By Jarrett Freedman
Colorado Governor Jared Polis yesterday signed HB23-1112, sponsored by Representatives Shannon Bird and Mary Young, and Senators Chris Hansen and Chris Kolker, which expands the state Earned Income Tax Credit (EITC) and Child Tax Credit (CTC).
“Expanding these tax credits will put $170 million back into the pockets of hardworking Coloradans,”said Rep. Shannon Bird, D-Westminster. “Coloradans deserve a tax code that boosts their incomes and helps them build a better future for themselves and their families, and that’s exactly what this law does. These tax credits have lifted thousands of Coloradans across the state out of poverty, and I’m proud to champion this essential legislation.”
“Colorado’s working families deserve a break,” said Sen. Chris Hansen, D-Denver. “These critical tax credits will put more money in their pockets, and make it easier to pay for necessities like groceries and rent. I’m proud to champion this legislation that will lift folks out of poverty and will make life easier for Colorado families.”
“With this law, Coloradans who claim these tax credits will see hundreds of dollars more in their 2024 tax refunds,” said Rep. Mary Young, D-Greeley. “We know the Earned Income and Child Tax Credits have played a major role in lifting children out of poverty, and I’m thrilled that Coloradans who claim these credits will soon have more breathing room in their budgets. This will boost local economies and make our tax code more fair by putting hardworking families first and giving them the support they need to build a brighter future.”
Under HB23-1112, the Colorado EITC will rise from 25-percent to 38 percent of the federal EITC for tax year 2024, a nearly four-fold increase from where it stood in 2020. The Colorado CTC, a refundable tax credit available to families with children under the age of six and incomes under $75,000 for single filers or $85,000 for joint filers, will now range from $200 to $1,200 depending on income and filing status.
The federal CTC has lifted over 57,000 Colorado kids out of poverty and helped over 630,000 families across the state, while the federal EITC has helped cut the national poverty rate in half.
The law builds on legislation passed by Colorado Democrats in recent years to make Colorado more affordable for working-class families. The General Assembly passed HB20-1420 and HB21-1311, which at the time doubled the state’s EITC and funded the CTC, saving hundreds of thousands of Colorado families money.
Jarrett Freedman is House Communications Director for Colorado General Assembly Democrats.