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Bill > HB1240


CO HB1240

CO HB1240
State Earned Income Tax Credit Age Limit


summary

Introduced
02/18/2026
In Committee
02/18/2026
Crossed Over
Passed
Dead

Introduced Session

2026 Regular Session

Bill Summary

Under current law, only individuals of certain ages may qualify for the federal or state earned income tax credit. The federal "American Rescue Plan Act of 2021" temporarily lowered the minimum age requirement and removed the maximum age requirement for the federal earned income tax credit. In 2021, the lowered minimum age requirement was adopted for the state earned income tax credit (credit) indefinitely. For tax years commencing on or after January 1, 2028, the bill adopts the removal of the maximum age requirement for the credit indefinitely. An individual who claims the credit as a result of the bill may claim the credit in an amount determined in the same manner as an individual who claims the credit as a result of the prior adoption of the lowered minimum age requirement.

AI Summary

This bill makes changes to Colorado's Earned Income Tax Credit (EITC), a program designed to support working families and reduce poverty. The EITC is a tax credit based on a percentage of the federal credit. Previously, the federal EITC, and subsequently the state EITC, had age restrictions. In 2021, the minimum age requirement was lowered indefinitely, and this bill, for tax years beginning on or after January 1, 2028, will remove the maximum age requirement for claiming the state EITC indefinitely, meaning individuals of any age who meet the income and work requirements can claim it. The amount of the credit will be calculated in the same way as for those who benefited from the lowered minimum age.

Committee Categories

Budget and Finance

Sponsors (2)

Last Action

Introduced In House - Assigned to Finance (on 02/18/2026)

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