Colorado State Treasurer Dave Young has announced a new tax credit sale aimed at raising up to $100 million for the state’s General Fund. The initiative comes as Colorado faces significant budget challenges that threaten funding for essential services such as K-12 education and healthcare.
The Department of the Treasury, in partnership with Advantage Capital, will offer discounted future insurance premium and income taxes to eligible businesses operating in Colorado. These include insurance companies and C corporations. The goal is to generate immediate revenue by selling tax credits authorized under HB 25B-1004, which was passed during the 2025 Special Session.
“The increasing severity of Colorado’s budget challenges poses a risk to essential services, including K-12 education and healthcare,” said Treasurer Young. “We are proud to be part of the solution by generating immediate revenue for the General Fund—all while ensuring the long-term fiscal stability of Colorado.”
HB 25B-1004 permits the sale of $125 million in tax credits applicable from tax years 2026 through 2029. Up to $100 million from these sales will help address state funding gaps resulting from changes in federal tax policy.
Senator Janice Marchman, one of the bill’s sponsors, stated: “Colorado has a track record of successfully leveraging tax credit sales, and this legislation continues that proven strategy. This solution not only secures vital funding for our General Fund but also offers an advantageous, long-term liability management tool for the insurance companies and C corporations that drive our state’s economy.”
Representative Sean Camacho added: “The swift, bipartisan action taken during the special session is a testament to our commitment to fiscal stability. HB 25B-1004 is a necessary measure to generate immediate revenue and protect the core state services that Coloradans rely on daily.”
Colorado has previously used similar strategies by selling insurance premium tax credits to support initiatives like the CLIMBER Loan Fund for small businesses and affordable housing projects.
Advantage Capital will soon provide details about participation requirements to eligible insurance companies, who must submit their commitment by December 15, 2025. After this deadline, other qualifying taxpayers such as C corporations may have an opportunity to participate.
For further information about this offering, interested parties can contact Advantage Capital at COtaxcredits@advantagecap.com.
