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DENVER — Lawmakers, advocates and community leaders gathered today in the Rotunda of the Colorado State Capitol to announce a four-bill tax package designed to rebalance Colorado’s tax code after the harmful impacts of H.R. 1, the “One Big Beautiful Bill Act.”
The package responds to more than $800 million in state revenue loss triggered by expanded federal corporate tax breaks that automatically flowed into Colorado law. 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.
Lawmakers who spoke at today’s press conference included bill sponsors Reps. Garcia, Zokaie and Woodrow and Sens. Amabile, Weissman and Ball.
The four bills in this package, introduced today, include:
In January, the Colorado Fiscal Institute (CFI) circulated a sign-on letter inviting organizations across the state to urge lawmakers to revisit the tax code and prioritize the needs of Coloradans. A broad coalition of more than 50 community, education, child advocacy and policy organizations joined the call.
“Colorado’s tax code should work for Coloradans, not out-of-state corporations or decisions made in Congress,” said Kathy White, executive director of the Colorado Fiscal Institute. “H.R. 1 shifted our tax system in favor of large corporations and the wealthy, and Colorado families paid the price. Today’s package takes back control. It limits special treatment for corporate interests and restores balance so everyday Coloradans can keep more money in their pockets.”
The FATC reduced child poverty by 37 percent in its first year and benefited nearly half of Colorado children, a success Gov. Jared Polis highlighted in his January State of the State address, before it was turned off for tax year 2026 due to federal tax changes.
“Families at Clayton Early Learning work hard every day to care for their children and build stability, yet too often the tax system doesn’t reflect the realities they face,” said Ealasha Vaughner, manager of policy and advocacy at Clayton Early Learning. “The 2026 tax package is an important step toward recognizing that families know best how to meet their own needs. These policies help put resources directly into families’ hands, where they can make the biggest difference for their children and their futures.”
Clayton Early Learning parent Lelia Hobley, a mother of three boys, spoke at the press conference about how tax credits like the FATC have supported her family and helped provide stability for her children.
Many hardworking families know what it feels like to do everything right and still feel stretched thin. When families have a little more financial stability, we can invest in our children’s education, enrichment, and overall wellbeing,” said Hobley in front of the crowd. “We have an opportunity to lead with fairness, practical solutions, and a shared commitment to strong communities. Let’s make sure our tax code reflects those values.”
Speakers emphasized that the package is not about raising revenue for the general fund, but about correcting the unintended consequences of federal tax changes and ensuring Colorado’s tax code puts Coloradans first.
“When corporations get special carve-outs, regular people pick up the tab,” White said. “Colorado should invest in Colorado. These bills are about fairness, affordability and making sure our tax rules reflect the pride we have in our communities and our commitment to one another.”
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The Colorado Fiscal Institute is a nonprofit, nonpartisan organization that provides credible, independent, and accessible information and analysis of fiscal and economic issues facing Colorado. CFI believes in people-centered, fiscal and economic policies that advance equity and widespread prosperity in Colorado. Learn more at www.coloradofiscal.org.
Media Contact:
Hannah Morris, Communications Manager, Colorado Fiscal Institute
morris@coloradofiscal.org
