Colorado 2023 Regular Session

Colorado House Bill HB1112 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	First Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 23-0125.01 Megan McCall x4215
1	8		HOUSE BILL 23-1112
2		-	BY REPRESENTATIVE(S) Bird and Young, Amabile, Bacon,
3		-	Boesenecker, Brown, deGruy Kennedy, Dickson, Duran, English, Froelich,
4		-	Garcia, Gonzales-Gutierrez, Hamrick, Herod, Jodeh, Joseph, Kipp, Lindsay,
5		-	Lindstedt, Lukens, Martinez, McCormick, McLachlan, Michaelson Jenet,
6		-	Ricks, Sirota, Snyder, Titone, Vigil, Weissman, Willford, Lieder, Sharbini,
7		-	Story, Valdez, McCluskie;
8		-	also SENATOR(S) Hansen and Kolker, Bridges, Buckner, Cutter,
9		-	Danielson, Exum, Ginal, Gonzales, Hinrichsen, Jaquez Lewis, Marchman,
10		-	Moreno, Mullica, Priola, Roberts, Rodriguez, Sullivan, Winter F.,
11		-	Zenzinger, Fenberg.
	9	+	House Committees Senate Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
12	13		C
13		-	ONCERNING THE ENLARGEMENT OF CERTAIN INCOME TAX CREDITS FOR
14		-	LOW
15		-	- AND MIDDLE-INCOME WORKING INDIVIDUALS OR FAMILIES ,
16		-	AND, IN CONNECTION THEREWITH , REDUCING STATE INCOME TAX
17		-	REVENUE BY INCREASING THE EARNED INCOME TAX CREDIT AND
18		-	RESTRUCTURING THE CHILD TAX CREDIT TO ALLOW ALL LOW
19		-	-INCOME
20		-	TAXPAYERS WITH INCOME BELOW CERTAIN THRESHOLDS TO CLAIM
21		-	THE CREDIT
22		-	.
23		-	Be it enacted by the General Assembly of the State of Colorado:
24		-	SECTION 1. In Colorado Revised Statutes, 39-22-123.5, amend
25		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
26		-	officers and the Governor. To determine whether the Governor has signed the bill
27		-	or taken other action on it, please consult the legislative status sheet, the legislative
28		-	history, or the Session Laws.
29		-	________
30		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
31		-	through words or numbers indicate deletions from existing law and such material is not part of
32		-	the act. (2)(a), (2)(c)(I), (2.5)(a), (2.5)(d)(I), and (2.7)(b)(I); and add (2)(d),
33		-	(2.5)(e), and (2.7)(c) as follows:
34		-	39-22-123.5. Earned income tax credit - not a refund of excess
35		-	state revenues - trigger - legislative declaration - repeal. (2) (a) (I) For
36		-	an income tax year commencing prior to January 1, 2022, a resident
37		-	individual who claims an earned income tax credit on the individual's
38		-	federal tax return is allowed an earned income tax credit against the taxes
39		-	due under this article 22 that is equal to ten percent of the federal credit that
40		-	the resident individual claimed on his or her federal tax return for the same
41		-	tax year.
	14	+	ONCERNING THE ENLARGEMENT OF CERTAIN INCOME TAX CREDITS101
	15	+	FOR LOW- AND MIDDLE-INCOME WORKING INDIVIDUALS OR102
	16	+	FAMILIES, AND, IN CONNECTION THEREWITH , REDUCING STATE103
	17	+	INCOME TAX REVENUE BY INCREASING THE E ARNED INCOME TAX104
	18	+	CREDIT AND RESTRUCTURING THE CHILD TAX CREDIT TO ALLOW
	19	+	105
	20	+	ALL LOW-INCOME TAXPAYERS WITH INCOME BELOW CERTAIN106
	21	+	THRESHOLDS TO CLAIM THE CREDIT .107
	22	+	Bill Summary
	23	+	(Note: This summary applies to this bill as introduced and does
	24	+	not reflect any amendments that may be subsequently adopted. If this bill
	25	+	passes third reading in the house of introduction, a bill summary that
	26	+	applies to the reengrossed version of this bill will be available at
	27	+	http://leg.colorado.gov/
	28	+	.)
	29	+	SENATE
	30	+	Amended 3rd Reading
	31	+	May 6, 2023
	32	+	SENATE
	33	+	Amended 2nd Reading
	34	+	May 5, 2023
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	April 29, 2023
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	April 26, 2023
	41	+	HOUSE SPONSORSHIP
	42	+	Bird and Young, Amabile, Bacon, Boesenecker, Brown, deGruy Kennedy, Dickson,
	43	+	Duran, English, Froelich, Garcia, Gonzales-Gutierrez, Hamrick, Herod, Jodeh, Joseph, Kipp,
	44	+	Lindsay, Lindstedt, Lukens, Martinez, McCormick, McLachlan, Michaelson Jenet, Ricks,
	45	+	Sirota, Snyder, Titone, Vigil, Weissman, Willford, Young
	46	+	SENATE SPONSORSHIP
	47	+	Hansen and Kolker, Bridges, Buckner, Cutter, Danielson, Exum, Fenberg, Ginal,
	48	+	Gonzales, Hinrichsen, Jaquez Lewis, Marchman, Moreno, Mullica, Priola, Roberts,
	49	+	Rodriguez, Sullivan, Winter F., Zenzinger
	50	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	51	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	52	+	Dashes through the words or numbers indicate deletions from existing law. Legislative Oversight Committee Concerning Tax Policy. For
	53	+	income tax years commencing on or after January 1, 2024, the bill
	54	+	increases the earned income tax credit that a resident individual can claim
	55	+	on their state income tax return to 40% of the federal credit claimed on
	56	+	the resident individual's federal income tax return. For income tax years
	57	+	commencing on or after January 1, 2024, the bill changes the definition
	58	+	of "eligible child" to match the age of eligibility for the federal credit,
	59	+	increases percentages of the federal credit that a resident individual can
	60	+	claim for the child tax credit on their state income tax return by 20%,
	61	+	10%, or 5% depending on the resident individual's income level, and
	62	+	requires the department of revenue to adjust for inflation the income
	63	+	levels set forth to determine eligibility for the credit.
	64	+	Be it enacted by the General Assembly of the State of Colorado:1
	65	+	SECTION 1. In Colorado Revised Statutes, 39-22-123.5, amend2
	66	+	(2)(a),
	67	+	(2)(c)(I), (2.5)(a), (2.5)(d)(I), and (2.7)(b)(I); and add3
	68	+	(2)(d), (2.5)(e), and (2.7)(c) as follows:4
	69	+	39-22-123.5. Earned income tax credit - not a refund of excess5
	70	+	state revenues - trigger - legislative declaration - repeal. (2) (a) (I) For6
	71	+	an income tax year commencing prior to January 1, 2022, a resident7
	72	+	individual who claims an earned income tax credit on the individual's8
	73	+	federal tax return is allowed an earned income tax credit against the taxes9
	74	+	due under this article 22 that is equal to ten percent of the federal credit10
	75	+	that the resident individual claimed on his or her federal tax return for the11
	76	+	same tax year.12
42	77		(II) T
43		-	HIS SUBSECTION (2)(a) IS REPEALED, EFFECTIVE DECEMBER 31,
44		-	2032.
45		-	(c) (I) For income tax years commencing on or after January 1,
46		-	2023, but before January 1, 2026
47		-	2024, AND FOR THE INCOME TAX YEAR
48		-	COMMENCING ON
49		-	JANUARY 1, 2025, a resident individual who claims an
50		-	earned income tax credit on the individual's federal tax return is allowed an
51		-	earned income tax credit against the taxes due under this article 22 that is
52		-	equal to twenty-five percent of the federal credit that the resident individual
53		-	claimed on his or her federal tax return for the same tax year.
54		-	(d) (I) F
55		-	OR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,
	78	+	HIS SUBSECTION (2)(a) IS REPEALED, EFFECTIVE DECEMBER13
	79	+	31,
	80	+	2032.14
	81	+	15
	82	+	(c) (I) For income tax years commencing on or after January 1,16
	83	+	2023, but before January 1, 2026 2024, AND FOR THE INCOME TAX YEAR17
	84	+	COMMENCING ON JANUARY 1, 2025, a resident individual who claims an18
	85	+	1112-2- earned income tax credit on the individual's federal tax return is allowed1
	86	+	an earned income tax credit against the taxes due under this article 22 that2
	87	+	is equal to twenty-five percent of the federal credit that the resident3
	88	+	individual claimed on his or her federal tax return for the same tax year.4
	89	+	(d) (I) FOR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,5
56	90		2024,
57		-	A RESIDENT INDIVIDUAL WHO CLAIMS AN EARNED INCOME TAX CREDIT
58		-	ON THE INDIVIDUAL
59		-	'S FEDERAL TAX RETURN IS ALLOWED AN EARNED INCOME
60		-	TAX CREDIT AGAINST THE TAXES DUE UNDER THIS ARTICLE
61		-	22 THAT IS EQUAL
62		-	TO THIRTY
63		-	-EIGHT PERCENT OF THE FEDERAL CREDIT THAT THE RESIDENT
64		-	INDIVIDUAL CLAIMED ON HIS OR HER FEDERAL TAX RETURN FOR THE SAME
65		-	TAX YEAR
66		-	.
	91	+	A RESIDENT INDIVIDUAL WHO CLAIMS AN EARNED INCOME TAX6
	92	+	CREDIT ON THE INDIVIDUAL'S FEDERAL TAX RETURN IS ALLOWED AN7
	93	+	EARNED INCOME TAX CREDIT AGAINST THE TAXES DUE UNDER THIS8
	94	+	ARTICLE 22 THAT IS EQUAL TO THIRTY-EIGHT
	95	+	PERCENT OF THE FEDERAL9
	96	+	CREDIT THAT THE RESIDENT INDIVIDUAL CLAIMED ON HIS OR HER FEDERAL10
	97	+	TAX RETURN FOR THE SAME TAX YEAR .11
	98	+	(II) THIS SUBSECTION (2)(d) IS REPEALED, EFFECTIVE DECEMBER12
	99	+	31, 2034.13
	100	+	(2.5) (a) (I) For income tax years commencing on or after January14
	101	+	1, 2020, but before January 1, 2022, a resident individual is allowed an15
	102	+	earned income tax credit against the taxes due under this article 22 that16
	103	+	is equal to ten percent of the federal credit that the resident individual17
	104	+	would have been allowed, but for the fact that the resident individual, the18
	105	+	resident individual's spouse, or one or more of the resident individual's19
	106	+	dependents do not have a social security number that is valid for20
	107	+	employment.21
67	108		(II) T
68		-	HIS SUBSECTION (2)(d) IS REPEALED, EFFECTIVE DECEMBER 31,
69		-	2034.
70		-	(2.5) (a) (I) For income tax years commencing on or after January
71		-	1, 2020, but before January 1, 2022, a resident individual is allowed an
72		-	earned income tax credit against the taxes due under this article 22 that is
73		-	equal to ten percent of the federal credit that the resident individual would
74		-	have been allowed, but for the fact that the resident individual, the resident
75		-	individual's spouse, or one or more of the resident individual's dependents
76		-	PAGE 2-HOUSE BILL 23-1112 do not have a social security number that is valid for employment.
77		-	(II) T
78		-	HIS SUBSECTION (2.5)(a) IS REPEALED, EFFECTIVE DECEMBER
79		-	31, 2032.
80		-	(d) (I) For income tax years commencing on or after January 1,
81		-	2023, but before January 1, 2026
82		-	2024, AND FOR THE INCOME TAX YEAR
83		-	COMMENCING ON
84		-	JANUARY 1, 2025, a resident individual is allowed an
85		-	earned income tax credit against the taxes due under this article 22 that is
86		-	equal to twenty-five percent of the federal credit that the resident individual
87		-	would have been allowed, but for the fact that the resident individual, the
88		-	resident individual's spouse, or one or more of the resident individual's
89		-	dependents do not have a social security number that is valid for
90		-	employment.
91		-	(e) (I) F
92		-	OR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,
	109	+	HIS SUBSECTION (2.5)(a) IS REPEALED, EFFECTIVE DECEMBER22
	110	+	31,
	111	+	2032.23
	112	+	24
	113	+	(d) (I) For income tax years commencing on or after January 1,25
	114	+	2023, but before January 1, 2026 2024, AND FOR THE INCOME TAX YEAR26
	115	+	COMMENCING ON JANUARY 1, 2025, a resident individual is allowed an27
	116	+	1112
	117	+	-3- earned income tax credit against the taxes due under this article 22 that1
	118	+	is equal to twenty-five percent of the federal credit that the resident2
	119	+	individual would have been allowed, but for the fact that the resident3
	120	+	individual, the resident individual's spouse, or one or more of the resident4
	121	+	individual's dependents do not have a social security number that is valid5
	122	+	for employment.6
	123	+	(e) (I) FOR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,7
93	124		2024,
94		-	A RESIDENT INDIVIDUAL IS ALLOWED AN EARNED INCOME TAX CREDIT
95		-	AGAINST THE TAXES DUE UNDER THIS ARTICLE
96		-	22 THAT IS EQUAL TO
97		-	THIRTY
98		-	-EIGHT PERCENT OF THE FEDERAL CREDIT THAT THE RESIDENT
99		-	INDIVIDUAL WOULD HAVE BEEN ALLOWED
100		-	, BUT FOR THE FACT THAT THE
101		-	RESIDENT INDIVIDUAL
102		-	, THE RESIDENT INDIVIDUAL'S SPOUSE, OR ONE OR
103		-	MORE OF THE RESIDENT INDIVIDUAL
104		-	'S DEPENDENTS DO NOT HAVE A SOCIAL
105		-	SECURITY NUMBER THAT IS VALID FOR EMPLOYMENT
106		-	.
107		-	(II) T
108		-	HIS SUBSECTION (2.5)(e) IS REPEALED, EFFECTIVE DECEMBER
109		-	31, 2034.
110		-	(2.7) (b) (I) For income tax years commencing on or after January
111		-	1, 2023, but before January 1, 2026
112		-	2024, AND FOR THE INCOME TAX YEAR
113		-	COMMENCING ON
114		-	JANUARY 1, 2025, a resident individual is allowed an
115		-	earned income tax credit against the taxes due under this article 22 that is
116		-	equal to twenty-five percent of the federal credit that the resident individual
117		-	would have been allowed under section 32 (n)(1) of the internal revenue
118		-	code, notwithstanding the date limitation set forth in section 32 (n) of the
119		-	internal revenue code as specified in section 9621 (a) of the "American
120		-	Rescue Plan Act of 2021", Pub.L. 117-2.
121		-	(c) (I) F
122		-	OR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,
123		-	2024,
124		-	A RESIDENT INDIVIDUAL IS ALLOWED AN EARNED INCOME TAX CREDIT
125		-	PAGE 3-HOUSE BILL 23-1112 AGAINST THE TAXES DUE UNDER THIS ARTICLE 22 THAT IS EQUAL TO
126		-	THIRTY
127		-	-EIGHT PERCENT OF THE FEDERAL CREDIT THAT THE RESIDENT
128		-	INDIVIDUAL WOULD HAVE BEEN ALLOWED UNDER SECTION
129		-	32 (n)(1) OF THE
130		-	INTERNAL REVENUE CODE
131		-	, NOTWITHSTANDING THE DATE LIMITATION SET
132		-	FORTH IN SECTION
133		-	32 (n) OF THE INTERNAL REVENUE CODE AS SPECIFIED IN
134		-	SECTION
135		-	9621 (a) OF THE "AMERICAN RESCUE PLAN ACT OF 2021", PUB.L.
136		-	117-2.
137		-	(II) T
138		-	HIS SUBSECTION (2.7)(c) IS REPEALED, EFFECTIVE DECEMBER
139		-	31, 2034.
140		-	SECTION 2. In Colorado Revised Statutes, 39-22-129, amend
141		-	(1)(b), (2)(a), (3)(a), (3.5)(a), and (4) introductory portion; and add (4.5),
142		-	(8), and (9) as follows:
143		-	39-22-129. Child tax credit - legislative declaration - definitions
144		-	- repeal. (1) (b) Now, therefore, it is the intent of the general assembly to
145		-	establish a permanent and refundable state child tax credit for eligible
146		-	Colorado taxpayers, which is equal to a percentage of the federal credit
147		-	based on a family's adjusted gross income. The intended purpose of this
148		-	credit is to support Colorado working families with young children, reduce
149		-	child poverty, and to help Colorado's economy.
150		-	(2) As used in this section:
	125	+	A RESIDENT INDIVIDUAL IS ALLOWED AN EARNED INCOME TAX8
	126	+	CREDIT AGAINST THE TAXES DUE UNDER THIS ARTICLE 22 THAT IS EQUAL9
	127	+	TO THIRTY-EIGHT
	128	+	PERCENT OF THE FEDERAL CREDIT THAT THE RESIDENT10
	129	+	INDIVIDUAL WOULD HAVE BEEN ALLOWED , BUT FOR THE FACT THAT THE11
	130	+	RESIDENT INDIVIDUAL, THE RESIDENT INDIVIDUAL'S SPOUSE, OR ONE OR12
	131	+	MORE OF THE RESIDENT INDIVIDUAL'S DEPENDENTS DO NOT HAVE A SOCIAL13
	132	+	SECURITY NUMBER THAT IS VALID FOR EMPLOYMENT .14
	133	+	(II) THIS SUBSECTION (2.5)(e) IS REPEALED, EFFECTIVE DECEMBER15
	134	+	31, 2034.16
	135	+	17
	136	+	(2.7) (b) (I) For income tax years commencing on or after January18
	137	+	1, 2023, but before January 1, 2026 2024, AND FOR THE INCOME TAX YEAR19
	138	+	COMMENCING ON JANUARY 1, 2025, a resident individual is allowed an20
	139	+	earned income tax credit against the taxes due under this article 22 that21
	140	+	is equal to twenty-five percent of the federal credit that the resident22
	141	+	individual would have been allowed under section 32 (n)(1) of the23
	142	+	internal revenue code, notwithstanding the date limitation set forth in24
	143	+	section 32 (n) of the internal revenue code as specified in section 9621 (a)25
	144	+	of the "American Rescue Plan Act of 2021", Pub.L. 117-2.26
	145	+	(c) (I) FOR THE INCOME TAX YEAR COMMENCING ON JANUARY 1,27
	146	+	1112
	147	+	-4- 2024, A RESIDENT INDIVIDUAL IS ALLOWED AN EARNED INCOME TAX1
	148	+	CREDIT AGAINST THE TAXES DUE UNDER THIS ARTICLE 22 THAT IS EQUAL2
	149	+	TO THIRTY-EIGHT PERCENT OF THE FEDERAL CREDIT THAT THE RESIDENT3
	150	+	INDIVIDUAL WOULD HAVE BEEN ALLOWED UNDER SECTION 32 (n)(1) OF4
	151	+	THE INTERNAL REVENUE CODE, NOTWITHSTANDING THE DATE LIMITATION5
	152	+	SET FORTH IN SECTION 32 (n) OF THE INTERNAL REVENUE CODE AS6
	153	+	SPECIFIED IN SECTION 9621 (a) OF THE "AMERICAN RESCUE PLAN ACT OF7
	154	+	2021",
	155	+	PUB.L. 117-2.8 (II) THIS SUBSECTION (2.7)(c) IS REPEALED, EFFECTIVE DECEMBER9
	156	+	31, 2034.10
	157	+	SECTION 2. In Colorado Revised Statutes, 39-22-129, amend11
	158	+	(1)(b), (2)(a), (3)(a), (3.5)(a), and (4) introductory portion; and add (4.5),12
	159	+	(8), and (9) as follows:13
	160	+	39-22-129. Child tax credit - legislative declaration -14
	161	+	definitions - repeal. (1) (b) Now, therefore, it is the intent of the general15
	162	+	assembly to establish a permanent and refundable state child tax credit for16
	163	+	eligible Colorado taxpayers, which is equal to a percentage of the federal17
	164	+	credit based on a family's adjusted gross income. The intended purpose18
	165	+	of this credit is to support Colorado working families with young19
	166	+	children, reduce child poverty, and to help Colorado's economy. 20
	167	+	(2) As used in this section:21
151	168		(a) (I) "Eligible child" means
152		-	FOR INCOME TAX YEARS ~~COMMENCING~~
153		-	~~BEFORE~~
154		-	JANUARY 1, 2024, a qualifying child for ~~purposes of the federal~~
155		-	child tax credit who is under six years of age at the end ~~of the taxable year~~
156		-	for which the credit is claimed.
	169	+	FOR INCOME TAX YEARS
	170	+	22
	171	+	COMMENCING BEFORE JANUARY 1, 2024, a qualifying child for purposes23
	172	+	of the federal child tax credit who is under six years of age at the end of24
	173	+	the taxable year for which the credit is claimed.25
157	174		(II) "E
158		-	LIGIBLE CHILD" MEANS FOR INCOME TAX YEARS COMMENCING
159		-	ON OR AFTER
160		-	JANUARY 1, 2024, A QUALIFYING CHILD, AS DEFINED IN
161		-	SECTION
162		-	152 (c) OF THE INTERNAL REVENUE CODE, WHO IS UNDER SIX YEARS
163		-	OF AGE AT THE END OF THE TAXABLE YEAR FOR WHICH THE CREDIT IS
164		-	CLAIMED
165		-	.
166		-	(3) (a) Except as provided in subsection (4) of this section, for
	175	+	LIGIBLE CHILD" MEANS FOR INCOME TAX YEARS
	176	+	26
	177	+	COMMENCING ON OR AFTER JANUARY 1, 2024, A QUALIFYING CHILD, AS27
	178	+	1112
	179	+	-5- DEFINED IN SECTION 152 (c) OF THE INTERNAL REVENUE CODE , WHO IS1
	180	+	UNDER SIX YEARS OF AGE AT THE END OF THE TAXABLE YEAR FOR WHICH2
	181	+	THE CREDIT IS CLAIMED.3
	182	+	(3) (a) Except as provided in subsection (4) of this section, for4
167	183		income tax years commencing on or after January 1, 2022,
168	184		BUT BEFORE
169		-	JANUARY 1, 2024, a resident individual who claims a federal child tax credit
170		-	for an eligible child on the individual's federal tax return is allowed a child
171		-	PAGE 4-HOUSE BILL 23-1112 tax credit in the amount set forth in subsection (3)(b) or (3)(c) of this
172		-	section against the income taxes due under this article 22 for the same tax
173		-	year.
174		-	(3.5) (a) Except as provided in subsection (4) of this section, for
	185	+	5
	186	+	J
	187	+	ANUARY 1, 2024, a resident
	188	+	individual who claims a federal child tax6
	189	+	credit for an eligible child on the individual's federal tax return is allowed7
	190	+	a child tax credit in the amount set forth in subsection (3)(b) or (3)(c) of8
	191	+	this section against the income taxes due under this article 22 for the same9
	192	+	tax year.10
	193	+	11
	194	+	12
	195	+	(3.5) (a) Except as provided in subsection (4) of this section, for13
175	196		income tax years commencing on or after January 1, 2022,
176	197		BUT BEFORE
177		-	JANUARY 1, 2024, a resident individual who could have claimed a federal
178		-	child tax credit for an eligible child on the individual's federal tax return had
179		-	section 24 (h)(7) of the internal revenue code not applied to the definition
180		-	of qualifying child, is allowed a child tax credit in the amount set forth in
181		-	subsection (3.5)(b) or (3.5)(c) of this section against the income taxes due
182		-	under this article 22 for the same tax year.
183		-	(4) In any income tax year commencing on or after January 1, 2022,
184		-	BUT BEFORE JANUARY 1, 2024, if the changes specified in section 9611 of
185		-	the "American Rescue Plan Act of 2021", Pub.L. 117-2, are no longer
186		-	applicable to the federal child tax credit allowed in section 24 of the internal
187		-	revenue code, then the amount of the child tax credit allowed in this section
188		-	is as follows:
189		-	(4.5) (a) (I) F
190		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
191		-	1, 2024, A RESIDENT INDIVIDUAL WHO FILES A SINGLE RETURN IS ALLOWED
192		-	A CHILD TAX CREDIT AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE
193		-	22 FOR EACH ELIGIBLE CHILD OF THE TAXPAYER IN THE FOLLOWING
194		-	AMOUNTS
195		-	:
	198	+	14
	199	+	J
	200	+	ANUARY 1, 2024, a resident
	201	+	individual who could have claimed a federal15
	202	+	child tax credit for an eligible child on the individual's federal tax return16
	203	+	had section 24 (h)(7) of the internal revenue code not applied to the17
	204	+	definition of qualifying child, is allowed a child tax credit in the amount18
	205	+	set forth in subsection (3.5)(b) or (3.5)(c) of this section against the19
	206	+	income taxes due under this article 22 for the same tax year.20
	207	+	21
	208	+	(4) In any income tax year commencing on or after January 1,22
	209	+	2022,
	210	+	BUT BEFORE JANUARY 1, 2024, if
	211	+	the changes specified in section23
	212	+	9611 of the "American Rescue Plan Act of 2021", Pub.L. 117-2, are no24
	213	+	longer applicable to the federal child tax credit allowed in section 24 of25
	214	+	the internal revenue code, then the amount of the child tax credit allowed26
	215	+	in this section is as follows:27
	216	+	1112
	217	+	-6- (4.5) (a) (I) FOR INCOME TAX YEARS COMMENCING ON1
	218	+	OR AFTER JANUARY 1, 2024, A RESIDENT INDIVIDUAL WHO FILES A SINGLE2
	219	+	RETURN IS ALLOWED A CHILD TAX CREDIT AGAINST THE INCOME TAXES3
	220	+	DUE UNDER THIS ARTICLE 22 FOR EACH ELIGIBLE CHILD OF THE TAXPAYER4
	221	+	IN THE FOLLOWING AMOUNTS :5
196	222		(A) O
197	223		NE THOUSAND TWO HUNDRED DOLLARS IF THE INDIVIDUAL 'S
198		-	FEDERAL ADJUSTED GROSS INCOME IS TWENTY
199		-	-FIVE THOUSAND DOLLARS OR
200		-	LESS
201		-	;
	224	+	6
	225	+	FEDERAL ADJUSTED GROSS INCOME IS TWENTY -FIVE THOUSAND DOLLARS7
	226	+	OR LESS;8
202	227		(B) S
203		-	IX HUNDRED DOLLARS IF THE INDIVIDUAL'S FEDERAL ~~ADJUSTED~~
204		-	~~GROSS INCOME IS GREATER THAN TWENTY~~
205		-	-FIVE ~~THOUSAND DOLLARS BUT~~
206		-	LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS
207		-	~~; AND~~
208		-	~~(C) TWO~~ HUNDRED DOLLARS IF THE ~~INDIVI DUAL~~ 'S FEDERAL
209		-	~~ADJUSTED GROSS INCOME IS GREATER THAN FIFTY THOUSAND DOLLARS BUT~~
210		-	~~LESS~~ THAN ~~OR EQUAL TO SEVENTY~~
211		-	-FIVE THOUSAND DOLLARS.
	228	+	IX HUNDRED DOLLARS IF THE INDIVIDUAL 'S FEDERAL
	229	+	9
	230	+	ADJUSTED GROSS INCOME IS GREATER THAN TWENTY -FIVE THOUSAND10
	231	+	DOLLARS BUT LESS THAN OR EQUAL TO FIFTY THOUSAND DOLLARS ; AND11
	232	+	(C) T
	233	+	WO HUNDRED DOLLARS IF THE INDIVIDUAL 'S FEDERAL
	234	+	12
	235	+	ADJUSTED GROSS INCOME IS GREATER THAN FIFTY THOUSAND DOLLARS13
	236	+	BUT LESS THAN OR EQUAL TO SEVENTY -FIVE THOUSAND DOLLARS.14
212	237		(II) F
213	238		OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
214		-	1, 2024, TWO RESIDENT INDIVIDUALS WHO FILE A JOINT RETURN ARE
215		-	PAGE 5-HOUSE BILL 23-1112 ALLOWED A CHILD TAX CREDIT AGAINST THE INCOME TAXES DUE UNDER THIS
216		-	ARTICLE
217		-	22 FOR EACH ELIGIBLE CHILD OF THE TAXPAYER IN THE FOLLOWING
218		-	AMOUNTS
219		-	:
	239	+	15
	240	+	1,
	241	+	2024, TWO RESIDENT INDIVIDUALS WHO FILE A JOINT RETURN ARE
	242	+	16
	243	+	ALLOWED A CHILD TAX CREDIT AGAINST THE INCOME TAXES DUE UNDER17
	244	+	THIS ARTICLE 22 FOR EACH ELIGIBLE CHILD OF THE TAXPAYER IN THE18
	245	+	FOLLOWING AMOUNTS :19
220	246		(A) O
221	247		NE THOUSAND TWO HUNDRED DOLLARS IF THE INDIVIDUALS '
222		-	~~FEDERAL ADJUSTED GROSS INCOME IS THIRTY -FIVE THOUSAND DOLLARS OR~~
223		-	~~LESS~~
224		-	;
	248	+	20
	249	+	FEDERAL ADJUSTED GROSS INCOME IS THIRTY -FIVE THOUSAND DOLLARS21
	250	+	OR LESS;22
225	251		(B) S
226		-	IX HUNDRED DOLLARS IF THE INDIVIDUALS' FEDERAL ADJUSTED
227		-	GROSS INCOME IS GREATER THAN THIRTY
228		-	-FIVE THOUSAND DOLLARS BUT LESS
229		-	THAN OR EQUAL TO SIXTY THOUSAND DOLLARS
230		-	; AND
231		-	(C) TWO HUNDRED DOLLARS IF THE INDIVIDUALS ' FEDERAL
232		-	ADJUSTED GROSS INCOME IS GREATER THAN SIXTY THOUSAND DOLLARS BUT
233		-	LESS THAN OR EQUAL TO EIGHTY
234		-	-FIVE THOUSAND DOLLARS.
	252	+	IX HUNDRED DOLLARS IF THE INDIVIDUALS ' FEDERAL
	253	+	23
	254	+	ADJUSTED GROSS INCOME IS GREATER THAN THIRTY -FIVE THOUSAND24
	255	+	DOLLARS BUT LESS THAN OR EQUAL TO SIXTY THOUSAND DOLLARS ; AND25
	256	+	(C) T
	257	+	WO HUNDRED DOLLARS IF THE INDIVIDUALS ' FEDERAL
	258	+	26
	259	+	ADJUSTED GROSS INCOME IS GREATER THAN SIXTY THOUSAND DOLLARS27
	260	+	1112
	261	+	-7- BUT LESS THAN OR EQUAL TO EIGHTY-FIVE THOUSAND DOLLARS.1
235	262		(b) (I) A
236	263		RESIDENT INDIVIDUAL WHO FILES A SINGLE RETURN AND
237		-	~~WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER THAN SEVENTY~~
238		-	~~-FIVE~~
239		-	THOUSAND DOLLARS IS NOT ALLOWED A CREDIT ~~UNDER THIS SECTION~~
240		-	.
	264	+	2
	265	+	WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER THAN3
	266	+	SEVENTY-FIVE THOUSAND DOLLARS IS NOT ALLOWED A CREDIT UNDER4
	267	+	THIS SECTION.5
241	268		(II) T
242	269		WO RESIDENT INDIVIDUALS WHO FILE A JOINT RETURN AND
243		-	WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER THAN EIGHTY
244		-	-FIVE
245		-	THOUSAND DOLLARS ARE NOT ALLOWED A CREDIT UNDER THIS SECTION
246		-	.
	270	+	6
	271	+	WHOSE FEDERAL ADJUSTED GROSS INCOME IS GREATER THAN EIGHTY -FIVE7
	272	+	THOUSAND DOLLARS ARE NOT ALLOWED A CREDIT UNDER THIS SECTION .8
247	273		(8) (a) F
248		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
249		-	1, 2025, THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL
250		-	ADJUSTED GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO REFLECT
251		-	INFLATION FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT DESCRIBED IN
252		-	THIS SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE THE LAST
253		-	ADJUSTMENT
254		-	, WHEN APPLIED TO THE CURRENT LIMITS , RESULTS IN AN
255		-	INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE ADJUSTED
256		-	LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS
257		-	.
	274	+	OR INCOME TAX YEARS COMMENCING ON OR AFTER9
	275	+	J
	276	+	ANUARY 1, 2025,
	277	+	THE DEPARTMENT OF REVENUE SHALL ADJUST THE10
	278	+	FEDERAL ADJUSTED GROSS INCOME AMOUNTS SET FORTH IN THIS11
	279	+	SECTION TO REFLECT INFLATION FOR EACH INCOME TAX YEAR IN WHICH12
	280	+	THE CREDIT DESCRIBED IN THIS SECTION IS ALLOWED IF CUMULATIVE13
	281	+	INFLATION SINCE THE LAST ADJUSTMENT, WHEN APPLIED TO THE CURRENT14
	282	+	LIMITS, RESULTS IN AN INCREASE OF AT LEAST ONE THOUS AND DOLLARS15
	283	+	WHEN THE ADJUSTED LIMITS ARE ROUNDED TO THE NEAREST ONE16
	284	+	THOUSAND DOLLARS.17
258	285		(b) A
259		-	S USED IN THIS SUBSECTION (8), "INFLATION" MEANS THE
260		-	ANNUAL PERCENTAGE CHANGE IN THE
261		-	UNITED STATES DEPARTMENT OF
262		-	LABOR BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX FOR
263		-	DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY ALL URBAN
264		-	CONSUMERS
265		-	, OR ITS APPLICABLE SUCCESSOR INDEX.
	286	+	S USED IN THIS SUBSECTION (8), "INFLATION" MEANS THE18
	287	+	ANNUAL PERCENTAGE CHANGE IN THE UNITED STATES DEPARTMENT OF19
	288	+	LABOR BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX FOR20
	289	+	D
	290	+	ENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY ALL URBAN21
	291	+	CONSUMERS, OR ITS APPLICABLE SUCCESSOR INDEX.22
266	292		(9) S
267	293		UBSECTIONS (3), (3.5), AND (4) OF THIS SECTION AND THIS
268		-	PAGE 6-HOUSE BILL 23-1112 SUBSECTION (9) ARE REPEALED, EFFECTIVE DECEMBER 31, 2026.
269		-	SECTION 3. Act subject to petition - effective date. This act
270		-	takes effect at 12:01 a.m. on the day following the expiration of the
271		-	ninety-day period after final adjournment of the general assembly; except
272		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
273		-	of the state constitution against this act or an item, section, or part of this act
274		-	within such period, then the act, item, section, or part will not take effect
275		-	unless approved by the people at the general election to be held in
276		-	PAGE 7-HOUSE BILL 23-1112 November 2024 and, in such case, will take effect on the date of the official
277		-	declaration of the vote thereon by the governor.
278		-	____________________________ ____________________________
279		-	Julie McCluskie Steve Fenberg
280		-	SPEAKER OF THE HOUSE PRESIDENT OF
281		-	OF REPRESENTATIVES THE SENATE
282		-	____________________________ ____________________________
283		-	Robin Jones Cindi L. Markwell
284		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
285		-	OF REPRESENTATIVES THE SENATE
286		-	APPROVED________________________________________
287		-	(Date and Time)
288		-	_________________________________________
289		-	Jared S. Polis
290		-	GOVERNOR OF THE STATE OF COLORADO
291		-	PAGE 8-HOUSE BILL 23-1112
	294	+	23
	295	+	SUBSECTION (9) ARE REPEALED, EFFECTIVE DECEMBER 31, 2026.24
	296	+	SECTION 3. Act subject to petition - effective date. This act25
	297	+	takes effect at 12:01 a.m. on the day following the expiration of the26
	298	+	ninety-day period after final adjournment of the general assembly; except27
	299	+	1112
	300	+	-8- that, if a referendum petition is filed pursuant to section 1 (3) of article V1
	301	+	of the state constitution against this act or an item, section, or part of this2
	302	+	act within such period, then the act, item, section, or part will not take3
	303	+	effect unless approved by the people at the general election to be held in4
	304	+	November 2024 and, in such case, will take effect on the date of the5
	305	+	official declaration of the vote thereon by the governor.6
	306	+	1112
	307	+	-9-