HOUSE BILL 24-1311
BY REPRESENTATIVE(S) 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, McCormick, McLachlan,
Parenti, Ricks, Story, Velasco, Vigil, Woodrow, McCluskie, Clifford,
Titone, Young;
also SENATOR(S) Winter F. and Coleman, Bridges, Buckner, Cutter,
Danielson, Exum, Fields, Ginal, Gonzales, Hansen, Jaquez Lewis, Kolker,
Marchman, Michaelson Jenet, Mullica, Priola, Sullivan, Fenberg.
C
ONCERNING THE CREATION OF A FAMILY AFFORDABILITY TAX CREDIT , AND,
IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 39-22-130 as
follows:
39-22-130. Family affordability tax credit - legislative
declaration - definitions - repeal. (1) (a) T
HE GENERAL ASSEMBLY
HEREBY FINDS AND DECLARES THAT
:
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. (I) COLORADO FAMILIES STRUGGLE TO AFFORD MANY NECESSARY
GOODS AND SERVICES
, SUCH AS CHILD CARE, HOUSING, AND HEALTH CARE.
E
IGHTY-THREE PERCENT OF COLORADO PARENTS WORRY THAT THEIR
CHILDREN WON
'T BE ABLE TO AFFORD TO LIVE IN THE STATE IN THE FUTURE.
(II) T
ARGETED TAX CREDITS ARE A PROVEN TOOL TO LIFT FAMILIES
OUT OF POVERTY
. RESEARCH HAS SHOWN THAT FAMILIES THAT CLAIM THESE
TYPES OF TAX CREDITS
, SUCH AS THE STATE AND FEDERAL CHILD TAX CREDIT
AND THE STATE AND FEDERAL EARNED INCOME TAX CREDIT
, HAVE BETTER
HEALTH
, IMPROVED SCHOOLING OUTCOMES , AND INCREASED ADULT
EARNING POTENTIAL
. AS THE COST OF RAISING CHILDREN HAS INCREASED ,
A FAMILY AFFORDABILITY TAX CREDIT IS CRITICAL FOR THE WELL -BEING OF
MANY CHILDREN AND FAMILIES ACROSS
COLORADO.
(III) A
CCORDING TO THE INSTITUTE ON TAXATION AND ECONOMIC
POLICY, "[T]O CUT CHILD POVERTY RATES BY HALF , THE MAJORITY OF
STATES WOULD REQUIRE A BASE CREDIT VALUE OF BETWEEN THREE
THOUSAND DOLLARS AND FOUR THOUSAND FIVE HUNDRED DOLLARS PER
CHILD PLUS A TWENTY PERCENT BOOST FOR YOUNG CHILDREN
." WHEN
COUPLED WITH THE STATE AND FEDERAL EARNED INCOME TAX CREDIT AND
THE STATE AND FEDERAL CHILD TAX CREDIT
, THE ADDITIONAL INVESTMENT
PROVIDED BY THE FAMILY AFFORDABILITY TAX CREDIT WOULD ESTABLISH
COLORADO AS A NATIONAL LEADER IN EQUITABLE ECONOMIC POLICY .
(IV) C
OLORADO IS DEALING WITH RISING COSTS AND FUNDING
SHORTFALLS IN MANY AREAS ACROSS OUR STATE
, AND IT IS NECESSARY TO
PROVIDE TAX CREDITS TO THE PEOPLE WHO NEED IT MOST IN A WAY THAT
WILL DO THE MOST GOOD
. ESTABLISHING THE FAMILY AFFORDABILITY TAX
CREDIT IS A PROVEN WAY TO DO THAT
; AND
(V) BY PRIORITIZING THE STATE'S LOWEST-INCOME FAMILIES,
EXPANDING THE CHILD AGE ELIGIBILITY, AND INCLUDING MORE FAMILIES,
THE STATE CAN PROVIDE RESEARCH -BACKED INVESTMENTS FOR FAMILIES .
T
HROUGH THOUGHTFUL AND STRATEGIC INVESTMENT , COLORADO CAN CUT
CHILD POVERTY NEARLY IN HALF
.
(b) T
HE GENERAL ASSEMBLY DECLARES ITS INTENT TO PERIODICALLY
REVIEW THE TAX CREDIT CREATED IN THIS SECTION IN AN EFFORT TO
PREVENT A SIGNIFICANT INCREASE OR DECREASE
, ADJUSTED FOR INFLATION,
IN THE TOTAL AMOUNT OF THE CREDIT CLAIMED BY TAXPAYERS YEAR OVER
PAGE 2-HOUSE BILL 24-1311 YEAR STARTING IN INCOME TAX YEAR 2025.
(c) 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 HEREBY FINDS AND
DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN
SUBSECTION
(3) OF THIS SECTION ARE TO SUBSTANTIALLY REDUCE CHILD
POVERTY
, MAKE COLORADO MORE AFFORDABLE FOR FAMILIES , AND HELP
FAMILIES AFFORD EXPENSES ASSOCIATED WITH HAVING CHILDREN BY
PROVIDING TAX RELIEF FOR CERTAIN INDIVIDUALS
.
(d) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR , IN
CONSULTATION WITH THE DEPARTMENT OF REVENUE
, SHALL MEASURE THE
EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS SECTION BY
DETERMINING THE NUMBER OF
COLORADO FAMILIES WHO, AFTER CLAIMING
A CREDIT OR CREDITS IN THIS SECTION
, NO LONGER FALL BELOW THE
FEDERAL POVERTY LEVEL IN THE TAX YEAR IN WHICH THEY CLAIMED THE
CREDIT OR CREDITS
.
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES
:
(a) "E
LIGIBLE CHILD" MEANS A QUALIFYING CHILD, AS DEFINED IN
SECTION
152 (c) OF THE "INTERNAL REVENUE CODE OF 1986"; EXCEPT THAT
THE AGE REQUIREMENTS ARE AS SET FORTH IN SUBSECTIONS
(3)(a)(I),
(3)(a)(II), (3)(b)(I),
AND (3)(b)(II) OF THIS SECTION.
(b) (I) "E
STIMATED ADJUSTMENT FACTOR " MEANS, FOR A GIVEN
INCOME TAX YEAR
, THE CAGR FOR NONEXEMPT REVENUE THAT IS
CALCULATED ACCORDING TO THE FOLLOWING FORMULA
, AS ADJUSTED
PURSUANT TO SUBSECTION
(2)(b)(IV) OF THIS SECTION:
CAGR=
‰ ‰
EV
1/n
!1
× 100
BV
(II) A
S USED IN THIS SUBSECTION (2)(b):
(A) "A
PPLICABLE FORECAST" MEANS EITHER THE QUARTERLY
DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL STAFF
OR THE QUARTERLY
DECEMBER REVENUE FORECAST PREPARED BY THE
PAGE 3-HOUSE BILL 24-1311 OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER
IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR
, AS
DETERMINED BY WHICH IMMEDIATELY PRECEDING
MARCH FORECAST THE
JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY USED IN THE
PREPARATION OF THE STATE BUDGET
.
(B) "A
PPLICABLE STATE FISCAL YEAR" MEANS THE FISCAL YEAR
THAT BEGINS IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS ALLOWED
.
(C) "BV"
MEANS, ON OR BEFORE DECEMBER 31, 2024, THE ESTIMATE
OF THE STATE
'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR 2024-25
INCLUDED IN THE APPLICABLE FORECAST EXCLUDING THE PROJECTED
AGGREGATE AM OUNT OF THE TAX CREDIT ALLOWED PURS UANT TO THIS
SECTION AND THE PROJECTED AGGREGATE AMOUNT OF THE INCREASED
PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED PURSUANT TO
SECTION
39-22-123.5 (3.5), CREATED IN HOUSE BILL 24-1134, ENACTED IN
2024, FOR THE GIVEN INCOME TAX YEAR, AND AFTER DECEMBER 31, 2024,
THE AMOUNT OF THE STATE'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR
2024-25 EXCLUDING THE AGGREGATE AMOUNT OF THE TAX CREDIT
ALLOWED PURSUANT TO THIS SECTION AND THE AGGREGATE AMOUNT OF THE
INCREASED PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED
PURSUANT TO SECTION
39-22-123.5 (3.5), CREATED IN HOUSE BILL 24-1134,
ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR.
(D) "CAGR"
MEANS THE ESTIMATED COMPOUND ANNUAL GROWTH
RATE
.
(E) "EV"
MEANS THE ESTIMATE OF THE STATE 'S NONEXEMPT
REVENUE FOR THE APPLICABLE STATE FISCAL YEAR INCLUDED IN THE
APPLICABLE FORECAST EXCLUDING THE PROJECTED AGGREGATE AM OUNT OF
THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE PROJECTED
AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME
TAX CREDIT ALLOWED PURSUANT TO SECTION
39-22-123.5 (3.5), CREATED
IN
HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX
YEAR
.
(F) "
N" MEANS, FOR THE APPLICABLE STATE FISCAL YEAR , THE
NUMBER OF STATE FISCAL YEARS THAT HAVE PASSED SINCE THE
2024-25
STATE FISCAL YEAR.
PAGE 4-HOUSE BILL 24-1311 (G) "NONEXEMPT REVENUE" MEANS, FOR THE APPLICABLE STATE
FISCAL YEAR
, THE REVENUE THAT IS IDENTIFIED AS NONEXEMPT TABOR
REVENUES IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PUBLISHED
BY THE OFFICE OF THE STATE CONTROLLER
.
(H) "TABOR"
MEANS SECTION 20 OF ARTICLE X OF THE STATE
CONSTITUTION
.
(III) T
HE EXECUTIVE DIRECTOR SHALL CALCULATE THE ESTIMATED
ADJUSTMENT FACTOR IN ACCORDANCE WITH THIS SECTION
.
(IV) T
HE ESTIMATED ADJUSTMENT FACTOR MUST BE INCREASED BY
ONE
-TENTH OF ONE PERCENTAGE POINT IF THE COLORADO UNEMPLOYMENT
RATE
, AS CALCULATED BY THE UNITED STATES BUREAU OF LABOR
STATISTICS, REACHES FIVE PERCENT AND MUST BE INCREASED BY AN
ADDITIONAL ONE
-TENTH OF ONE PERCENTAGE POINT FOR EVERY ONE
PERCENTAGE POINT INCREASE IN THE
COLORADO UNEMPLOYMENT RATE
ABOVE FIVE PERCENT
.
(c) "F
EDERAL POVERTY LEVEL" MEANS THE POVERTY LINE THAT IS
REQUIRED TO BE UPDATED ANNUALLY WITHIN THE FEDERAL POVERTY
GUIDELINES ADOPTED BY THE
UNITED STATES DEPARTMENT OF HEALTH AND
HUMAN SERVICES PURSUANT TO
42 U.S.C. SEC. 9902 (2).
(d) "I
NFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE
UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS
PAID BY ALL URBAN CONSUMERS
, OR ITS APPLICABLE SUCCESSOR INDEX.
(3) (a) I
N ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION
39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2024,
BUT BEFORE JANUARY 1, 2034, A RESIDENT INDIVIDUAL WHO FILES A
SINGLE RETURN IS ALLOWED A FAMILY AFFORDABILITY TAX CREDIT AGAINST
THE INCOME TAXES DUE UNDER THIS ARTICLE
22 FOR:
(I) E
ACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS FIVE
YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN THE
AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS
, ADJUSTED FOR
INFLATION AND AS MODIFIED BY SUBSECTIONS
(4), (5), AND (6) OF THIS
SECTION
; AND
PAGE 5-HOUSE BILL 24-1311 (II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS SIX
YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE
CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY
-FIVE
PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
(3)(a)(I) OF THIS
SECTION
, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.
(b) I
N ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION
39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2024,
BUT BEFORE JANUARY 1, 2034, TWO RESIDENT INDIVIDUALS WHO FILE
A JOINT RETURN ARE ALLOWED A FAMILY AFFORDABILITY TAX CREDIT
AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE
22 FOR:
(I) E
ACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS FIVE
YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR IN THE
AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS
, ADJUSTED FOR
INFLATION AND AS MODIFIED BY SUBSECTIONS
(4), (5), AND (6) OF THIS
SECTION
; AND
(II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS SIX
YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT THE
CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS SEVENTY
-FIVE
PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
(3)(b)(I) OF THIS
SECTION
, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF THIS SECTION.
(4) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2024,
BUT BEFORE JANUARY 1, 2025, THE CREDIT AMOUNTS IN:
(a) S
UBSECTION (3)(a)(I) OF THIS SECTION ARE REDUCED, BUT NOT
BELOW ZERO
, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
DOLLARS BY WHICH A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS INCOME
EXCEEDS FIFTEEN THOUSAND DOLLARS
; AND
(b) SUBSECTION (3)(b)(I) OF THIS SECTION ARE REDUCED, BUT NOT
BELOW ZERO
, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
' ADJUSTED GROSS INCOME
EXCEEDS TWENTY
-FIVE THOUSAND DOLLARS.
(5) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
PAGE 6-HOUSE BILL 24-1311 2025, BUT BEFORE JANUARY 1, 2026, IF THE ESTIMATED ADJUSTMENT
FACTOR IS
:
(a) G
REATER THAN OR EQUAL TO TWO PERCENT :
(I) T
HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
OR LESS
, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
-FIVE
THOUSAND DOLLARS OR LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
EIGHT HUNDRED SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS
INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
EIGHT HUNDRED SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
' ADJUSTED
GROSS INCOME EXCEEDS TWENTY
-FIVE THOUSAND DOLLARS; OR
(b) LESS THAN TWO PERCENT, NO CREDIT IS ALLOWED PURSUANT TO
THIS SECTION
.
(6) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2026,
BUT BEFORE JANUARY 1, 2034, IF THE ESTIMATED ADJUSTMENT
FACTOR FOR THE INCOME TAX YEAR IS
:
(a) G
REATER THAN OR EQUAL TO THREE AND SEVENTY -FIVE
ONE
-HUNDREDTHS PERCENT:
(I) T
HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
OR LESS
, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
PAGE 7-HOUSE BILL 24-1311 JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY -FIVE
THOUSAND DOLLARS OR LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
EIGHT HUNDRED SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS
INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
EIGHT HUNDRED SEVENTY
-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE
THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
' ADJUSTED
GROSS INCOME EXCEEDS TWENTY
-FIVE THOUSAND DOLLARS;
(b) G
REATER THAN OR EQUAL TO THREE AND FIFTY -SIX
ONE
-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND SEVENTY -FIVE
ONE
-HUNDREDTHS PERCENT, THEN:
(I) T
HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
OR LESS
, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
-FIVE
THOUSAND DOLLARS OR LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND SIX
ONE
-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND SIX
ONE
-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
TWO RESIDENT INDIVIDUALS
' ADJUSTED GROSS INCOME EXCEEDS
TWENTY
-FIVE THOUSAND DOLLARS;
(c) G
REATER THAN OR EQUAL TO THREE AND THIRTY -SEVEN
PAGE 8-HOUSE BILL 24-1311 ONE-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND FIFTY -SIX
ONE
-HUNDREDTHS PERCENT, THEN:
(I) T
HE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
OR LESS
, AND THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I)
OF THIS SECTION IS ALLOWED FOR TWO RESIDENT INDIVIDUALS WHO FILE A
JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
-FIVE
THOUSAND DOLLARS OR LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN
AND FIFTY
-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
DOLLARS BY WHICH A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS INCOME
EXCEEDS FIFTEEN THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION
IS REDUCED
, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN
AND FIFTY
-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
' ADJUSTED GROSS INCOME
EXCEEDS TWENTY
-FIVE THOUSAND DOLLARS;
(d) G
REATER THAN OR EQUAL TO THREE AND EIGHTEEN
ONE
-HUNDREDTHS PERCENT , BUT LESS THAN THREE AND THIRTY -SEVEN
ONE
-HUNDREDTHS PERCENT, THEN:
(I) T
HE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF THIS
SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS
, ADJUSTED
FOR INFLATION
, FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE RETURN
WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS OR LESS
,
AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I) OF THIS
SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS
, ADJUSTED
FOR INFLATION
, FOR TWO RESIDENT INDIVIDUALS WHO FILE A JOINT RETURN
WITH AN ADJUSTED GROSS INCOME OF TWENTY
-FIVE THOUSAND DOLLARS OR
LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,
AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, IS REDUCED, BUT
NOT BELOW ZERO
, BY AN AMOUNT EQUAL TO NINETEEN AND TWENTY -THREE
PAGE 9-HOUSE BILL 24-1311 ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION,
AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, WILL BE REDUCED,
BUT NOT BELOW ZERO , BY AN AMOUNT EQUAL TO NINETEEN AND
TWENTY
-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS
' ADJUSTED GROSS INCOME
EXCEEDS TWENTY
-FIVE THOUSAND DOLLARS;
(e) G
REATER THAN OR EQUAL TO THREE PERCENT , BUT LESS THAN
THREE AND EIGHTEEN ONE
-HUNDREDTHS PERCENT, THEN:
(I) T
HE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF THIS
SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY DOLLARS
,
ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO FILES A SINGLE
RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND DOLLARS
OR LESS
, AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(b)(I) OF
THIS SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY DOLLARS
,
ADJUSTED FOR INFLATION, FOR TWO RESIDENT INDIVIDUALS WHO FILE A
JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF TWENTY
-FIVE
THOUSAND DOLLARS OR LESS
;
(II) T
HE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION,
AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS REDUCED, BUT
NOT BELOW ZERO
, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY
ONE
-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
A RESIDENT INDIVIDUAL
'S ADJUSTED GROSS INCOME EXCEEDS FIFTEEN
THOUSAND DOLLARS
; AND
(III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS SECTION,
AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS REDUCED, BUT
NOT BELOW ZERO
, BY AN AMOUNT EQUAL TO THIRTY AND THIRTY
ONE
-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY WHICH
TWO RESIDENT INDIVIDUALS
' ADJUSTED GROSS INCOME EXCEEDS
TWENTY
-FIVE THOUSAND DOLLARS; OR
(f) LESS THAN THREE PERCENT, NO CREDIT IS ALLOWED PURSUANT
TO THIS SECTION
.
PAGE 10-HOUSE BILL 24-1311 (7) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1,
2025,
THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL ADJUSTED
GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO REFLECT INFLATION
FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT DESCRIBED IN THIS
SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE THE LAST
ADJUSTMENT
, WHEN APPLIED TO THE CURRENT LIMITS , RESULTS IN AN
INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE ADJUSTED
LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND DOLLARS
.
(8) I
N THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED
UNDER THIS SECTION IS APPORTIONE D IN THE RATIO DETERMINED UNDER
SECTION
39-22-110 (1).
(9) T
HE CREDIT ALLOWED UNDER THIS SECTION IS NOT CONSIDERED
TO BE INCOME OR RESOURCES FOR THE PURPOSE OF DETERMINING
ELIGIBILITY FOR THE PAYMENT OF PUBLIC ASSISTANCE BENEFITS AND
MEDICAL ASSISTANCE BENEFITS AUTHORIZED UNDER STATE LAW OR FOR A
PAYMENT MADE UNDER ANY OTHER PUBLICLY FUNDED PROGRAMS
.
(10) T
HE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION
THAT EXCEEDS THE RESIDENT INDIVIDUAL
'S INCOME TAXES DUE IS REFUNDED
TO THE INDIVIDUAL
.
(11) T
HE DEPARTMENT OF REVENUE IS AUTHORIZED AND
ENCOURAGED TO DEVELOP A MEANS OF REFUNDING THE CREDITS ALLOWED
BY THIS SECTION TO RESIDENT INDIVIDUALS WHO QUALIFY FOR THE CREDITS
IN TWELVE EQUAL MONTHLY REFUNDS RATHER THAN ANNUALLY
.
(12) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.
SECTION 2. Appropriation. (1) For the 2024-25 state fiscal year,
$178,494 is appropriated to the department of revenue. This appropriation
is from the general fund. To implement this act, the department may use this
appropriation as follows:
(a) $88,604 for use by the taxation business group for personal
services related to taxation services, which amount is based on the
assumption that the division will require an additional 1.2 FTE;
(b) $33,604 for tax administration IT system (GenTax) support;
PAGE 11-HOUSE BILL 24-1311 (c) $8,206 for use by the taxation business group for operating
expenses related to taxation services;
(d) $22,085 for use by the executive director's office for personal
services related to administration and support; and
(e) $25,995 for document management services.
(2) For the 2024-25 state fiscal year, $25,995 is appropriated to the
department of personnel. This appropriation is from reappropriated funds
received from the department of revenue under subsection (1)(e) of this
section. To implement this act, the department of personnel may use this
appropriation to provide document management services for the department
of revenue.
SECTION 3. Act subject to petition - effective date. This act
takes effect at 12:01 a.m. on the day following the expiration of the
ninety-day period after final adjournment of the general assembly; except
that, if a referendum petition is filed pursuant to section 1 (3) of article V
of the state constitution against this act or an item, section, or part of this act
within such period, then the act, item, section, or part will not take effect
unless approved by the people at the general election to be held in
PAGE 12-HOUSE BILL 24-1311 November 2024 and, in such case, will take effect on the date of the official
declaration of the vote thereon by the governor.
____________________________ ____________________________
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 13-HOUSE BILL 24-1311