the three days of the session, legislators were sworn in and seven bills became law. Two laws are of specific interest to businesses. In most cases, the new laws involved some “housekeeping” that cleaned up details left from last year’s session.

HB21-1002 Reductions Certain Taxpayers' Income Tax Liability 
Concerning reductions to certain taxpayers' state income tax liability related to state tax law changes made in 2020, and, in connection therewith, making an appropriation.

Sections 1 and 3 of the bill restore, over time, certain business deductions to federal taxable income that were disallowed in Colorado by operation of a department of revenue rule and by House Bill 20-1420. The specific deductions are related to net operating losses, the application of the federal excess business loss rules, interest expenses, and qualified improvement property.

The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 2 allows taxpayers filing with an individual taxpayer identification number to claim the earned income tax credit for income tax years commencing on or after January 1, 2020.
These changes help Colorado tax laws better agree with federal law and help limit the exposure of the department of revenue.

SB21-001 Modify COVID-19 Relief Programs For Small Business 
Concerning modifications to programs enacted to provide relief to certain businesses impacted by severe capacity restrictions due to the COVID-19 pandemic.

The bill moves the COVID-19 relief program for minority-owned businesses from the minority business office to the Colorado office of economic development and expands the scope of the program to allow relief payments, grants, loans, and technical assistance and consulting support to small businesses disproportionately impacted by the COVID-19 pandemic.

Additionally, the bill extends the deadlines for allocating and distributing relief payments under the small business relief program.

Read more in this issue of Colorado Green NOW:
New utility locates ordinance now in effect in Colorado Springs
Thoughts on the state of the landscape industry
Colorado sales/use tax portal now available
How do you sell when the world is shut down?