Colorado HB1221 adjusts tax expenditures to mitigate the impact of federal law changes on state tax credits and deductions.

Colorado HB1221 modifies three tax expenditures to align the state tax code with Colorado's priorities. It repeals the alternative minimum tax credit, establishes a new income tax credit for families, and limits the net operating loss income tax deduction. The bill aims to offset the reduction in the family affordability tax credit caused by recent federal law changes. It also introduces a new income tax credit for families, providing tax relief based on the number and age of children and the taxpayer's income.

Colorado HB1221 adjusts tax expenditures to mitigate the impact of federal law changes on state tax credits and deductions.

Colorado HB1221 modifies three tax expenditures to align the state tax code with Colorado's priorities. It repeals the alternative minimum tax credit, establishes a new income tax credit for families, and limits the net operating loss income tax deduction. The bill aims to offset the reduction in the family affordability tax credit caused by recent federal law changes. It also introduces a new income tax credit for families, providing tax relief based on the number and age of children and the taxpayer's income.