Lt. Governor Dianne Primavera, alongside the Colorado Department of Early Childhood (CDEC) and the Colorado Department of Revenue (DOR), is celebrating a successful first year of the Care Worker Tax Credit, a refundable state income tax credit designed to support Colorado’s child care and direct care workforce.
“I am thrilled to see the success of the Care Worker Tax Credit in its first year. This credit represents Colorado’s commitment to the people who hold our communities together,” said Lt. Governor Primavera. “By investing in our caregivers, we are investing in the future of our state and we’re going to keep supporting the workers who make it possible for Colorado families to thrive.”
As of Tax Day, April 15, 2026, a total of 19,261 care workers have taken advantage of the tax credit. This includes 17,465 early educators in licensed child care settings and 1,796 Family, Friend, and Neighbor (FFN) providers that have completed the required attestation in the Colorado Shines Professional Development Information System (PDIS). This strong level of participation reflects up to an estimated $23.1 million in tax credits returning to Colorado’s hard-working mixed-delivery early childhood system.
While DOR’s official data on credits claimed will not be available for approximately 18 months, early indicators from PDIS already point to high anticipated uptake across the State’s care workforce.
The Care Worker Tax Credit provides up to $1,200 to income-eligible care workers who meet participation requirements, including licensed child care professionals, FFN providers, and direct care workers serving older adults and individuals with disabilities.
“For too long, early childhood and direct care professionals have been undercompensated, despite the essential role they play in our communities and economy. The Care Worker Tax Credit represents a meaningful step toward greater financial stability for these professionals who nurture Colorado’s children, support families, and strengthen communities every day,” said Dr. Lisa Roy, Executive Director of the Colorado Department of Early Childhood. “We are excited to see strong participation in this first year and remain committed to ensuring eligible care workers across Colorado are aware of and able to access this important benefit.”
“The Department of Revenue is proud to play a part in putting money back into the pockets of those who care for our neighbors and children,” said Heidi Humphreys, Executive Director of the Colorado Department of Revenue. “Our goal is to make tax credits easy to access so that Colorado residents can benefit from these programs. With tax breaks like the Care Worker Tax Credit, we help strengthen the financial future of our workforce and the entire state.”
Eligible workers must meet income requirements — under $75,000 for single filers or $100,000 for joint filers — and complete the attestation in PDIS to claim the credit. In addition, licensed child care educators with an Early Childhood Professional Credential (ECPC) may also qualify for the Early Childhood Educator Tax Credit, valued between $872 and $1,743 depending on credential level. The ECE tax credit is scheduled to expire following Tax Year 2025.
The State will continue accepting Care Worker Tax Credit attestations through the October 15, 2026 tax extension deadline. Eligible workers who have already filed may still claim the credit by submitting an amended return. When you’re ready to claim your credit, you can access the Care Worker Tax Credit Form through the DOR. For additional tax resources and assistance, visit the DOR Tax Division.
For more information about the Care Worker Tax Credit, visit the Colorado Department of Early Childhood’s Care Worker Tax Credit Page for program details and eligibility requirements. The Department of Health Care Policy and Financing (HCPF) also offers a helpful FAQ Sheet answering common questions about the credit.