Information about the recent activities of the Office of Tax Policy is provided below. This information includes new and revised publications, rulemaking activities, and recently published letter rulings and information letters.
New and Revised Publications
- Income Tax Topics: Conservation Easement Credit – This publication was revised to provide information about the calculation of the credit, documentation required for credit claims, and credits for donations made by pass-through entities.
- Income Tax Topics: Wildfire Mitigation Measures – This publication was revised to reflect changes made by House Bill 24-1036 repealing the subtraction for tax years 2025 and later, allowing the credit only for costs paid to third-party service providers, and increasing the federal taxable income limit and amount of the credit for tax year 2025.
- Income Tax Topics: CollegeInvest Contribution Subtraction – This publication was updated to reflect the increase in the per-beneficiary contribution subtraction limits for tax year 2025 to $25,400 for single filers and $38,100 for joint filers.
- Income Tax Topics: ABLE Contribution Subtraction - This publication was updated to reflect the increase in the per-beneficiary contribution subtraction limits for tax year 2025 to $25,400 for single filers and $38,100 for joint filers.
- Income Tax Topics: Child Tax Credit – This publication was updated to reflect the increase in the adjusted gross income limit for the credit for both single and joint filers for tax year 2025.
- Income Tax Topics: Earned Income Tax Credit – This publication was updated to reflect that the credit percentage for tax year 2025 is 50% of the allowable federal credit.
- Income Tax Topics: Early Childhood Educator Credit – This publication was updated to reflect the increase in the credit amounts for each professional credential level for tax year 2025.
- Income Tax Topics: Family Affordability Tax Credit – This publication was updated to reflect the increase in the adjusted gross income limit for the credit for both single and joint filers for tax year 2025.
Recently Published Private Letter Rulings (PLR) and General Information Letters (GIL)
- GIL 25-001 – Residential Energy Storage System Tax Credit - For the purpose of the income tax credit for residential energy storage systems, the purchase price of the “energy storage system” does not include the cost of the “on-site generation.”
- PLR 24-008 – Sourcing Sales When Customer Arranges for Third-party Shipping – A sale is sourced to the known location of the purchaser when the purchaser arranges for and hires a third-party shipping company to take possession of the property at the business location of the seller and deliver it to the purchaser.
- GIL 24-005 – Taxability of Franchise Fees – Franchise fees are not among the statutory list of fees excluded from the purchase price and thus are subject to state sales tax as part of the purchase price.