Legislation to Bolster Tax Credits, Better Support Colorado Families Clears Senate

HB23-1112 would increase the Earned Income and Child Tax Credit by nearly $75 million

Legislation sponsored by Senators Chris Hansen, D-Denver, and Chris Kolker, D-Centennial, that would bolster critical credits for working families cleared the Senate today.

HB23-1112 would expand the state Earned Income Tax Credit (EITC) and the Child Tax Credit (CTC), returning nearly $75 million to hardworking families. 

“Colorado’s working families deserve a break,” Hansen said. “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.”

“Boosting tax credits for hardworking Colorado families just makes sense,” Kolker said. “This bill eases the burden people across our state face, and will help them build better futures for themselves and their families.”

For the 2024 tax year, the Colorado EITC would increase from 25 percent to 40 percent of the federal EITC. A refundable tax credit available to certain families with children under the age of 6, the Colorado CTC would increase by 10 percent in the 2024 tax year, with the tax credit ranging from 20 to 70 percent of the federal CTC depending on marital status, number of qualifying children, and federal adjusted gross income.

The federal Child Tax Credit has lifted over 57,000 Colorado kids out of poverty and helped over 630,000 families across the state, while the federal Earned Income Tax Credit has helped cut the national poverty rate in half.

HB23-1112 will now move to consideration before the Senate Appropriations Committee. Track the bill’s progress HERE.