Committee Approves Pair of Bills to Cut Child Poverty, Support Working Colorado Families

DENVER, CO – The Senate Finance Committee today approved a pair of bills that will better support working Colorado families.

HB24-1311, sponsored by Assistant Senate Majority Leader Faith Winter, D-Broomfield, and Senate President Pro Tempore James Coleman, D-Denver, would create the refundable Family Affordability Tax Credit (FATC). This credit would be available to parents with children aged 16 and younger, and the maximum credit amount would be $3,200 per child and would be adjusted for income, inflation, economic growth, and unemployment.

“Looking out for Colorado families means making sure they don’t have to choose between putting food on the table and paying rent or affording other necessities,” said Winter. “It’s no understatement to say that this is one of the more impactful pieces of legislation we’re going to see this session. I am extremely pleased to be a part of making this bill possible, because it will cut child poverty in half while making it that much easier for working families to get by in our state.”

“Working Coloradans need our support, and I am pleased to say that we have an opportunity to make a real, transformative difference for kids and families,” said Coleman. “This bill will provide direct relief for families in our community while making our tax code more equitable, and will help give more Colorado families the resources they need to thrive.”

The FATC is available to single tax filers with a federal adjusted gross income up to $75,000 or joint filers up to $85,000

The Committee also passed HB24-1134, sponsored by Senator Nick Hinrichsen, D-Pueblo, which would permanently expand the state’s Earned Income Tax Credit (EITC) by setting it to a baseline of 50 percent of the federal EITC for tax year 2024, 35 percent for tax year 2025, and at least 30 percent for tax years beginning 2026, and allowing it to increase up to 50 percent in years of strong economic growth in 2025 and beyond.

“Our tax code is skewed towards benefitting earners at the top, which is why I am fighting to pass measures like this that shift the balance towards all Coloradans,” Hinrichsen said. “This legislation will provide significant relief for the folks who need it most, and make it easier for Colorado’s working families to get by.”

In addition to permanently expanding the EITC for Colorado families, HB24-1134 would merge the Child and Dependent Care Tax Credit and the Low-income Child Care Expenses Tax Credit to create the Child and Dependent Care Tax Credit (CDCTC) for taxpayers with an adjusted gross income of up to $60,000. 

Both bills will now be heard by the Senate Appropriations Committee. Track HB24-1311 HERE, and HB24-1134 HERE.