Colorado Code
Part 1 - General
§ 39-22-104. Income Tax Imposed on Individuals, Estates, and Trusts - Single Rate - Report - Legislative Declaration - Definitions - Repeal

(1.5) Subject to subsection (2) of this section, with respect to taxable years commencing on or after January 1, 1999, but prior to January 1, 2000, a tax of four and three-quarters percent is imposed on the federal taxable income, as determined pursuant to section 63 of the internal revenue code, of every individual, estate, and trust.

(m) (I) Except as provided in subparagraph (VII) of this paragraph (m), for any income tax year commencing on or after January 1, 2001, for any individual who claims the basic standard deduction allowed under section 63 (c)(2) of the internal revenue code on the individual's federal return and, therefore, cannot claim an itemized deduction for charitable contributions pursuant to section 170 of the internal revenue code, an amount equal to the amount of any deduction based upon the aggregate amount of charitable contributions in excess of five hundred dollars that the individual could have claimed pursuant to section 170 of the internal revenue code if the individual had not claimed the basic standard deduction.
(II) Any state income tax modification allowed pursuant to the provisions of subparagraph (I) of this paragraph (m) shall be published in rules promulgated by the executive director in accordance with article 4 of title 24, C.R.S., and shall be included in income tax forms for that taxable year.
(III) to (VI) Repealed.
(VII) For any income tax year commencing on or after January 1, 2015, but before January 1, 2020, any individual who claims an income tax credit allowed in section 39-22-536 may not claim the deduction set forth in this paragraph (m) for the food contribution to the hunger-relief charitable organization.
(n) Repealed.

(o) For income tax years commencing on or after January 1, 2011, an amount equal to any amount received as employer matching contributions to an adult learner's individual trust account or savings account made pursuant to part 3 of article 3.1 of title 23, C.R.S.;
(p) For income tax years commencing on or after January 1, 2014, any amount received as a grant from the military family relief fund created in section 28-3-1502, C.R.S., to the extent that it is included in federal taxable income;
(q) For income tax years commencing on or after January 1, 2013, an amount equal to any amount received as compensation for an exonerated person pursuant to section 13-65-103, C.R.S., on or after January 1, 2014, except as to those portions of the judgment awarded as attorney fees for bringing a claim under such section;
(r) For income tax years commencing on or after January 1, 2014, if a taxpayer is licensed under the "Colorado Marijuana Code", article 10 of title 44, or its predecessor codes, an amount equal to any expenditure that is eligible to be claimed as a federal income tax deduction but is disallowed by section 280E of the internal revenue code because marijuana is a controlled substance under federal law;
(s) Repealed.
(t) (I) For income tax years commencing on or after January 1, 2015, compensation that would be subject to withholding under section 39-22-604, received by a nonresident individual for performing disaster-related work in the state during a disaster period.
(II) For purposes of this paragraph (t):

(u) For income tax years commencing on or after January 1, 2016, an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in the state pursuant to section 39-22-110.5, to the extent that the compensation is included in federal taxable income;

(w) (I) For income tax years commencing on or after January 1, 2017, to the extent included in federal taxable income and as permitted under part 47 of this article, an amount equal to any interest and other income earned on the investment of the money in a first-time home buyer savings account during the taxable year.
(II) Any exclusion taken under subparagraph (I) of this paragraph (w) is subject to recapture under paragraph (k) of subsection (3) of this section as specified in section 39-22-4705.

(A.5) For income tax years commencing on or after January 1, 2017, but prior to January 1, 2020, an amount equal to one hundred percent of a landowner's costs incurred in performing wildfire mitigation measures in that income tax year on his or her property located within the state; except that the amount of the deduction claimed in an income tax year shall not exceed two thousand five hundred dollars or the total amount of the landowner's federal taxable income for the income tax year for which the deduction is claimed, whichever is less.

(II) For income tax years beginning on or after January 1, 2017, but before January 1, 2020, if a qualified taxpayer enters into a qualified lease with an eligible beginning farmer or rancher, an amount specified in a deduction certificate issued by the Colorado agricultural development authority that is equal to twenty percent of the lease payments received from an eligible beginning farmer or rancher as specified in the qualified lease, not to exceed the qualified taxpayer's income and not to exceed the amount specified in subparagraph (III) of this paragraph (v).
(III) The Colorado agricultural development authority may issue more than one deduction certificate to each qualified taxpayer if such qualified taxpayer enters into more than one qualified lease with more than one eligible beginning farmer or rancher; except that the total amount specified in all deduction certificates issued to a qualified taxpayer may not exceed twenty-five thousand dollars per income tax year for a maximum of three income tax years, and except that the Colorado agricultural development authority shall not issue more than the number of deduction certificates per income tax year set forth in section 35-75-107 (1)(u), C.R.S.
(IV) For purposes of this paragraph (v):
(A) "Agricultural asset" means land, crops, livestock and livestock facilities, farm equipment and machinery, grain storage, or irrigation equipment.
(B) "Colorado agricultural development authority" means the Colorado agricultural development authority created in section 35-75-104, C.R.S.
(C) "Deduction certificate" means a certificate issued by the Colorado agricultural development authority certifying that a qualified taxpayer qualifies for the income tax deduction authorized in this section and specifying the amount of the deduction allowed.
(D) "Eligible beginning farmer or rancher" means a farmer or rancher residing in the state who has a net worth of less than two million dollars, will provide the majority of the daily physical labor and management on the qualified taxpayer's agricultural asset or will use the qualified taxpayer's agricultural asset the majority of the time, has plans to farm or ranch full-time, has not been engaged in farming or ranching for more than ten years, has farming or ranching experience or education, and has participated in a financial management educational program approved by the Colorado agricultural development authority.

(II) The subtraction provided for in subsection (4)(x)(I) of this section does not apply to a taxpayer whose federal adjusted gross income for the income tax year in which the taxpayer has income earned as a direct result of winning a medal, as determined prior to application of this subsection (4)(x), exceeds one million dollars or, if the taxpayer's filing status is married filing separately, exceeds five hundred thousand dollars.
(III) As used in this subsection (4)(x):

(IV) The monetary value of any medal won while competing for the United States of America at either the summer or winter Olympic games or the summer or winter Paralympic games shall be subtracted from federal taxable income regardless of whether or not said monetary value is included in federal taxable income.
(y) (I) For income tax years commencing on or after January 1, 2019, but prior to January 1, 2024, an amount equal to a qualified individual's military retirement benefits included in federal adjusted gross income, but not to exceed the following amounts:
(A) Four thousand five hundred dollars for income tax years commencing on or after January 1, 2019, but prior to January 1, 2020;
(B) Seven thousand five hundred dollars for income tax years commencing on or after January 1, 2020, but prior to January 1, 2021;

(II) As used in this subsection (4)(y):
(A) "Military retirement benefits" means any retirement benefits received as a result of the individual's service in the armed forces of the United States.
(B) "Qualified individual" means an individual who is under fifty-five years of age at the close of the taxable year.
(z) (I) Except as provided in subsection (4)(z)(II) of this section, for income tax years beginning on or after January 1, 2021, but before January 1, 2022, the sum of the amount by which taxable income for the specified tax years exceeds the taxable income for the modified specified tax years computed separately for each income tax year, plus the sum of any amounts added back by the taxpayer as specified in subsections (3)(l), (3)(m), and (3)(n) of this section.
(II) (A) The subtraction calculated under subsection (4)(z)(I) of this section applies after the application of the other subtractions provided for in this subsection (4) and is limited to the lesser of the taxpayer's Colorado taxable income or three hundred thousand dollars.
(B) Any amount of the subtraction calculated under subsection (4)(z)(I) of this section that a taxpayer may not claim by operation of subsection (4)(z)(II)(A) of this section may be carried forward to subsequent tax years as a subtraction from the taxpayer's federal taxable income until exhausted; except that each tax year's subtraction may not exceed the lesser of the taxpayer's Colorado taxable income or one hundred fifty thousand dollars for the income tax years commencing on or after January 1, 2022, but before January 1, 2026, and each year's subtraction may not exceed the taxpayer's Colorado taxable income in any income tax years thereafter. Any subtraction must be applied first to the earliest income tax years possible.
(III) A taxpayer that applies the subtraction allowed in this subsection (4)(z) with respect to qualified improvement property shall calculate the gain or loss on a sale of such qualified improvement property for purposes of the subtraction in subsection (4)(b) of this section using the basis reported on their federal income tax return at the time of the sale.
(IV) As used in this subsection (4)(z), unless the context otherwise requires:
(A) "CARES Act" means the March 2020 "Coronavirus Aid, Relief, and Economic Security Act", Pub.L. 116-136.
(B) "Colorado taxable income" means federal taxable income as modified by this article 22 without regard to this subsection (4)(z).
(C) "Retroactive provisions of the CARES Act" means the changes made to the internal revenue code in sections 2303, 2304, 2306, and 2307 of the CARES Act.
(D) "Taxable income for the modified specified tax years" means the taxpayer's Colorado taxable income for tax years ending before March 27, 2020, as calculated under the internal revenue code and Colorado law applicable to the taxpayer's return as of the date the return was due, as modified by the application of the retroactive provisions of the CARES Act applied to the calculation of the taxpayer's federal taxable income, but only to the extent the taxpayer appropriately applied those provisions to the taxpayer's federal income tax returns for each tax year.

The expenditures covered by this receipt are nondeductible for state income tax purposes.
Source: L. 87: Entire part R&RE, p. 1427, § 2, effective June 22. L. 88: (1), (3)(b), and (4)(f) amended, p. 1311, § 2, effective May 29. L. 89: (4)(f) amended and (4)(g) repealed, pp. 1504, 1506, §§ 1, 3, effective June 10. L. 90: (4)(a.5) added, p. 699, § 2, effective May 31. L. 92: (3)(d) added, p. 555, § 37, effective May 28; (3)(e) added, p. 2279, § 2, effective June 1. L. 94: (3)(f) and (4)(h) added, p. 2839, §§ 2, 3, effective January 1, 1995. L. 97: (3)(e)(I) amended, p. 304, § 20, effective July 1; (4)(i) added, p. 513, § 1, effective August 6. L. 99: (4)(l) added, p. 784, § 1, effective May 24; (1) amended and (1.5) added, p. 1376, § 1, effective August 4; (3)(d) amended and (4)(j) and (4)(k) added, pp. 936, 937, §§ 1, 2, effective August 4; (3)(g) added, p. 977, § 2, effective August 4; (4)(f) amended, p. 1301, § 1, effective August 4. L. 2000: (4)(l)(I), (4)(l)(III), (4)(l)(IV)(A), (4)(l)(IV)(B), and (4)(l)(V) amended and (4)(l.5) added, p. 658, § 1, effective May 22; (4)(m) added, p. 1409, § 1, effective May 31; (1.5) and (2) amended and (1.7) added, p. 1413, § 1, effective August 2; (2) amended, p. 1869, § 98, effective August 2; (3)(h) added, p. 1321, § 3, effective August 2; (4)(i) amended, p. 946, § 1, effective August 2. L. 2001: (4)(l)(VI) amended, p. 1279, § 54, effective June 5; (3)(d)(II) and (4)(k) amended, p. 392, § 2, effective August 8. L. 2004: (4)(a.5) amended, p. 323, § 8, effective April 7; (4)(i)(II) amended, p. 577, § 36, effective July 1; (3)(g) amended, p. 1208, § 88, effective August 4. L. 2005: (4)(m) amended, p. 215, § 1, effective April 8; (1.7) amended, p. 1361, § 1, effective June 6. Referred 2006: (3)(i) added, L. 2006, 1st Ex. Sess., p. 1, § 1, December 31. L. 2008: (3)(e)(I) amended, p. 1604, § 35, effective May 29; (4)(n) added, p. 1550, § 1, effective August 5. L. 2010: (4)(o) added, (SB 10-202), ch. 396, p. 1884, § 8, effective June 9; (3)(h), (4)(l), (4)(l.5), (4)(m)(III), (4)(m)(IV), (4)(m)(V), and (4)(m)(VI) repealed and (4)(m)(I) amended, (SB 10-212), ch. 412, pp. 2032, 2034, §§ 1, 7, effective July 1; (3)(h) repealed, (HB 10-1256), ch. 133, p. 440, § 2, effective August 11. L. 2013: (4)(n.5) added, (HB 13-1012), ch. 91, p. 293, § 1, effective April 4; (4)(s) added, (SB 13-283), ch. 332, p. 1896, § 18, effective May 28; (4)(q) added, (HB 13-1230), ch. 409, p. 2426, § 5, effective June 5; (4)(p) added, (HB 13-1024), ch. 27, p. 66, § 1, effective August 7; (4)(r) added, (HB 13-1042), ch. 327, p. 1820, § 1, effective August 7. L. 2014: (4)(f)(III), (4)(n)(I)(B), and (4)(n.5)(I)(B) amended, (SB 14-019), ch. 10, p. 98, § 4, effective February 27; (3)(j) and (4)(m)(VII) added and (4)(m)(I) amended, (HB 14-1119), ch. 286, p. 1175, § 3, effective May 30; (4)(t) added, (HB 14-1003), ch. 224, p. 837, § 2, effective August 6. L. 2015: (4)(u) added, (HB 15-1181), ch. 233, p. 865, § 4, effective August 5. L. 2016: (3)(c) repealed and (4)(f) amended, (SB 16-189), ch. 210, p. 793, § 108, effective June 6; (3)(k) and (4)(w) added, (HB 16-1467), ch. 321, p. 1301, § 1, effective August 10; (4)(n.5)(I)(A) amended and (4)(n.5)(I)(A.5) added, (HB 16-1286), ch. 300, p. 1215, § 2, effective August 10; (4)(v) added, (HB 16-1194), ch. 252, p. 1029, § 1, effective August 10. L. 2017: (4)(x) added, (HB 17-1104), ch. 223, p. 860, § 1, effective August 9. L. 2018: (4)(y) added, (HB 18-1060), ch. 271, p. 1667, § 2, effective August 8; (3)(e)(I) amended, (HB 18-1025), ch. 152, p. 1081, § 20, effective October 1; (4)(r) and (4)(s) amended, (HB 18-1023), ch. 55, p. 591, § 23, effective October 1. L. 2019: (4)(r) amended and (4)(s) repealed, (SB 19-224), ch. 315, p. 2942, § 31, effective January 1, 2020. L. 2020: (3)(l), (3)(m), (3)(n), and (3)(o) added, (HB 20-1420), ch. 277, p. 1358, § 2, effective July 11; (4)(a.5), (4)(j), and (4)(k) repealed, (HB 20-1176), ch. 89, p. 357, § 1, effective September 14; (4)(d) repealed, (HB 20-1205), ch. 59, p. 200, § 2, effective January 1, 2021. Initiated 2020: (1.7) amended, Proposition 116, effective upon proclamation of the Governor, December 31, 2020. L. 2021: (4)(z) added, (HB 21-1002), ch. 5, p. 30, § 1, effective January 21; (3)(o), (4)(f)(III), (4)(i)(II), and (4)(i)(III) amended and (3)(p), (3)(q), and (4)(i)(V) added, (HB 21-1311), ch. 298, p. 1768, § 3, effective June 23; (3)(r) and (4)(aa) added, (HB 21-1327), ch. 300, p. 1804, § 2, effective June 23; (3)(e)(I) amended, (HB 21-1108), ch. 156, p. 898, § 46, effective September 7.

FOR: : 744,475
AGAINST: : 722,651
FOR: : 1,821,702
AGAINST: : 1,327,025
Cross references: (1) For other provisions concerning adjustments to federal taxable income, see §§ 39-22-104.5, 39-22-104.6, 39-22-504.7 (2), and 39-22-518.
(2) For the legislative declaration contained in the 2001 act amending subsections (3)(d)(II) and (4)(k), see section 1 of chapter 133, Session Laws of Colorado 2001.
(3) For the legislative declaration contained in the 2008 act amending subsection (3)(e)(I), see section 1 of chapter 341, Session Laws of Colorado 2008.
(4) For the legislative declaration in the 2013 act adding subsection (4)(q), see section 1 of chapter 409, Session Laws of Colorado 2013.
(5) For the legislative declaration in HB 14-1003, see section 1 of chapter 224, Session Laws of Colorado 2014. For the legislative declaration in HB 14-1119, see section 1 of chapter 286, Session Laws of Colorado 2014.
(6) For the short title ("Colorado is Honoring Our Military Exemption (Colorado is HOME) Act") and the legislative declaration in HB 15-1181, see sections 1 and 2 of chapter 233, Session Laws of Colorado 2015.
(7) For the legislative declaration in HB 16-1286, see section 1 of chapter 300, Session Laws of Colorado 2016.
(8) For the legislative declaration in HB 18-1060, see section 1 of chapter 271, Session Laws of Colorado 2018.
(9) (a) For the short title ("Tax Fairness Act") in HB 20-1420, see section 1 of chapter 277, Session Laws of Colorado 2020.
(b) For the legislative declaration in HB 20-1205, see section 1 of chapter 59, Session Laws of Colorado 2020.
(10) For the legislative declaration in HB 21-1311, see section 1 of chapter 298, Session Laws of Colorado 2021. For the legislative declaration in HB 21-1108, see section 1 of chapter 156, Session Laws of Colorado 2021.