A Bill for an Act
Page 1, Line 101Concerning the creation of a refundable income tax credit
Page 1, Line 102for qualifying public employees' retirement
Page 1, Line 103association retirees.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)
Pension Review Commission. The bill creates a refundable income tax credit that is available for income tax years commencing on or after January 1, 2025, but prior to January 1, 2027, for a qualifying public employees' retirement association retiree, which means a full-time Colorado resident individual who:
- Is 65 years of age or older at the end of the 2025 or 2026 income tax year; and
- Has an annual federal adjusted gross income of no more than $38,000 as a single filer or $76,000 as a joint filer.
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, add 39-22-571 as
Page 2, Line 3follows:
Page 2, Line 439-22-571. Credit against tax - qualifying PERA retirees -
Page 2, Line 5creation - tax preference performance statement - legislative
Page 2, Line 6declaration - definitions - repeal. (1) (a) The general assembly
Page 2, Line 7hereby finds and declares that:
Page 2, Line 8(I) Inflation rates have increased over the last few years
Page 2, Line 9and are predicted to continue rising; and
Page 2, Line 10(II) Many public employees' retirement association
Page 2, Line 11retirees are on a fixed income, and the cost of living adjustments
Page 2, Line 12for retirees are not keeping up with rising inflation rates.
Page 2, Line 13(b) In accordance with section 39-21-304 (1), which
Page 2, Line 14requires each bill that creates a new tax expenditure to include
Page 2, Line 15a tax preference performance statement as part of a statutory
Page 2, Line 16legislative declaration, the general assembly hereby finds and
Page 2, Line 17declares that the purpose of the tax expenditure created in
Page 2, Line 18subsection (3) of this section is to provide tax relief for certain
Page 2, Line 19public employees' retirement association retirees.
Page 2, Line 20(c) The general assembly and state auditor shall measure
Page 2, Line 21the effectiveness of the income tax credit in achieving the
Page 2, Line 22purpose specified in subsection (1)(b) of this section based on the
Page 2, Line 23number of taxpayers who have claimed the credit.
Page 3, Line 1(2) As used in this section, unless the context otherwise
Page 3, Line 2requires:
Page 3, Line 3(a) "Association" means the public employees' retirement
Page 3, Line 4association created in section 24-51-201.
Page 3, Line 5(b) "Credit" means the credit against income tax that is
Page 3, Line 6created in this section.
Page 3, Line 7(c) "Qualifying public employees' retirement association
Page 3, Line 8retiree" means a resident individual who:
Page 3, Line 9(I) Is a retiree, as defined in section 24-51-101 (39);
Page 3, Line 10(II) Is sixty-five years of age or older at the close of the
Page 3, Line 11income tax year for which the credit is claimed; and
Page 3, Line 12(III) Has a federal adjusted gross income of no more than
Page 3, Line 13thirty-eight thousand dollars if filing as a single filer or
Page 3, Line 14seventy-six thousand dollars if filing as a joint filer in the
Page 3, Line 15income tax year for which the credit is claimed.
Page 3, Line 16(3) For income tax years commencing on or after January
Page 3, Line 171, 2025, but before January 1, 2027, a qualifying public employees'
Page 3, Line 18retirement association retiree is allowed a credit in the amount
Page 3, Line 19of seven hundred dollars against the tax imposed by this article
Page 3, Line 2022.
Page 3, Line 21(4) The association shall provide to the state auditor
Page 3, Line 22data on retirees as necessary to implement this section. The
Page 3, Line 23department of revenue shall provide to the state auditor data
Page 3, Line 24on the number of individuals who claim the tax credit allowed
Page 3, Line 25by this section.
Page 3, Line 26(5) The amount of the credit allowed under this section
Page 3, Line 27that exceeds the qualifying public employees' retirement
Page 4, Line 1association retiree's income taxes due is refunded to the
Page 4, Line 2qualifying public employees' retirement association retiree.
Page 4, Line 3(6) This section is repealed, effective December 31, 2036.
Page 4, Line 4SECTION 2. Act subject to petition - effective date. This act
Page 4, Line 5takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 6ninety-day period after final adjournment of the general assembly; except
Page 4, Line 7that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 8of the state constitution against this act or an item, section, or part of this
Page 4, Line 9act within such period, then the act, item, section, or part will not take
Page 4, Line 10effect unless approved by the people at the general election to be held in
Page 4, Line 11November 2026 and, in such case, will take effect on the date of the
Page 4, Line 12official declaration of the vote thereon by the governor.