summary
Introduced
01/29/2024
01/29/2024
In Committee
05/04/2024
05/04/2024
Crossed Over
05/10/2024
05/10/2024
Passed
05/10/2024
05/10/2024
Dead
Signed/Enacted/Adopted
05/14/2024
05/14/2024
Introduced Session
2024 Regular Session
Bill Summary
CONCERNING ADJUSTMENTS TO EXISTING INCOME TAX EXPENDITURES TO REDUCE TAXPAYER BURDEN, AND, IN CONNECTION THEREWITH, MAKING ADJUSTMENTS TO THE CREDIT FOR CHILD AND DEPENDENT CARE EXPENSES; INCREASING THE VALUE OF THE EARNED INCOME TAX CREDIT AS A PERCENTAGE OF THE FEDERAL CREDIT FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2024; REPEALING OBSOLETE PROVISIONS CONCERNING THE CORPORATE INCOME TAX; AND MAKING THE STATE'S CORPORATE INCOME TAX MORE UNIFORM COMPARED TO OTHER STATES BY REPLACING THE CURRENT COMBINED REPORTING STANDARD WITH THE MULTISTATE TAX COMMISSION'S STANDARD AND MODIFYING THE COMPUTATION OF THE RECEIPTS FACTOR TO MAKE IT MORE CONGRUENT WITH THE UNITARY BUSINESS PRINCIPLE. ________
AI Summary
This bill makes the following key adjustments to existing income tax expenditures in Colorado:
- Increases the value of the earned income tax credit (EITC) as a percentage of the federal EITC, starting at 50% for 2024, 35% for 2025, and 25% for 2026 and beyond, with potential further increases based on state revenue growth.
- Expands the child and dependent care tax credit by increasing the credit percentage from 50% to 70% of the federal credit for those with federal adjusted gross income of $60,000 or less, with the income limit potentially increasing over time for inflation.
- Repeals various obsolete provisions related to the corporate income tax and transitions Colorado to the Multistate Tax Commission's standard for combined reporting, which aims to simplify tax compliance.
Overall, the bill is intended to provide additional tax relief for low- and moderate-income Coloradans, particularly by enhancing the EITC and child care tax credits, while also modernizing the state's corporate income tax structure.
Committee Categories
Budget and Finance
Sponsors (50)
Judy Amabile (D)*,
Kyle Brown (D)*,
Lorena García (D)*,
Chris Hansen (D)*,
Tim Hernández (D)*,
Nick Hinrichsen (D)*,
Iman Jodeh (D)*,
Junie Joseph (D)*,
Chris Kennedy (D)*,
Cathy Kipp (D)*,
Mandy Lindsay (D)*,
Javier Mabrey (D)*,
Matt Martinez (D)*,
Julia Marvin (D)*,
Manny Rutinel (D)*,
Tammy Story (D)*,
Brianna Titone (D)*,
Elizabeth Velasco (D)*,
Michael Weissman (D)*,
Steven Woodrow (D)*,
Jennifer Bacon (D),
Shannon Bird (D),
Andrew Boesenecker (D),
Jeff Bridges (D),
Janet Buckner (D),
Lisa Cutter (D),
Lindsey Daugherty (D),
Regina English (D),
Elisabeth Epps (D),
Tony Exum (D),
Meg Froelich (D),
Julie Gonzales (D),
Eliza Hamrick (D),
Leslie Herod (D),
Sonya Jaquez Lewis (D),
Chris Kolker (D),
Sheila Lieder (D),
Janice Marchman (D),
Julie McCluskie (D),
Karen McCormick (D),
Barbara McLachlan (D),
Dafna Michaelson Jenet (D),
Kyle Mullica (D),
Kevin Priola (D),
Naquetta Ricks (D),
Dylan Roberts (D),
Emily Sirota (D),
Alex Valdez (D),
Jenny Willford (D),
Faith Winter (D),
Last Action
Governor Signed (on 05/14/2024)
Taxonomy
Macroeconomics
- ‐ Taxation, Tax Policy, and Tax Reform
Official Document
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