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HB24-1311

Family Affordability Tax Credit

Concerning the creation of a family affordability tax credit.
Session:
2024 Regular Session
Subjects:
Children & Domestic Matters
Fiscal Policy & Taxes
State Government
Bill Summary

For income tax years commencing on and after January 1, 2024, the bill creates a family affordability tax credit (credit) as follows:

  • For each of a taxpayer's eligible children 5 years of age or younger, a taxpayer filing a single return with adjusted gross income of $15,000 or less and taxpayers filing a joint return with adjusted gross income of $25,000 or less can claim a $3,200 credit;
  • For each of a taxpayer's eligible children 5 years of age or younger, a taxpayer filing a single return with adjusted gross income between $15,000 and $85,000 and taxpayers filing a joint return with adjusted gross income between $25,000 and $95,000 can claim a credit, the amount of which is reduced by $220 from $3,200 for every $5,000 above $15,000 or $25,000 of adjusted gross income that the resident individual or individuals make;
  • For each of a taxpayer's eligible children between the ages of 6 and 16, a taxpayer filing a single return with adjusted gross income of $15,000 or less and taxpayers filing a joint return with adjusted gross income of $25,000 or less can claim $2,400; and
  • For each of a taxpayer's eligible children between the ages of 6 and 16, a taxpayer filing a single return with adjusted gross income between $15,000 and $85,000 and taxpayers filing a joint return with adjusted gross income between $25,000 and $95,000 can claim a credit, the amount of which is reduced by $165 from $2,400 for every $5,000 above $15,000 or $25,000 of adjusted gross income that the resident individual or individuals make.The bill also provides that the full amount of the credit can only be claimed for an income tax year in which there are projected to be excess state revenues for the fiscal year that ends during the income tax year that are required to be refunded pursuant to section 20 (7)(d) of article X of the state constitution in an amount that will equal or exceed the amount required to be refunded pursuant to the homestead property tax exemption plus the projected full amount of the credit. For an income tax year in which there are projected to be excess state revenues for the fiscal year that ends during the income tax year that will exceed the amount required to be refunded pursuant to the homestead property tax exemption but will not exceed that amount plus the projected aggregate amount of the credit that may be claimed in that income tax year, the credit will be allowed but will be reduced proportionally so that the aggregate amount of the credit available is equal to the amount of excess state revenues remaining to be refunded. For an income tax year in which there is not projected to be excess state revenues for the fiscal year that ends during the income tax year or the amount of such excess state revenues required to be refunded will be less than the amount required to be refunded pursuant to the homestead property tax exemption, the credit is not allowed for that income tax year. The department of revenue is authorized and encouraged to develop a means of paying the credit in 12 equal monthly payments rather than annually.
    (Note: This summary applies to this bill as introduced.)

Status

Introduced
Under Consideration

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Bill Text

Colorado legislature email addresses ending in @state.co.us are no longer active. Please replace @state.co.us with @coleg.gov for Colorado legislature email addresses. Details

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details