This legislative session, our Alliance has joined with 50 other organizations across the state to support four bills to rebalance Colorado’s tax code after the harmful impacts of H.R. 1, the “One Big Beautiful Bill Act.” The budget cuts and tax changes made under H.R. 1 will have heavy impacts in rural Colorado, but we can take back control so Colorado’s tax code reflects Colorado values — not decisions made in Congress.
The package responds to more than $800 million in state revenue loss triggered by expanded federal corporate tax breaks. Those changes shifted Colorado’s tax code in favor of large corporations and wealthy interests and led to the suspension of the Family Affordability Tax Credit (FATC) for tax year 2026.
Because Colorado conforms to federal tax law, changes under H.R. 1 flowed directly into state statute without a vote of the Colorado Legislature. The result was fewer resources for targeted tax credits that help everyday Coloradans make ends meet.
This package includes four bills to rebalance our tax system for working people:
HB26-1222: Mitigating Harm from H.R. 1 | Factsheet
HB26-1221: Prioritizing Working Families | Factsheet
HB26-1223: Downloadable Software Exemption | Factsheet
HB26-1289: Tax Code Clean Up | Factsheet Coming
These bills mitigate the harm of H.R. 1 and rebalance the rules so Colorado’s tax code works for Coloradans. They will be heard in the House Finance Committee on Monday, March 9, at 1:30 pm. If you have a story to share about affordability in Western Colorado and are interested in testifying, reach out to me at tyler@westerncoloradoalliance.
