HOUSE BILL 22-1010
BY REPRESENTATIVE(S) Sirota and Van Beber, Kipp, Amabile, Bacon,
Bernett, Bird, Boesenecker, Caraveo, Duran, Esgar, Exum, Froelich,
Gonzales-Gutierrez, Gray, Herod, Jodeh, Kennedy, Lindsay, Lontine,
McCluskie, McCormick, McLachlan, Michaelson Jenet, Roberts, Snyder,
Tipper, Titone, Valdez A., Weissman, Woodrow, Young, Garnett, Cutter,
Hooton, Ricks;
also SENATOR(S) Buckner and Kirkmeyer, Story, Bridges, Fields, Ginal,
Hinrichsen, Jaquez Lewis, Lee, Pettersen, Zenzinger, Fenberg.
C
ONCERNING AN INCOME TAX CREDIT FOR ELIGIBLE EARLY CHILDHOOD
EDUCATORS
, AND, IN CONNECTION THEREWITH , MAKING AN
APPROPRIATION
.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
hereby finds and declares that:
(a) Demand for early childhood educators and directors is expected
to increase by nearly twenty-five percent over the next ten years, a rate that
is even faster anticipated growth than for kindergarten through twelfth
grade educators, and the growth rates for early childhood professionals are
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. high everywhere, but are double in rural counties compared to urban
counties and highest in frontier counties;
(b) The early care and education sector is comprised almost
exclusively of women, forty percent of whom are people of color, and
failure to invest in this profession undermines the economic opportunity of
early educators and their ability to support the education of the children in
their classroom;
(c) These educators represent the most racially diverse sector of the
teaching workforce, compared to kindergarten through twelfth grade and
postsecondary education, but early educators are among the lowest-paid
professionals in every state, including Colorado;
(d) On average, early childhood educators earn less than half of the
salary of kindergarten teachers and over one-third report receiving subsidies
from public assistance programs to make ends meet;
(e) Low pay and instability in the early childhood sector contribute
to high turnover rates with half of all early childhood education
professionals changing jobs within three years;
(f) The COVID-19 pandemic has exacerbated the challenges facing
the recruitment, retention, and professional development of the early
childhood workforce at a time when the need for access to early care and
education is acute for working families, and women in particular, to be able
to enter the workforce; and
(g) Investments in the early care and education workforce have a
significant return on investment with every dollar invested in the early care
and education sector resulting in two dollars and twenty-seven cents in
output in the state economy and every job created in the early care and
education sector resulting in an additional nearly one and one-half new jobs
in the state economy.
(2) Now, therefore, the general assembly declares that supporting
the early childhood workforce with a targeted tax credit can support stability
in the industry and, in turn, support working families, child development,
and economic growth.
PAGE 2-HOUSE BILL 22-1010 SECTION 2. In Colorado Revised Statutes, add 39-22-547 as
follows:
39-22-547. Early childhood educator income tax credit - tax
preference performance statement - legislative declaration - definitions
- repeal. (1) (a) T
HE GENERAL ASSEMBLY FINDS AND DECLARES THAT :
(I) T
HE BENEFITS OF QUALITY CHILD CARE AND EARLY CHILDHOOD
EDUCATION ARE WELL DOCUMENTED AND A STRIKING CONNECTION EXISTS
BETWEEN CHILDREN
'S LEARNING EXPERIENCES WELL BEFORE KINDERGARTEN
AND THEIR LATER SCHOOL SUCCESS
;
(II) S
MALL BUSINESS OWNERS AND PARENTS WHO RELY ON CHILD
CARE TO WORK WOULD ALSO EXPERIENCE LOWER TURNOVER IN CHILD CARE
STAFF WHEN EARLY CHILDHOOD EDUCATORS EXPERIENCE B ETTER ECONOMIC
STABILITY
; AND
(III) WHEN EARLY CHILDHOOD EDUCATORS IMPROVE THE QUALITY
OF THEIR EDUCATION BY RECEIVING EARLY CHILDHOOD PROFESSIONAL
CREDENTIALS OR ATTAINING HIGHER CREDENTIAL LEVELS
, IT IMPROVES THE
QUALITY OF CHILDREN
'S EARLY LEARNING EXPERIENCES.
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), THE PURPOSE OF
THIS TAX EXPENDITURE IS TO
:
(I) I
NDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS , WHICH
IN THIS INSTANCE IS FOR EARLY CHILDHOOD EDUCATORS TO RECEIVE AN
EARLY CHILDHOOD PROFESSIONAL CREDENTIAL OR TO ATTAIN HIGHER
CREDENTIAL LEVELS
; AND
(II) PROVIDE TAX RELIEF FOR EARLY CHILDHOOD EDUCATORS .
(c)
THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE
SPECIFIED IN SUBSECTION
(1)(b)(I) OF THIS SECTION BASED ON A
COMPARISON OF THE NUMBER OF EARLY CHILDHOOD PROFESSI ONAL
CREDENTIALS AT THE VARIOUS LEVELS BEFORE AND WITH THE CREDIT
.
(d) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE
PAGE 3-HOUSE BILL 22-1010 SPECIFIED IN SUBSECTION (1)(b)(II) OF THIS SECTION BASED ON THE NUMBER
OF CREDITS THAT ARE CLAIMED
.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "D
EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .
(b) "E
ARLY CHILDHOOD PROFESSIONAL CREDENTIAL " MEANS THE
EARLY CHILDHOOD PROFESSIONAL CREDENTIALS ISSUED BY THE
DEPARTMENT OF EDUCATION
, OR A SUCCESSOR DEPARTMENT , AND
DESIGNATED AS EARLY CHILDHOOD PROFESSIONAL
I, EARLY CHILDHOOD
PROFESSIONAL
II, EARLY CHILDHOOD PROFESSIONAL III, EARLY CHILDHOOD
PROFESSIONAL
IV, EARLY CHILDHOOD PROFESSIONAL V, AND EARLY
CHILDHOOD PROFESSIONAL
VI.
(c) "E
LIGIBLE EARLY CHILDHOOD EDUCATOR " MEANS AN INDIVIDUAL
WHO
:
(I)
HAS A FEDERAL ADJUSTED GROSS INCOME LESS THAN OR EQUAL
TO SEVENTY
-FIVE THOUSAND DOLLARS FOR AN INDIVIDUAL FILING A SINGLE
RETURN
, OR HAS A FEDERAL ADJUSTED GROSS INCOME LESS THAN OR EQUAL
TO ONE HUNDRED FIFTY THOUSAND DOLLARS FOR AN INDIVIDUAL FILING A
JOINT RETURN
;
(II) H
OLDS AN EARLY CHILDHOOD PROFESSIONAL CREDENTIAL FOR
AT LEAST PART OF THE INCOME TAX YEAR FOR WHICH THE CREDIT IS
CLAIMED
; AND
(III) FOR AT LEAST SIX MONTHS OF THE INCOME TAX YEAR FOR
WHICH THE CREDIT IS CLAIMED
, IS EITHER THE LICENSEE OF AN ELIGIBLE
PROGRAM OR EMPLOYED BY AN ELIGIBLE PROGRAM
.
(d) "E
LIGIBLE PROGRAM" MEANS EITHER AN EARLY CHILDHOOD
EDUCATION PROGRAM AS DEFINED IN SECTION
26-6.5-101.5 (6.5), OR A
LICENSED FAMILY CHILD CARE HOME
. AN ELIGIBLE PROGRAM MUST HAVE
HELD AT LEAST A LEVEL ONE QUALITY RATING PURSUANT TO THE
COLORADO
SHINES QUALITY RATING AND IMPROVEMENT SYSTEM ESTABLISHED IN
SECTION
26-6.5-106 FOR THE INCOME TAX YEAR FOR WHICH THE CREDIT IS
CLAIMED
.
PAGE 4-HOUSE BILL 22-1010 (e) "FAMILY CHILD CARE HOME" HAS THE SAME MEANING AS SET
FORTH IN SECTION
26-6-102 (13).
(f) "I
NFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE
UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS
PAID BY ALL URBAN CONSUMERS
, OR ITS APPLICABLE SUCCESSOR INDEX.
(3) (a) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
1, 2022, BUT BEFORE JANUARY 1, 2026, AN ELIGIBLE EARLY CHILDHOOD
EDUCATOR IS ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS
ARTICLE
22 IN AN AMOUNT AS SET FORTH IN SUBSECTION (3)(b) OF THIS
SECTION
.
(b) (I) E
XCEPT AS PROVIDED IN SUBSECTION (3)(b)(II) OF THIS
SECTION
, THE AMOUNT OF THE CREDIT EQUALS , FOR:
(A) S
EVEN HUNDRED FIFTY DOLLARS FOR AN EARLY CHILDHOOD
PROFESSIONAL
I;
(B) O
NE THOUSAND DOLLARS FOR AN EARLY CHILDHOOD
PROFESSIONAL
II; AND
(C) ONE THOUSAND FIVE HUNDRED DOLLARS FOR AN EARLY
CHILDHOOD PROFESSIONAL
III, EARLY CHILDHOOD PROFESSIONAL IV, EARLY
CHILDHOOD PROFESSIONAL
V, OR EARLY CHILDHOOD PROFESSIONAL VI.
(II) F
OR THE INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2023, THE DEPARTMENT SHALL ADJUST THE CREDIT AMOUNTS
SET FORTH IN SUBSECTION
(3)(b)(I) OF THIS SECTION TO REFLECT INFLATION
FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT DESCRIBED IN THIS
SECTION IS ALLOWED
.
(c) E
ACH ELIGIBLE EARLY CHILDHOOD EDUCATOR IS ONLY ALLOWED
ONE CREDIT PER INCOME TAX YEAR
, EVEN IF THE ELIGIBLE EARLY
CHILDHOOD EDUCATOR EARNS A HIGHER LEVEL EARLY CHILDHOOD
PROFESSIONAL CREDENTIAL IN THE SAME YEAR
. IN SUCH CASE, THE ELIGIBLE
EARLY CHILDHOOD EDUCATOR
'S CREDIT IS BASED ON THE HIGHEST EARLY
CHILDHOOD PROFESSIONAL CREDENTIAL ATTAINED DURING THE INCOME TAX
YEAR
.
PAGE 5-HOUSE BILL 22-1010 (4) THE AMOUNT OF THE CREDIT UNDER THIS SECTION THAT EXCEEDS
THE ELIGIBLE EARLY CHILDHOOD EDUCATOR
'S INCOME TAXES DUE IS
REFUNDED TO THE ELIGIBLE EARLY CHILDHOOD EDUCATOR
.
(5) N
O LATER THAN JANUARY 1, 2023, AND EACH JANUARY 1
THEREAFTER THROUGH JANUARY 1, 2026, THE DEPARTMENT OF HUMAN
SERVICES
, OR A SUCCESSOR DEPARTMENT, SHALL 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
. THE DEPARTMENT
SHALL INCLUDE THE FOLLOWING INFORMATION IN THE REPORT
, IF
AVAILABLE
:
(a) T
HE NAME OF THE INDIVIDUAL WHO HOLDS THE EARLY
CHILDHOOD PROFESSIONAL CREDENTIAL
;
(b) T
HE INDIVIDUAL'S SOCIAL SECURITY NUMBER OR TAX
IDENTIFICATION NUMBER
;
(c) T
HE HIGHEST LEVEL OF EARLY CHILDHOOD PROFESSIONAL
CREDENTIAL HELD BY THE INDIVIDUAL DURING THE YEAR
; AND
(d) THE LENGTH OF TIME THAT THE INDIVIDUAL HELD AN EARLY
CHILDHOOD PROFESSIONAL CREDENTIAL AT ANY LEVEL
.
(6) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2030.
SECTION 3. Appropriation. (1) For the 2022-23 state fiscal year,
$156,743 is appropriated to the department of revenue. This appropriation
is from the general fund. To implement this act, the department may use this
appropriation as follows:
(a) $125,991 for use by taxation services for personal services,
which amount is based on an assumption that the department will require
an additional 2.0 FTE;
(b) $21,570 for use by taxation services for operating expenses;
(c) $4,950 for tax administration IT system (GenTax) support;
PAGE 6-HOUSE BILL 22-1010 (d) $3,200 for use by the executive director's office for personal
services; and
(e) $1,032 for the purchase of document management services.
(2) For the 2022-23 state fiscal year, $1,032 is appropriated to the
department of personnel. This appropriation is from reappropriated funds
received from the department of revenue under subsection (1)(e) of this
section. To implement this act, the department of personnel may use this
appropriation to provide document management services for the department
of revenue.
SECTION 4. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 7-HOUSE BILL 22-1010 November 2022 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
Alec Garnett Steve Fenberg
SPEAKER OF THE HOUSE PRESIDENT OF
OF REPRESENTATIVES THE SENATE
____________________________ ____________________________
Robin Jones Cindi L. Markwell
CHIEF CLERK OF THE HOUSE SECRETARY OF
OF REPRESENTATIVES THE SENATE
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 8-HOUSE BILL 22-1010