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Energy, data center tax break debates set to kick off in the Colorado legislature this week

Lawmaking session enters fourth week as bills begin to move to the House and Senate floors

People gather outside a hearing room ahead of a House Business Affairs and Labor Committee hearing on House Bill 1005, the Worker Protection Act, which would significantly change state labor law, at the Colorado State Capitol in Denver on February 5, 2026. (Photo by RJ Sangosti/The Denver Post)
People gather outside a hearing room ahead of a House Business Affairs and Labor Committee hearing on House Bill 1005, the Worker Protection Act, which would significantly change state labor law, at the Colorado State Capitol in Denver on February 5, 2026. (Photo by RJ Sangosti/The Denver Post)
Denver Post reporter Seth Klamann in Commerce City, Colorado on Friday, Jan. 26, 2024. (Photo by Andy Cross/The Denver Post)
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Welcome to another week at the state Capitol, where lawmakers will begin publicly debating how much they want data centers built in the state.

On Thursday, will be in the House’s Energy and Environment Committee, officially kicking off the session’s data center war.

This bill would give tax breaks to eligible data centers — 100% exemptions from sales and use taxes for 20 years, to be precise. To qualify, a company would have to commit to $250 million in data center investments and to creating a certain number of jobs, among other things.

A more-or-less competing bill, which has not yet been introduced, would require data centers to match their energy consumption with renewable energy credits, according to a January draft of the proposal. That bill, which is backed by environmental groups, will start in the Senate.

The clean energy bill is backed by Sen. Cathy Kipp, a Fort Collins Democrat. Another of her bills, , will be in that chamber’s Transportation and Energy Committee on Wednesday. That proposal would require utility companies to provide a minimum amount of electricity to lower-income Coloradans at marginal cost.

Colorado’s family-oriented tax credits gave ‘light and hope’ to one mom — but costs make their future uncertain

Committee work is picking up generally this week, and bills are starting to hit the floors of the House and Senate.

Here's what else is happening in the Colorado legislature. Also, a semiregular reminder that floor plans can change on the fly, and bills scheduled for floor debates may roll over into later in the week.

Monday

The Senate is set to debate several bills on the floor, including . That measure would allow state tax authorities essentially to preserve a nonprofit's tax-exempt status, should the federal government target that group. The bill passed out of its first committee last week with unanimous support.

In the House, lawmakers are scheduled for an initial voice vote on , which would give some compensation to minor youth who are used in content creators', well, content.

Wednesday

The will hear presentations on a single audit for the state of Colorado starting at 7:15 a.m. Wednesday. The committee will also receive a comprehensive financial report on the state for the last fiscal year, which ended June 30, 2025.

Friday

The Senate will have a memorial service for Sen. Faith Winter, a Westminster Democrat who was killed in a car crash in November.

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