Colorado HB1223 creates a new family affordability tax credit and modifies the sales and use tax treatment of downloadable software.

Colorado HB1223 introduces a new family affordability tax credit, providing tax relief to low- and middle-income families with children. The credit amount varies based on the number and age of children and the taxpayer's income. The bill also modifies the sales and use tax treatment of downloadable software, repealing the exemption for such software and subjecting it to sales and use tax starting January 1, 2027. This change aims to ensure consistent taxation of software regardless of how it is delivered to the purchaser.

Colorado HB1223 creates a new family affordability tax credit and modifies the sales and use tax treatment of downloadable software.

Colorado HB1223 introduces a new family affordability tax credit, providing tax relief to low- and middle-income families with children. The credit amount varies based on the number and age of children and the taxpayer's income. The bill also modifies the sales and use tax treatment of downloadable software, repealing the exemption for such software and subjecting it to sales and use tax starting January 1, 2027. This change aims to ensure consistent taxation of software regardless of how it is delivered to the purchaser.