HB 24-1221

HB 24-1221, which has been signed into law, provides Colorado teachers with a tax break to help cover the costs they incur for classroom supplies and professional development. Full-time teachers employed for an entire academic year will receive a $1,000 credit, while those working half the year get $500. This benefit applies to joint filers as well, meaning each teacher in a couple can claim their own credit if eligible. The new law takes effect starting from January 2024 and lasts until January 2026.

Official Summary

For income tax years commencing on or after January 1, 2024, but before January 1, 2026, 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 a 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.)