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 on a
Page 1, Line 103full-time basis for at least one-half of an academic
Page 1, Line 104year.
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.
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 3, Line 1requires each bill that creates a new tax expenditure to include
Page 3, Line 2a tax preference performance statement as part of a statutory
Page 3, Line 3legislative declaration, the general assembly further finds and
Page 3, Line 4declares that the purpose of the tax credit created in this
Page 3, Line 5section is to provide tax relief for eligible teachers. The
Page 3, Line 6general assembly and the state auditor shall measure the
Page 3, Line 7effectiveness of the credit in achieving this purpose based on the
Page 3, Line 8number and value of credits claimed.
Page 3, Line 9(2) As used in this section, unless the context otherwise
Page 3, Line 10requires:
Page 3, Line 11(a) "Academic year" has the same meaning as set forth in
Page 3, Line 12section 22-63-103 (1).
Page 3, Line 13(b) "Eligible teacher" means a teacher who is employed
Page 3, Line 14full-time as a teacher for at least one-half of an academic year.
Page 3, Line 15(c) "One-half of an academic year" means either the
Page 3, Line 16portion of an academic year that begins in January of an income
Page 3, Line 17tax year or the portion of an academic year that ends in
Page 3, Line 18December of an income tax year.
Page 3, Line 19(d) "Public school" means a school of a school district, a
Page 3, Line 20charter school authorized by a school district pursuant to part
Page 3, Line 211 of article 30.5 of title 22, a charter school authorized by the
Page 3, Line 22state charter school institute pursuant to part 5 of article 30.5
Page 3, Line 23of title 22, or a board of cooperative services created and
Page 3, Line 24operating pursuant to article 5 of title 22.
Page 3, Line 25(e) "Teacher" means a resident individual who holds a
Page 3, Line 26valid teacher license of any type described in section 22-60.5-201
Page 3, Line 27and is employed to instruct students in any public school in the
Page 4, Line 1state.
Page 4, Line 2(3) (a) For income tax years commencing on or after
Page 4, Line 3January 1, 2025, but before January 1, 2027, an eligible teacher
Page 4, Line 4is allowed a credit against the income taxes imposed by this
Page 4, Line 5article 22 in the amount of:
Page 4, Line 6(I) One thousand dollars if the eligible teacher is
Page 4, Line 7employed full-time as a teacher for both one-half of an
Page 4, Line 8academic year that begins in January of the income tax year for
Page 4, Line 9which a credit is claimed and one-half of an academic year that
Page 4, Line 10ends in December of that income tax year; or
Page 4, Line 11(II) Five hundred dollars if the eligible teacher is
Page 4, Line 12employed full-time as a teacher for either one-half of an
Page 4, Line 13academic year that begins in January of the income tax year for
Page 4, Line 14which a credit is claimed or one-half of an academic year that
Page 4, Line 15ends in December of that income tax year, but not both.
Page 4, Line 16(b) Two eligible teachers who file a joint return may each
Page 4, Line 17claim the credit in the applicable amount specified in either
Page 4, Line 18subsection (3)(a)(I) or (3)(a)(II) of this section.
Page 4, Line 19(c) The amount of the credit under this section that
Page 4, Line 20exceeds the eligible teacher's income taxes due is refunded to
Page 4, Line 21the eligible teacher.
Page 4, Line 22(4) This section is repealed, effective December 31, 2031.
Page 4, Line 23SECTION 2. Act subject to petition - effective date. This act
Page 4, Line 24takes effect at 12:01 a.m. on the day following the expiration of the
Page 4, Line 25ninety-day period after final adjournment of the general assembly; except
Page 4, Line 26that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 4, Line 27of the state constitution against this act or an item, section, or part of this
Page 5, Line 1act within such period, then the act, item, section, or part will not take
Page 5, Line 2effect unless approved by the people at the general election to be held in
Page 5, Line 3November 2026 and, in such case, will take effect on the date of the
Page 5, Line 4official declaration of the vote thereon by the governor.