Incentives for Post-Secondary Education

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 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.
  (Note: This summary applies to this bill as introduced.)