Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0958.01 Rebecca Bayetti x4348
HOUSE BILL 24-1240
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF AN INCOME TAX SUBTRACTION FOR101
S
EGAL AMERICORPS EDUCATION AWARDS.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
.)
The bill creates an income tax subtraction for the next 3 income
tax years for the amount of any Segal AmeriCorps Education Award
received by a taxpayer for service in the AmeriCorps national service
program and used by the taxpayer during the income tax year.
HOUSE SPONSORSHIP
Joseph and Weinberg,
SENATE SPONSORSHIP
Rich,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. Legislative declaration. (1) The general assembly2
finds and declares that:3
(a) AmeriCorps members serve communities throughout the4
nation, including in Colorado, where AmeriCorps members lead the5
Reading Corps as literacy tutors in schools across the state to help young6
students achieve grade-level reading, resulting in better outcomes for7
Colorado students;8
(b) After completing their terms of service, AmeriCorps members9
may earn a Segal AmeriCorps Education Award that can be used to pay10
education expenses at eligible higher education institutions and programs11
or to repay qualified student loans;12
(c) Segal AmeriCorps Education Awards are taxed as income in13
the year or years they are used;14
(d) Other states have removed state income tax on the amount of15
a Segal AmeriCorps Education Award;16
(e) Subtracting the amount of a Segal AmeriCorps Education17
Award reduces burdens on individuals, supports education and workforce18
development, and encourages AmeriCorps alumni to remain in Colorado19
to use their awards; and20
(f) The purpose of this tax subtraction is to incentivize21
AmeriCorps members to seek higher education in the state and to retain22
AmeriCorps members in the state after their terms of service have ended.23
SECTION 2. In Colorado Revised Statutes, 39-22-104, add24
(4)(cc) as follows:25
39-22-104. Income tax imposed on individuals, estates, and26
trusts - single rate - report - legislative declaration - definitions -27
HB24-1240
-2- repeal. (4) There shall be subtracted from federal taxable income:1
(cc) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER2
J
ANUARY 1, 2025, BUT BEFORE JANUARY 1, 2028, AN AMOUNT EQUAL TO3
THE AMOUNT OF ANY SEGAL AMERICORPS EDUCATION AWARD RECEIVED4
FOR SERVICE IN THE AMERICORPS NATIONAL SERVICE PROGRAM AND USED5
BY THE TAXPAYER DURING THE INCOME TAX YEAR .6
(II) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH7
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE8
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY9
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND10
DECLARES THAT:11
(A) T
HE PURPOSE OF THE INCOME TAX SUBTRACTION CREATED IN12
THIS SUBSECTION (4)(cc) IS TO PROVIDE TAX RELIEF FOR CERTAIN13
INDIVIDUALS, SPECIFICALLY TAXPAYERS WHO HAVE RECEIVED SEGAL14
A
MERICORPS EDUCATION AWARDS FOR AMERICORPS SERVICE; AND15
(B) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL16
MEASURE THE EFFECTIVENESS OF THE SUBTRACTION IN ACHIEVING THE17
PURPOSE SPECIFIED IN SUBSECTION (4)(cc)(II)(A) OF THIS SECTION BASED18
ON THE NUMBER AND AGGREGATE AMOUNT OF SUBTRACTIONS CLAIMED19
IN A TAX YEAR.20
(III) T
HE DEPARTMENT OF REVENUE SHALL MAINTAIN21
INFORMATION ABOUT THE NUMBER OF TAXPAYERS WHO CLAIM THE22
SUBTRACTION IN A TAX YEAR AND THE AGGREGATE AMOUNT OF23
SUBTRACTIONS CLAIMED IN A TAX YEAR , IN ADDITION TO ANY OTHER24
INFORMATION DETERMINED NECESSARY BY THE DEPARTMENT OF25
REVENUE, TO EVALUATE THE EFFECTIVENESS OF THE TAX SUBTRACTION26
ALLOWED IN THIS SUBSECTION (4)(cc) IN ACHIEVING THE PURPOSE27
HB24-1240
-3- SPECIFIED IN SUBSECTION (4)(cc)(II)(A) OF THIS SECTION, AND SHALL1
PROVIDE THIS INFORMATION UPON REQUEST OF THE GENERAL ASSEMBLY2
OR THE STATE AUDITOR.3
(IV) T
HIS SUBSECTION (4)(cc) IS REPEALED, EFFECTIVE JULY 1,4
2033.5
SECTION 3. Safety clause. The general assembly finds,6
determines, and declares that this act is necessary for the immediate7
preservation of the public peace, health, or safety or for appropriations for8
the support and maintenance of the departments of the state and state9
institutions.10
HB24-1240
-4-