HOUSE BILL 24-1240
BY REPRESENTATIVE(S) Joseph and Weinberg, Amabile, Bacon, Bird,
Brown, English, Herod, Jodeh, Ricks, Titone, McCluskie;
also SENATOR(S) Rich and Exum, Bridges, Cutter, Michaelson Jenet,
Mullica, Priola.
C
ONCERNING THE CREATION OF AN INCOME TAX SUBTRACTION FOR SEGAL
AMERICORPS EDUCATION AWARDS.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Legislative declaration. (1) The general assembly
finds and declares that:
(a) AmeriCorps members serve communities nationwide, including
in Colorado, where AmeriCorps members serve throughout the state in
education, climate change resilience, public and behavioral health, digital
navigation, economic mobility, and other areas, with a focus on workforce
development and quality credentials earned through service-to-career
pathways;
(b) After completing their terms of service, AmeriCorps members
may earn a Segal AmeriCorps Education Award that can be used to pay
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. education expenses at eligible higher education institutions and programs
or to repay qualified student loans;
(c) Segal AmeriCorps Education Awards are taxed as income in the
year or years they are used;
(d) Other states have removed state income tax on the amount of a
Segal AmeriCorps Education Award;
(e) Subtracting the amount of a Segal AmeriCorps Education Award
reduces burdens on individuals, supports education and workforce
development, and encourages AmeriCorps alumni to remain in Colorado to
use their awards; and
(f) The purpose of this tax subtraction is to incentivize AmeriCorps
members to seek higher education in the state and to retain AmeriCorps
members in the state after their terms of service have ended.
SECTION 2. In Colorado Revised Statutes, 39-22-104, add (4)(cc)
as follows:
39-22-104. Income tax imposed on individuals, estates, and
trusts - single rate - report - legislative declaration - definitions - repeal.
(4) There shall be subtracted from federal taxable income:
(cc) (I) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER
JANUARY 1, 2026, BUT BEFORE JANUARY 1, 2034, AN AMOUNT EQUAL TO
THE AMOUNT OF ANY
SEGAL AMERICORPS EDUCATION AWARD RECEIVED
FOR SERVICE IN THE
AMERICORPS NATIONAL SERVICE PROGRAM , WHICH IS
USED BY THE TAXPAYER DURING THE INCOME TAX YEAR
.
(II) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX
PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
LEGISLATIVE DECLARATION
, THE GENERAL ASSEMBLY FINDS AND DECLARES
THAT
:
(A) T
HE PURPOSE OF THE INCOME TAX SUBTRACTION CREATED IN
THIS SUBSECTION
(4)(cc) IS TO PROVIDE TAX RELIEF FOR CERTAIN
INDIVIDUALS
, SPECIFICALLY TAXPAYERS WHO HAVE RECEIVED SEGAL
PAGE 2-HOUSE BILL 24-1240 AMERICORPS EDUCATION AWARDS FOR AMERICORPS SERVICE; AND
(B) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL
MEASURE THE EFFECTIVENESS OF THE SUBTRACTION IN ACHIEVING THE
PURPOSE SPECIFIED IN SUBSECTION
(4)(cc)(II)(A) OF THIS SECTION BASED ON
THE NUMBER AND AGGREGATE AMOUNT OF SUBTRACTIONS CLAIMED IN A
TAX YEAR
.
(III) T
HE DEPARTMENT OF REVENUE SHALL MAINTAIN INFORMATION
ABOUT THE NUMBER OF TAXPAYERS WHO CLAIM THE SUBTRACTION IN A TAX
YEAR AND THE AGGREGATE AMOUNT OF SUBTRACTIONS CLAIMED IN A TAX
YEAR
, IN ADDITION TO ANY OTHER INFORMATION DETERMINED NECESSARY
BY THE DEPARTMENT OF REVENUE
, TO EVALUATE THE EFFECTIVENESS OF
THE TAX SUBTRACTION ALLOWED IN THIS SUBSECTION
(4)(cc) IN ACHIEVING
THE PURPOSE SPECIFIED IN SUBSECTION
(4)(cc)(II)(A) OF THIS SECTION, AND
SHALL PROVIDE THIS INFORMATION UPON REQUEST OF THE GENERAL
ASSEMBLY OR THE STATE AUDITOR
.
(IV) T
HIS SUBSECTION (4)(cc) IS REPEALED, EFFECTIVE JULY 1, 2039.
SECTION 3. Safety clause. The general assembly finds,
determines, and declares that this act is necessary for the immediate
preservation of the public peace, health, or safety or for appropriations for
PAGE 3-HOUSE BILL 24-1240 the support and maintenance of the departments of the state and state
institutions.
____________________________ ____________________________
Julie McCluskie 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 4-HOUSE BILL 24-1240