HB26-1346 • 2026

Transfer of Unsold Insurance Premium Tax Credits

House Bill 25B-1004, enacted in 2025, authorized the department of the treasury (department) to sell insurance premium tax credits (tax credits) to insurance companies that incur state premium tax lia

Taxes

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor: Rep. B. Titone, Rep. S. Woodrow, Sen. C. Kipp
Last action: 2026-04-01
Official status: Introduced In House - Assigned to Finance
Effective date: Not listed

Plain English Breakdown

The official source material does not specify if there are updates to the definitions in Colorado Revised Statutes for this bill.

Transfer of Unsold Insurance Premium Tax Credits

This bill allows the Department of Treasury to sell unused insurance premium tax credits to entities other than insurance companies, which can then transfer these credits to an insurance company.

What This Bill Does

Allows the Department of Treasury to sell unused insurance premium tax credits to entities that are not insurance companies.
Entities buying tax credits from the department may transfer them once to an insurance company.
Insurance companies receiving transferred tax credits cannot further transfer these credits.

Who It Names or Affects

The Department of Treasury
Entities that are not insurance companies but want to buy tax credits from the department
Insurance companies authorized to do business in Colorado

Terms To Know

Qualified taxpayer: An entity, including both insurance companies and other entities approved by the Department of Treasury, that can purchase unused insurance premium tax credits.
Transfer: The process where an entity that buys a tax credit from the department transfers it to an insurance company.

Limits and Unknowns

This bill does not specify how much of the tax credits can be sold or transferred.
It is unclear what happens if an entity fails to transfer the tax credit within the allowed timeframe.
The bill does not provide details on the application process for entities other than insurance companies.

Bill History

2026-04-01 House
Introduced In House - Assigned to Finance

Official Summary Text

House Bill 25B-1004, enacted in 2025, authorized the department of the treasury (department) to sell insurance premium tax credits (tax credits) to insurance companies that incur state premium tax liability. The bill allows the department, following the department's application process for insurance companies to purchase tax credits from the department, to sell tax credits to other entities that contract with the department. An entity that contracts with the department to purchase tax credits may transfer the tax credits once to an insurance company. The insurance company is not permitted to further transfer the tax credits following the transfer to the insurance company.
(Note: This summary applies to this bill as introduced.)

Current Bill Text

Read the full stored bill text

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0915.01 Sarah Lozano x3858 HOUSE BILL 26-1346
House Committees Senate Committees
Finance
A BILL FOR AN ACT
CONCERNING ALLOWING THE DEPARTMENT OF THE TREASURY TO SELL101
UNSOLD INSURANCE PREMIUM TAX CREDITS TO ENTITIES THAT102
ARE NOT INSURANCE COMPANIES.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
House Bill 25B-1004, enacted in 2025, authorized the department
of the treasury (department) to sell insurance premium tax credits (tax
credits) to insurance companies that incur state premium tax liability. The
bill allows the department, following the department's application process
for insurance companies to purchase tax credits from the department, to
HOUSE SPONSORSHIP
Titone and Woodrow,
SENATE SPONSORSHIP
Kipp,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
sell tax credits to other entities that contract with the department. An
entity that contracts with the department to purchase tax credits may
transfer the tax credits once to an insurance company. The insurance
company is not permitted to further transfer the tax credits following the
transfer to the insurance company.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-36-402, amend2
(4) as follows:3
24-36-402. Definitions.4
As used in this part 4, unless the context otherwise requires:5
(4) (a) "Qualified taxpayer" means:6
(I) An insurance company authorized to do business in Colorado7
that has premium tax liability owing to the state and that purchases a tax8
credit under this part 4; OR9
(II) A N ENTITY , OTHER THAN AN INSURANCE COMPANY ,10
AUTHORIZED TO DO BUSINESS IN COLORADO THAT CONTRACTS WITH THE11
DEPARTMENT TO PURCHASE A TAX CREDIT THAT REMAINS UNSOLD12
FOLLOWING THE APPLICATION PROCESS FOR INSURANCE COMPANIES13
CONDUCTED BY THE DEPARTMENT PURSUANT TO SECTION 24-36-403.14
(b) "Qualified taxpayer" also includes an insurance company that15
receives or assumes a tax credit transferred in accordance with section16
24-36-403 (7)(e) or 24-36-404 (5).17
SECTION 2. In Colorado Revised Statutes, 24-36-404, amend18
(5) as follows:19
24-36-404. Use of insurance premium tax credits - carry over.20
(5) (a) If a qualified taxpayer holding an unclaimed tax credit is21
part of a merger, acquisition, or line of business divestiture transaction,22
the tax credit may be transferred to and assumed by the resulting entity if23
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the resulting entity is an insurance company authorized to do business in1
Colorado that has premium tax liability.2
(b) A N UNCLAIMED TAX CREDIT PURCHASED BY A QUALIFIED3
TAXPAYER DESCRIBED IN SECTION 24-36-402 (4)(a)(II) MAY BE4
TRANSFERRED ONCE TO AN INSURANCE COMPANY AUTHORIZED TO DO5
BUSINESS IN COLORADO THAT HAS PREMIUM TAX LIABILITY , WHICH6
INSURANCE COMPANY SHALL NOT TRANSFER THE TAX CREDIT EXCEPT IN7
ACCORDANCE WITH SUBSECTION (5)(a) OF THIS SECTION OR SECTION8
24-36-403 (7)(e).9
(c) The qualified taxpayer that originally purchased the credit and10
the resulting entity OR INSURANCE COMPANY TRANSFEREE, AS APPLICABLE,11
shall notify the department in writing of the transfer or assumption of the12
credit in accordance with procedures adopted by the department. The13
transfer or assumption of the tax credit does not affect the time schedule14
for claiming the tax credit as provided in this section.15
SECTION 3. Safety clause. The general assembly finds,16
determines, and declares that this act is necessary for the immediate17
preservation of the public peace, health, or safety or for appropriations for18
the support and maintenance of the departments of the state and state19
institutions.20
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