Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0958.01 Rebecca Bayetti x4348
HOUSE BILL 24-1240
House Committees Senate Committees
Finance
Appropriations
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
3rd Reading Unamended
May 1, 2024
HOUSE
Amended 2nd Reading
April 30, 2024
HOUSE SPONSORSHIP
Joseph and Weinberg, Amabile, Bacon, Bird, Brown, English, Herod, Jodeh, McCluskie,
Ricks, Titone
SENATE SPONSORSHIP
Rich and Exum,
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 nationwide,4
including in Colorado, where AmeriCorps members serve throughout the5
state in education, climate change resilience, public and behavioral health,6
digital navigation, economic mobility, and other areas, with a focus on7
workforce development and quality credentials earned through8
service-to-career pathways;9
(b) After completing their terms of service, AmeriCorps members10
may earn a Segal AmeriCorps Education Award that can be used to pay11
education expenses at eligible higher education institutions and programs12
or to repay qualified student loans;13
(c) Segal AmeriCorps Education Awards are taxed as income in14
the year or years they are used;15
(d) Other states have removed state income tax on the amount of16
a Segal AmeriCorps Education Award;17
(e) Subtracting the amount of a Segal AmeriCorps Education18
Award reduces burdens on individuals, supports education and workforce19
development, and encourages AmeriCorps alumni to remain in Colorado20
to use their awards; and21
(f) The purpose of this tax subtraction is to incentivize22
AmeriCorps members to seek higher education in the state and to retain23
AmeriCorps members in the state after their terms of service have ended.24
SECTION 2. In Colorado Revised Statutes, 39-22-104, add25
(4)(cc) as follows:26
39-22-104. Income tax imposed on individuals, estates, and27
1240
-2- trusts - single rate - report - legislative declaration - definitions -1
repeal. (4) There shall be subtracted from federal taxable income:2
(cc) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER3
JANUARY 1, 2026, BUT BEFORE JANUARY 1, 2034, AN AMOUNT EQUAL TO4
THE AMOUNT OF ANY SEGAL AMERICORPS EDUCATION AWARD RECEIVED5
FOR SERVICE IN THE AMERICORPS NATIONAL SERVICE PROGRAM, WHICH6
IS USED BY THE TAXPAYER DURING THE INCOME TAX YEAR .7
(II) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH8
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE9
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY10
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND11
DECLARES THAT:12
(A) T
HE PURPOSE OF THE INCOME TAX SUBTRACTION CREATED IN13
THIS SUBSECTION (4)(cc) IS TO PROVIDE TAX RELIEF FOR CERTAIN14
INDIVIDUALS, SPECIFICALLY TAXPAYERS WHO HAVE RECEIVED SEGAL15
A
MERICORPS EDUCATION AWARDS FOR AMERICORPS SERVICE; AND16
(B) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL17
MEASURE THE EFFECTIVENESS OF THE SUBTRACTION IN ACHIEVING THE18
PURPOSE SPECIFIED IN SUBSECTION (4)(cc)(II)(A) OF THIS SECTION BASED19
ON THE NUMBER AND AGGREGATE AMOUNT OF SUBTRACTIONS CLAIMED20
IN A TAX YEAR.21
(III) T
HE DEPARTMENT OF REVENUE SHALL MAINTAIN22
INFORMATION ABOUT THE NUMBER OF TAXPAYERS WHO CLAIM THE23
SUBTRACTION IN A TAX YEAR AND THE AGGREGATE AMOUNT OF24
SUBTRACTIONS CLAIMED IN A TAX YEAR , IN ADDITION TO ANY OTHER25
INFORMATION DETERMINED NECESSARY BY THE DEPARTMENT OF26
REVENUE, TO EVALUATE THE EFFECTIVENESS OF THE TAX SUBTRACTION27
1240
-3- ALLOWED IN THIS SUBSECTION (4)(cc) IN ACHIEVING THE PURPOSE1
SPECIFIED IN SUBSECTION (4)(cc)(II)(A) OF THIS SECTION, AND SHALL2
PROVIDE THIS INFORMATION UPON REQUEST OF THE GENERAL ASSEMBLY3
OR THE STATE AUDITOR.4
(IV) T
HIS SUBSECTION (4)(cc) IS REPEALED, EFFECTIVE
JULY 1,5
2039.6
SECTION 3. Safety clause. The general assembly finds,7
determines, and declares that this act is necessary for the immediate8
preservation of the public peace, health, or safety or for appropriations for9
the support and maintenance of the departments of the state and state10
institutions.11
1240
-4-