republic-os/legislation/us/states/co/2021a/hb-21-1327.md

type, title, description, jurisdiction, legislature, session, identifier, citation, classification, subjects, status, primary_sponsors, version_count, action_count, vote_count, first_action, last_action, source, source_identifier, source_url, source_hash, vintage, source_snapshot, retrieved_at, confidence, tags

type	title	description	jurisdiction	legislature	session	identifier	citation	classification	subjects	status	primary_sponsors	version_count	action_count	vote_count	first_action	last_action	source	source_identifier	source_url	source_hash	vintage	source_snapshot	retrieved_at	confidence	tags
Bill	State And Local Tax Parity Act For Businesses	The 2017 federal "Tax Cuts and Jobs Act" placed a cap of $10,000 on the amount of state and local taxes paid that an individual can deduct on their federal taxes. This limitation did not apply to C corporations. Consequently, businesses organized as pass-through entities like S corporations and partnerships pay increased taxes on business profits compared to C corporations because pass-through entities pay taxes on business profits at the individual (partner or shareholder) level.For income tax years commencing on or after January 1, 2022, the act allows pass-through entities to elect to pay their state income tax at the entity level so that the pass-through entity can claim an unlimited deduction at the federal level of state and local taxes paid; except that the election is only allowed in an income tax year where there is a limitation on the deductions allowed to individuals under section 164 of the internal revenue code.While this reduces federal taxable income for the pass-through entity, it does not reduce Colorado taxable income because, under current law, the individual and the partnership are required to add back any state and local taxes deducted at the federal level.The act adds an appropriation for the department of revenue to implement the taxpayer's election to pay their state income tax at the entity level.(Note: This summary applies to this bill as enacted.)	us/states/co	Colorado General Assembly	2021A	HB 21-1327	Colorado HB 21-1327 (2021A)	bill		enacted	Chris Kolker David Ortiz Kevin Van Winkle Rob Woodward	9	14	2	2021-06-01T06:00:00+00:00	2021-06-23T06:00:00+00:00	openstates	ocd-bill/0fef8660-d90c-48b8-a6d0-b351ae2453e6	http://leg.colorado.gov/bills/hb21-1327	2144c4c39aac964af53c3b0eff896dfbfc1ceb8918a651c2382778bf218ed732	2026-07-01	https://data.openstates.org/daily/2026-07-01/public.pgdump	2026-07-06	reported	legislation bill us-co

Colorado HB 21-1327 (2021A) — State And Local Tax Parity Act For Businesses

The 2017 federal "Tax Cuts and Jobs Act" placed a cap of $10,000 on the amount of state and local taxes paid that an individual can deduct on their federal taxes. This limitation did not apply to C corporations. Consequently, businesses organized as pass-through entities like S corporations and partnerships pay increased taxes on business profits compared to C corporations because pass-through entities pay taxes on business profits at the individual (partner or shareholder) level.For income tax years commencing on or after January 1, 2022, the act allows pass-through entities to elect to pay their state income tax at the entity level so that the pass-through entity can claim an unlimited deduction at the federal level of state and local taxes paid; except that the election is only allowed in an income tax year where there is a limitation on the deductions allowed to individuals under section 164 of the internal revenue code.While this reduces federal taxable income for the pass-through entity, it does not reduce Colorado taxable income because, under current law, the individual and the partnership are required to add back any state and local taxes deducted at the federal level.The act adds an appropriation for the department of revenue to implement the taxpayer's election to pay their state income tax at the entity level.(Note: This summary applies to this bill as enacted.)

Version chain

The bill's text revisions, in order — the diff chain from filing to enrollment.

1. Committee Amendment (committee substitute) — source
2. Engrossed (06/04/2021) (committee substitute) — source
3. Final Act (06/22/2021) (committee substitute) — source
4. Introduced (06/01/2021) (committee substitute) — source
5. PA1 (06/04/2021) (committee substitute) — source
6. Reengrossed (06/07/2021) (committee substitute) — source
7. Rerevised (06/08/2021) (committee substitute) — source
8. Revised (06/07/2021) (committee substitute) — source
9. Signed Act (06/23/2021) (committee substitute) — source

Votes

• BILL — 34–0 (pass) · upper
• BILL — 59–5 (pass) · lower

Sponsors

• Chris Kolker — primary (person)
• David Ortiz — primary (person)
• Kevin Van Winkle — primary (person)
• Rob Woodward — primary (person)

Timeline

The legislative action history — every referral, reading, and vote.

• 2021-06-23T06:00:00+00:00 Governor Signed executive-signature
• 2021-06-22T06:00:00+00:00 Sent to the Governor executive-receipt
• 2021-06-22T06:00:00+00:00 Signed by the Speaker of the House
• 2021-06-22T06:00:00+00:00 Signed by the President of the Senate
• 2021-06-08T06:00:00+00:00 Senate Third Reading Passed - No Amendments passage, reading-3
• 2021-06-07T06:00:00+00:00 Senate Second Reading Special Order - Passed - No Amendments
• 2021-06-07T06:00:00+00:00 Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole committee-passage
• 2021-06-07T06:00:00+00:00 Senate Committee on State, Veterans, & Military Affairs Refer Unamended to Appropriations referral-committee
• 2021-06-07T06:00:00+00:00 Introduced In Senate - Assigned to State, Veterans, & Military Affairs introduction
• 2021-06-07T06:00:00+00:00 House Third Reading Passed - No Amendments passage, reading-3
• 2021-06-07T06:00:00+00:00 House Second Reading Passed with Amendments - Committee reading-2
• 2021-06-04T06:00:00+00:00 House Committee on Appropriations Refer Amended to House Committee of the Whole committee-passage, referral-committee
• 2021-06-03T06:00:00+00:00 House Committee on Finance Refer Unamended to Appropriations referral-committee
• 2021-06-01T06:00:00+00:00 Introduced In House - Assigned to Finance introduction

Source

OpenStates / OpenCivicData bulk snapshot 2026-07-01; origin ocd-bill/0fef8660-d90c-48b8-a6d0-b351ae2453e6. Confidence: reported (aggregated from official Colorado legislature records).