Bill > HB1052

This bill creates a refundable income tax credit for qualifying Public Employees' Retirement Association (PERA) retirees for tax years 2025 and 2026, acknowledging the challenges of rising inflation and fixed incomes for retirees. To be eligible, an individual must be a Colorado resident who is 65 years or older and have a federal adjusted gross income of no more than $38,000 for single filers or $76,000 for joint filers. The credit is set at $700 and will be fully refundable, meaning that if the credit amount exceeds the taxpayer's income tax liability, the difference will be refunded to the retiree. The bill includes a legislative declaration highlighting the economic challenges faced by PERA retirees and requires the State Auditor to measure the effectiveness of the credit by tracking the number of taxpayers who claim it. The Public Employees' Retirement Association and the Department of Revenue are mandated to provide data to support this evaluation. The tax credit provision is set to expire on December 31, 2036, and the bill will take effect after the standard legislative review period, with a potential referendum vote in November 2026 if challenged.

Budget and Finance

https://leg.colorado.gov/bills/hb25-1052