Bill > HB1240

This bill creates an income tax subtraction for Segal AmeriCorps Education Awards received by taxpayers in Colorado. Specifically, it allows taxpayers to subtract the amount of any Segal AmeriCorps Education Award they used during the income tax year from their federal taxable income for tax years starting on or after January 1, 2026, but before January 1, 2034. The purpose of this tax subtraction is to provide tax relief for individuals who have received Segal AmeriCorps Education Awards and to incentivize AmeriCorps members to seek higher education in Colorado and remain in the state after their service. The Department of Revenue is required to maintain information about the number of taxpayers claiming the subtraction and the aggregate amount claimed to evaluate the effectiveness of the tax subtraction.