HB 23-1128

House Bill 23-1128, which has been signed into law in Colorado, aims to help married couples by increasing their tax benefits. Specifically, it doubles the maximum tax deduction for wildfire prevention efforts from $2,500 to $5,000 and raises income limits for child care expense credits, making these benefits available to more families with higher incomes. This means that married taxpayers who file jointly can now claim larger deductions for protecting their homes against wildfires and qualify for childcare tax credits at higher income levels than before. The bill is now law and will affect eligible married couples starting in the next tax season.

Official Summary

Section 1 makes legislative findings and declarations concerning the treatment of taxpayers filing individually versus those filing jointly and clarifies that the intent of the bill is to eliminate barriers to certain tax credits and deductions for married individuals. Section 2 increases the maximum amount of the wildfire mitigation measures tax deduction from $2,500 to $5,000 for married taxpayers who file a joint income tax return. Section 3 increases the qualifying maximum gross adjusted income threshold for the child care expense tax credit from $60,000 to $120,000 for married taxpayers who file a joint income tax return. Section 4 raises the qualifying maximum income threshold for the low-income child care expense tax credit from $25,000 to $50,000 for married taxpayers who file a joint income tax return.(Note: This summary applies to this bill as introduced.)

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