HB 22-1126

House Bill 22-1126, 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 the classroom expenses they incur. This means eligible educators can receive money back from the state if their tax credit amount exceeds what they owe in taxes. The bill covers five tax years starting in 2022 and ensures that teachers cannot claim both this state credit and a similar deduction on their federal taxes for the same expense.

Official Summary

For 5 income tax years beginning in 2022, 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.)