HB 24-1084

House Bill 24-1084 increases the Colorado Earned Income Tax Credit (EITC) for the tax year 2023 from 25% to 50% of the federal EITC, providing a bigger refund to eligible low-income workers. This one-time increase is funded by excess state revenues that need to be returned to taxpayers and benefits individuals who qualify for the federal EITC. The bill was signed into law on January 31, 2024, and took effect immediately on the same day.

Official Summary

The act repeals and reenacts law originally enacted by House Bill 23B-1002, concerning an increase in the earned income tax credit for income tax year 2023, and, in connection therewith, making an appropriation, to increase the amount of the earned income tax credit that a resident individual may claim on the resident individual's state income tax return for 2023 only from 25% to 50% of the federal credit claimed on the resident individual's federal income tax return. The increase in the amount of the credit is a one-time mechanism for refunding excess state revenues for the 2022-23 state fiscal year that are required to be refunded in the 2023-24 state fiscal year. For the 2023-24 state fiscal year, the act appropriates $51,483 from the general fund to the department of revenue and reappropriates $516 of that amount to the department of personnel for implementation of the act. APPROVED by Governor January 31, 2024 EFFECTIVE January 31, 2024(Note: This summary applies to this bill as enacted.)

Related Legislation

Votes