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HB 1346

Transfer of Unsold Insurance Premium Tax Credits

2026 Regular Session

HB 1346 permits Colorado taxpayers to sell or transfer unused insurance premium tax credits to others, creating a secondary market for otherwise expired tax benefits.

Governor Signed
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Bill Summary · HB 1346

Legislative bill overview

HB 1346 allows the transfer of unused insurance premium tax credits between taxpayers in Colorado. The bill modifies current tax law to permit these credits, which are typically non-transferable, to be sold or assigned to other individuals or entities. This creates a secondary market for tax credits that would otherwise expire unused.

Why is this important

For businesses and individuals with insurance premium tax credits they cannot fully utilize, this bill could generate revenue by selling unused credits to those who can benefit from them. Conversely, it expands tax planning opportunities for those seeking to reduce their tax liability, though it may also reduce overall tax revenue if credits are used more broadly than originally intended by policymakers.

Potential points of contention

  • Revenue impact: Allowing credit transfers may reduce state tax revenue if credits are claimed more efficiently by purchasers, straining budget allocations
  • Equity concerns: Transferability advantages higher-income taxpayers and sophisticated businesses with resources to buy and manage credits, potentially widening tax advantages between wealthy and middle-income filers
  • Implementation complexity: Establishing a regulated secondary market requires clear IRS compliance guidelines, pricing mechanisms, and anti-fraud safeguards to prevent misuse

Compiled from official sources — confirm details with the bill’s official record.

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