Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0501.05 Jessica Herrera x4218
HOUSE BILL 24-1340
House Committees Senate Committees
Education
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF I NCENTIVES AGAINST THE STATE101
INCOME TAX FOR STUDENTS PURSUING POST -SECONDARY102
CREDENTIALS.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
.)
The bill creates 2 separate state income tax incentives (incentives)
to encourage enrollment in institutions of higher education. For income
tax years commencing on or after January 1, 2024, but prior to January 1,
2030, the first incentive is available to a graduate of any Colorado
institution of higher education with a credential required or supported by
HOUSE SPONSORSHIP
Bird and Taggart,
SENATE SPONSORSHIP
Kirkmeyer and Zenzinger,
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. certain jobs identified by the 2023 Colorado talent pipeline report,
defined by the bill as "top jobs", in the amount of $250 for the completion
of a qualified program less than one year in duration, $500 for the
completion of a qualified program between one year and 2 years in
duration, $1,500 for graduates of an associate's degree program, and
$3,000 for graduates of a bachelor's degree program.
For income tax years commencing on or after January 1, 2026, but
prior to January 1, 2030, the second incentive is available to an eligible
transfer student attending a 4-year Colorado institution of higher
education, in the amount of $50 per credit hour transferred from either a
2-year Colorado institution of higher education or earned while under
certain enrollment status in high school. The incentive is capped at 60
credit hours or $3,000 and may only be awarded after the student
completes at least 15 credits at the 4-year Colorado institution of higher
education.
Notwithstanding the incentive amounts otherwise allowed for both
incentives, if the revenue forecast prepared by either legislative council
staff or the office of state planning and budgeting in June of any income
tax year for which an incentive is allowed projects that the amount of
excess state revenues for the state fiscal year that ends during the income
tax year will be:
! At least $500 million but no more than $750 million, the
amount of the incentive allowed is reduced by fifty percent
for that income tax year.
! Less than $500 million, the incentive is not allowed for that
income tax year.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-22-560 and2
39-22-561 as follows:3
39-22-560. Top jobs tax credit for qualifying student4
graduates - tax preference performance statement - legislative5
declaration - definitions - repeal. (1) (a) T
HE GENERAL ASSEMBLY6
FINDS, DETERMINES, AND DECLARES THAT:7
(I) I
T IS VITAL TO THE WELL-BEING, QUALITY OF LIFE, AND8
ECONOMIC DEVELOPMENT OF THE STATE THAT THERE EXISTS A9
WORKFORCE AND TALENT PIPELINE FOR THE JOBS MOST IN DEMAND ;10
HB24-1340-2- (II) THE GENERAL ASSEMBLY INTENDS THAT THE INCENTIVE1
CREATED IN THIS SECTION BE USED TO PROVIDE FINANCIAL INCENTIVES TO2
ENCOURAGE ENROLLMENT IN AND GRADUATION FROM COLORADO3
INSTITUTIONS OF HIGHER EDUCATION BY STUDENTS WITH DEGREES THAT4
SUPPORT THE TOP JOBS EXPECTED TO BE MOST IN DEMAND IN COLORADO5
IN COMING YEARS;6
(III) C
OLORADO CURRENTLY FACES LABOR SHORTAGES IN A7
NUMBER OF INDUSTRIES CRITICAL TO THE HEALTH AND WELL -BEING OF8
C
OLORADO RESIDENTS AND THE COLORADO ECONOMY , INCLUDING:9
(A) L
IFE, PHYSICAL, AND SOCIAL SCIENCES OCCUPATIONS SUCH AS10
BIOLOGICAL TECHNICIANS, ENVIRONMENTAL SCIENTISTS, AND CLINICAL,11
COUNSELING, AND SCHOOL PSYCHOLOGISTS;12
(B) E
DUCATION OCCUPATIONS SUCH AS ELEMENTARY , MIDDLE13
SCHOOL, AND SECONDARY SCHOOL TEACHERS ;14
(C) H
EALTH CARE OCCUPATIONS SUCH AS REGISTERED NURSES ,15
MASSAGE THERAPISTS, AND DENTAL ASSISTANTS; AND16
(D) C
OMMUNITY AND SOCIAL SERVICES OCCUPATIONS SUCH AS17
SUBSTANCE ABUSE, BEHAVIORAL DISORDER , AND MENTAL HEALTH18
COUNSELORS, PARALEGALS AND LEGAL ASSISTANTS , AND CHILD, FAMILY,19
AND SCHOOL SOCIAL WORKERS ;20
(IV) A
CCORDING TO THE 2023 COLORADO TALENT PIPELINE21
REPORT, PUBLISHED BY THE COLORADO WORKFORCE DEVELOPMENT22
COUNCIL:23
(A) C
OLORADO HISTORICALLY HAS HAD MORE OPEN JOBS THAN24
AVAILABLE SKILLED TALENT;25
(B) I
N 2023, COLORADO HAD TWO JOB OPENINGS FOR EVERY26
AVAILABLE WORKER; AND27
HB24-1340
-3- (C) IN 2023, ABOUT SEVENTY-SEVEN PERCENT OF THE JOBS THAT1
EARN ENOUGH TO SUPPORT A FAMILY OF TWO ADULTS AND ONE CHILD2
REQUIRE A BACHELOR'S DEGREE;3
(V) T
HE COST OF HIGHER EDUCATION AND STUDENT DEBT CAN BE4
A DETERRENT FOR MANY STUDENTS TO PURSUE AND COMPLETE5
CREDENTIALS, ESPECIALLY ASSOCIATE'S AND BACHELOR'S DEGREES; AND6
(VI) T
HE CITIZENS OF COLORADO AND THE STATE HAVE SHOWN7
THEIR SUPPORT FOR ALL COLORADANS, REGARDLESS OF INCOME , BY8
ENACTING FULL-DAY KINDERGARTEN IN 2019 AND UNIVERSAL PRESCHOOL9
IN 2023, BOTH OF WHICH ESTABLISHED FOUNDATIONAL EDUCATIONAL10
OPPORTUNITIES FOR ALL. IN ORDER TO CONTINUE TO STRENGTHEN THE11
EDUCATIONAL PIPELINE AND MEET COLORADO'S WORKFORCE DEMAND ,12
FINANCIAL INCENTIVES S HOULD ALSO BE PROVIDED TO ALL13
POST-SECONDARY COLORADO STUDENTS , REGARDLESS OF FAMILY14
INCOME.15
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH16
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE17
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY18
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND19
DECLARES THAT THE GENERAL LEGISLATIVE PURPOSES OF THIS TAX20
EXPENDITURE ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY21
TAXPAYERS, CREATE OR RETAIN JOBS, AND PROVIDE TAX RELIEF FOR22
CERTAIN INDIVIDUALS. SPECIFICALLY, THIS TAX EXPENDITURE IS23
INTENDED TO ENCOURAGE ENROLLMENT IN AND GRADUATION FROM24
PROGRAMS THAT SUPPORT EMPLOYMENT IN TOP COLORADO JOBS25
EXPECTED TO BE MOST IN DEMAND .26
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL27
HB24-1340
-4- MEASURE THE EFFECTIVENESS OF THE INCENTIVE IN ACHIEVING THE1
PURPOSE SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE2
NUMBER OF GRADUATES FROM DEGR EE PROGRAMS SUPPORTING TOP JOBS3
AND THE NUMBER OF INCENTIVES THAT ARE CLAIMED .4
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE5
REQUIRES:6
(a) "C
OLORADO INSTITUTION OF HIGHER EDUCATION " MEANS:7
(I) A
PUBLIC POST-SECONDARY INSTITUTION THAT IS GOVERNED BY8
THE BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY9
SYSTEM; THE BOARD OF REGENTS OF THE UNIVERSITY OF COLORADO; THE10
BOARD OF TRUSTEES OF THE COLORADO SCHOOL OF MINES; THE BOARD OF11
TRUSTEES OF THE UNIVERSITY OF NORTHERN COLORADO; THE BOARD OF12
TRUSTEES OF ADAMS STATE UNIVERSITY; THE BOARD OF TRUSTEES OF13
W
ESTERN COLORADO UNIVERSITY ; THE BOARD OF TRUSTEES OF14
C
OLORADO MESA UNIVERSITY; THE BOARD OF TRUSTEES FOR FORT LEWIS15
COLLEGE; THE BOARD OF TRUSTEES FOR METROPOLITAN STATE16
UNIVERSITY OF DENVER; OR THE STATE BOARD FOR COMMUNITY17
COLLEGES AND OCCUPATIONAL EDUCATION ;18
(II) A
PRIVATE INSTITUTION OF HIGHER EDUCATION THAT ENTERS19
INTO A PERFORMANCE CONTRACT WITH THE DEPARTMENT PURSUANT TO20
SECTION 23-18-201 (2) AND AGREES TO PARTICIPATE IN THE PROGRAM ;21
(III) C
OLORADO MOUNTAIN COLLEGE AND AIMS COMMUNITY22
COLLEGE; AND23
(IV) A
N AREA TECHNICAL COLLEGE , AS DEFINED IN SECTION24
23-60-103
(1).25
(b) "C
REDENTIAL" MEANS A COMPLETED QUALIFIED PROGRAM OF26
STUDY OF LESS THAN ONE YEAR IN DURATION OR OF ONE TO TWO YEARS IN27
HB24-1340
-5- DURATION AND AN ASSOCIATE'S DEGREE OR BACHELOR'S DEGREE THAT IS1
IDENTIFIED IN THE CROSSWALK PURSUANT TO SUBSECTION (5)(b) OF THIS2
SECTION.3
(c) "E
XCESS STATE REVENUES" MEANS, FOR ANY GIVEN STATE4
FISCAL YEAR, THE AMOUNT OF STATE REVENUES , AS DEFINED IN SECTION5
24-77-103.6 (6)(c),
THAT EXCEEDS THE EXCESS STATE REVENUES CAP , AS6
DEFINED IN SECTION 24-77-103.6 (6)(b).7
(d) "I
NCENTIVE" MEANS A REFUNDABLE CREDIT AGAINST THE8
INCOME TAXES IMPOSED BY THIS ARTICLE 22 PROVIDED TO QUALIFYING9
TAXPAYERS.10
(e) "Q
UALIFYING STUDENT GRADUATE " MEANS A GRADUATE OF11
ANY COLORADO INSTITUTION OF HIGHER EDUCATION WITH A CREDENTIAL12
REQUIRED BY OR SUPPORTING A TOP JOB.13
(f) "T
AXPAYER" MEANS A QUALIFYING STUDENT GRADUATE OR14
INDIVIDUAL CLAIMING A QUALIFYING STUDENT GR ADUATE AS A15
DEPENDENT WHO FILES AN INCOME TAX RETURN PURSUANT TO THIS16
ARTICLE 22.17
(g) "T
OP JOB" MEANS A JOB IDENTIFIED IN TABLE 2 ON PAGES 2318
THROUGH 26 OF THE 2023 COLORADO TALENT PIPELINE REPORT PREPARED19
IN ACCORDANCE WITH SECTION 24-46.3-103 (3).20
(3) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY21
1,
2024, BUT PRIOR TO JANUARY 1, 2030, AND SUBJECT TO THE22
LIMITATIONS SET FORTH IN SUBSECTION (3.5) OF THIS SECTION AND THE23
REQUIREMENTS OF SUBSECTION (4) OF THIS SECTION, A TAXPAYER IS24
ALLOWED AN INCENTIVE AGAINST THE INCOME TAXES IMPOSED BY THIS25
ARTICLE 22 IN AN AMOUNT EQUAL TO:26
(a) T
WO HUNDRED FIFTY DOLLARS FOR A QUALIFIED27
HB24-1340
-6- CERTIFICATION PROGRAM THAT IS LESS THAN ONE YEAR IN DURATION ;1
(b) F
IVE HUNDRED DOLLARS FOR A QUALIFIED CERTIFICATION2
PROGRAM THAT IS BETWEEN ONE YEAR AND TWO YEARS IN DURATION ;3
(c) O
NE THOUSAND FIVE HUNDRED DOLLARS FOR A QUALIFYING4
STUDENT GRADUATE OF AN ASSOCIATE 'S DEGREE PROGRAM; OR5
(d) T
HREE THOUSAND DOLLARS FOR A QUALIFYING STUDENT6
GRADUATE OF A BACHELOR 'S DEGREE PROGRAM.7
(3.5) I
F THE REVENUE FORECAST PREPARED BY EITHER8
LEGISLATIVE COUNCIL STAFF OR THE OFFICE OF STATE PLANNING AND9
BUDGETING IN JUNE OF ANY INCOME TAX YEAR FOR WHICH AN INCENTIVE10
IS ALLOWED PURSUANT TO SUBSECTION (3) OF THIS SECTION PROJECTS11
THAT THE AMOUNT OF EXCESS STATE REVENUES FOR THE STATE FISCAL12
YEAR THAT ENDS DURING THE INCOME TAX YEAR WILL BE :13
(a) A
T LEAST FIVE HUNDRED MILLION DOLLARS BUT NO MORE14
THAN SEVEN HUNDRED FIFTY MILLION DOLLARS , THE AMOUNT OF THE15
INCENTIVE ALLOWED IS REDUCED BY FIFTY PERCENT FOR THAT INCOME16
TAX YEAR. 17
(b) L
ESS THAN FIVE HUNDRED MILLION DOLLARS , THE INCENTIVE18
IS NOT ALLOWED FOR THAT INCOME TAX YEAR .19
(4) T
O QUALIFY FOR THE INCENTIVE PROVIDED BY THIS SECTION :20
(a) T
HE QUALIFYING STUDENT GRADUATE MUST HAVE COMPLETED21
THE QUALIFYING STUDENT GRADUATE 'S CREDENTIAL DURING THE INCOME22
TAX YEAR FOR WHICH THE INCENTIVE IS CLAIMED OR THE PRIOR CALENDAR23
YEAR; AND24
(b) T
HE TAXPAYER MUST SUBMIT A CERTIFICATION FORM PROVING25
ELIGIBILITY PROVIDED BY THE COLORADO INSTITUTION OF HIGHER26
EDUCATION GRANTING THE CREDENTIAL TO THE COLORADO DEPARTMENT27
HB24-1340
-7- OF REVENUE.1
(5) T
HE COLORADO DEPARTMENT OF HIGHER EDUCATION SHALL2
COLLABORATE WITH THE COLORADO INSTITUTIONS OF HIGHER EDUCATION3
TO:4
(a) E
STABLISH METHODS TO IDENTIFY AND REPORT ANNUALLY ON5
STUDENT GRADUATES;6
(b) B
Y JULY 31, 2024, CREATE A LIST OF ELIGIBLE CREDENTIAL7
PROGRAMS BY CREATING AN AGREED UPON CROSSWALK BETWEEN8
CREDENTIAL STANDARD OCCUPATIONAL CLASSIFICATION CODES AND THE9
NATIONAL CENTER FOR EDUCATION STATISTICS ' CLASSIFICATION OF10
INSTRUCTIONAL PROGRAMS THAT IS BASED ON THE 2023 COLORADO11
TALENT PIPELINE REPORT PREPARED IN ACCORDANCE WITH SECTION12
24-46.3-103
(3);13
(c) D
EVELOP STANDARD LANGUAGE FOR THE COLORADO14
INSTITUTIONS OF HIGHER EDUCATION TO USE TO NOTIFY QUALIFYING15
STUDENT GRADUATES THAT THEY ARE ELIGIBLE FOR THE INCENTIVE ; AND16
(d) C
REATE A TEMPLATE FOR A CERTIFICATE OF ELIGIBILITY TO BE17
PROVIDED TO QUALIFYING STUDENT GRADUATES BY THE COLORADO18
INSTITUTIONS OF HIGHER EDUCATION.19
(6) T
O ASSIST THE STATE AUDITOR 'S TAX EXPENDITURE20
EVALUATION OF THE INCENTIVE UNDER SECTION 39-21-305 (1)(d), THE21
C
OLORADO DEPARTMENT OF HIGHER EDUCATION SHALL PROVIDE TO THE22
STATE AUDITOR AN ANNUAL REPORT ON THE NUMBER OF GRADUATES23
FROM CREDENTIAL PROGRAMS SUPPORTING TOP JOBS .24
(7) T
HE COLORADO DEPARTMENT OF HIGHER EDUCATION SHALL25
PROVIDE A REPORT TO THE DEPARTMENT OF REVENUE WITH THE SOCIAL26
SECURITY NUMBERS, INCENTIVE AMOUNTS, AND TAX YEARS OF ELIGIBILITY27
HB24-1340
-8- FOR ALL STUDENT GRADUATES ENTITLED TO THE INCENTIVE ON OR BEFORE1
N
OVEMBER 1 OF EACH YEAR FOR STUDENT GRADUATES WHO COMPLETED2
THEIR CREDENTIAL IN THE TWELVE MONTHS PRIOR . IF A SOCIAL SECURITY3
NUMBER IS NOT AVAILABLE , THE COLORADO DEPARTMENT OF HIGHER4
EDUCATION MUST PROVIDE STUDENT IDENTIFICATION NUMBERS FOR5
STUDENT GRADUATES ENTITLED TO THE INCENTIVE .6
(8) T
HE AMOUNT OF THE INCENTIVE ALLOWED UNDER THIS7
SECTION THAT EXCEEDS THE TAXPAYER 'S INCOME TAXES DUE IS REFUNDED8
TO THE TAXPAYER.9
(9) T
HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2032.10
39-22-561. Transfer and four-year college pathways tax credit11
- tax preference performance statement - legislative declaration -12
definitions - repeal. (1) (a) T
HE GENERAL ASSEMBLY FINDS AND13
DECLARES THAT:14
(I) T
HE STATE SHOULD CREATE A PATHWAY TO A FOUR -YEAR15
DEGREE THAT INCENTIVIZES TRANSFERS AND OFFSETS THE COST OF THE16
FOUR-YEAR DEGREE IN RECOGNITION OF CREDITS EARNED IN HIGH SCHOOL17
OR COMMUNITY COLLEGE ;18
(II) I
T IS VITAL TO THE WELL-BEING, QUALITY OF LIFE, AND19
ECONOMIC DEVELOPMENT OF THE STATE THAT THERE EXISTS A20
WORKFORCE THAT HAS ATTAINED A BACHELOR 'S DEGREE OR HIGHER;21
(III) A
CCORDING TO THE 2023 COLORADO TALENT PIPELINE22
REPORT PUBLISHED BY THE COLORADO WORKFORCE DEVELOPMENT23
COUNCIL:24
(A) C
OLORADO HISTORICALLY HAS HAD MORE OPEN JOBS THAN25
AVAILABLE SKILLED TALENT;26
(B) I
N 2023, COLORADO HAD TWO JOB OPENINGS FOR EVERY27
HB24-1340
-9- AVAILABLE WORKER;1
(C) T
HE NUMBER OF EMPLOYERS SEEKING TO FILL ROLES2
REQUIRING AT LEAST A BACHELOR 'S DEGREE INCREASED TWENTY -TWO3
PERCENT OVER THE PRIOR TWELVE MONTHS ; AND4
(D) T
HE MEDIAN SALARY ADVERTISED FOR INDIVIDUALS WITH A5
BACHELOR'S DEGREE OR HIGHER IS ROUGHLY TWICE THE ANNUAL AMOUNT6
RELATIVE TO POSTINGS REQUIRING A HIGH SCHOOL DIPLOMA OR7
EQUIVALENT;8
(IV) T
HE COST OF HIGHER EDUCATION AND STUDENT DEBT CAN BE9
A DETERRENT FOR MANY STUDENTS TO PURSUE AND COMPLETE10
ASSOCIATE'S AND BACHELOR'S DEGREES; AND11
(V) O
FFSETTING THE COST OF A FOUR-YEAR DEGREE ENCOURAGES12
DEGREE COMPLETION, REDUCES STUDENT DEBT, AND PROVIDES INCENTIVE13
FOR STUDENTS TO CONSIDER REENROLLING TO CONTINUE THEIR PROGRESS14
TOWARD A BACHELOR'S DEGREE.15
(b) I
N ACCORDANCE WITH SECTION 39-21-304 (1), WHICH16
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE17
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY18
LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS AND19
DECLARES THAT THE GENERAL LEGISLATIVE PURPOSES OF THIS TAX20
EXPENDITURE ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY21
TAXPAYERS AND PROVIDE TAX RELIEF FOR CERTAIN INDIVIDUALS .22
S
PECIFICALLY, THIS TAX EXPENDITURE IS INTENDED TO ENCOURAGE23
COLLEGE STUDENTS TO COMPLETE CREDIT HOURS AT A COMMUNITY24
COLLEGE OR IN HIGH SCHOOL BEFORE TRANSFERRING TO OR ENTERING25
INTO A FOUR-YEAR INSTITUTION OF HIGHER EDUCATION .26
(c) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL27
HB24-1340
-10- MEASURE THE EFFECTIVENESS OF THE INCENTIVE IN ACHIEVING THE1
PURPOSE SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE2
NUMBER OF ELIGIBLE TRANSFER STUDENTS , DATA ON ENROLLMENT IN3
TWO-YEAR AND FOUR-YEAR DEGREE PROGRAMS , AND THE NUMBER OF4
INCENTIVES THAT ARE CLAIMED.5
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
REQUIRES:7
(a) "C
OLORADO INSTITUTION OF HIGHER EDUCATION " MEANS:8
(I) A
PUBLIC POST-SECONDARY INSTITUTION THAT IS GOVERNED BY9
THE BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY10
SYSTEM; THE BOARD OF REGENTS OF THE UNIVERSITY OF COLORADO; THE11
BOARD OF TRUSTEES OF THE COLORADO SCHOOL OF MINES; THE BOARD OF12
TRUSTEES OF THE UNIVERSITY OF NORTHERN COLORADO; THE BOARD OF13
TRUSTEES OF ADAMS STATE UNIVERSITY; THE BOARD OF TRUSTEES OF14
W
ESTERN COLORADO UNIVERSITY ; THE BOARD OF TRUSTEES OF15
C
OLORADO MESA UNIVERSITY; THE BOARD OF TRUSTEES OF FORT LEWIS16
COLLEGE; THE BOARD OF TRUSTEES OF METROPOLITAN STATE UNIVERSITY17
OF DENVER; OR THE STATE BOARD FOR COMMUNITY COLLEGES AND18
OCCUPATIONAL EDUCATION ;19
(II) A
PRIVATE INSTITUTION OF HIGHER EDUCATION THAT ENTERS20
INTO A PERFORMANCE CONTRACT WITH THE DEPARTMENT OF HIGHER21
EDUCATION PURSUANT TO SECTION 23-18-201 (2) AND AGREES TO22
PARTICIPATE IN THE PROGRAM; AND23
(III) C
OLORADO MOUNTAIN COLLEGE AND AIMS COMMUNITY24
COLLEGE.25
(b) "E
LIGIBLE TRANSFER STUDENT" MEANS:26
(I) A
STUDENT WHO TRANSFERS ANY NUMBER OF CREDIT HOURS27
HB24-1340
-11- FROM A TWO-YEAR COLORADO INSTITUTION OF HIGHER EDUCATION TO A1
FOUR-YEAR COLORADO INSTITUTION OF HIGHER EDUCATION AND2
SUBSEQUENTLY COMPLETES AT LEAST FIFTEEN CREDIT HOURS AT THE3
FOUR-YEAR COLORADO INSTITUTION OF HIGHER EDUCATION ; OR4
(II) A
STUDENT WHO ENTERS INTO A FOUR -YEAR PROGRAM AS A5
FIRST-TIME STUDENT WITH ANY NUMBER OF CREDIT HOURS EARNED FROM6
CONCURRENT ENROLLMENT , AS DEFINED IN SECTION 22-35-103, DUAL7
ENROLLMENT, ADVANCED PLACEMENT, INTERNATIONAL BACCALAUREATE8
COURSES, OR OTHER COLLEGE EQUIVALENT COURSES COMPLETED WHILE9
IN HIGH SCHOOL AND SUBSEQUENTLY COMPLETES AT LEAST FIFTEEN10
CREDIT HOURS AT THE FOUR-YEAR COLORADO INSTITUTION OF HIGHER11
EDUCATION.12
(c) "E
XCESS STATE REVENUES" MEANS, FOR ANY GIVEN STATE13
FISCAL YEAR, THE AMOUNT OF STATE REVENUES , AS DEFINED IN SECTION14
24-77-103.6 (6)(c),
THAT EXCEEDS THE EXCESS STATE REVENUES CAP , AS15
DEFINED IN SECTION 24-77-103.6 (6)(b).16
(d) "I
NCENTIVE" MEANS A REFUNDABLE CREDIT AGAINST THE17
INCOME TAXES IMPOSED BY THIS ARTICLE 22 PROVIDED TO QUALIFYING18
TAXPAYERS.19
(e) "T
AXPAYER" MEANS AN ELIGIBLE TRANSFER STUDENT OR AN20
INDIVIDUAL CLAIMING AN ELIGIBLE TRANSFER STUDENT AS A DEPENDENT21
WHO FILES AN INCOME TAX RETURN PURSUANT TO THIS ARTICLE 22.22
(3) F
OR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY23
1,
2026, BUT PRIOR TO JANUARY 1, 2030, AND SUBJECT TO THE24
LIMITATIONS SET FORTH IN SUBSECTION (3.5) OF THIS SECTION AND THE25
REQUIREMENTS OF SUBSECTION (4) OF THIS SECTION, A TAXPAYER IS26
ALLOWED AN INCENTIVE AGAINST THE INCOME TAXES IMPOSED BY THIS27
HB24-1340
-12- ARTICLE 22 IN AN AMOUNT EQUAL TO FIFTY DOLLARS PER CREDIT HOUR1
TRANSFERRED, UP TO A MAXIMUM OF SIXTY CREDIT HOURS , OR THREE2
THOUSAND DOLLARS.3
(3.5) I
F THE REVENUE FORECAST PREPARED BY EITHER4
LEGISLATIVE COUNCIL STAFF OR THE OFFICE OF STATE PLANNING AND5
BUDGETING IN JUNE OF ANY INCOME TAX YEAR FOR WHICH AN INCENTIVE6
IS ALLOWED PURSUANT TO SUBSECTION (3) OF THIS SECTION PROJECTS7
THAT THE AMOUNT OF EXCESS STATE REVENUES FOR THE STATE FISCAL8
YEAR THAT ENDS DURING THE INCOME TAX YEAR WILL BE :9
(a) A
T LEAST FIVE HUNDRED MILLION DOLLARS BUT NO MORE10
THAN SEVEN HUNDRED FIFTY MILLION DOLLARS , THE AMOUNT OF THE11
INCENTIVE ALLOWED IS REDUCED BY FIFTY PERCENT FOR THAT INCOME12
TAX YEAR.13
(b) L
ESS THAN FIVE HUNDRED MILLION DOLLARS , THE INCENTIVE14
IS NOT ALLOWED FOR THAT INCOME TAX YEAR .15
(4) T
O QUALIFY FOR THE INCENTIVE PROVIDED BY THIS SECTION :16
(a) T
HE ELIGIBLE TRANSFER STUDENT MUST HAVE BECOME17
ELIGIBLE FOR THE INCENTIVE DURING THE INCOME TAX YEAR FOR WHICH18
THE INCENTIVE IS CLAIMED OR THE PRIOR INCOME TAX YEAR ; AND19
(b) T
HE TAXPAYER SHALL SUBMIT A CERTIFICATION FORM PROVING20
ELIGIBILITY PROVIDED BY THE FOUR-YEAR COLORADO INSTITUTION OF21
HIGHER EDUCATION TO THE COLORADO DEPARTMENT OF REVENUE .22
(5) T
HE DEPARTMENT OF HIGHER EDUCATION SHALL COLLABORATE23
WITH THE COLORADO INSTITUTIONS OF HIGHER EDUCATION TO :24
(a) E
STABLISH METHODS TO IDENTIFY AND REPORT ANNUALLY ON25
ALL ELIGIBLE TRANSFER STUDENTS;26
(b) D
EVELOP STANDARD L ANGUAGE FOR THE COLORADO27
HB24-1340
-13- INSTITUTIONS OF HIGHER EDUCATION TO USE TO NOTIFY ELIGIBLE1
TRANSFER STUDENTS THAT THEY ARE ELIGIBLE FOR THE INCENTIVE ; AND2
(c) C
REATE A TEMPLATE FOR A CERTIFICATE OF ELIGIBILITY TO BE3
PROVIDED TO ELIGIBLE TRANSFER STUDENTS BY THE COLORADO4
INSTITUTIONS OF HIGHER EDUCATION.5
(6) T
O ASSIST THE STATE AUDITOR 'S TAX EXPENDITURE6
EVALUATION OF THE INCENTIVE PURSUANT TO SECTION 39-21-305 (1)(d),7
THE COLORADO DEPARTMENT OF HIGHER EDUCATION SHALL PRODUCE A8
REPORT OF THE NUMBER OF ELIGIBLE TRANSFER STUDENTS .9
(7) T
HE COLORADO DEPARTMENT OF HIGHER EDUCATION SHALL10
PROVIDE A REPORT TO THE DEPARTMENT OF REVENUE WITH THE SOCIAL11
SECURITY NUMBERS, INCENTIVE AMOUNTS, AND TAX YEARS OF ELIGIBILITY12
FOR ALL ELIGIBLE TRANSFER STUDENTS ENTITLED TO THE INCENTIVE ON13
OR BEFORE NOVEMBER 1 OF EACH YEAR FOR ELIGIBLE TRANSFER14
STUDENTS WHO COMPLETED AT LEAST FIFTEEN CREDIT HOURS AT THE15
INSTITUTION OF HIGHER EDUCATION WITHIN THE PRIOR TWELVE MONTHS .16
I
F A SOCIAL SECURITY NUMBER IS NOT AVAILABLE , THE COLORADO17
DEPARTMENT OF HIGHER EDUCATION SHALL PROVIDE STUDENT18
IDENTIFICATION NUMBERS FOR ELIGIBLE TRANSFER STUDENTS ENTITLED19
TO THE INCENTIVE.20
(8) T
HE AMOUNT OF THE INCENTIVE ALLOWED UNDER THIS21
SECTION THAT EXCEEDS THE TAXPAYER 'S INCOME TAXES DUE IS REFUNDED22
TO THE TAXPAYER.23
(9) T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2032.24
SECTION 2. Safety clause. The general assembly finds,25
determines, and declares that this act is necessary for the immediate26
preservation of the public peace, health, or safety or for appropriations for27
HB24-1340
-14- the support and maintenance of the departments of the state and state1
institutions.2
HB24-1340
-15-