Proven Strategy Will Provide Urgent Relief for State General Fund
Nov. 20, 2025 (DENVER) — Colorado State Treasurer Dave Young announced the launch of a tax credit sale that will raise up to $100 million to shore up the state’s budget.
The Colorado Department of the Treasury will offer discounts for future insurance premium and income taxes to qualifying businesses, including insurance companies and C corporations active in Colorado. The Treasury has partnered with Advantage Capital to execute the sale on behalf of the State.
"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."
Passed during the 2025 Special Session, HB 25B-1004 authorizes the Treasury to sell $125 million in tax credits for tax years 2026 through 2029. Up to $100 million in sale proceeds will go to the General Fund, covering state funding shortfalls caused by changes to the federal tax code.
“Colorado has a track record of successfully leveraging tax credit sales, and this legislation continues that proven strategy,” said Sen. Janice Marchman, a prime 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.”
“The swift, bipartisan action taken during the special session is a testament to our commitment to fiscal stability,” said Rep. Sean Camacho, who also sponsored the bill. “HB 25B-1004 is a necessary measure to generate immediate revenue and protect the core state services that Coloradans rely on daily.”
Colorado has effectively leveraged tax credit sales in recent years. The State previously sold insurance premium tax credits to finance the CLIMBER Loan Fund for small businesses and actively sells affordable housing and Conservation Easement tax credits. The solution is especially advantageous for insurance companies looking to manage long-term liabilities.
In the coming days, Advantage Capital and the Treasury will send information to eligible insurance companies, which must submit their commitment to buy credits by December 15, 2025. Following this deadline, Advantage Capital will extend the sale opportunity to other qualifying taxpayers, such as C corporations.
For more information on the offering, please contact Advantage Capital at COtaxcredits@advantagecap.com.
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About the Colorado Department of the Treasury
The Colorado Department of the Treasury is the constitutional guardian of the public’s funds. It is the Treasury’s duty to manage and account for the taxpayers’ dollars from the time they are received until the time they are disbursed. The Treasury’s staff is committed to safeguarding and managing the people’s monies with the same diligence and care as they do their own. For more information, visit colorado.gov/treasury.
About Advantage Capital
Advantage Capital is a leading syndicator of state and federal tax credits, with more than 30 years of experience structuring, placing, and managing state and federal tax credit investments on a national scale. As one of the nation’s largest impact investment firms focused on driving capital to underserved areas, the firm has invested more than $4.4 billion in more than 1,000 companies since its founding in 1992, supporting more than 77,000 quality jobs. Advantage Capital invests with intention in small businesses, affordable housing, and clean energy projects that strengthen economies and communities. Learn more at advantagecap.com.