Eligible Educator Classroom Expenses Tax Credit
This bill aims to support teachers by providing a financial incentive that reduces their tax liabilities and recognizes their contributions to education through personal investment in classroom resources. It highlights the need to support educators financially, given the significant costs often associated with teaching in public schools. The state legislature intends to assess the effectiveness of this tax credit based on the number of claims filed, potentially indicating a reliance on this assistance by educators.
Senate Bill 030 proposes a refundable state income tax credit aimed at alleviating some of the financial burdens faced by eligible educators in Colorado. The bill specifically targets teachers and paraprofessionals who incur expenses out-of-pocket for classroom supplies and materials. Under the provisions of this bill, eligible educators can claim a tax credit for their classroom expenses, subject to certain conditions. The maximum credit allowed is $500 per year, and it applies to the five income tax years starting in 2023, ending in 2028. Eligible expenses include textbooks, supplies, and certain equipment necessary for teaching, but exclude any items for which the educator already receives reimbursement or federal deductions.
The bill faced discussions surrounding its implications for long-term state tax revenues and the periodic evaluation of tax credits. Opponents may raise concerns regarding the sustainability of such credits, arguing that while beneficial, they could contribute to challenges in the budgeting process for state expenditures. Additionally, the bill includes a repeal clause, set to take effect on December 31, 2037, which raises questions about the long-term commitment to educator support through tax policy. Legislative action last recorded on January 26, 2023, indicated the bill was postponed indefinitely in committee, showing some contention and possible reservations from legislators regarding its broader implications.