Treatment of Tax Credit Triggers in Fiscal Notes

Legislative Council Staff (LCS) fiscal notes estimate a bill’s fiscal impact relative to current law. There are four tax credits in current law, known as triggered tax credits, whose availability or amounts are dependent on state revenue conditions. Bills that affect state revenue subject to TABOR may affect the availability or level of these triggered tax credits. If a bill impacts state revenue subject to TABOR such that it is expected to change the availability or level of a triggered tax credit, the bill’s fiscal note will show revenue impacts that result from that change. 

This memorandum has been updated to reflect the March 2026 Legislative Council Staff forecast. Based on the March forecast, bills that increase revenue by at least $140.0 million in FY 2027‑28 or that increase revenue by at least $260.9 million in FY 2028‑29 will impact the availability of two large triggered tax credits. Bills that decrease revenue by at least $940.0 million in FY 2026-27 or by at least $568.4 million for FY 2027-28 would impact several smaller triggered tax credits.