HB 25-1335

House Bill 25-1335, which has been signed into law, changes how two important tax credits—the family affordability tax credit and the earned income tax credit—are made available to taxpayers. Instead of basing their availability on actual state revenue growth, the bill now uses projected state revenue forecasts from March 2024 to determine if these credits will be offered in future years. This affects Colorado residents who rely on these tax credits for financial support. Since the bill is signed, it means that its provisions are now law and will impact how these tax credits are administered going forward.

Official Summary

The availability of both the family affordability tax credit and the earned income tax credit has been determined by the compound annual growth rate between actual state revenue in state fiscal year 2024-25 and projected state revenue for the fiscal year that begins during the relevant state income tax year. Under the act, the availability of both tax credits is determined by the compound annual growth rate between state revenue for state fiscal year 2024-25, as projected in the March 2024 office of state planning and budgeting revenue forecast, and projected state revenue for the fiscal year that begins during the relevant state income tax year. (Note: This summary applies to this bill as enacted.)

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