Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0202.02 Ed DeCecco x4216
HOUSE BILL 22-1010
House Committees Senate Committees
Education
A BILL FOR AN ACT
C
ONCERNING AN INCOME TAX CREDIT FOR ELIGIBLE EARLY101
CHILDHOOD EDUCATORS . 102
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov/
.)
Early Childhood and School Readiness Legislative
Commission. For 5 income tax years, the bill creates a refundable income
tax credit for an eligible early childhood educator who:
! Has an adjusted gross income below specified thresholds;
and
! For at least 6 months of the taxable year, holds an early
HOUSE SPONSORSHIP
Sirota and Van Beber, Kipp
SENATE SPONSORSHIP
Buckner and Kirkmeyer, Story
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. childhood professional credential and is either the head of
a family child care home or is employed with an eligible
early childhood education program or a family child care
home.
The bill specifies that an early childhood education program must
have achieved at least a level 2 quality rating under the Colorado shines
quality rating and improvement system and either have fiscal agreements
with the Colorado child care assistance program or meet the federal early
head start or head start standards for a program. The amount of the credit
is dependent on the eligible early childhood educator's credentialing level
and is annually adjusted for inflation.
The department of human services, or a successor department, is
required to provide the department of revenue with an electronic report
of each individual who held an early childhood professional credential
during the previous calendar year for which the credit is allowed.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-22-543 as2
follows:3
39-22-543. Early childhood educator income tax credit - tax4
preference performance statement - legislative declaration -5
definitions - repeal. (1) (a) T
HE GENERAL ASSEMBLY FINDS AND6
DECLARES THAT:7
(I) T
HE BENEFITS OF QUALITY CHILD CARE AND EARLY CHILDHOOD8
EDUCATION ARE WELL DOCUMENTED AND A STRIKING CONNECTION EXISTS9
BETWEEN CHILDREN 'S LEARNING EXPERIENCES WELL BEFORE10
KINDERGARTEN AND THEIR LATER SCHOOL SUCCESS ;11
(II) S
MALL BUSINESS OWNERS AND PARENTS WHO RELY ON CHILD12
CARE TO WORK WOULD ALSO EXPERIENCE LOWER TURNOVER IN CHILD13
CARE STAFF WHEN EARLY CHILDHOOD EDUCATORS EXPERIENCE BETTER14
ECONOMIC STABILITY; AND15
(III) W
HEN EARLY CHILDHOOD EDUCATORS IMPROVE THE QUALITY16
OF THEIR EDUCATION BY RECEIVING EARLY CHILDHOOD PROFESSIONAL17
HB22-1010-2- CREDENTIALS OR ATTAINING HIGHER CREDENTIAL LEVELS , IT IMPROVES1
THE QUALITY OF CHILDREN'S EARLY LEARNING EXPERIENCES.2
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), THE PURPOSE OF3
THIS TAX EXPENDITURE IS TO:4
(I) I
NDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS ,5
WHICH IN THIS INSTANCE IS FOR EARLY CHILDHOOD EDUCATORS TO6
RECEIVE AN EARLY CHILDHOOD PROFESSI ONAL CREDENTIAL OR TO ATTAIN7
HIGHER CREDENTIAL LEVELS; AND8
(II) P
ROVIDE TAX RELIEF FOR EARLY CHILDHOOD EDUCATORS .9
(c)
THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL10
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE11
SPECIFIED IN SUBSECTION (1)(b)(I) OF THIS SECTION BASED ON A12
COMPARISON OF THE NUMBER OF EARLY CHILDHOOD PROFESSIONAL13
CREDENTIALS AT THE VARIOUS LEVELS BEFORE AND WITH THE CREDIT .14
(d) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL15
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE16
SPECIFIED IN SUBSECTION (1)(b)(II) OF THIS SECTION BASED ON THE17
NUMBER OF CREDITS THAT ARE CLAIMED .18
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE19
REQUIRES:20
(a) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .21
(b) "E
ARLY CHILDHOOD PROFESSIONAL CREDENTIAL " MEANS THE22
EARLY CHILDHOOD PROFESSIONAL CREDENTIALS ISSUED BY THE23
DEPARTMENT OF EDUCATION , OR A SUCCESSOR DEPARTMENT , AND24
DESIGNATED AS EARLY CHILDHOOD PROFESSIONAL I, EARLY CHILDHOOD25
PROFESSIONAL II, EARLY CHILDHOOD PROFESSIONAL III, EARLY26
CHILDHOOD PROFESSIONAL IV, EARLY CHILDHOOD PROFESSIONAL V, AND27
HB22-1010
-3- EARLY CHILDHOOD PROFESSIONAL VI. 1
(c) "E
LIGIBLE EARLY CHILDHOOD EDUCATOR " MEANS AN2
INDIVIDUAL WHO:3
(I)
HAS A FEDERAL ADJUSTED GROSS INCOME LESS THAN OR EQUAL4
TO SEVENTY-FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL FILING A5
SINGLE RETURN, OR HAS A FEDERAL ADJUSTED GROSS INCOME LESS THAN6
OR EQUAL TO EIGHTY-FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL FILING7
A JOINT RETURN; AND8
(II)
FOR AT LEAST SIX MONTHS OF THE INCOME TAX YEAR FOR9
WHICH THE CREDIT IS CLAIMED:10
(A) H
OLDS AN EARLY CHILDHOOD PROFESSI ONAL CREDENTIAL FOR11
AT LEAST SIX MONTHS OF THE INCOME TAX YEAR FOR WHICH THE CREDIT12
IS CLAIMED; AND13
(B) I
S EITHER THE LICENSEE OF AN ELIGIBLE PROGRAM OR14
EMPLOYED BY AN ELIGIBLE PROGRAM .15
(d) "E
LIGIBLE PROGRAM" MEANS EITHER AN EARLY CHILDHOOD16
EDUCATION PROGRAM AS DEFINED IN SECTION 26-6.5-101.5 (6.5), OR A17
LICENSED FAMILY CHILD CARE HOME . AN ELIGIBLE PROGRAM MUST:18
(I) H
AVE HELD AT LEAST A LEVEL TWO QUALITY RATING PURS UANT19
TO THE COLORADO SHINES QUALITY RATING AND IMPROVEMENT SYSTEM20
ESTABLISHED IN SECTION 26-6.5-106 FOR THE INCOME TAX YEAR FOR21
WHICH THE CREDIT IS CLAIMED; AND22
(II) F
OR THE INCOME TAX YEAR FOR WHICH THE CREDIT IS23
CLAIMED, EITHER:24
(A) H
AVE FISCAL AGREEMENTS WITH THE CHILD CARE ASSISTANCE25
PROGRAM, OR CCCAP, ESTABLISHED IN PART 8 OF ARTICLE 2 OF TITLE 26;26
OR27
HB22-1010
-4- (B) MEET THE FEDERAL STANDARDS FOR AN EARLY HEAD START1
OR HEAD START PROGRAM .2
(e) "F
AMILY CHILD CARE HOME" HAS THE SAME MEANING AS SET3
FORTH IN SECTION 26-6-102 (13).4
(f) "I
NFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE5
U
NITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS6
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL7
ITEMS PAID BY ALL URBAN CONSUMERS , OR ITS APPLICABLE SUCCESSOR8
INDEX.9
(3) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER10
J
ANUARY 1, 2022, BUT BEFORE JANUARY 1, 2027, AN ELIGIBLE EARLY11
CHILDHOOD EDUCATOR IS ALLOWED A CREDIT AGAINST THE TAX IMPOSED12
BY THIS ARTICLE 22 IN AN AMOUNT AS SET FORTH IN SUBSECTION (3)(b) OF13
THIS SECTION.14
(b) (I) E
XCEPT AS PROVIDED IN SUBSECTION (3)(b)(II) OF THIS15
SECTION, THE AMOUNT OF THE CREDIT EQUALS , FOR:16
(A) F
IVE HUNDRED DOLLARS FOR AN EARLY CHILDHOOD17
PROFESSIONAL I, EARLY CHILDHOOD PROFESSIONAL IV, EARLY CHILDHOOD18
PROFESSIONAL V, OR AN EARLY CHILDHOOD PROFESSIONAL VI; 19
(B) S
EVEN HUNDRED FIFTY DOLLARS FOR AN EARLY CHILDHOOD20
PROFESSIONAL II; AND21
(C) O
NE THOUSAND DOLLARS FOR AN EARLY CHILDHOOD22
PROFESSIONAL III.23
(II) F
OR THE INCOME TAX YEARS COMMENCING ON OR AFTER24
J
ANUARY 1, 2023, THE DEPARTMENT SHALL ADJUST THE CREDIT AMOUNTS25
SET FORTH IN SUBSECTION (3)(b)(I) OF THIS SECTION TO REFLECT26
INFLATION FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT DESCRIBED27
HB22-1010
-5- IN THIS SECTION IS ALLOWED.1
(c) E
ACH ELIGIBLE EARLY CHILDHOOD EDUCATOR IS ONLY2
ALLOWED ONE CREDIT PER INCOME TAX YEAR , EVEN IF THE ELIGIBLE3
EARLY CHILDHOOD EDUCATOR EARNS A HIGHER LEVEL EARLY CHILDHOOD4
PROFESSIONAL CREDENTIAL IN THE SAME YEAR . IN SUCH CASE, THE5
ELIGIBLE EARLY CHILDHOOD EDUCATOR 'S CREDIT IS BASED ON THE6
HIGHEST EARLY CHILDHOOD PROFESSIONAL CREDENTIAL ATTAINED7
DURING THE INCOME TAX YEAR . 8
(4) T
HE AMOUNT OF THE CREDIT UNDER THIS SECTION THAT9
EXCEEDS THE ELIGIBLE EARLY CHILDHOOD EDUCATOR 'S INCOME TAXES10
DUE IS REFUNDED TO THE ELIGIBLE EARLY CHILDHOOD EDUCATOR .11
(5) N
O LATER THAN JANUARY 1, 2023, AND EACH JANUARY 112
THEREAFTER THROUGH JANUARY 1, 2027, THE DEPARTMENT OF HUMAN13
SERVICES, OR A SUCCESSOR DEPARTMENT , SHALL PROVIDE THE14
DEPARTMENT OF REVENUE WITH AN ELECTRONIC REPORT OF EACH15
INDIVIDUAL WHO HELD AN EARLY CHIL DHOOD PROFESSIONAL CREDENTIAL16
DURING THE PREVIOUS CALENDAR YEAR FOR WHICH THE CREDIT IS17
ALLOWED. THE DEPARTMENT SHALL INCLUDE THE FOLLOWING18
INFORMATION IN THE REPORT, IF AVAILABLE:19
(a) T
HE NAME OF THE INDIVIDUAL WHO HOLDS THE EARLY20
CHILDHOOD PROFESSIONAL CREDENTIAL ;21
(b) T
HE INDIVIDUAL'S SOCIAL SECURITY NUMBER OR TAX22
IDENTIFICATION NUMBER;23
(c) T
HE HIGHEST LEVEL OF EARLY CHILDHOOD PROFESSIONAL24
CREDENTIAL HELD BY THE INDIVIDUAL DURING THE YEAR ; AND25
(d) T
HE LENGTH OF TIME THAT THE INDIVIDUAL HELD AN EARLY26
CHILDHOOD PROFESSIONAL CREDENTIAL AT ANY LEVEL .27
HB22-1010
-6- (6) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2031.1
SECTION 2. Act subject to petition - effective date. This act2
takes effect at 12:01 a.m. on the day following the expiration of the3
ninety-day period after final adjournment of the general assembly; except4
that, if a referendum petition is filed pursuant to section 1 (3) of article V5
of the state constitution against this act or an item, section, or part of this6
act within such period, then the act, item, section, or part will not take7
effect unless approved by the people at the general election to be held in8
November 2022 and, in such case, will take effect on the date of the9
official declaration of the vote thereon by the governor.10
HB22-1010
-7-