Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted in the Second House
LLS NO. 24-0942.01 Caroline Martin x5902
HOUSE BILL 24-1311
House Committees Senate Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF A FAMILY AFFORDABILITY TAX101
CREDIT, AND, IN CONNECTION THEREWITH, MAKING AN102
APPROPRIATION.103
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
.)
For income tax years commencing on and after January 1, 2024,
the bill creates a family affordability tax credit (credit) as follows:
! For each of a taxpayer's eligible children 5 years of age or
younger, a taxpayer filing a single return with adjusted
gross income of $15,000 or less and taxpayers filing a joint
SENATE
3rd Reading Unamended
May 7, 2024
SENATE
Amended 2nd Reading
May 6, 2024
HOUSE
3rd Reading Unamended
May 1, 2024
HOUSE
Amended 2nd Reading
April 30, 2024
HOUSE SPONSORSHIP
deGruy Kennedy and Willford, Garcia, Bacon, Mabrey, Ortiz, Rutinel, Sirota,
Weissman, Amabile, Boesenecker, Brown, Daugherty, English, Epps, Froelich, Hamrick,
Hernandez, Herod, Jodeh, Joseph, Kipp, Lieder, Lindsay, Lukens, Marvin, McCluskie,
McCormick, McLachlan, Parenti, Ricks, Story, Velasco, Vigil, Woodrow
SENATE SPONSORSHIP
Winter F. and Coleman, Bridges, Buckner, Cutter, Danielson, Exum, Fenberg, Fields,
Ginal, Gonzales, Hansen, Jaquez Lewis, Kolker, Marchman, Michaelson Jenet, Mullica,
Priola, Sullivan
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. return with adjusted gross income of $25,000 or less can
claim a $3,200 credit;
! For each of a taxpayer's eligible children 5 years of age or
younger, a taxpayer filing a single return with adjusted
gross income between $15,000 and $85,000 and taxpayers
filing a joint return with adjusted gross income between
$25,000 and $95,000 can claim a credit, the amount of
which is reduced by $220 from $3,200 for every $5,000
above $15,000 or $25,000 of adjusted gross income that the
resident individual or individuals make;
! For each of a taxpayer's eligible children between the ages
of 6 and 16, a taxpayer filing a single return with adjusted
gross income of $15,000 or less and taxpayers filing a joint
return with adjusted gross income of $25,000 or less can
claim $2,400; and
! For each of a taxpayer's eligible children between the ages
of 6 and 16, a taxpayer filing a single return with adjusted
gross income between $15,000 and $85,000 and taxpayers
filing a joint return with adjusted gross income between
$25,000 and $95,000 can claim a credit, the amount of
which is reduced by $165 from $2,400 for every $5,000
above $15,000 or $25,000 of adjusted gross income that the
resident individual or individuals make.
The bill also provides that the full amount of the credit can only be
claimed for an income tax year in which there are projected to be excess
state revenues for the fiscal year that ends during the income tax year that
are required to be refunded pursuant to section 20 (7)(d) of article X of the
state constitution in an amount that will equal or exceed the amount
required to be refunded pursuant to the homestead property tax exemption
plus the projected full amount of the credit. For an income tax year in
which there are projected to be excess state revenues for the fiscal year
that ends during the income tax year that will exceed the amount required
to be refunded pursuant to the homestead property tax exemption but will
not exceed that amount plus the projected aggregate amount of the credit
that may be claimed in that income tax year, the credit will be allowed but
will be reduced proportionally so that the aggregate amount of the credit
available is equal to the amount of excess state revenues remaining to be
refunded. For an income tax year in which there is not projected to be
excess state revenues for the fiscal year that ends during the income tax
year or the amount of such excess state revenues required to be refunded
will be less than the amount required to be refunded pursuant to the
homestead property tax exemption, the credit is not allowed for that
income tax year. The department of revenue is authorized and encouraged
to develop a means of paying the credit in 12 equal monthly payments
rather than annually.
1311
-2- Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-22-130 as2
follows:3
39-22-130. Family affordability tax credit - legislative4
declaration - definitions - repeal. (1) (a) THE GENERAL ASSEMBLY5
HEREBY FINDS AND DECLARES THAT :6
(I) COLORADO FAMILIES STRUGGLE TO AFFORD MANY NECESSARY7
GOODS AND SERVICES, SUCH AS CHILD CARE, HOUSING, AND HEALTH CARE.8
EIGHTY-THREE PERCENT OF COLORADO PARENTS WORRY THAT THEIR9
CHILDREN WON'T BE ABLE TO AFFORD TO LIVE IN THE STATE IN THE FUTURE.10
(II) TARGETED TAX CREDITS ARE A PROVEN TOOL TO LIFT FAMILIES11
OUT OF POVERTY. RESEARCH HAS SHOWN THAT FAMILIES THAT CLAIM12
THESE TYPES OF TAX CREDITS, SUCH AS THE STATE AND FEDERAL CHILD13
TAX CREDIT AND THE STATE AND FEDERAL EARNED INCOME TAX CREDIT,14
HAVE BETTER HEALTH, IMPROVED SCHOOLING OUTCOMES , AND INCREASED15
ADULT EARNING POTENTIAL. AS THE COST OF RAISING CHILDREN HAS16
INCREASED, A FAMILY AFFORDABILITY TAX CREDIT IS CRITICAL FOR THE17
WELL-BEING OF MANY CHILDREN AND FAMILIES ACROSS COLORADO.18
(III) ACCORDING TO THE INSTITUTE ON TAXATION AND ECONOMIC19
POLICY, "[T]O CUT CHILD POVERTY RATES BY HALF , THE MAJORITY OF20
STATES WOULD REQUIRE A BASE CREDIT VALUE OF BETWEEN THREE21
THOUSAND DOLLARS AND FOUR THOUSAND FIVE HUNDRED DOLLARS PER22
CHILD PLUS A TWENTY PERCENT BOOST FOR YOUNG CHILDREN ." WHEN23
COUPLED WITH THE STATE AND FEDERAL EARNED INCOME TAX CREDIT AND24
THE STATE AND FEDERAL CHILD TAX CREDIT, THE ADDITIONAL INVESTMENT25
PROVIDED BY THE FAMILY AFFORDABILITY TAX CREDIT WOULD ESTABLISH26
1311-3- COLORADO AS A NATIONAL LEADER IN EQUITABLE ECONOMIC POLICY .1
(IV) COLORADO IS DEALING WITH RISING COSTS AND FUNDING2
SHORTFALLS IN MANY AREAS ACROSS OUR STATE, AND IT IS NECESSARY TO3
PROVIDE TAX CREDITS TO THE PEOPLE WHO NEED IT MOST IN A WAY THAT4
WILL DO THE MOST GOOD. ESTABLISHING THE FAMILY AFFORDABILITY TAX5
CREDIT IS A PROVEN WAY TO DO THAT; AND6
(V) BY PRIORITIZING THE STATE'S LOWEST-INCOME FAMILIES,7
EXPANDING THE CHILD AGE ELIGIBILITY, AND INCLUDING MORE FAMILIES,8
THE STATE CAN PROVIDE RESEARCH-BACKED INVESTMENTS FOR FAMILIES.9
THROUGH THOUGHTFUL AND STRATEGIC INVESTMENT, COLORADO CAN10
CUT CHILD POVERTY NEARLY IN HALF .11
(b) THE GENERAL ASSEMBLY DECLARES ITS INTENT TO12
PERIODICALLY REVIEW THE TAX CREDIT CREATED IN THIS SECTION IN AN13
EFFORT TO PREVENT A SIGNIFICANT INCREASE OR DECREASE , ADJUSTED FOR14
INFLATION, IN THE TOTAL AMOUNT OF THE CREDIT CLAIMED BY TAXPAYERS15
YEAR OVER YEAR STARTING IN INCOME TAX YEAR 2025.16
(c) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES17
EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX18
PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY19
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND20
DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN21
SUBSECTION (3) OF THIS SECTION ARE TO SUBSTANTIALLY REDUCE CHILD22
POVERTY, MAKE COLORADO MORE AFFORDABLE FOR FAMILIES, AND HELP23
FAMILIES AFFORD EXPENSES ASSOCIATED WITH HAVING CHILDREN BY24
PROVIDING TAX RELIEF FOR CERTAIN INDIVIDUALS .25
(d) THE GENERAL ASSEMBLY AND THE STATE AUDITOR, IN26
CONSULTATION WITH THE DEPARTMENT OF REVENUE, SHALL MEASURE THE27
1311
-4- EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS SECTION BY1
DETERMINING THE NUMBER OF COLORADO FAMILIES WHO, AFTER CLAIMING2
A CREDIT OR CREDITS IN THIS SECTION , NO LONGER FALL BELOW THE3
FEDERAL POVERTY LEVEL IN THE TAX YEAR IN WHICH THEY CLAIMED THE4
CREDIT OR CREDITS.5
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
REQUIRES:7
(a) "ELIGIBLE CHILD" MEANS A QUALIFYING CHILD, AS DEFINED IN8
SECTION 152 (c) OF THE "INTERNAL REVENUE CODE OF 1986"; EXCEPT9
THAT THE AGE REQUIREMENTS ARE AS SET FORTH IN SUBSECTIONS (3)(a)(I),10
(3)(a)(II), (3)(b)(I), AND (3)(b)(II) OF THIS SECTION.11
(b) (I) "ESTIMATED ADJUSTMENT FACTOR" MEANS, FOR A GIVEN12
INCOME TAX YEAR, THE CAGR FOR NONEXEMPT REVENUE THAT IS13
CALCULATED ACCORDING TO THE FOLLOWING FORMULA, AS ADJUSTED14
PURSUANT TO SUBSECTION (2)(b)(IV) OF THIS SECTION:15
CAGR=16
‰ ‰
EV
1/n
!1
× 100
BV
(II) AS USED IN THIS SUBSECTION (2)(b):17
(A) "APPLICABLE FORECAST" MEANS EITHER THE QUARTERLY18
DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF19
OR THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY THE20
OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER21
IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR, AS22
DETERMINED BY WHICH IMMEDIATELY PRECEDING MARCH FORECAST THE23
JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY USED IN THE24
PREPARATION OF THE STATE BUDGET .25
(B) "APPLICABLE STATE FISCAL YEAR" MEANS THE FISCAL YEAR26
THAT BEGINS IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS27
1311
-5- ALLOWED.1
(C) "BV" MEANS, ON OR BEFORE DECEMBER 31, 2024, THE2
ESTIMATE OF THE STATE'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR3
2024-25 INCLUDED IN THE APPLICABLE FORECAST EXCLUDING THE4
PROJECTED AGGREGATE AMOUNT OF THE TAX CREDIT ALLOWED PURSUANT5
TO THIS SECTION AND THE PROJECTED AGGREGATE AMOUNT OF THE6
INCREASED PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED7
PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED IN HOUSE BILL8
24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR, AND AFTER9
DECEMBER 31, 2024, THE AMOUNT OF THE STATE'S NONEXEMPT REVENUE10
FOR STATE FISCAL YEAR 2024-25 EXCLUDING THE AGGREGATE AMOUNT OF11
THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE12
AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME13
TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED14
IN HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX15
YEAR.16
(D) "CAGR" MEANS THE ESTIMATED COMPOUND ANNUAL GROWTH17
RATE.18
(E) "EV" MEANS THE ESTIMATE OF THE STATE'S NONEXEMPT19
REVENUE FOR THE APPLICABLE STATE FISCAL YEAR INCLUDED IN THE20
APPLICABLE FORECAST EXCLUDING THE PROJECTED AGGREGATE AMOUNT21
OF THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE22
PROJECTED AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE23
EARNED INCOME TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-123.524
(3.5), CREATED IN HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN25
INCOME TAX YEAR.26
(F) "N" MEANS, FOR THE APPLICABLE STATE FISCAL YEAR, THE27
1311
-6- NUMBER OF STATE FISCAL YEARS THAT HAVE PASSED SINCE THE 2024-251
STATE FISCAL YEAR.2
(G) "NONEXEMPT REVENUE" MEANS, FOR THE APPLICABLE STATE3
FISCAL YEAR, THE REVENUE THAT IS IDENTIFIED AS NONEXEMPT TABOR4
REVENUES IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PUBLISHED5
BY THE OFFICE OF THE STATE CONTROLLER . 6
(H) "TABOR" MEANS SECTION 20 OF ARTICLE X OF THE STATE7
CONSTITUTION.8
(III) THE EXECUTIVE DIRECTOR SHALL CALCULATE THE ESTIMATED9
ADJUSTMENT FACTOR IN ACCORDANCE WITH THIS SECTION .10
(IV) THE ESTIMATED ADJUSTMENT FACTOR MUST BE INCREASED BY11
ONE-TENTH OF ONE PERCENTAGE POINT IF THE COLORADO UNEMPLOYMENT12
RATE, AS CALCULATED BY THE UNITED STATES BUREAU OF LABOR13
STATISTICS, REACHES FIVE PERCENT AND MUST BE INCREASED BY AN14
ADDITIONAL ONE-TENTH OF ONE PERCENTAGE POINT FOR EVERY ONE15
PERCENTAGE POINT INCREASE IN THE COLORADO UNEMPLOYMENT RATE16
ABOVE FIVE PERCENT.17
(c) "FEDERAL POVERTY LEVEL" MEANS THE POVERTY LINE THAT IS18
REQUIRED TO BE UPDATED ANNUALLY WITHIN THE FEDERAL POVERTY19
GUIDELINES ADOPTED BY THE UNITED STATES DEPARTMENT OF HEALTH20
AND HUMAN SERVICES PURSUANT TO 42 U.S.C. SEC. 9902 (2).21
(d) "INFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE22
UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS23
CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS24
PAID BY ALL URBAN CONSUMERS , OR ITS APPLICABLE SUCCESSOR INDEX.25
(3) (a) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY26
SECTION 39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER27
1311
-7- JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2034, A RESIDENT INDIVIDUAL1
WHO FILES A SINGLE RETURN IS ALLOWED A FAMILY AFFORDABILITY TAX2
CREDIT AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:3
(I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS FIVE4
YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN5
THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS , ADJUSTED6
FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS7
SECTION; AND8
(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS SIX9
YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE10
CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY -FIVE11
PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION (3)(a)(I) OF THIS12
SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.13
(b) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION14
39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY15
1, 2024, BUT BEFORE JANUARY 1, 2034, TWO RESIDENT INDIVIDUALS WHO16
FILE A JOINT RETURN ARE ALLOWED A FAMILY AFFORDABILITY TAX CREDIT17
AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:18
(I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS19
FIVE YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR20
IN THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS, ADJUSTED21
FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS22
SECTION; AND23
(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS24
SIX YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT25
THE CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS26
SEVENTY-FIVE PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION27
1311
-8- (3)(b)(I) OF THIS SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6)1
OF THIS SECTION.2
(4) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY3
1, 2024, BUT BEFORE JANUARY 1, 2025, THE CREDIT AMOUNTS IN:4
(a) SUBSECTION (3)(a)(I) OF THIS SECTION ARE REDUCED, BUT NOT5
BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED6
SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND7
DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME8
EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND 9
(b) SUBSECTION (3)(b)(I) OF THIS SECTION ARE REDUCED, BUT NOT10
BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED11
SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND12
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME13
EXCEEDS TWENTY-FIVE THOUSAND DOLLARS.14
(5) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY15
1, 2025, BUT BEFORE JANUARY 1, 2026, IF THE ESTIMATED ADJUSTMENT16
FACTOR IS:17
(a) GREATER THAN OR EQUAL TO TWO PERCENT :18
(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)19
OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A20
SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND21
DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN22
SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT23
INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME24
OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;25
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION26
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND27
1311
-9- EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH1
FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED2
GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND3
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION4
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND5
EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH6
FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS'7
ADJUSTED GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS; OR 8
(b) LESS THAN TWO PERCENT, NO CREDIT IS ALLOWED PURSUANT9
TO THIS SECTION.10
(6) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY11
1, 2026, BUT BEFORE JANUARY 1, 2034, IF THE ESTIMATED ADJUSTMENT12
FACTOR FOR THE INCOME TAX YEAR IS:13
(a) GREATER THAN OR EQUAL TO THREE AND SEVENTY-FIVE14
ONE-HUNDREDTHS PERCENT:15
(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)16
OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A17
SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND18
DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN19
SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT20
INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME21
OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;22
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION23
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND24
EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH25
FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED26
GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND27
1311
-10- (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION1
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND2
EIGHT HUNDRED SEVENTY -FIVE ONE-THOUSANDTHS PERCENT FOR EACH3
FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS '4
ADJUSTED GROSS INCOME EXCEEDS TWENTY -FIVE THOUSAND DOLLARS;5
(b) GREATER THAN OR EQUAL TO THREE AND FIFTY -SIX6
ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND SEVENTY-FIVE7
ONE-HUNDREDTHS PERCENT, THEN:8
(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)9
OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A10
SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND11
DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN12
SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT13
INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME14
OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;15
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION16
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND17
SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY18
WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS19
FIFTEEN THOUSAND DOLLARS ; AND20
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION21
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND22
SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY23
WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME EXCEEDS24
TWENTY-FIVE THOUSAND DOLLARS;25
(c) GREATER THAN OR EQUAL TO THREE AND THIRTY-SEVEN26
ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND FIFTY-SIX27
1311
-11- ONE-HUNDREDTHS PERCENT, THEN:1
(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)2
OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A3
SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND4
DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN5
SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT6
INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME7
OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;8
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION9
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN10
AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND11
DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME12
EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND 13
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION14
IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN15
AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND16
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS ' ADJUSTED GROSS INCOME17
EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;18
(d) GREATER THAN OR EQUAL TO THREE AND EIGHTEEN19
ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND THIRTY-SEVEN20
ONE-HUNDREDTHS PERCENT, THEN:21
(I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF22
THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS,23
ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO FILES A24
SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND25
DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION26
(3)(b)(I) OF THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED27
1311
-12- DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT INDIVIDUALS WHO1
FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY-FIVE2
THOUSAND DOLLARS OR LESS ;3
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,4
AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, IS REDUCED, BUT5
NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN AND6
TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND7
DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME8
EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND9
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS10
SECTION, AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, WILL BE11
REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN AND12
TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND13
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS ' ADJUSTED GROSS INCOME14
EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;15
(e) GREATER THAN OR EQUAL TO THREE PERCENT, BUT LESS THAN16
THREE AND EIGHTEEN ONE-HUNDREDTHS PERCENT, THEN:17
(I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF18
THIS SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY19
DOLLARS, ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO20
FILES A SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN21
THOUSAND DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN22
SUBSECTION (3)(b)(I) OF THIS SECTION IS REDUCED TO ONE THOUSAND SIX23
HUNDRED FIFTY DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT24
INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME25
OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;26
(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,27
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NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY2
ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH3
A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN4
THOUSAND DOLLARS; AND5
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS6
SECTION, AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS7
REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND8
THIRTY ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS9
BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME EXCEEDS10
TWENTY-FIVE THOUSAND DOLLARS; OR11
(f) LESS THAN THREE PERCENT, NO CREDIT IS ALLOWED PURSUANT12
TO THIS SECTION.13
(7) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY14
1, 2025, THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL15
ADJUSTED GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO16
REFLECT INFLATION FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT17
DESCRIBED IN THIS SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE18
THE LAST ADJUSTMENT, WHEN APPLIED TO THE CURRENT LIMITS, RESULTS19
IN AN INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE20
ADJUSTED LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND21
DOLLARS.22
(8) IN THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED23
UNDER THIS SECTION IS APPORTIONED IN THE RATIO DETERMINED UNDER24
SECTION 39-22-110 (1).25
(9) THE CREDIT ALLOWED UNDER THIS SECTION IS NOT CONSIDERED26
TO BE INCOME OR RESOURCES FOR THE PURPOSE OF DETERMINING27
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-14- ELIGIBILITY FOR THE PAYMENT OF PUBLIC ASSISTANCE BENEFITS AND1
MEDICAL ASSISTANCE BENEFITS AUTHORIZED UNDER STATE LAW OR FOR A2
PAYMENT MADE UNDER ANY OTHER PUBLICLY FUNDED PROGRAMS .3
(10) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION4
THAT EXCEEDS THE RESIDENT INDIVIDUAL'S INCOME TAXES DUE IS5
REFUNDED TO THE INDIVIDUAL.6
(11) THE DEPARTMENT OF REVENUE IS AUTHORIZED AND7
ENCOURAGED TO DEVELOP A MEANS OF REFUNDING THE CREDITS ALLOWED8
BY THIS SECTION TO RESIDENT INDIVIDUALS WHO QUALIFY FOR THE9
CREDITS IN TWELVE EQUAL MONTHLY REFUNDS RATHER THAN ANNUALLY.10
(12) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.11
SECTION 2. Appropriation. (1) For the 2024-25 state12
fiscalyear, $178,494 is appropriated to the department of revenue. This13
appropriation is from the general fund. To implement this act, the14
department may use this appropriation as follows:15
(a) $88,604 for use by the taxation business group for personal16
services related to taxation services, which amount is based on the17
assumption that the division will require an additional 1.2 FTE;18
(b) $33,604 for tax administration IT system (GenTax) support;19
(c) $8,206 for use by the taxation business group for operating20
expenses related to taxation services;21
(d) $22,085 for use by the executive director's office for personal22
services related to administration and support; and23
(e) $25,995 for document management services.24
(2) For the 2024-25 state fiscal year, $25,995 is appropriated to the25
department of personnel. This appropriation is from reappropriated funds26
received from the department of revenue under subsection (1)(e) of this27
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-15- section. To implement this act, the department of personnel may use this1
appropriation to provide document management services for the2
department of revenue.3
SECTION 3. Act subject to petition - effective date. This act4
takes effect at 12:01 a.m. on the day following the expiration of the5
ninety-day period after final adjournment of the general assembly; except6
that, if a referendum petition is filed pursuant to section 1 (3) of article V7
of the state constitution against this act or an item, section, or part of this8
act within such period, then the act, item, section, or part will not take9
effect unless approved by the people at the general election to be held in10
November 2024 and, in such case, will take effect on the date of the11
official declaration of the vote thereon by the governor.12
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