CO
Colorado House Bill HB1012

Colorado 2025 Regular Session

Colorado House Bill HB1012 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 First Regular Session
22 Seventy-fifth General Assembly
33 STATE OF COLORADO
44 INTRODUCED
55
66
77 LLS NO. 25-0220.01 Jason Gelender x4330
88 HOUSE BILL 25-1012
99 House Committees Senate Committees
1010 Finance
1111 A BILL FOR AN ACT
1212 C
1313 ONCERNING INCOME TAX EXPENDIT URES THAT BENEFIT INDIVIDUALS101
1414 ENGAGED IN MILITARY SERVICE .102
1515 Bill Summary
1616 (Note: This summary applies to this bill as introduced and does
1717 not reflect any amendments that may be subsequently adopted. If this bill
1818 passes third reading in the house of introduction, a bill summary that
1919 applies to the reengrossed version of this bill will be available at
2020 http://leg.colorado.gov/
2121 .)
2222 Legislative Oversight Committee Concerning Tax Policy. The
2323 bill changes how income tax expenditures that benefit individuals
2424 engaged in military service are provided as follows:
2525 ! Beginning with income tax years commencing on or after
2626 January 1, 2027, section 2 of the bill eliminates the state
2727 income tax subtraction for an amount equal to any
2828 HOUSE SPONSORSHIP
2929 Marshall and Joseph,
3030 SENATE SPONSORSHIP
3131 Liston, Frizell, Weissman
3232 Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
3333 Capital letters or bold & italic numbers indicate new material to be added to existing law.
3434 Dashes through the words or numbers indicate deletions from existing law. compensation received for active duty service in the armed
3535 forces of the United States by an individual who has
3636 reacquired residency in the state to the extent that the
3737 compensation is included in federal taxable income; and
3838 ! For income tax years commencing on or after January 1,
3939 2027, but before January 1, 2032, section 3 allows a
4040 refundable income tax credit (credit) as a form of tuition
4141 assistance to an actively serving member of the Colorado
4242 National Guard who is eligible for tuition assistance
4343 (eligible member) under an existing statutorily-authorized
4444 program (program) administered by the department of
4545 veterans and military affairs (department).
4646 To claim the credit, an eligible member must obtain a tax credit
4747 certificate issued by the department for each academic semester or quarter
4848 for which tuition assistance is awarded in the form of the credit.
4949 The criteria for receiving a tax credit certificate are generally the
5050 same as the criteria for receiving other tuition assistance under the
5151 program; except that, to be eligible for a tax credit certificate, an eligible
5252 member must apply for all federal government tuition assistance that is
5353 not required to be repaid and that is generally made available to eligible
5454 members and not to the general population and must use all federal
5555 government tuition assistance received. The total amount of tuition
5656 assistance that an eligible member to whom the department has issued a
5757 tax credit certificate may obtain under the program, including the credit,
5858 is subject to existing program limits. In addition, the department may
5959 issue no more than $1 million in tax credit certificates for any income tax
6060 year.
6161 Section 1 makes conforming amendments.
6262 Be it enacted by the General Assembly of the State of Colorado:1
6363 SECTION 1. In Colorado Revised Statutes, 23-7.4-302, amend2
6464 (2)(a.5), (2)(b) introductory portion, (2)(b)(II), (2)(b)(IV), (2)(c), (2)(d),3
6565 (5), (6), and (7) introductory portion as follows:4
6666 23-7.4-302. Tuition for members of the National Guard -5
6767 definitions. (2) (a.5) A member is eligible for tuition assistance pursuant6
6868 to this section
6969 AND SECTION 39-22-571 to the extent that the sum of the7
7070 member's tuition assistance from all sources, including the federal8
7171 government, does not exceed one hundred percent of the cost of tuition.9
7272 HB25-1012-2- (b) In order to qualify for the tuition assistance authorized by this1
7373 section
7474 AND SECTION 39-22-571, a member:2
7575 (II) Must not be drawing tuition from any other tuition assistance3
7676 program funded by a private employer that, when combined with the4
7777 TUITION assistance in this section AND SECTION 39-22-571, would exceed5
7878 one hundred percent of the tuition costs;6
7979 (IV) Must serve in the Colorado National Guard during the period7
8080 of time that the member is receiving tuition and fee
8181 assistance.8
8282 (c) In providing the tuition assistance to members pursuant to9
8383 subsection (2)(a) of this section
8484 AND SECTION 39-22-571, the department10
8585 of military and veterans affairs is encouraged to consider providing11
8686 assistance on a priority basis to newly-enlisted members in their first term12
8787 of service and who enlist in those military specialties that are13
8888 experiencing shortages as determined by the department.14
8989 (d) For purposes of this section:15
9090 (I) "Member" means an enlisted member or officer of the National16
9191 Guard.17
9292 (II) "T
9393 UITION ASSISTANCE" INCLUDES BOTH TUITION ASSISTANCE18
9494 AWARDED PURSUANT TO THIS SECTION AND AN INCOME TAX CREDIT19
9595 ALLOWED PURSUANT TO SECTION 39-22-571.20
9696 (5) For each individual member of the Colorado National Guard21
9797 who is a continuing student and who is receiving tuition assistance as22
9898 provided in this section
9999 OR IN SECTION 39-22-571, the department of23
100100 military and veterans affairs shall obtain certification from the designated24
101101 institution of higher education prior to the payment to the institution
102102 OR25
103103 THE ISSUANCE OF A TAX CREDIT CERTIFICATE PURSUANT TO SECTION26
104104 39-22-571
105105 (5) attesting to the member's current satisfactory academic27
106106 HB25-1012
107107 -3- standing at the designated institution of higher education, as determined1
108108 by military regulations promulgated pursuant to subsection (7) of this2
109109 section, for each semester or quarter for which tuition assistance is3
110110 requested. Tuition assistance shall not be granted without such4
111111 certification.5
112112 (6) Any member who leaves the Colorado National Guard in6
113113 violation of the member's agreement under subsection (2) of this section7
114114 during an academic term for which the member is receiving tuition8
115115 assistance is required to repay to the department of military and veterans9
116116 affairs the amount of tuition assistance granted
117117 PURSUANT TO THIS10
118118 SECTION for that academic term and any and all collection fees incurred11
119119 by the department of military and veterans affairs. The repayment of
120120 SUCH12
121121 tuition assistance shall
122122 MUST be credited to the Colorado National Guard13
123123 tuition fund created in subsection (9) of this section.14
124124 (7) The department of military and veterans affairs shall15
125125 promulgate military regulations for the administration of tuition16
126126 assistance as provided in this section
127127 AND SECTION 39-22-571, including,17
128128 but not limited to, the following:18
129129 SECTION 2. In Colorado Revised Statutes, 39-22-104, amend19
130130 (4)(u) as follows:20
131131 39-22-104. Income tax imposed on individuals, estates, and21
132132 trusts - single rate - report - tax preference performance statement22
133133 - legislative declaration - definitions - repeal. (4) There shall be23
134134 subtracted from federal taxable income:24
135135 (u) (I) For income tax years commencing on or after January 1,25
136136 2016,
137137 BUT BEFORE JANUARY 1, 2027, an amount equal to any26
138138 compensation received for active duty service in the armed forces of the27
139139 HB25-1012
140140 -4- United States by an individual who has reacquired residency in the state1
141141 pursuant to section 39-22-110.5, to the extent that the compensation is2
142142 included in federal taxable income;3
143143 (II) T
144144 HIS SUBSECTION (4)(u) IS REPEALED, EFFECTIVE DECEMBER4
145145 31,
146146 2031.5
147147 SECTION 3. In Colorado Revised Statutes, add 39-22-571 as6
148148 follows:7
149149 39-22-571. Income tax credit for tuition assistance for eligible8
150150 members of the Colorado National Guard - tax preference9
151151 performance statement - report - definitions - repeal. (1) Tax10
152152 preference performance statement. I
153153 N ACCORDANCE WITH SECTION11
154154 39-21-304
155155 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX12
156156 EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT13
157157 AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE GENERAL14
158158 ASSEMBLY FINDS AND DECLARES THAT :15
159159 (a) T
160160 HE GENERAL LEGISLATIVE PURPOSE OF THE TAX CREDIT16
161161 ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR CERTAIN17
162162 BUSINESSES OR INDIVIDUALS;18
163163 (b) T
164164 HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT19
165165 ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR ELIGIBLE20
166166 MEMBERS OF THE COLORADO NATIONAL GUARD WHO ARE PURSUING21
167167 HIGHER EDUCATION BY PROVIDING ADDITIONAL TUITION ASSISTANCE ; AND 22
168168 (c) T
169169 HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL23
170170 MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE24
171171 PURPOSES SPECIFIED IN SUBSECTIONS (1)(a) AND (1)(b) OF THIS SECTION25
172172 BASED ON THE INFORMATION REQUIRED TO BE MAINTAINED AND REPORTED26
173173 BY THE ADMINISTRATOR PURSUANT TO SUBSECTION (8) OF THIS SECTION.27
174174 HB25-1012
175175 -5- (2) Definitions. A S USED IN THIS SECTION, UNLESS THE CONTEXT1
176176 OTHERWISE REQUIRES:2
177177 (a) "A
178178 DMINISTRATOR" MEANS THE DEPARTMENT OF MILITARY AND3
179179 VETERANS AFFAIRS.4
180180 (b) "D
181181 EPARTMENT" MEANS THE DEPARTMENT OF REVENUE .5
182182 (c) "E
183183 LIGIBLE MEMBER" MEANS AN ENLISTED MEMBER OR OFFICER6
184184 OF THE COLORADO NATIONAL GUARD WHO IS ELIGIBLE FOR TUITION7
185185 ASSISTANCE PURSUANT TO SECTION 23-7.4-302.8
186186 (d) "Q
187187 UALIFIED INDIVIDUAL" MEANS AN ELIGIBLE MEMBER TO9
188188 WHOM THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE .10
189189 (e) "R
190190 ULES" MEANS THE MILITARY REGULATIONS FOR THE11
191191 ADMINISTRATION OF TUITION ASSISTANCE PROMULGATED BY THE12
192192 ADMINISTRATOR PURSUANT TO SECTION 23-7.4-302 (7).13
193193 (f) "T
194194 AX CREDIT" MEANS THE INCOME TAX CREDIT ALLOWED14
195195 PURSUANT TO THIS SECTION.15
196196 (g) "T
197197 AX CREDIT CERTIFICATE" MEANS A CERTIFICATE ISSUED BY16
198198 THE ADMINISTRATOR TO A QUALIFIED INDIVIDUAL PURSUANT TO17
199199 SUBSECTION (5) OF THIS SECTION.18
200200 (h) "T
201201 UITION ASSISTANCE" INCLUDES BOTH TUITION ASSISTANCE19
202202 AWARDED PURSUANT TO SECTION 23-7.4-302 AND A TAX CREDIT ALLOWED20
203203 PURSUANT TO THIS SECTION.21
204204 (3) Tax credit allowed. (a) F
205205 OR INCOME TAX YEARS COMMENCING22
206206 ON OR AFTER JANUARY 1, 2027, BUT BEFORE JANUARY 1, 2032, A23
207207 QUALIFIED INDIVIDUAL IS ALLOWED A CREDIT AGAINST THE INCOME TAXES24
208208 IMPOSED BY THIS ARTICLE 22 IN THE AMOUNT SET FORTH IN THE TAX25
209209 CREDIT CERTIFICATE ISSUED TO THE QUALIFIED INDIVIDUAL .26
210210 (b) T
211211 O CLAIM A TAX CREDIT, A QUALIFIED INDIVIDUAL MUST FILE27
212212 HB25-1012
213213 -6- A TAX CREDIT CERTIFICATE WITH THE QUALIFIED INDIVIDUAL 'S INCOME1
214214 TAX RETURN.2
215215 (4) Application submission and review. (a) A
216216 N ELIGIBLE3
217217 MEMBER WHO INTENDS TO CLAIM A TAX CREDIT MUST SUBMIT AN4
218218 APPLICATION TO THE ADMINISTRATOR FOR TUITION ASSISTANCE IN5
219219 ACCORDANCE WITH THE RULES .6
220220 (b) W
221221 HEN REVIEWING AN APPLICATION FOR TUITION ASSISTANCE7
222222 FILED BY AN ELIGIBLE MEMBER , THE ADMINISTRATOR, TAKING INTO8
223223 ACCOUNT THE FACTORS SET FORTH IN SECTION 23-7.4-302 (7)(a), THE9
224224 REQUIREMENT SET FORTH IN SUBSECTION (4)(c) OF THIS SECTION, AND ANY10
225225 ADDITIONAL FACTORS IN THE RULES, SHALL DETERMINE HOW MUCH TOTAL11
226226 TUITION ASSISTANCE, IF ANY, TO AWARD TO THE ELIGIBLE MEMBER AND12
227227 THE AMOUNTS OF SUCH TUITION ASSISTANCE TO BE AWARDED PURSUANT13
228228 TO SECTION 23-7.4-302 AND AS A TAX CREDIT.14
229229 (c) T
230230 O BE ELIGIBLE FOR A TAX CREDIT CERTIFICATE, AN ELIGIBLE15
231231 MEMBER MUST APPLY FOR ALL FEDERAL GOVERNMENT TUITION16
232232 ASSISTANCE THAT IS NOT REQUIRED TO BE REPAID AND THAT IS17
233233 GENERALLY MADE AVAILABLE TO MEMBERS OF THE COLORADO NATIONAL18
234234 G
235235 UARD AND NOT TO THE GENERAL POPULATION AND MUST USE ALL19
236236 FEDERAL GOVERNMENT TUITION ASSISTANCE RECEIVED .20
237237 (5) Tax credit certificates. (a) S
238238 UBJECT TO THE LIMITATIONS SET21
239239 FORTH IN SUBSECTION (5)(b) OF THIS SECTION, IF THE ADMINISTRATOR22
240240 DETERMINES THAT AN ELIGIBLE MEMBER SHOULD RECEIVE TUITION23
241241 ASSISTANCE IN THE FORM OF A TAX CREDIT, THE ADMINISTRATOR SHALL24
242242 ISSUE TO THE ELIGIBLE MEMBER A TAX CREDIT CERTIFICATE FOR EACH25
243243 ACADEMIC SEMESTER OR QUARTER FOR WHICH SUCH TUITION ASSISTANCE26
244244 IS BEING AWARDED THAT INDICATES THE INCOME TAX YEAR FOR WHICH27
245245 HB25-1012
246246 -7- SUCH TUITION ASSISTANCE IS BEING AWARDED AND THE AMOUNT OF SUCH1
247247 TUITION ASSISTANCE TO BE AWARDED .2
248248 (b) T
249249 HE ISSUANCE OF TAX CREDIT CERTIFICATES PURSUANT TO3
250250 SUBSECTION (5)(a) OF THIS SECTION IS SUBJECT TO THE FOLLOWING4
251251 LIMITATIONS:5
252252 (I) T
253253 HE MAXIMUM AGGREGATE AMOUNT OF TAX CREDIT6
254254 CERTIFICATES THAT THE ADMINISTRATOR MAY ISSUE TO ALL QUALIFIED7
255255 INDIVIDUALS FOR ANY INCOME TAX YEAR IS ONE MILLION DOLLARS ;8
256256 (II) A
257257 TAX CREDIT CERTIFICATE MUST BE ISSUED FOR THE INCOME9
258258 TAX YEAR DURING WHICH THE SEMESTER OR QUARTER FOR WHICH THE10
259259 TUITION ASSISTANCE IN THE FORM OF A TAX CREDIT IS AWARDED BEGINS ;11
260260 AND12
261261 (III) T
262262 HE MAXIMUM AMOUNT OF A TAX CREDIT CERTIFICATE13
263263 ISSUED TO A QUALIFIED INDIVIDUAL IS THE MAXIMUM AMOUNT OF TUITION14
264264 ASSISTANCE THAT THE ADMINISTRATOR MAY AWARD TO AN ELIGIBLE15
265265 MEMBER FOR AN ACADEMIC SEMESTER OR QUARTER , AS APPLICABLE,16
266266 PURSUANT TO SECTION 23-7.4-302 AND IS SPECIFICALLY SUBJECT TO THE17
267267 LIMITATION SET FORTH IN SECTION 23-7.4-302 (2)(a.5).18
268268 (6) Refundability. I
269269 F THE AMOUNT OF A TAX CREDIT EXCEEDS THE19
270270 AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF A20
271271 QUALIFIED INDIVIDUAL IN THE INCOME TAX YEAR FOR WHICH THE TAX21
272272 CREDIT IS CLAIMED, THE AMOUNT OF THE TAX CREDIT NOT USED AS AN22
273273 OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS REFUNDED TO23
274274 THE QUALIFIED INDIVIDUAL.24
275275 (7) Revocation of tax credit certificate and recapture of tax25
276276 credit. I
277277 F, IN ACCORDANCE WITH SECTION 23-7.4-302 AND THE RULES, A26
278278 QUALIFIED INDIVIDUAL TO WHOM THE ADMINISTRATOR HAS ISSUED A TAX27
279279 HB25-1012
280280 -8- CREDIT CERTIFICATE SUBSEQUENTLY FAILS TO FULFILL ALL REQUIREMENTS1
281281 FOR RECEIVING THE TUITION ASSISTANCE PROVIDED IN THE FORM OF A TAX2
282282 CREDIT THAT IS SPECIFIED ON THE TAX CREDIT CERTIFICATE , THE3
283283 ADMINISTRATOR SHALL REVOKE THE TAX CREDIT CERTIFICATE AND4
284284 NOTIFY THE QUALIFIED INDIVIDUAL AND THE DEPARTMENT OF THE5
285285 REVOCATION AND THE TAX CREDIT IS DISALLOWED . IF THE TAX CREDIT6
286286 HAS ALREADY BEEN ALLOWED TO THE QUALIFIED INDIVIDUAL BEFORE THE7
287287 DEPARTMENT RECEIVES NOTICE OF THE REVOCATION OF THE TAX CREDIT8
288288 CERTIFICATE, THE QUALIFIED INDIVIDUAL SHALL ADD THE FULL AMOUNT9
289289 OF THE TAX CREDIT THAT WAS ACTUALLY USED TO OFFSET THE QUALIFIED10
290290 INDIVIDUAL'S INCOME OR REFUNDED TO THE QUALIFIED INDIVIDUAL TO11
291291 THE QUALIFIED INDIVIDUAL'S INCOME TAX RETURN FOR THE NEXT INCOME12
292292 TAX YEAR AS A RECAPTURED TAX CREDIT FOR THE INCOME TAX YEAR FOR13
293293 WHICH THE TAX CREDIT CERTIFICATE IS REVOKED PURSUANT TO THIS14
294294 SUBSECTION (7).15
295295 (8) Reporting. (a) N
296296 O LATER THAN DECEMBER 31, 2028, AND,16
297297 NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), NO17
298298 LATER THAN DECEMBER 31 OF EACH YEAR THEREAFTER THROUGH 2032,18
299299 THE ADMINISTRATOR SHALL PROVIDE A WRITTEN REPORT TO THE GENERAL19
300300 ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE20
301301 PUBLIC. IN CONNECTION WITH TAX CREDITS, THE REPORT MUST INCLUDE:21
302302 (I) T
303303 HE NUMBER OF TAX CREDIT CERTIFICATES ISSUED ;22
304304 (II) T
305305 HE AGGREGATE AMOUNT OF TUITION ASSISTANCE PROVIDED23
306306 THROUGH TAX CREDITS AND THE AVERAGE AMOUNT OF SUCH TUITION24
307307 ASSISTANCE PROVIDED TO EACH QUALIFIED INDIVIDUAL TO WHOM THE25
308308 ADMINISTRATOR HAS ISSUED A TAX CREDIT CERTIFICATE ; AND26
309309 (III) T
310310 HE AMOUNT OF ANY TAX CREDIT RECAPTURED DUE TO27
311311 HB25-1012
312312 -9- REVOCATION OF A TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (7)1
313313 OF THIS SECTION.2
314314 (b) T
315315 HE ADMINISTRATOR SHALL , IN A SUFFICIENTLY TIMELY3
316316 MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING4
317317 THE CREDIT, PROVIDE THE DEPARTMENT WITH AN ELECTRONIC REPORT OF5
318318 EACH QUALIFIED INDIVIDUAL TO WHOM THE ADMINISTRATOR ISSUES ONE6
319319 OR MORE TAX CREDIT CERTIFICATES FOR THE PRECEDING INCOME TAX7
320320 YEAR THAT INCLUDES THE FOLLOWING INFORMATION :8
321321 (I) T
322322 HE QUALIFIED INDIVIDUAL'S NAME;9
323323 (II) T
324324 HE TOTAL AMOUNT OF THE TAX CREDIT AUTHORIZED TO BE10
325325 CLAIMED BY THE QUALIFIED INDIVIDUAL AND , IF MULTIPLE TAX CREDIT11
326326 CERTIFICATES WERE ISSUED TO A QUALIFIED INDIVIDUAL, THE AMOUNT OF12
327327 THE TAX CREDIT AUTHORIZED TO BE CLAIMED BY THE QUALIFIED13
328328 INDIVIDUAL THAT IS SPECIFIED ON EACH TAX CREDIT CERTIFICATE ; AND14
329329 (III) T
330330 HE QUALIFIED INDIVIDUAL'S SOCIAL SECURITY NUMBER OR,15
331331 IF THE QUALIFIED INDIVIDUAL IS NOT A UNITED STATES CITIZEN, THE16
332332 QUALIFIED INDIVIDUAL'S INDIVIDUAL TAXPAYER IDENTIFICATION NUMBER .17
333333 (9) Repeal. T
334334 HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31,18
335335 2036.19
336336 SECTION 4. Act subject to petition - effective date. This act20
337337 takes effect at 12:01 a.m. on the day following the expiration of the21
338338 ninety-day period after final adjournment of the general assembly; except22
339339 that, if a referendum petition is filed pursuant to section 1 (3) of article V23
340340 of the state constitution against this act or an item, section, or part of this24
341341 act within such period, then the act, item, section, or part will not take25
342342 effect unless approved by the people at the general election to be held in26
343343 HB25-1012
344344 -10- November 2026 and, in such case, will take effect on the date of the1
345345 official declaration of the vote thereon by the governor.2
346346 HB25-1012
347347 -11-