Colorado Invites Businesses to Prepay Taxes at Discounted Rate

Aug. 26, 2025, 11:13 PM UTC

Colorado businesses will have a chance to prepay their taxes at a discount by purchasing credits from the state, under legislation the General Assembly approved Tuesday.

Lawmakers passed HB25B-1004, which permits the state to sell $125 million worth of tax credit certificates during fiscal year 2026. The certificates can be purchased by corporations with income tax liabilities and insurance companies with insurance premium tax liabilities at roughly 80% of the certificate value. The plan permits Colorado to pull more than $100 million of future tax revenue into the current fiscal year.

“The bill increases state revenue by up to ...

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