Colorado State Treasurer Dave Young has announced a new tax credit sale intended to raise up to $100 million for the state’s General Fund. The initiative is designed to address budget shortfalls and support essential services such as education and healthcare.
The Colorado Department of the Treasury, in partnership with Advantage Capital, will offer discounted future insurance premium and income tax credits to qualifying businesses, including insurance companies and C corporations operating in Colorado.
“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.”
The move follows legislation passed during the 2025 Special Session. House Bill 25B-1004 authorizes the Treasury to sell $125 million in tax credits applicable from 2026 through 2029. Of this amount, up to $100 million will be directed toward filling gaps in state funding resulting from changes in federal tax law.
“Colorado has a track record of successfully leveraging tax credit sales, and this legislation continues that proven strategy,” said Senator Janice Marchman, one of the bill’s sponsors. “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, another sponsor of HB 25B-1004, 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.”
In recent years, Colorado has used similar tax credit sales strategies for various initiatives such as financing small business loans through the CLIMBER Loan Fund and supporting affordable housing projects.
Eligible insurance companies will soon receive details about participating in this offering. They must submit their commitment by December 15, 2025. Afterward, other qualifying taxpayers like C corporations may also have an opportunity to purchase credits.
For further information on this program or how to participate, interested parties are encouraged to contact Advantage Capital at COtaxcredits@advantagecap.com.
