Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0501.05 Jessica Herrera x4218
HOUSE BILL 24-1340
House Committees Senate Committees
Education
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF I NCENTIVES AGAINST THE STATE101
INCOME TAX FOR STUDENTS PURSUING POST -SECONDARY102
CREDENTIALS, AND, IN CONNECTION THEREWITH, MAKING AN103
APPROPRIATION.104
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,
HOUSE
3rd Reading Unamended
May 4, 2024
HOUSE
Amended 2nd Reading
May 3, 2024
HOUSE SPONSORSHIP
Bird and Taggart, Amabile, Boesenecker, Catlin, deGruy Kennedy, English, Froelich,
Hamrick, Hernandez, Herod, Jodeh, Joseph, Lieder, Lukens, Mabrey, Mauro, McCluskie,
McLachlan, Ortiz, Ricks, Rutinel, Sirota, Snyder, Soper, Titone, Valdez, Velasco, Weissman,
Young
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. 2030, the first incentive is available to a graduate of any Colorado
institution of higher education with a credential required or supported by
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 as2
follows:3
39-22-560. Tuition and fee tax credit for qualifying students4
- tax preference performance statement - legislative declaration -5
definitions - repeal. (1) (a) THE GENERAL ASSEMBLY FINDS,6
DETERMINES, AND DECLARES THAT:7
(I) THE COST OF HIGHER EDUCATION AND STUDENT DEBT CAN BE8
A DETERRENT FOR MANY STUDENTS TO PURSUE POST-SECONDARY9
1340-2- CREDENTIALS;1
(II) BETWEEN 2012 AND 2023, THE SHARE OF STUDENTS GOING TO2
INSTITUTIONS IN OTHER STATES INCREASED FROM NINETEEN AND3
ONE-HALF PERCENT TO TWENTY-NINE AND ONE-TENTH PERCENT. DURING4
THIS TIME, ENROLLMENT AT COLORADO PUBLIC INSTITUTIONS DECLINED5
WHILE THE COLORADO POPULATION OF INDIVIDUALS IN THE AGE RANGE OF6
EIGHTEEN THROUGH TWENTY -FOUR INCREASED;7
(III) TARGETED FINANCIAL SUPPORT TOWARDS THE COST OF8
ATTENDANCE CAN HALT THIS TREND BY MAKING PUBLIC COLORADO9
INSTITUTIONS MORE AFFORDABLE TO STUDENTS THAN OUT-OF-STATE10
INSTITUTIONS AND CAN HELP STABILIZE COLORADO PUBLIC INSTITUTIONS'11
FINANCES, WHICH WILL ALSO REDUCE RISK TO THE STATE 'S BUDGET IN12
SUPPORT OF THE PUBLIC INSTITUTIONS;13
(IV) THE COSTS OF HIGHER EDUCATION ARE A BARRIER TO MANY14
STUDENTS. REDUCING THOSE COSTS AND STUDENT DEBT CAN HELP15
STUDENTS NOT ONLY ATTEND COLLEGE BUT ALSO BE FINANCIALLY16
SUCCESSFUL; AND17
(V) TO CONTINUE TO STRENGTHEN THE EDUCATIONAL PIPELINE , A18
FINANCIAL INCENTIVE SHOULD BE PROVIDED TO LOW- AND MIDDLE-19
INCOME POST-SECONDARY COLORADO STUDENTS.20
(b) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH21
REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE22
A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY23
LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY FINDS AND24
DECLARES THAT THE GENERAL LEGISLATIVE PURPOSES OF THIS TAX25
EXPENDITURE ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY26
TAXPAYERS AND PROVIDE TAX RELIEF FOR CERTAIN INDIVIDUALS .27
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-3- SPECIFICALLY, THIS TAX EXPENDITURE IS INTENDED TO ENCOURAGE1
ENROLLMENT IN PUBLIC COLORADO INSTITUTIONS OF HIGHER EDUCATION2
AND REDUCE STUDENT DEBT .3
(c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL4
MEASURE THE EFFECTIVENESS OF THE INCENTIVE IN ACHIEVING THE5
PURPOSE SPECIFIED IN SUBSECTION (1)(b) OF THIS SECTION BASED ON THE6
NUMBER OF INCENTIVES THAT ARE CLAIMED .7
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE8
REQUIRES:9
(a) "COLORADO PUBLIC INSTITUTION OF HIGHER EDUCATION "10
MEANS:11
(I) A PUBLIC, POST-SECONDARY INSTITUTION THAT IS GOVERNED12
BY THE BOARD OF GOVERNORS OF THE COLORADO STATE UNIVERSITY13
SYSTEM, THE BOARD OF REGENTS OF THE UNIVERSITY OF COLORADO, THE14
BOARD OF TRUSTEES OF THE COLORADO SCHOOL OF MINES, THE BOARD OF15
TRUSTEES OF THE UNIVERSITY OF NORTHERN COLORADO, THE BOARD OF16
TRUSTEES OF ADAMS STATE UNIVERSITY, THE BOARD OF TRUSTEES OF17
WESTERN COLORADO UNIVERSITY, THE BOARD OF TRUSTEES OF18
COLORADO MESA UNIVERSITY, THE BOARD OF TRUSTEES OF FORT LEWIS19
COLLEGE, THE BOARD OF TRUSTEES OF METROPOLITAN STATE UNIVERSITY20
OF DENVER, OR THE STATE BOARD FOR COMMUNITY COLLEGES AND21
OCCUPATIONAL EDUCATION ; 22
(II) AN AREA TECHNICAL COLLEGE , AS DEFINED IN SECTION23
23-60-103 (1); OR24
(III) COLORADO MOUNTAIN COLLEGE AND AIMS COMMUNITY25
COLLEGE.26
(b) "ELIGIBLE STUDENT" MEANS AN INDIVIDUAL WHO:27
1340
-4- (I) HAS MATRICULATED AT A COLORADO PUBLIC INSTITUTION OF1
HIGHER EDUCATION WITHIN TWO YEARS OF COMPLETION OF HIGH SCHOOL2
GRADUATION OR AN EQUIVALENT IN COLORADO;3
(II) IS DESIGNATED AS A DEGREE OR CREDENTIAL SEEKING4
STUDENT FOR THE SEMESTER OR TERM FOR WHICH AN INCENTIVE IS5
CLAIMED;6
(III) QUALIFIES FOR IN-STATE TUITION, AS DESCRIBED IN ARTICLE7
7 OF TITLE 23, FOR THE SEMESTER OR TERM FOR WHICH THE INCENTIVE IS8
CLAIMED;9
(IV) HAS COMPLETED A FREE APPLICATION FOR FEDERAL STUDENT10
AID (FAFSA) OR COLORADO APPLICATION FOR STATE FINANCIAL AID11
(CASFA) FOR THE SEMESTER OR TERM FOR WHICH AN INCENTIVE IS12
CLAIMED THAT INDICATES THAT THE STUDENT 'S HOUSEHOLD HAS AN13
ADJUSTED GROSS INCOME THAT IS NINETY THOUSAND DOLLARS OR LESS ; 14
(V) IS ENROLLED IN AT LEAST SIX CREDIT HOURS OR EQUIVALENT15
FOR THE SEMESTER OR TERM FOR WHICH THE INCENTIVE IS CLAIMED; AND 16
(VI) HAS A GRADE POINT AVERAGE OF 2.5 OR HIGHER FOR THE17
SEMESTER OR TERM FOR WHICH THE INCENTIVE IS CLAIMED18
(c) "INCENTIVE" MEANS THE REFUNDABLE CREDIT .19
(d) "SCHOLARSHIPS OR GRANTS" MEANS THE SUM OF ANY AMOUNT20
PAID FOR THE BENEFIT OF AN ELIGIBLE STUDENT THAT ARE REQUIRED TO21
BE TAKEN INTO ACCOUNT PURSUANT TO SECTION 25A (g)(2) OF THE22
INTERNAL REVENUE CODE."23
(e) "TUITION AND FEES" HAS THE SAME MEANING AS "QUALIFIED24
TUITION AND RELATED EXPENSES" AS DEFINED IN SECTION 25A (f)(1) OF25
THE INTERNAL REVENUE CODE THAT ARE PAID BY OR FOR THE BENEFIT OF26
AN ELIGIBLE STUDENT.27
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-5- (3) FOR EACH INCOME TAX YEAR COMMENCING ON OR AFTER1
JANUARY 1, 2025, BUT PRIOR TO JANUARY 1, 2033, AND SUBJECT TO THE2
REQUIREMENTS OF SUBSECTION (4) OF THIS SECTION, AN ELIGIBLE3
STUDENT IS ALLOWED AN INCENTIVE AGAINST THE INCOME TAXES IMPOSED4
BY THIS ARTICLE 22 IN AN AMOUNT EQUAL TO THE AMOUNT PAID BY OR5
FOR THE BENEFIT OF THE ELIGIBLE STUDENT IN TUITION AND FEES MINUS6
ANY SCHOLARSHIPS OR GRANTS WITH RESPECT TO THE FIRST SIXTY-FIVE7
ACADEMIC CREDIT HOURS OR EQUIVALENT ACCUMULATED AT A8
COLORADO PUBLIC INSTITUTION OF HIGHER EDUCATION EXCLUDING9
CREDITS EARNED THROUGH CONCURRENT ENROLLMENT , ADVANCED10
PLACEMENT, THE INTERNATIONAL BACCALAUREATE PROGRAM , MILITARY11
CREDITS, AND ANY OTHER CREDITS ACCUMULATED PRIOR TO12
MATRICULATION AT A COLORADO PUBLIC INSTITUTION OF HIGHER13
EDUCATION.14
(4) TO QUALIFY FOR THE INCENTIVE PROVIDED BY THIS SECTION, 15
AN ELIGIBLE STUDENT MUST BE INCLUDED IN THE REPORT REQUIRED BY16
SUBSECTION (5) OF THIS SECTION TO BE SUBMITTED BY A COLORADO17
INSTITUTION OF HIGHER EDUCATION TO THE COLORADO DEPARTMENT OF18
REVENUE.19
(5) (a) A COLORADO PUBLIC INSTITUTION OF HIGHER EDUCATION20
IS REQUIRED BY JANUARY 31, 2026, AND EVERY JANUARY 31 THEREAFTER21
UNTIL 2037, TO ELECTRONICALLY REPORT EACH ELIGIBLE STUDENT FOR22
ANY SEMESTER OR TERM COMPLETED DURING THE PRIOR CALENDAR YEAR23
IN A FORMAT PRESCRIBED BY THE EXECUTIVE DIRECTOR OF THE24
DEPARTMENT OF REVENUE THAT INCLUDES :25
(I) THE STUDENT'S TAX IDENTIFICATION NUMBER OR SOCIAL26
SECURITY NUMBER; AND27
1340
-6- (II) THE AMOUNT OF TUITION AND FEES PAID MINUS ANY1
SCHOLARSHIPS OR GRANTS, WHICH IS ALSO INCLUDED IN THE STUDENT'S2
1098-T FORM FOR THAT PRIOR CALENDAR YEAR .3
(b) THE COLORADO PUBLIC INSTITUTION OF HIGHER EDUCATION4
SHALL PROVIDE EACH ELIGIBLE STUDENT WITH A STATEMENT CONTAINING5
THE INFORMATION PERTAINING TO THAT STUDENT'S ELIGIBILITY AND6
INCENTIVE AMOUNT REPORTED TO THE DEPARTMENT OF REVENUE7
PURSUANT TO SUBSECTION (5)(a) OF THIS SECTION.8
(6) THE AMOUNT OF THE INCENTIVE ALLOWED UNDER THIS9
SECTION THAT EXCEEDS THE AN ELIGIBLE STUDENT'S INCOME TAXES DUE10
IS REFUNDED TO THE TAXPAYER.11
(7) (a) THE DEPARTMENT OF HIGHER EDUCATION , IN CONSULTATION12
WITH COLORADO PUBLIC INSTITUTIONS OF HIGHER EDUCATION, SHALL13
DETERMINE EACH INSTITUTION'S AVERAGE PERCENTAGE OF STATE AND14
INSTITUTIONAL FINANCIAL AID ALLOCATED TO THE RESIDENT STUDENT15
POPULATION WHO HAVE A FAMILY INCOME OF NINETY THOUSAND DOLLARS16
OR LESS IN EACH YEAR OF THE THREE YEARS PRIOR TO 2025.17
(b) ON OR BEFORE JUNE 30, 2027, AND EACH YEAR THEREAFTER18
UNTIL 2037, THE DEPARTMENT OF HIGHER EDUCATION SHALL SUBMIT A19
REPORT TO THE JOINT BUDGET COMMITTEE AND THE HOUSE OF20
REPRESENTATIVES AND SENATE EDUCATION COMMITTEES, OR ANY21
SUCCESSOR COMMITTEES, INCLUDING, FOR EACH INSTITUTION, THE22
AVERAGE PERCENTAGE OF STATE AND INSTITUTIONAL FINANCIAL AID23
ALLOCATED TO THE RESIDENT STUDENT POPULATION WHO HAVE A FAMILY24
INCOME OF NINETY THOUSAND DOLLARS OR LESS IN THE THREE YEARS25
PRIOR TO 2025, AND IN EACH YEAR THEREAFTER. THE DEPARTMENT OF26
HIGHER EDUCATION SHALL INCLUDE IN THE REPORT STUDENT27
1340
-7- ENROLLMENT INFORMATION FOR ELIGIBLE AND NON-ELIGIBLE STUDENTS,1
DISAGGREGATED BY INCOME , AND SHALL INCLUDE, ONCE THE DATE IS2
AVAILABLE, DISAGGREGATED OUTCOME MEASURES BY INCOME FOR3
ELIGIBLE AND NON-ELIGIBLE STUDENTS, INCLUDING BUT NOT LIMITED TO4
STUDENT RETENTION AND COMPLETION RATES. EACH COLORADO PUBLIC5
INSTITUTION OF HIGHER EDUCATION SHALL ANNUALLY REPORT STUDENT6
LEVEL FINANCIAL AID, STUDENT ELIGIBILITY, AND INCENTIVE ELIGIBILITY7
INFORMATION TO THE DEPARTMENT OF HIGHER EDUCATION THAT THE8
DEPARTMENT OF HIGHER EDUCATION DEEMS NECESSARY TO PROVIDE TO9
THE DEPARTMENT OF REVENUE FOR INCENTIVE ADMINISTRATION OR FOR10
INCLUSION IN THE REPORT.11
(7) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.12
SECTION 2. Appropriation. (1) For the 2024-25 state fiscal13
year, $285,006 is appropriated to the department of revenue for use by the14
taxation business group. This appropriation is from the general fund. To15
implement this act, the group may use this appropriation as follows:16
(a) $219,398 for personal services, which amount is based on an17
assumption that the division will require an additional 3.6 FTE;18
(b) $37,958 for operating expenses; 19
(c) $3,875 for IDS print production; and20
(d) $23,775 for tax administration IT system (GenTax) support.21
(2) For the 2024-25 state fiscal year, $8,890 is appropriated to the22
department of revenue for use by the executive director's office. This23
appropriation is from the general fund. To implement this act, the office24
may use this appropriation for personal services.25
(3) For the 2024-25 state fiscal year, $3,875 is appropriated to the26
department of personnel for use by the division of central services. This27
1340
-8- appropriation is from reappropriated funds received from the department1
of revenue under subsection (1)(c) of this section. To implement this act,2
the department of personnel may use this appropriation to provide3
document management services for the department of revenue. 4
(4) For the 2024-25 state fiscal year, $123,772 is appropriated to the5
department of higher education for use by the Colorado commission on6
higher education and higher education special purpose programs. This7
appropriation is from the general fund and is based on the assumption that8
the commission will require an additional 1.5 FTE. To implement this act,9
the commission may use this appropriation for administration.10
SECTION 3. Act subject to petition - effective date. This act11
takes effect at 12:01 a.m. on the day following the expiration of the12
ninety-day period after final adjournment of the general assembly; except13
that, if a referendum petition is filed pursuant to section 1 (3) of article V14
of the state constitution against this act or an item, section, or part of this15
act within such period, then the act, item, section, or part will not take16
effect unless approved by the people at the general election to be held in17
November 2024 and, in such case, will take effect on the date of the18
official declaration of the vote thereon by the governor.19
1340
-9-