HB 25-1037

HB 25-1037, which has been signed into law, provides Colorado teachers with a tax break. Full-time public school teachers employed for at least half of an academic year can claim a refundable income tax credit of up to $1,000 or $500, depending on their employment duration, to help cover classroom expenses like supplies and professional development costs. This benefit aims to support educators financially and improve the quality of education they provide. Since it's signed, teachers will be able to start claiming this credit for tax years starting January 1, 2025.

Official Summary

For income tax years commencing on or after January 1, 2025, but before January 1, 2027, the bill allows a refundable state income tax credit, which is intended to offset the various expenses that licensed teachers often incur throughout an academic year for classroom supplies, professional development costs, supplemental educational materials, field trips, and other items that improve the quality of the educational services that they provide, to a licensed teacher who is employed as a teacher in a public school on a full-time basis for at least one-half of an academic year (eligible teacher) during the income tax year for which the credit is claimed. The amount of the credit is $1,000 for an eligible teacher who is employed for the equivalent of an entire academic year and $500 for an eligible teacher who is employed for one-half of an academic year. Two eligible teachers who file a joint income tax return may each claim the credit.(Note: This summary applies to this bill as introduced.)