Colorado lawmakers convened a special legislative session starting August 21, 2025, to address a $783 million budget shortfall largely attributed to the impacts of a recent federal tax bill. During the session, legislators debated and advanced several bills aimed at limiting corporate tax incentives to help close the budget gap. By the end of the session, approximately one-third of the shortfall had been addressed through the reduction of tax breaks. The first batch of these bills received final approval and was sent to Governor Jared Polis for signing. In addition to budget measures, the legislature considered an artificial intelligence (AI) law, with indications that its implementation deadline would be postponed until July 2026. The session concluded on August 26 with unresolved tensions surrounding the AI bill and disagreements between House leaders. Governor Polis also prepared to sign a measure reallocating tax dollars to fund wolf conservation efforts.