Income Tax Credit For Early Childhood Educators

Income tax - tax credit - eligible early childhood educators. The act provides a refundable income tax credit to an eligible early childhood educator with a federal adjusted gross income less than or equal to $75,000 for an individual filing a single return, or less than or equal to $85,000 for an individual filing a joint return, who, for at least 6 months of the taxable year for which the credit is claimed, holds an early childhood professional credential and is either the licensee of an eligible program or employed by an eligible program. The act specifies that an eligible program means either an early childhood education program or a licensed family child care home and the eligible program must have held at least a level 2 quality rating under the Colorado shines quality rating and improvement system for the income tax year for which the credit is claimed and, for the income tax year for which the credit is claimed, either have fiscal agreements with the Colorado child care assistance program or be a program that meets the federal early head start or head start standards. The amount of the credit is dependent on the eligible early childhood educator's credentialing level and is annually adjusted for inflation. The department of human services is required to provide to the department of revenue an annual report of each individual who held an early childhood professional credential during the previous calendar year for which the income tax credit is allowed.

The act takes effect only if, at the November 2019 statewide election, a majority of voters do not approve a referred measure that allows the state to increase the cigarette tax, increase the tobacco products tax, and to create a new tax on nicotine products and use a significant portion of the tax revenue for preschool programs and expanded learning opportunities. If the voters at the November 2019 statewide election do not approve such a measure, then the act takes effect on the date of the official declaration of the vote thereon by the governor.

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