A Bill for an Act
Page 1, Line 101Concerning a state income tax credit for a licensed teacher
Page 1, Line 102who is employed as a teacher in a public school.
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.)
For income tax years commencing on or after January 1, 2025, but before January 1, 2027, the bill allows a refundable state income tax credit, which is intended to offset the various expenses that licensed teachers often incur throughout an academic year for classroom supplies, professional development costs, supplemental educational materials, field trips, and other items that improve the quality of the educational services that they provide, to a licensed teacher who is employed as a teacher in a public school on a full-time basis for at least one-half of an academic year (eligible teacher) during the income tax year for which the credit is claimed. The amount of the credit is $1,000 for an eligible teacher who is employed for the equivalent of an entire academic year and $500 for an eligible teacher who is employed for one-half of an academic year. Two eligible teachers who file a joint income tax return may each claim the credit.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
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 - licensed teachers - tax preference
Page 2, Line 5performance statement - legislative declaration - definitions - repeal.
Page 2, Line 6(1) (a) The general assembly finds and declares that:
Page 2, Line 7(I) Licensed teachers who teach in public schools often
Page 2, Line 8spend their own money to pay for classroom supplies,
Page 2, Line 9professional development costs, supplemental educational
Page 2, Line 10materials, field trips, and other items that improve the quality
Page 2, Line 11of the educational services that they provide;
Page 2, Line 12(II) These items purchased by licensed teachers with their
Page 2, Line 13own money benefit their students and the public, and the public
Page 2, Line 14should be responsible for bearing their costs; and
Page 2, Line 15(III) The income tax credit created in this section is
Page 2, Line 16intended to shift some of the costs currently incurred by
Page 2, Line 17licensed teachers who teach in public schools that should be
Page 2, Line 18incurred by the public from licensed teachers to the public.
Page 2, Line 19(b) In accordance with section 39-21-304 (1), which
Page 2, Line 20requires each bill that creates a new tax expenditure to include
Page 2, Line 21a tax preference performance statement as part of a statutory
Page 3, Line 1legislative declaration, the general assembly further finds and
Page 3, Line 2declares that the purpose of the tax credit created in this
Page 3, Line 3section is to provide tax relief for eligible teachers. The
Page 3, Line 4general assembly and the state auditor shall measure the
Page 3, Line 5effectiveness of the credit in achieving this purpose based on the
Page 3, Line 6number and value of credits claimed.
Page 3, Line 7(2) As used in this section, unless the context otherwise
Page 3, Line 8requires:
Page 3, Line 9(a) "Academic year" has the same meaning as set forth in
Page 3, Line 10section 22-63-103 (1).
Page 3, Line 11(b) "Eligible full-time teacher" means a teacher whose
Page 3, Line 12federal form W-2 from a public school employer indicates gross
Page 3, Line 13wage income of forty thousand dollars or more.
Page 3, Line 14(c) "Eligible part-time teacher" means a teacher whose
Page 3, Line 15federal form W-2 from a public school employer indicates gross
Page 3, Line 16wage income of twenty thousand dollars or more but less than
Page 3, Line 17forty thousand dollars.
Page 3, Line 18(d) "Eligible teacher" means an eligible full-time teacher
Page 3, Line 19or an eligible part-time teacher.
Page 3, Line 20(e) "One-half of an academic year" means either the
Page 3, Line 21portion of an academic year that begins in January of an income
Page 3, Line 22tax year or the portion of an academic year that ends in
Page 3, Line 23December of an income tax year.
Page 3, Line 24(f) "Public school" means a school of a school district, a
Page 3, Line 25charter school authorized by a school district pursuant to part
Page 3, Line 261 of article 30.5 of title 22, a charter school authorized by the
Page 3, Line 27state charter school institute pursuant to part 5 of article 30.5
Page 4, Line 1of title 22, or a board of cooperative services created and
Page 4, Line 2operating pursuant to article 5 of title 22.
Page 4, Line 3(g) "Teacher" means a resident individual who holds a
Page 4, Line 4valid teacher license of any type described in section 22-60.5-201
Page 4, Line 5and is employed to instruct students in any public school in the
Page 4, Line 6state.
Page 4, Line 7(3) (a) For income tax years commencing on or after
Page 4, Line 8January 1, 2025, but before January 1, 2027, an eligible teacher
Page 4, Line 9is allowed a credit against the income taxes imposed by this
Page 4, Line 10article 22 in the amount of:
Page 4, Line 11(I) One thousand dollars if the eligible teacher is an
Page 4, Line 12eligible full-time teacher; or
Page 4, Line 13(II) Five hundred dollars if the eligible teacher is an
Page 4, Line 14eligible part-time teacher.
Page 4, Line 15(b) Two eligible teachers who file a joint return may each
Page 4, Line 16claim the credit in the applicable amount specified in either
Page 4, Line 17subsection (3)(a)(I) or (3)(a)(II) of this section.
Page 4, Line 18(c) The amount of the credit under this section that
Page 4, Line 19exceeds the eligible teacher's income taxes due is refunded to
Page 4, Line 20the eligible teacher.
Page 4, Line 21(4) This section is repealed, effective December 31, 2031.
Page 4, Line 22SECTION 2. Act subject to petition - effective date. This act
Page 4, Line 23takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 24ninety-day period after final adjournment of the general assembly; except
Page 4, Line 25that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 26of the state constitution against this act or an item, section, or part of this
Page 4, Line 27act within such period, then the act, item, section, or part will not take
Page 5, Line 1effect unless approved by the people at the general election to be held in
Page 5, Line 2November 2026 and, in such case, will take effect on the date of the
Page 5, Line 3official declaration of the vote thereon by the governor.