SB 23-030

Senate Bill 23-030, which has been signed into law, provides Colorado teachers and classroom paraprofessionals with a refundable state income tax credit of up to $500 per year for expenses they incur for their classrooms. This means that eligible educators can receive money back from the state if their tax credit amount exceeds what they owe in taxes. The bill is now law, so teachers and paraprofessionals who qualify will be able to claim this credit starting with the 2023 tax year.

Official Summary

For 5 income tax years beginning in 2023, the bill creates a refundable state income tax credit for a Colorado teacher or classroom paraprofessional (eligible educator) for their classroom expenses. An eligible educator cannot claim the credit for an expense that the educator claims as a federal educator expense deduction for purposes of the educator's federal income tax, and the maximum amount of the credit per income tax year is $500.(Note: This summary applies to this bill as introduced.)