HB 26-1240

HB 26-1240 is a Colorado bill that removes the upper age limit for people who can receive the state Earned Income Tax Credit (EITC). Currently, there's no maximum age limit for the federal EITC and this bill ensures that anyone of any age who meets other eligibility requirements can claim the state EITC starting from January 1, 2028. Since the bill has been signed into law, it will go into effect as planned, helping older workers keep more of their earnings through tax credits.

Official Summary

Under current law, only individuals of certain ages may qualify for the federal or state earned income tax credit. The federal "American Rescue Plan Act of 2021" temporarily lowered the minimum age requirement and removed the maximum age requirement for the federal earned income tax credit. In 2021, the lowered minimum age requirement was adopted for the state earned income tax credit (credit) indefinitely. For tax years commencing on or after January 1, 2028, the bill adopts the removal of the maximum age requirement for the credit indefinitely. An individual who claims the credit as a result of the bill may claim the credit in an amount determined in the same manner as an individual who claims the credit as a result of the prior adoption of the lowered minimum age requirement.(Note: This summary applies to this bill as introduced.)

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