Colorado 2024 Regular Session

Colorado House Bill HB1311 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	Second Regular Session
	2	+	Seventy-fourth General Assembly
	3	+	STATE OF COLORADO
	4	+	REREVISED
	5	+	This Version Includes All Amendments
	6	+	Adopted in the Second House
	7	+	LLS NO. 24-0942.01 Caroline Martin x5902
1	8		HOUSE BILL 24-1311
2		-	BY REPRESENTATIVE(S) deGruy Kennedy and Willford, Garcia, Bacon,
3		-	Mabrey, Ortiz, Rutinel, Sirota, Weissman, Amabile, Boesenecker, Brown,
4		-	Daugherty, English, Epps, Froelich, Hamrick, Hernandez, Herod, Jodeh,
5		-	Joseph, Kipp, Lieder, Lindsay, Lukens, Marvin, McCormick, McLachlan,
6		-	Parenti, Ricks, Story, Velasco, Vigil, Woodrow, McCluskie, Clifford,
7		-	Titone, Young;
8		-	also SENATOR(S) Winter F. and Coleman, Bridges, Buckner, Cutter,
9		-	Danielson, Exum, Fields, Ginal, Gonzales, Hansen, Jaquez Lewis, Kolker,
10		-	Marchman, Michaelson Jenet, Mullica, Priola, Sullivan, Fenberg.
	9	+	House Committees Senate Committees
	10	+	Finance Finance
	11	+	Appropriations Appropriations
	12	+	A BILL FOR AN ACT
11	13		C
12		-	ONCERNING THE CREATION OF A FAMILY AFFORDABILITY TAX CREDIT , AND,
13		-	IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
14		-
15		-	Be it enacted by the General Assembly of the State of Colorado:
16		-	SECTION 1. In Colorado Revised Statutes, add 39-22-130 as
17		-	follows:
18		-	39-22-130. Family affordability tax credit - legislative
19		-	declaration - definitions - repeal. (1) (a) T
20		-	HE GENERAL ASSEMBLY
21		-	HEREBY FINDS AND DECLARES THAT
22		-	:
23		-	NOTE: This bill has been prepared for the signatures of the appropriate legislative
24		-	officers and the Governor. To determine whether the Governor has signed the bill
25		-	or taken other action on it, please consult the legislative status sheet, the legislative
26		-	history, or the Session Laws.
27		-	________
28		-	Capital letters or bold & italic numbers indicate new material added to existing law; dashes
29		-	through words or numbers indicate deletions from existing law and such material is not part of
30		-	the act. (I) COLORADO FAMILIES STRUGGLE TO AFFORD MANY NECESSARY
31		-	GOODS AND SERVICES
32		-	, SUCH AS CHILD CARE, HOUSING, AND HEALTH CARE.
33		-	E
34		-	IGHTY-THREE PERCENT OF COLORADO PARENTS WORRY THAT THEIR
35		-	CHILDREN WON
36		-	'T BE ABLE TO AFFORD TO LIVE IN THE STATE IN THE FUTURE.
37		-	(II) T
38		-	ARGETED TAX CREDITS ARE A PROVEN TOOL TO LIFT FAMILIES
39		-	OUT OF POVERTY
40		-	. RESEARCH HAS SHOWN THAT FAMILIES THAT CLAIM THESE
41		-	TYPES OF TAX CREDITS
42		-	, SUCH AS THE STATE AND FEDERAL CHILD TAX CREDIT
43		-	AND THE STATE AND FEDERAL EARNED INCOME TAX CREDIT
44		-	, HAVE BETTER
45		-	HEALTH
46		-	, IMPROVED SCHOOLING OUTCOMES , AND INCREASED ADULT
47		-	EARNING POTENTIAL
48		-	. AS THE COST OF RAISING CHILDREN HAS INCREASED ,
49		-	A FAMILY AFFORDABILITY TAX CREDIT IS CRITICAL FOR THE WELL -BEING OF
50		-	MANY CHILDREN AND FAMILIES ACROSS
51		-	COLORADO.
52		-	(III) A
53		-	CCORDING TO THE INSTITUTE ON TAXATION AND ECONOMIC
54		-	POLICY, "[T]O CUT CHILD POVERTY RATES BY HALF , THE MAJORITY OF
55		-	STATES WOULD REQUIRE A BASE CREDIT VALUE OF BETWEEN THREE
56		-	THOUSAND DOLLARS AND FOUR THOUSAND FIVE HUNDRED DOLLARS PER
57		-	CHILD PLUS A TWENTY PERCENT BOOST FOR YOUNG CHILDREN
58		-	." WHEN
59		-	COUPLED WITH THE STATE AND FEDERAL EARNED INCOME TAX CREDIT AND
60		-	THE STATE AND FEDERAL CHILD TAX CREDIT
61		-	, THE ADDITIONAL INVESTMENT
62		-	PROVIDED BY THE FAMILY AFFORDABILITY TAX CREDIT WOULD ESTABLISH
63		-	COLORADO AS A NATIONAL LEADER IN EQUITABLE ECONOMIC POLICY .
64		-	(IV) C
65		-	OLORADO IS DEALING WITH RISING COSTS AND FUNDING
66		-	SHORTFALLS IN MANY AREAS ACROSS OUR STATE
67		-	, AND IT IS NECESSARY TO
68		-	PROVIDE TAX CREDITS TO THE PEOPLE WHO NEED IT MOST IN A WAY THAT
69		-	WILL DO THE MOST GOOD
70		-	. ESTABLISHING THE FAMILY AFFORDABILITY TAX
71		-	CREDIT IS A PROVEN WAY TO DO THAT
72		-	; AND
73		-	(V) BY PRIORITIZING THE STATE'S LOWEST-INCOME FAMILIES,
74		-	EXPANDING THE CHILD AGE ELIGIBILITY, AND INCLUDING MORE FAMILIES,
75		-	THE STATE CAN PROVIDE RESEARCH -BACKED INVESTMENTS FOR FAMILIES .
76		-	T
77		-	HROUGH THOUGHTFUL AND STRATEGIC INVESTMENT , COLORADO CAN CUT
78		-	CHILD POVERTY NEARLY IN HALF
79		-	.
80		-	(b) T
81		-	HE GENERAL ASSEMBLY DECLARES ITS INTENT TO PERIODICALLY
82		-	REVIEW THE TAX CREDIT CREATED IN THIS SECTION IN AN EFFORT TO
83		-	PREVENT A SIGNIFICANT INCREASE OR DECREASE
84		-	, ADJUSTED FOR INFLATION,
85		-	IN THE TOTAL AMOUNT OF THE CREDIT CLAIMED BY TAXPAYERS YEAR OVER
86		-	PAGE 2-HOUSE BILL 24-1311 YEAR STARTING IN INCOME TAX YEAR 2025.
87		-	(c) I
88		-	N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES
89		-	EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX
90		-	PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
91		-	LEGISLATIVE DECLARATION
92		-	, THE GENERAL ASSEMBLY HEREBY FINDS AND
93		-	DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN
94		-	SUBSECTION
95		-	(3) OF THIS SECTION ARE TO SUBSTANTIALLY REDUCE CHILD
96		-	POVERTY
97		-	, MAKE COLORADO MORE AFFORDABLE FOR FAMILIES , AND HELP
98		-	FAMILIES AFFORD EXPENSES ASSOCIATED WITH HAVING CHILDREN BY
99		-	PROVIDING TAX RELIEF FOR CERTAIN INDIVIDUALS
100		-	.
101		-	(d) T
102		-	HE GENERAL ASSEMBLY AND THE STATE AUDITOR , IN
103		-	CONSULTATION WITH THE DEPARTMENT OF REVENUE
104		-	, SHALL MEASURE THE
105		-	EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS SECTION BY
106		-	DETERMINING THE NUMBER OF
107		-	COLORADO FAMILIES WHO, AFTER CLAIMING
108		-	A CREDIT OR CREDITS IN THIS SECTION
109		-	, NO LONGER FALL BELOW THE
110		-	FEDERAL POVERTY LEVEL IN THE TAX YEAR IN WHICH THEY CLAIMED THE
111		-	CREDIT OR CREDITS
112		-	.
113		-	(2) A
114		-	S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
115		-	REQUIRES
116		-	:
117		-	(a) "E
118		-	LIGIBLE CHILD" MEANS A QUALIFYING CHILD, AS DEFINED IN
119		-	SECTION
120		-	152 (c) OF THE "INTERNAL REVENUE CODE OF 1986"; EXCEPT THAT
121		-	THE AGE REQUIREMENTS ARE AS SET FORTH IN SUBSECTIONS
122		-	(3)(a)(I),
123		-	(3)(a)(II), (3)(b)(I),
124		-	AND (3)(b)(II) OF THIS SECTION.
125		-	(b) (I) "E
126		-	STIMATED ADJUSTMENT FACTOR " MEANS, FOR A GIVEN
127		-	INCOME TAX YEAR
128		-	, THE CAGR FOR NONEXEMPT REVENUE THAT IS
129		-	CALCULATED ACCORDING TO THE FOLLOWING FORMULA
130		-	, AS ADJUSTED
131		-	PURSUANT TO SUBSECTION
132		-	(2)(b)(IV) OF THIS SECTION:
133		-	CAGR=
	14	+	ONCERNING THE CREATION OF A FAMILY AFFORDABILITY TAX101
	15	+	CREDIT, AND, IN CONNECTION THEREWITH, MAKING AN102
	16	+	APPROPRIATION.103
	17	+	Bill Summary
	18	+	(Note: This summary applies to this bill as introduced and does
	19	+	not reflect any amendments that may be subsequently adopted. If this bill
	20	+	passes third reading in the house of introduction, a bill summary that
	21	+	applies to the reengrossed version of this bill will be available at
	22	+	http://leg.colorado.gov
	23	+	.)
	24	+	For income tax years commencing on and after January 1, 2024,
	25	+	the bill creates a family affordability tax credit (credit) as follows:
	26	+	! For each of a taxpayer's eligible children 5 years of age or
	27	+	younger, a taxpayer filing a single return with adjusted
	28	+	gross income of $15,000 or less and taxpayers filing a joint
	29	+	SENATE
	30	+	3rd Reading Unamended
	31	+	May 7, 2024
	32	+	SENATE
	33	+	Amended 2nd Reading
	34	+	May 6, 2024
	35	+	HOUSE
	36	+	3rd Reading Unamended
	37	+	May 1, 2024
	38	+	HOUSE
	39	+	Amended 2nd Reading
	40	+	April 30, 2024
	41	+	HOUSE SPONSORSHIP
	42	+	deGruy Kennedy and Willford, Garcia, Bacon, Mabrey, Ortiz, Rutinel, Sirota,
	43	+	Weissman, Amabile, Boesenecker, Brown, Daugherty, English, Epps, Froelich, Hamrick,
	44	+	Hernandez, Herod, Jodeh, Joseph, Kipp, Lieder, Lindsay, Lukens, Marvin, McCluskie,
	45	+	McCormick, McLachlan, Parenti, Ricks, Story, Velasco, Vigil, Woodrow
	46	+	SENATE SPONSORSHIP
	47	+	Winter F. and Coleman, Bridges, Buckner, Cutter, Danielson, Exum, Fenberg, Fields,
	48	+	Ginal, Gonzales, Hansen, Jaquez Lewis, Kolker, Marchman, Michaelson Jenet, Mullica,
	49	+	Priola, Sullivan
	50	+	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
	51	+	Capital letters or bold & italic numbers indicate new material to be added to existing law.
	52	+	Dashes through the words or numbers indicate deletions from existing law. return with adjusted gross income of $25,000 or less can
	53	+	claim a $3,200 credit;
	54	+	! For each of a taxpayer's eligible children 5 years of age or
	55	+	younger, a taxpayer filing a single return with adjusted
	56	+	gross income between $15,000 and $85,000 and taxpayers
	57	+	filing a joint return with adjusted gross income between
	58	+	$25,000 and $95,000 can claim a credit, the amount of
	59	+	which is reduced by $220 from $3,200 for every $5,000
	60	+	above $15,000 or $25,000 of adjusted gross income that the
	61	+	resident individual or individuals make;
	62	+	! For each of a taxpayer's eligible children between the ages
	63	+	of 6 and 16, a taxpayer filing a single return with adjusted
	64	+	gross income of $15,000 or less and taxpayers filing a joint
	65	+	return with adjusted gross income of $25,000 or less can
	66	+	claim $2,400; and
	67	+	! For each of a taxpayer's eligible children between the ages
	68	+	of 6 and 16, a taxpayer filing a single return with adjusted
	69	+	gross income between $15,000 and $85,000 and taxpayers
	70	+	filing a joint return with adjusted gross income between
	71	+	$25,000 and $95,000 can claim a credit, the amount of
	72	+	which is reduced by $165 from $2,400 for every $5,000
	73	+	above $15,000 or $25,000 of adjusted gross income that the
	74	+	resident individual or individuals make.
	75	+	The bill also provides that the full amount of the credit can only be
	76	+	claimed for an income tax year in which there are projected to be excess
	77	+	state revenues for the fiscal year that ends during the income tax year that
	78	+	are required to be refunded pursuant to section 20 (7)(d) of article X of the
	79	+	state constitution in an amount that will equal or exceed the amount
	80	+	required to be refunded pursuant to the homestead property tax exemption
	81	+	plus the projected full amount of the credit. For an income tax year in
	82	+	which there are projected to be excess state revenues for the fiscal year
	83	+	that ends during the income tax year that will exceed the amount required
	84	+	to be refunded pursuant to the homestead property tax exemption but will
	85	+	not exceed that amount plus the projected aggregate amount of the credit
	86	+	that may be claimed in that income tax year, the credit will be allowed but
	87	+	will be reduced proportionally so that the aggregate amount of the credit
	88	+	available is equal to the amount of excess state revenues remaining to be
	89	+	refunded. For an income tax year in which there is not projected to be
	90	+	excess state revenues for the fiscal year that ends during the income tax
	91	+	year or the amount of such excess state revenues required to be refunded
	92	+	will be less than the amount required to be refunded pursuant to the
	93	+	homestead property tax exemption, the credit is not allowed for that
	94	+	income tax year. The department of revenue is authorized and encouraged
	95	+	to develop a means of paying the credit in 12 equal monthly payments
	96	+	rather than annually.
	97	+	1311
	98	+	-2- Be it enacted by the General Assembly of the State of Colorado:1
	99	+	SECTION 1. In Colorado Revised Statutes, add 39-22-130 as2
	100	+	follows:3
	101	+	39-22-130. Family affordability tax credit - legislative4
	102	+	declaration - definitions - repeal. (1) (a) THE GENERAL ASSEMBLY5
	103	+	HEREBY FINDS AND DECLARES THAT :6
	104	+	(I) COLORADO FAMILIES STRUGGLE TO AFFORD MANY NECESSARY7
	105	+	GOODS AND SERVICES, SUCH AS CHILD CARE, HOUSING, AND HEALTH CARE.8
	106	+	EIGHTY-THREE PERCENT OF COLORADO PARENTS WORRY THAT THEIR9
	107	+	CHILDREN WON'T BE ABLE TO AFFORD TO LIVE IN THE STATE IN THE FUTURE.10
	108	+	(II) TARGETED TAX CREDITS ARE A PROVEN TOOL TO LIFT FAMILIES11
	109	+	OUT OF POVERTY. RESEARCH HAS SHOWN THAT FAMILIES THAT CLAIM12
	110	+	THESE TYPES OF TAX CREDITS, SUCH AS THE STATE AND FEDERAL CHILD13
	111	+	TAX CREDIT AND THE STATE AND FEDERAL EARNED INCOME TAX CREDIT,14
	112	+	HAVE BETTER HEALTH, IMPROVED SCHOOLING OUTCOMES , AND INCREASED15
	113	+	ADULT EARNING POTENTIAL. AS THE COST OF RAISING CHILDREN HAS16
	114	+	INCREASED, A FAMILY AFFORDABILITY TAX CREDIT IS CRITICAL FOR THE17
	115	+	WELL-BEING OF MANY CHILDREN AND FAMILIES ACROSS COLORADO.18
	116	+	(III) ACCORDING TO THE INSTITUTE ON TAXATION AND ECONOMIC19
	117	+	POLICY, "[T]O CUT CHILD POVERTY RATES BY HALF , THE MAJORITY OF20
	118	+	STATES WOULD REQUIRE A BASE CREDIT VALUE OF BETWEEN THREE21
	119	+	THOUSAND DOLLARS AND FOUR THOUSAND FIVE HUNDRED DOLLARS PER22
	120	+	CHILD PLUS A TWENTY PERCENT BOOST FOR YOUNG CHILDREN ." WHEN23
	121	+	COUPLED WITH THE STATE AND FEDERAL EARNED INCOME TAX CREDIT AND24
	122	+	THE STATE AND FEDERAL CHILD TAX CREDIT, THE ADDITIONAL INVESTMENT25
	123	+	PROVIDED BY THE FAMILY AFFORDABILITY TAX CREDIT WOULD ESTABLISH26
	124	+	1311-3- COLORADO AS A NATIONAL LEADER IN EQUITABLE ECONOMIC POLICY .1
	125	+	(IV) COLORADO IS DEALING WITH RISING COSTS AND FUNDING2
	126	+	SHORTFALLS IN MANY AREAS ACROSS OUR STATE, AND IT IS NECESSARY TO3
	127	+	PROVIDE TAX CREDITS TO THE PEOPLE WHO NEED IT MOST IN A WAY THAT4
	128	+	WILL DO THE MOST GOOD. ESTABLISHING THE FAMILY AFFORDABILITY TAX5
	129	+	CREDIT IS A PROVEN WAY TO DO THAT; AND6
	130	+	(V) BY PRIORITIZING THE STATE'S LOWEST-INCOME FAMILIES,7
	131	+	EXPANDING THE CHILD AGE ELIGIBILITY, AND INCLUDING MORE FAMILIES,8
	132	+	THE STATE CAN PROVIDE RESEARCH-BACKED INVESTMENTS FOR FAMILIES.9
	133	+	THROUGH THOUGHTFUL AND STRATEGIC INVESTMENT, COLORADO CAN10
	134	+	CUT CHILD POVERTY NEARLY IN HALF .11
	135	+	(b) THE GENERAL ASSEMBLY DECLARES ITS INTENT TO12
	136	+	PERIODICALLY REVIEW THE TAX CREDIT CREATED IN THIS SECTION IN AN13
	137	+	EFFORT TO PREVENT A SIGNIFICANT INCREASE OR DECREASE , ADJUSTED FOR14
	138	+	INFLATION, IN THE TOTAL AMOUNT OF THE CREDIT CLAIMED BY TAXPAYERS15
	139	+	YEAR OVER YEAR STARTING IN INCOME TAX YEAR 2025.16
	140	+	(c) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRES17
	141	+	EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX18
	142	+	PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY19
	143	+	LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND20
	144	+	DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN21
	145	+	SUBSECTION (3) OF THIS SECTION ARE TO SUBSTANTIALLY REDUCE CHILD22
	146	+	POVERTY, MAKE COLORADO MORE AFFORDABLE FOR FAMILIES, AND HELP23
	147	+	FAMILIES AFFORD EXPENSES ASSOCIATED WITH HAVING CHILDREN BY24
	148	+	PROVIDING TAX RELIEF FOR CERTAIN INDIVIDUALS .25
	149	+	(d) THE GENERAL ASSEMBLY AND THE STATE AUDITOR, IN26
	150	+	CONSULTATION WITH THE DEPARTMENT OF REVENUE, SHALL MEASURE THE27
	151	+	1311
	152	+	-4- EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS SECTION BY1
	153	+	DETERMINING THE NUMBER OF COLORADO FAMILIES WHO, AFTER CLAIMING2
	154	+	A CREDIT OR CREDITS IN THIS SECTION , NO LONGER FALL BELOW THE3
	155	+	FEDERAL POVERTY LEVEL IN THE TAX YEAR IN WHICH THEY CLAIMED THE4
	156	+	CREDIT OR CREDITS.5
	157	+	(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
	158	+	REQUIRES:7
	159	+	(a) "ELIGIBLE CHILD" MEANS A QUALIFYING CHILD, AS DEFINED IN8
	160	+	SECTION 152 (c) OF THE "INTERNAL REVENUE CODE OF 1986"; EXCEPT9
	161	+	THAT THE AGE REQUIREMENTS ARE AS SET FORTH IN SUBSECTIONS (3)(a)(I),10
	162	+	(3)(a)(II), (3)(b)(I), AND (3)(b)(II) OF THIS SECTION.11
	163	+	(b) (I) "ESTIMATED ADJUSTMENT FACTOR" MEANS, FOR A GIVEN12
	164	+	INCOME TAX YEAR, THE CAGR FOR NONEXEMPT REVENUE THAT IS13
	165	+	CALCULATED ACCORDING TO THE FOLLOWING FORMULA, AS ADJUSTED14
	166	+	PURSUANT TO SUBSECTION (2)(b)(IV) OF THIS SECTION:15
	167	+	CAGR=16
134	168		‰ ‰
135	169		EV
136	170		
137	171		1/n
138	172		!1
139	173		
140	174		× 100
141	175		BV
142		-	(II) A
143		-	S USED IN THIS SUBSECTION (2)(b):
144		-	(A) "A
145		-	PPLICABLE FORECAST" MEANS EITHER THE QUARTERLY
146		-	DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF
147		-	OR THE QUARTERLY
148		-	DECEMBER REVENUE FORECAST PREPARED BY THE
149		-	PAGE 3-HOUSE BILL 24-1311 OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER
150		-	IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR
151		-	, AS
152		-	DETERMINED BY WHICH IMMEDIATELY PRECEDING
153		-	MARCH FORECAST THE
154		-	JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY USED IN THE
155		-	PREPARATION OF THE STATE BUDGET
156		-	.
157		-	(B) "A
158		-	PPLICABLE STATE FISCAL YEAR" MEANS THE FISCAL YEAR
159		-	THAT BEGINS IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS ALLOWED
160		-	.
161		-	(C) "BV"
162		-	MEANS, ON OR BEFORE DECEMBER 31, 2024, THE ESTIMATE
163		-	OF THE STATE
164		-	'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR 2024-25
165		-	INCLUDED IN THE APPLICABLE FORECAST EXCLUDING THE PROJECTED
166		-	AGGREGATE AM OUNT OF THE TAX CREDIT ALLOWED PURS UANT TO THIS
167		-	SECTION AND THE PROJECTED AGGREGATE AMOUNT OF THE INCREASED
168		-	PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED PURSUANT TO
169		-	SECTION
170		-	39-22-123.5 (3.5), CREATED IN HOUSE BILL 24-1134, ENACTED IN
171		-	2024, FOR THE GIVEN INCOME TAX YEAR, AND AFTER DECEMBER 31, 2024,
172		-	THE AMOUNT OF THE STATE'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR
173		-	2024-25 EXCLUDING THE AGGREGATE AMOUNT OF THE TAX CREDIT
174		-	ALLOWED PURSUANT TO THIS SECTION AND THE AGGREGATE AMOUNT OF THE
175		-	INCREASED PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED
176		-	PURSUANT TO SECTION
177		-	39-22-123.5 (3.5), CREATED IN HOUSE BILL 24-1134,
178		-	ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR.
179		-	(D) "CAGR"
180		-	MEANS THE ESTIMATED COMPOUND ANNUAL GROWTH
181		-	RATE
182		-	.
183		-	(E) "EV"
184		-	MEANS THE ESTIMATE OF THE STATE 'S NONEXEMPT
185		-	REVENUE FOR THE APPLICABLE STATE FISCAL YEAR INCLUDED IN THE
186		-	APPLICABLE FORECAST EXCLUDING THE PROJECTED AGGREGATE AM OUNT OF
187		-	THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE PROJECTED
188		-	AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME
189		-	TAX CREDIT ALLOWED PURSUANT TO SECTION
190		-	39-22-123.5 (3.5), CREATED
191		-	IN
192		-	HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX
193		-	YEAR
194		-	.
195		-	(F) "
196		-	N" MEANS, FOR THE APPLICABLE STATE FISCAL YEAR , THE
197		-	NUMBER OF STATE FISCAL YEARS THAT HAVE PASSED SINCE THE
198		-	2024-25
199		-	STATE FISCAL YEAR.
200		-	PAGE 4-HOUSE BILL 24-1311 (G) "NONEXEMPT REVENUE" MEANS, FOR THE APPLICABLE STATE
201		-	FISCAL YEAR
202		-	, THE REVENUE THAT IS IDENTIFIED AS NONEXEMPT TABOR
203		-	REVENUES IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PUBLISHED
204		-	BY THE OFFICE OF THE STATE CONTROLLER
205		-	.
206		-	(H) "TABOR"
207		-	MEANS SECTION 20 OF ARTICLE X OF THE STATE
208		-	CONSTITUTION
209		-	.
210		-	(III) T
211		-	HE EXECUTIVE DIRECTOR SHALL CALCULATE THE ESTIMATED
212		-	ADJUSTMENT FACTOR IN ACCORDANCE WITH THIS SECTION
213		-	.
214		-	(IV) T
215		-	HE ESTIMATED ADJUSTMENT FACTOR MUST BE INCREASED BY
216		-	ONE
217		-	-TENTH OF ONE PERCENTAGE POINT IF THE COLORADO UNEMPLOYMENT
218		-	RATE
219		-	, AS CALCULATED BY THE UNITED STATES BUREAU OF LABOR
220		-	STATISTICS, REACHES FIVE PERCENT AND MUST BE INCREASED BY AN
221		-	ADDITIONAL ONE
222		-	-TENTH OF ONE PERCENTAGE POINT FOR EVERY ONE
223		-	PERCENTAGE POINT INCREASE IN THE
224		-	COLORADO UNEMPLOYMENT RATE
225		-	ABOVE FIVE PERCENT
226		-	.
227		-	(c) "F
228		-	EDERAL POVERTY LEVEL" MEANS THE POVERTY LINE THAT IS
229		-	REQUIRED TO BE UPDATED ANNUALLY WITHIN THE FEDERAL POVERTY
230		-	GUIDELINES ADOPTED BY THE
231		-	UNITED STATES DEPARTMENT OF HEALTH AND
232		-	HUMAN SERVICES PURSUANT TO
233		-	42 U.S.C. SEC. 9902 (2).
234		-	(d) "I
235		-	NFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE
236		-	UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS
237		-	CONSUMER PRICE INDEX FOR
238		-	DENVER-AURORA-LAKEWOOD FOR ALL ITEMS
239		-	PAID BY ALL URBAN CONSUMERS
240		-	, OR ITS APPLICABLE SUCCESSOR INDEX.
241		-	(3) (a) I
242		-	N ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION
243		-	39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
244		-	2024,
245		-	BUT BEFORE JANUARY 1, 2034, A RESIDENT INDIVIDUAL WHO FILES A
246		-	SINGLE RETURN IS ALLOWED A FAMILY AFFORDABILITY TAX CREDIT AGAINST
247		-	THE INCOME TAXES DUE UNDER THIS ARTICLE
248		-	22 FOR:
249		-	(I) E
250		-	ACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS FIVE
251		-	YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN THE
252		-	AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS
253		-	, ADJUSTED FOR
254		-	INFLATION AND AS MODIFIED BY SUBSECTIONS
255		-	(4), (5), AND (6) OF THIS
256		-	SECTION
257		-	; AND
258		-	PAGE 5-HOUSE BILL 24-1311 (II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS SIX
259		-	YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE
260		-	CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY
261		-	-FIVE
262		-	PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
263		-	(3)(a)(I) OF THIS
264		-	SECTION
265		-	, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.
266		-	(b) I
267		-	N ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION
268		-	39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
269		-	2024,
270		-	BUT BEFORE JANUARY 1, 2034, TWO RESIDENT INDIVIDUALS WHO FILE
271		-	A JOINT RETURN ARE ALLOWED A FAMILY AFFORDABILITY TAX CREDIT
272		-	AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE
273		-	22 FOR:
274		-	(I) E
275		-	ACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS FIVE
276		-	YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN THE
277		-	AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS
278		-	, ADJUSTED FOR
279		-	INFLATION AND AS MODIFIED BY SUBSECTIONS
280		-	(4), (5), AND (6) OF THIS
281		-	SECTION
282		-	; AND
283		-	(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS SIX
284		-	YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE
285		-	CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY
286		-	-FIVE
287		-	PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
288		-	(3)(b)(I) OF THIS
289		-	SECTION
290		-	, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.
291		-	(4) F
292		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
293		-	2024,
294		-	BUT BEFORE JANUARY 1, 2025, THE CREDIT AMOUNTS IN:
295		-	(a) S
296		-	UBSECTION (3)(a)(I) OF THIS SECTION ARE REDUCED, BUT NOT
297		-	BELOW ZERO
298		-	, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
299		-	SEVENTY
300		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
301		-	DOLLARS BY WHICH A RESIDENT INDIVIDUAL
302		-	'S ADJUSTED GROSS INCOME
303		-	EXCEEDS FIFTEEN THOUSAND DOLLARS
304		-	; AND
305		-	(b) SUBSECTION (3)(b)(I) OF THIS SECTION ARE REDUCED, BUT NOT
306		-	BELOW ZERO
307		-	, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
308		-	SEVENTY
309		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
310		-	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
311		-	' ADJUSTED GROSS INCOME
312		-	EXCEEDS TWENTY
313		-	-FIVE THOUSAND DOLLARS.
314		-	(5) F
315		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
316		-	PAGE 6-HOUSE BILL 24-1311 2025, BUT BEFORE JANUARY 1, 2026, IF THE ESTIMATED ADJUSTMENT
317		-	FACTOR IS
318		-	:
319		-	(a) G
320		-	REATER THAN OR EQUAL TO TWO PERCENT :
321		-	(I) T
322		-	HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
323		-	THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
324		-	RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
325		-	OR LESS
326		-	, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
327		-	OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
328		-	JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
329		-	-FIVE
330		-	THOUSAND DOLLARS OR LESS
331		-	;
332		-	(II) T
333		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
334		-	IS REDUCED
335		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
336		-	EIGHT HUNDRED SEVENTY
337		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
338		-	THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL
339		-	'S ADJUSTED GROSS
340		-	INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS
341		-	; AND
342		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
343		-	IS REDUCED
344		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
345		-	EIGHT HUNDRED SEVENTY
346		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
347		-	THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
348		-	' ADJUSTED
349		-	GROSS INCOME EXCEEDS TWENTY
350		-	-FIVE THOUSAND DOLLARS; OR
351		-	(b) LESS THAN TWO PERCENT, NO CREDIT IS ALLOWED PURSUANT TO
352		-	THIS SECTION
353		-	.
354		-	(6) F
355		-	OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
356		-	2026,
357		-	BUT BEFORE JANUARY 1, 2034, IF THE ESTIMATED ADJUSTMENT
358		-	FACTOR FOR THE INCOME TAX YEAR IS
359		-	:
360		-	(a) G
361		-	REATER THAN OR EQUAL TO THREE AND SEVENTY -FIVE
362		-	ONE
363		-	-HUNDREDTHS PERCENT:
364		-	(I) T
365		-	HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
366		-	THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
367		-	RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
368		-	OR LESS
369		-	, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
370		-	OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
371		-	PAGE 7-HOUSE BILL 24-1311 JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY -FIVE
372		-	THOUSAND DOLLARS OR LESS
373		-	;
374		-	(II) T
375		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
376		-	IS REDUCED
377		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
378		-	EIGHT HUNDRED SEVENTY
379		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
380		-	THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL
381		-	'S ADJUSTED GROSS
382		-	INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS
383		-	; AND
384		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
385		-	IS REDUCED
386		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
387		-	EIGHT HUNDRED SEVENTY
388		-	-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
389		-	THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
390		-	' ADJUSTED
391		-	GROSS INCOME EXCEEDS TWENTY
392		-	-FIVE THOUSAND DOLLARS;
393		-	(b) G
394		-	REATER THAN OR EQUAL TO THREE AND FIFTY -SIX
395		-	ONE
396		-	-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND SEVENTY -FIVE
397		-	ONE
398		-	-HUNDREDTHS PERCENT, THEN:
399		-	(I) T
400		-	HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
401		-	THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
402		-	RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
403		-	OR LESS
404		-	, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
405		-	OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
406		-	JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
407		-	-FIVE
408		-	THOUSAND DOLLARS OR LESS
409		-	;
410		-	(II) T
411		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
412		-	IS REDUCED
413		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND SIX
414		-	ONE
415		-	-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
416		-	A RESIDENT INDIVIDUAL
417		-	'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
418		-	THOUSAND DOLLARS
419		-	; AND
420		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
421		-	IS REDUCED
422		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND SIX
423		-	ONE
424		-	-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
425		-	TWO RESIDENT INDIVIDUALS
426		-	' ADJUSTED GROSS INCOME EXCEEDS
427		-	TWENTY
428		-	-FIVE THOUSAND DOLLARS;
429		-	(c) G
430		-	REATER THAN OR EQUAL TO THREE AND THIRTY -SEVEN
431		-	PAGE 8-HOUSE BILL 24-1311 ONE-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND FIFTY -SIX
432		-	ONE
433		-	-HUNDREDTHS PERCENT, THEN:
434		-	(I) T
435		-	HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
436		-	THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
437		-	RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
438		-	OR LESS
439		-	, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
440		-	OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
441		-	JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
442		-	-FIVE
443		-	THOUSAND DOLLARS OR LESS
444		-	;
445		-	(II) T
446		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
447		-	IS REDUCED
448		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN
449		-	AND FIFTY
450		-	-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
451		-	DOLLARS BY WHICH A RESIDENT INDIVIDUAL
452		-	'S ADJUSTED GROSS INCOME
453		-	EXCEEDS FIFTEEN THOUSAND DOLLARS
454		-	; AND
455		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
456		-	IS REDUCED
457		-	, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN
458		-	AND FIFTY
459		-	-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
460		-	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
461		-	' ADJUSTED GROSS INCOME
462		-	EXCEEDS TWENTY
463		-	-FIVE THOUSAND DOLLARS;
464		-	(d) G
465		-	REATER THAN OR EQUAL TO THREE AND EIGHTEEN
466		-	ONE
467		-	-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND THIRTY -SEVEN
468		-	ONE
469		-	-HUNDREDTHS PERCENT, THEN:
470		-	(I) T
471		-	HE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF THIS
472		-	SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS
473		-	, ADJUSTED
474		-	FOR INFLATION
475		-	, FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE RETURN
476		-	WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS OR LESS
477		-	,
478		-	AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I) OF THIS
479		-	SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS
480		-	, ADJUSTED
481		-	FOR INFLATION
482		-	, FOR TWO RESIDENT INDIVIDUALS WHO FILE A JOINT RETURN
483		-	WITH AN ADJUSTED GROSS INCOME OF TWENTY
484		-	-FIVE THOUSAND DOLLARS OR
485		-	LESS
486		-	;
487		-	(II) T
488		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,
489		-	AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, IS REDUCED, BUT
490		-	NOT BELOW ZERO
491		-	, BY AN AMOUNT EQUAL TO NINETEEN AND TWENTY -THREE
492		-	PAGE 9-HOUSE BILL 24-1311 ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
493		-	A RESIDENT INDIVIDUAL
494		-	'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
495		-	THOUSAND DOLLARS
496		-	; AND
497		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION,
498		-	AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, WILL BE REDUCED,
499		-	BUT NOT BELOW ZERO , BY AN AMOUNT EQUAL TO NINETEEN AND
500		-	TWENTY
501		-	-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
502		-	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
503		-	' ADJUSTED GROSS INCOME
504		-	EXCEEDS TWENTY
505		-	-FIVE THOUSAND DOLLARS;
506		-	(e) G
507		-	REATER THAN OR EQUAL TO THREE PERCENT , BUT LESS THAN
508		-	THREE AND EIGHTEEN ONE
509		-	-HUNDREDTHS PERCENT, THEN:
510		-	(I) T
511		-	HE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF THIS
512		-	SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY DOLLARS
513		-	,
514		-	ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
515		-	RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
516		-	OR LESS
517		-	, AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I) OF
518		-	THIS SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY DOLLARS
519		-	,
520		-	ADJUSTED FOR INFLATION, FOR TWO RESIDENT INDIVIDUALS WHO FILE A
521		-	JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
522		-	-FIVE
523		-	THOUSAND DOLLARS OR LESS
524		-	;
525		-	(II) T
526		-	HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,
527		-	AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS REDUCED, BUT
528		-	NOT BELOW ZERO
529		-	, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY
530		-	ONE
531		-	-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
532		-	A RESIDENT INDIVIDUAL
533		-	'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
534		-	THOUSAND DOLLARS
535		-	; AND
536		-	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION,
537		-	AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS REDUCED, BUT
538		-	NOT BELOW ZERO
539		-	, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY
540		-	ONE
541		-	-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
542		-	TWO RESIDENT INDIVIDUALS
543		-	' ADJUSTED GROSS INCOME EXCEEDS
544		-	TWENTY
545		-	-FIVE THOUSAND DOLLARS; OR
546		-	(f) LESS THAN THREE PERCENT, NO CREDIT IS ALLOWED PURSUANT
547		-	TO THIS SECTION
548		-	.
549		-	PAGE 10-HOUSE BILL 24-1311 (7) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
550		-	2025,
551		-	THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL ADJUSTED
552		-	GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO REFLECT INFLATION
553		-	FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT DESCRIBED IN THIS
554		-	SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE THE LAST
555		-	ADJUSTMENT
556		-	, WHEN APPLIED TO THE CURRENT LIMITS , RESULTS IN AN
557		-	INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE ADJUSTED
558		-	LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS
559		-	.
560		-	(8) I
561		-	N THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED
562		-	UNDER THIS SECTION IS APPORTIONE D IN THE RATIO DETERMINED UNDER
563		-	SECTION
564		-	39-22-110 (1).
565		-	(9) T
566		-	HE CREDIT ALLOWED UNDER THIS SECTION IS NOT CONSIDERED
567		-	TO BE INCOME OR RESOURCES FOR THE PURPOSE OF DETERMINING
568		-	ELIGIBILITY FOR THE PAYMENT OF PUBLIC ASSISTANCE BENEFITS AND
569		-	MEDICAL ASSISTANCE BENEFITS AUTHORIZED UNDER STATE LAW OR FOR A
570		-	PAYMENT MADE UNDER ANY OTHER PUBLICLY FUNDED PROGRAMS
571		-	.
572		-	(10) T
573		-	HE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION
574		-	THAT EXCEEDS THE RESIDENT INDIVIDUAL
575		-	'S INCOME TAXES DUE IS REFUNDED
576		-	TO THE INDIVIDUAL
577		-	.
578		-	(11) T
579		-	HE DEPARTMENT OF REVENUE IS AUTHORIZED AND
580		-	ENCOURAGED TO DEVELOP A MEANS OF REFUNDING THE CREDITS ALLOWED
581		-	BY THIS SECTION TO RESIDENT INDIVIDUALS WHO QUALIFY FOR THE CREDITS
582		-	IN TWELVE EQUAL MONTHLY REFUNDS RATHER THAN ANNUALLY
583		-	.
584		-	(12) T
585		-	HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.
586		-	SECTION 2. Appropriation. (1) For the 2024-25 state fiscal year,
587		-	$178,494 is appropriated to the department of revenue. This appropriation
588		-	is from the general fund. To implement this act, the department may use this
589		-	appropriation as follows:
590		-	(a) $88,604 for use by the taxation business group for personal
591		-	services related to taxation services, which amount is based on the
592		-	assumption that the division will require an additional 1.2 FTE;
593		-	(b) $33,604 for tax administration IT system (GenTax) support;
594		-	PAGE 11-HOUSE BILL 24-1311 (c) $8,206 for use by the taxation business group for operating
595		-	expenses related to taxation services;
596		-	(d) $22,085 for use by the executive director's office for personal
597		-	services related to administration and support; and
598		-	(e) $25,995 for document management services.
599		-	(2) For the 2024-25 state fiscal year, $25,995 is appropriated to the
600		-	department of personnel. This appropriation is from reappropriated funds
601		-	received from the department of revenue under subsection (1)(e) of this
602		-	section. To implement this act, the department of personnel may use this
603		-	appropriation to provide document management services for the department
604		-	of revenue.
605		-	SECTION 3. Act subject to petition - effective date. This act
606		-	takes effect at 12:01 a.m. on the day following the expiration of the
607		-	ninety-day period after final adjournment of the general assembly; except
608		-	that, if a referendum petition is filed pursuant to section 1 (3) of article V
609		-	of the state constitution against this act or an item, section, or part of this act
610		-	within such period, then the act, item, section, or part will not take effect
611		-	unless approved by the people at the general election to be held in
612		-	PAGE 12-HOUSE BILL 24-1311 November 2024 and, in such case, will take effect on the date of the official
613		-	declaration of the vote thereon by the governor.
614		-	____________________________ ____________________________
615		-	Julie McCluskie Steve Fenberg
616		-	SPEAKER OF THE HOUSE PRESIDENT OF
617		-	OF REPRESENTATIVES THE SENATE
618		-	____________________________ ____________________________
619		-	Robin Jones Cindi L. Markwell
620		-	CHIEF CLERK OF THE HOUSE SECRETARY OF
621		-	OF REPRESENTATIVES THE SENATE
622		-	APPROVED________________________________________
623		-	(Date and Time)
624		-	_________________________________________
625		-	Jared S. Polis
626		-	GOVERNOR OF THE STATE OF COLORADO
627		-	PAGE 13-HOUSE BILL 24-1311
	176	+	(II) AS USED IN THIS SUBSECTION (2)(b):17
	177	+	(A) "APPLICABLE FORECAST" MEANS EITHER THE QUARTERLY18
	178	+	DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF19
	179	+	OR THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY THE20
	180	+	OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER21
	181	+	IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR, AS22
	182	+	DETERMINED BY WHICH IMMEDIATELY PRECEDING MARCH FORECAST THE23
	183	+	JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY USED IN THE24
	184	+	PREPARATION OF THE STATE BUDGET .25
	185	+	(B) "APPLICABLE STATE FISCAL YEAR" MEANS THE FISCAL YEAR26
	186	+	THAT BEGINS IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS27
	187	+	1311
	188	+	-5- ALLOWED.1
	189	+	(C) "BV" MEANS, ON OR BEFORE DECEMBER 31, 2024, THE2
	190	+	ESTIMATE OF THE STATE'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR3
	191	+	2024-25 INCLUDED IN THE APPLICABLE FORECAST EXCLUDING THE4
	192	+	PROJECTED AGGREGATE AMOUNT OF THE TAX CREDIT ALLOWED PURSUANT5
	193	+	TO THIS SECTION AND THE PROJECTED AGGREGATE AMOUNT OF THE6
	194	+	INCREASED PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED7
	195	+	PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED IN HOUSE BILL8
	196	+	24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR, AND AFTER9
	197	+	DECEMBER 31, 2024, THE AMOUNT OF THE STATE'S NONEXEMPT REVENUE10
	198	+	FOR STATE FISCAL YEAR 2024-25 EXCLUDING THE AGGREGATE AMOUNT OF11
	199	+	THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE12
	200	+	AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME13
	201	+	TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED14
	202	+	IN HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX15
	203	+	YEAR.16
	204	+	(D) "CAGR" MEANS THE ESTIMATED COMPOUND ANNUAL GROWTH17
	205	+	RATE.18
	206	+	(E) "EV" MEANS THE ESTIMATE OF THE STATE'S NONEXEMPT19
	207	+	REVENUE FOR THE APPLICABLE STATE FISCAL YEAR INCLUDED IN THE20
	208	+	APPLICABLE FORECAST EXCLUDING THE PROJECTED AGGREGATE AMOUNT21
	209	+	OF THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE22
	210	+	PROJECTED AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE23
	211	+	EARNED INCOME TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-123.524
	212	+	(3.5), CREATED IN HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN25
	213	+	INCOME TAX YEAR.26
	214	+	(F) "N" MEANS, FOR THE APPLICABLE STATE FISCAL YEAR, THE27
	215	+	1311
	216	+	-6- NUMBER OF STATE FISCAL YEARS THAT HAVE PASSED SINCE THE 2024-251
	217	+	STATE FISCAL YEAR.2
	218	+	(G) "NONEXEMPT REVENUE" MEANS, FOR THE APPLICABLE STATE3
	219	+	FISCAL YEAR, THE REVENUE THAT IS IDENTIFIED AS NONEXEMPT TABOR4
	220	+	REVENUES IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PUBLISHED5
	221	+	BY THE OFFICE OF THE STATE CONTROLLER . 6
	222	+	(H) "TABOR" MEANS SECTION 20 OF ARTICLE X OF THE STATE7
	223	+	CONSTITUTION.8
	224	+	(III) THE EXECUTIVE DIRECTOR SHALL CALCULATE THE ESTIMATED9
	225	+	ADJUSTMENT FACTOR IN ACCORDANCE WITH THIS SECTION .10
	226	+	(IV) THE ESTIMATED ADJUSTMENT FACTOR MUST BE INCREASED BY11
	227	+	ONE-TENTH OF ONE PERCENTAGE POINT IF THE COLORADO UNEMPLOYMENT12
	228	+	RATE, AS CALCULATED BY THE UNITED STATES BUREAU OF LABOR13
	229	+	STATISTICS, REACHES FIVE PERCENT AND MUST BE INCREASED BY AN14
	230	+	ADDITIONAL ONE-TENTH OF ONE PERCENTAGE POINT FOR EVERY ONE15
	231	+	PERCENTAGE POINT INCREASE IN THE COLORADO UNEMPLOYMENT RATE16
	232	+	ABOVE FIVE PERCENT.17
	233	+	(c) "FEDERAL POVERTY LEVEL" MEANS THE POVERTY LINE THAT IS18
	234	+	REQUIRED TO BE UPDATED ANNUALLY WITHIN THE FEDERAL POVERTY19
	235	+	GUIDELINES ADOPTED BY THE UNITED STATES DEPARTMENT OF HEALTH20
	236	+	AND HUMAN SERVICES PURSUANT TO 42 U.S.C. SEC. 9902 (2).21
	237	+	(d) "INFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE22
	238	+	UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS23
	239	+	CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS24
	240	+	PAID BY ALL URBAN CONSUMERS , OR ITS APPLICABLE SUCCESSOR INDEX.25
	241	+	(3) (a) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY26
	242	+	SECTION 39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER27
	243	+	1311
	244	+	-7- JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2034, A RESIDENT INDIVIDUAL1
	245	+	WHO FILES A SINGLE RETURN IS ALLOWED A FAMILY AFFORDABILITY TAX2
	246	+	CREDIT AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:3
	247	+	(I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS FIVE4
	248	+	YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN5
	249	+	THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS , ADJUSTED6
	250	+	FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS7
	251	+	SECTION; AND8
	252	+	(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS SIX9
	253	+	YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE10
	254	+	CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY -FIVE11
	255	+	PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION (3)(a)(I) OF THIS12
	256	+	SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.13
	257	+	(b) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION14
	258	+	39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY15
	259	+	1, 2024, BUT BEFORE JANUARY 1, 2034, TWO RESIDENT INDIVIDUALS WHO16
	260	+	FILE A JOINT RETURN ARE ALLOWED A FAMILY AFFORDABILITY TAX CREDIT17
	261	+	AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:18
	262	+	(I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS19
	263	+	FIVE YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR20
	264	+	IN THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS, ADJUSTED21
	265	+	FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS22
	266	+	SECTION; AND23
	267	+	(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS24
	268	+	SIX YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT25
	269	+	THE CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS26
	270	+	SEVENTY-FIVE PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION27
	271	+	1311
	272	+	-8- (3)(b)(I) OF THIS SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6)1
	273	+	OF THIS SECTION.2
	274	+	(4) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY3
	275	+	1, 2024, BUT BEFORE JANUARY 1, 2025, THE CREDIT AMOUNTS IN:4
	276	+	(a) SUBSECTION (3)(a)(I) OF THIS SECTION ARE REDUCED, BUT NOT5
	277	+	BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED6
	278	+	SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND7
	279	+	DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME8
	280	+	EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND 9
	281	+	(b) SUBSECTION (3)(b)(I) OF THIS SECTION ARE REDUCED, BUT NOT10
	282	+	BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED11
	283	+	SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND12
	284	+	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME13
	285	+	EXCEEDS TWENTY-FIVE THOUSAND DOLLARS.14
	286	+	(5) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY15
	287	+	1, 2025, BUT BEFORE JANUARY 1, 2026, IF THE ESTIMATED ADJUSTMENT16
	288	+	FACTOR IS:17
	289	+	(a) GREATER THAN OR EQUAL TO TWO PERCENT :18
	290	+	(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)19
	291	+	OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A20
	292	+	SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND21
	293	+	DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN22
	294	+	SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT23
	295	+	INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME24
	296	+	OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;25
	297	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION26
	298	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND27
	299	+	1311
	300	+	-9- EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH1
	301	+	FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED2
	302	+	GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND3
	303	+	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION4
	304	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND5
	305	+	EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH6
	306	+	FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS'7
	307	+	ADJUSTED GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS; OR 8
	308	+	(b) LESS THAN TWO PERCENT, NO CREDIT IS ALLOWED PURSUANT9
	309	+	TO THIS SECTION.10
	310	+	(6) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY11
	311	+	1, 2026, BUT BEFORE JANUARY 1, 2034, IF THE ESTIMATED ADJUSTMENT12
	312	+	FACTOR FOR THE INCOME TAX YEAR IS:13
	313	+	(a) GREATER THAN OR EQUAL TO THREE AND SEVENTY-FIVE14
	314	+	ONE-HUNDREDTHS PERCENT:15
	315	+	(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)16
	316	+	OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A17
	317	+	SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND18
	318	+	DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN19
	319	+	SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT20
	320	+	INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME21
	321	+	OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;22
	322	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION23
	323	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND24
	324	+	EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH25
	325	+	FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED26
	326	+	GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND27
	327	+	1311
	328	+	-10- (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION1
	329	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND2
	330	+	EIGHT HUNDRED SEVENTY -FIVE ONE-THOUSANDTHS PERCENT FOR EACH3
	331	+	FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS '4
	332	+	ADJUSTED GROSS INCOME EXCEEDS TWENTY -FIVE THOUSAND DOLLARS;5
	333	+	(b) GREATER THAN OR EQUAL TO THREE AND FIFTY -SIX6
	334	+	ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND SEVENTY-FIVE7
	335	+	ONE-HUNDREDTHS PERCENT, THEN:8
	336	+	(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)9
	337	+	OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A10
	338	+	SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND11
	339	+	DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN12
	340	+	SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT13
	341	+	INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME14
	342	+	OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;15
	343	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION16
	344	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND17
	345	+	SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY18
	346	+	WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS19
	347	+	FIFTEEN THOUSAND DOLLARS ; AND20
	348	+	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION21
	349	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND22
	350	+	SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY23
	351	+	WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME EXCEEDS24
	352	+	TWENTY-FIVE THOUSAND DOLLARS;25
	353	+	(c) GREATER THAN OR EQUAL TO THREE AND THIRTY-SEVEN26
	354	+	ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND FIFTY-SIX27
	355	+	1311
	356	+	-11- ONE-HUNDREDTHS PERCENT, THEN:1
	357	+	(I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)2
	358	+	OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A3
	359	+	SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND4
	360	+	DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN5
	361	+	SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT6
	362	+	INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME7
	363	+	OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;8
	364	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION9
	365	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN10
	366	+	AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND11
	367	+	DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME12
	368	+	EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND 13
	369	+	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION14
	370	+	IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN15
	371	+	AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND16
	372	+	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS ' ADJUSTED GROSS INCOME17
	373	+	EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;18
	374	+	(d) GREATER THAN OR EQUAL TO THREE AND EIGHTEEN19
	375	+	ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND THIRTY-SEVEN20
	376	+	ONE-HUNDREDTHS PERCENT, THEN:21
	377	+	(I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF22
	378	+	THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS,23
	379	+	ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO FILES A24
	380	+	SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND25
	381	+	DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION26
	382	+	(3)(b)(I) OF THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED27
	383	+	1311
	384	+	-12- DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT INDIVIDUALS WHO1
	385	+	FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY-FIVE2
	386	+	THOUSAND DOLLARS OR LESS ;3
	387	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,4
	388	+	AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, IS REDUCED, BUT5
	389	+	NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN AND6
	390	+	TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND7
	391	+	DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME8
	392	+	EXCEEDS FIFTEEN THOUSAND DOLLARS ; AND9
	393	+	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS10
	394	+	SECTION, AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, WILL BE11
	395	+	REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN AND12
	396	+	TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND13
	397	+	DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS ' ADJUSTED GROSS INCOME14
	398	+	EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;15
	399	+	(e) GREATER THAN OR EQUAL TO THREE PERCENT, BUT LESS THAN16
	400	+	THREE AND EIGHTEEN ONE-HUNDREDTHS PERCENT, THEN:17
	401	+	(I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF18
	402	+	THIS SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY19
	403	+	DOLLARS, ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO20
	404	+	FILES A SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN21
	405	+	THOUSAND DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN22
	406	+	SUBSECTION (3)(b)(I) OF THIS SECTION IS REDUCED TO ONE THOUSAND SIX23
	407	+	HUNDRED FIFTY DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT24
	408	+	INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME25
	409	+	OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;26
	410	+	(II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,27
	411	+	1311
	412	+	-13- AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS REDUCED, BUT1
	413	+	NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY2
	414	+	ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH3
	415	+	A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN4
	416	+	THOUSAND DOLLARS; AND5
	417	+	(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS6
	418	+	SECTION, AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS7
	419	+	REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND8
	420	+	THIRTY ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS9
	421	+	BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME EXCEEDS10
	422	+	TWENTY-FIVE THOUSAND DOLLARS; OR11
	423	+	(f) LESS THAN THREE PERCENT, NO CREDIT IS ALLOWED PURSUANT12
	424	+	TO THIS SECTION.13
	425	+	(7) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY14
	426	+	1, 2025, THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL15
	427	+	ADJUSTED GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO16
	428	+	REFLECT INFLATION FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT17
	429	+	DESCRIBED IN THIS SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE18
	430	+	THE LAST ADJUSTMENT, WHEN APPLIED TO THE CURRENT LIMITS, RESULTS19
	431	+	IN AN INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE20
	432	+	ADJUSTED LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND21
	433	+	DOLLARS.22
	434	+	(8) IN THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED23
	435	+	UNDER THIS SECTION IS APPORTIONED IN THE RATIO DETERMINED UNDER24
	436	+	SECTION 39-22-110 (1).25
	437	+	(9) THE CREDIT ALLOWED UNDER THIS SECTION IS NOT CONSIDERED26
	438	+	TO BE INCOME OR RESOURCES FOR THE PURPOSE OF DETERMINING27
	439	+	1311
	440	+	-14- ELIGIBILITY FOR THE PAYMENT OF PUBLIC ASSISTANCE BENEFITS AND1
	441	+	MEDICAL ASSISTANCE BENEFITS AUTHORIZED UNDER STATE LAW OR FOR A2
	442	+	PAYMENT MADE UNDER ANY OTHER PUBLICLY FUNDED PROGRAMS .3
	443	+	(10) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION4
	444	+	THAT EXCEEDS THE RESIDENT INDIVIDUAL'S INCOME TAXES DUE IS5
	445	+	REFUNDED TO THE INDIVIDUAL.6
	446	+	(11) THE DEPARTMENT OF REVENUE IS AUTHORIZED AND7
	447	+	ENCOURAGED TO DEVELOP A MEANS OF REFUNDING THE CREDITS ALLOWED8
	448	+	BY THIS SECTION TO RESIDENT INDIVIDUALS WHO QUALIFY FOR THE9
	449	+	CREDITS IN TWELVE EQUAL MONTHLY REFUNDS RATHER THAN ANNUALLY.10
	450	+	(12) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.11
	451	+	SECTION 2. Appropriation. (1) For the 2024-25 state12
	452	+	fiscalyear, $178,494 is appropriated to the department of revenue. This13
	453	+	appropriation is from the general fund. To implement this act, the14
	454	+	department may use this appropriation as follows:15
	455	+	(a) $88,604 for use by the taxation business group for personal16
	456	+	services related to taxation services, which amount is based on the17
	457	+	assumption that the division will require an additional 1.2 FTE;18
	458	+	(b) $33,604 for tax administration IT system (GenTax) support;19
	459	+	(c) $8,206 for use by the taxation business group for operating20
	460	+	expenses related to taxation services;21
	461	+	(d) $22,085 for use by the executive director's office for personal22
	462	+	services related to administration and support; and23
	463	+	(e) $25,995 for document management services.24
	464	+	(2) For the 2024-25 state fiscal year, $25,995 is appropriated to the25
	465	+	department of personnel. This appropriation is from reappropriated funds26
	466	+	received from the department of revenue under subsection (1)(e) of this27
	467	+	1311
	468	+	-15- section. To implement this act, the department of personnel may use this1
	469	+	appropriation to provide document management services for the2
	470	+	department of revenue.3
	471	+	SECTION 3. Act subject to petition - effective date. This act4
	472	+	takes effect at 12:01 a.m. on the day following the expiration of the5
	473	+	ninety-day period after final adjournment of the general assembly; except6
	474	+	that, if a referendum petition is filed pursuant to section 1 (3) of article V7
	475	+	of the state constitution against this act or an item, section, or part of this8
	476	+	act within such period, then the act, item, section, or part will not take9
	477	+	effect unless approved by the people at the general election to be held in10
	478	+	November 2024 and, in such case, will take effect on the date of the11
	479	+	official declaration of the vote thereon by the governor.12
	480	+	1311
	481	+	-16-