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Tax Expenditure Evaluations

Section 39-21-305(1)(d) and (e), C.R.S., requires the State Auditor to evaluate all of the State’s tax expenditures at least once every 5 years. Section 39-21-403(2)(c)(I), C.R.S., requires the Legislative Oversight Committee Concerning Tax Policy to consider tax expenditure evaluation reports' policy considerations.

The OSA completed the 2018-2022 evaluation cycle in September 2022 and is now working on the 2023-2027 evaluation cycle, which will also include any new tax expenditures established since 2018.

Recently Released Evaluation Reports and Memos (2023-2027 Evaluation Cycle)
Report Title Issue Date Report No.
Fuel Excise Tax Expenditures June 2024 2024-TE6
Business Personal Property Tax Income Tax Credit June 2024 2024-TE5
State Income Tax Refund Deductions February 2024 2024-TE4
Tax-Exempt Organization Insurance Premium Tax Deduction February 2024 2024-TE3
Dyed Special Fuels and Off-Road Fuel Use Tax Expenditures February 2024 2024-TE2
Deduction of Wages and Salaries Due to IRC 280C February 2024 2024-TE1
Child Care Expenses Income Tax Credits December 2023 2023-TE19
Organ Donor Employer Credit December 2023 2023-TE18
Residential Energy Storage Credit Memo November 2023           ---
Film Incentive Tax Credit Memo November 2023           ---
Alternative Transportation Options Credit for Employers Memo November 2023           ---
Fraternal Society Exemption November 2023 2023-TE17
Credit for Unsalable Alcohol November 2023 2023-TE16
Contaminated Land Redevelopment Credit November 2023 2023-TE15
Wholesales Sales Tax Exemption August 2023 2023-TE14
Agricultural Sales Tax Exemptions August 2023 2023-TE13
Credit for Insolvency Assessments Paid August 2023 2023-TE12
Rural & Frontier Healthcare Preceptor Credit August 2023 2023-TE11
Credit for Taxes Paid to Other States May 2023 2023-TE10
Farm Close-Out Sales Tax Exemption May 2023 2023-TE9
Sales to Charitable Organizations Exemption May 2023 2023-TE8
Sacramental Wine Exemption May 2023 2023-TE7
Newsprint & Printer's Ink and Newspapers Exemptions May 2023 2023-TE6
Structural Insurance Premium Tax Expenditures February 2023 2023-TE5
Wildfire Mitigation Deduction February 2023 2023-TE4
Long-Term Lodging Exemption February 2023 2023-TE3
Military Retirement Benefits Deduction January 2023 2023-TE2
Home Modification Tax Credit January 2023 2023-TE1


Evaluation Reports by Tax Type





Tax Compilation Reports

The OSA completed the 2018-2022 review cycle in September 2022. Between September 2018 and September 2022, the OSA reviewed a total of 215 separate tax expenditures. The OSA prepared annual compilation reports containing all individual tax expenditure evaluations issued during the preceding 12 months.

What is a Tax Expenditure?

osa_tax_expenditure_examples_graphic_2023.pdfState statute defines a tax expenditure as a tax provision that provides a gross or taxable income definition, deduction, exemption, credit, or rate for certain persons, types of income, transactions, or property that results in reduced tax revenue. Tax expenditures are typically not subject to any state agency’s oversight or the State’s annual budget and appropriations process, but are called expenditures because they decrease available state funds by reducing the amount of revenue the State collects from excise, income, insurance premium, sales and use, and severance taxes.

The Department of Revenue's Tax Profile and Expenditure Report summarizes all state tax expenditures.

The following infographic (click to view larger PDF file) provides examples of tax expenditures within the Colorado Tax Code:


Additional Tax Resources

Additional information on the State of Colorado's tax policies and tax collection process is available through Colorado Legislative Council Staff and the Colorado Department of Revenue's Taxation Division.

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details