New Colorado Business Tax Deductions and Credits from 2025 Legislature

By Eric Geringswald | CSC

The Colorado General Assembly approved changes affecting corporate taxation during the 2025 legislative session, including these:

• Business owners who convert at least 20% ownership to a qualified employee-owned business may deduct an amount equal to any qualified capital gains realized during the conversion of the business from their Colorado income tax.
• Worker-owned cooperatives may deduct from their Colorado taxable income an amount equal to their federal taxable income up to $1 million.
• A refundable state income tax credit (the qualified support entity credit) is created for nonprofit and for-profit entities that assist in converting a qualified business to an employee-owned business. The amount of the credit is equal to 75% of the support costs, not to exceed $167,000 per tax year.

2025 Edition of Colorado Laws Governing Business Entities Annotated

These and other updates are captured in the 2025 edition of CSC Publishing’s Colorado Laws Governing Business Entities Annotated. This latest edition contains the full text of Colorado’s Title 7—Corporations and Associations along with related statutes. Changes are captured in the book’s Table of Sections Affected and Blackline Amendment Notes indicate the precise language added and deleted by the Legislature. The book also includes a summary of the business entity law highlights coming out of the 2025 session.

Case Notes and Filing Fee Schedule

The 2025 edition is annotated with the latest case notes interpreting Colorado business entity law and includes an up-to-date fee schedule for Colorado business entity filings. Readers can also access more than 60 Colorado business forms for incorporation/formation, qualification, mergers, dissolution, and name reservation for all entity types via the LexisNexis® Store download center.

A Resource for Legal and Business Professionals

These features make Colorado Laws Governing Business Entities Annotated a valued resource for corporate attorneys, in-house counsel and C-suite executives, as well as solo practitioners and general practice firms who advise Colorado small businesses.

Availability

Colorado Laws Governing Business Entities Annotated is available as a softbound book or as an eBook, compatible with dedicated eReader devices, computers, tablets, and smartphones that use eReader software or applications. It's also available on the LexisNexis® Digital Library.

Colorado practitioners may also be interested in CSC’s Wyoming Laws Governing Business Entities Annotated and Nevada Laws Governing Business Entities Annotated. These annually updated collections of annotated statutes are essential resources for business and legal professionals in those states.

Learn More

To learn more about the 2025 Edition of Colorado Laws Governing Business Entities Annotated, call 1.800.533.1637 or visit us online at www.lexisnexis.com/csc.