Colorado State Treasurer Dave Young has announced a new tax credit sale designed to generate up to $100 million in revenue for the state’s General Fund. The initiative aims to address budget shortfalls that threaten essential public services such as education and healthcare.
The Colorado Department of the Treasury will offer discounted future insurance premium and income tax credits to qualifying businesses, including insurance companies and C corporations operating in the state. The sale will be conducted with the assistance of Advantage Capital, a firm experienced in managing tax credit investments.
“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.”
Legislation authorizing this move was passed during the 2025 Special Session. HB 25B-1004 allows for up to $125 million in tax credits to be sold for use between 2026 and 2029, with $100 million earmarked for the General Fund. This action is intended to help cover funding gaps resulting from changes in federal tax policy.
“Colorado has a track record of successfully leveraging tax credit sales, and this legislation continues that proven strategy,” said Sen. Janice Marchman, a primary sponsor of HB 25B-1004. “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.”
Rep. Sean Camacho, another sponsor of the bill, commented on its urgency: “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 sales strategies successfully—for example, selling insurance premium tax credits helped finance the CLIMBER Loan Fund supporting small businesses. The state also regularly sells affordable housing and Conservation Easement tax credits.
Eligible insurance companies will soon receive details about participating in this new offering and must submit their commitments by December 15, 2025. Afterward, 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.
The Colorado Department of the Treasury oversees management and accountability for public funds throughout their lifecycle; more details are available at colorado.gov/treasury. Advantage Capital has managed over $4.4 billion in investments since its founding in 1992; additional information can be found at advantagecap.com.
