HB 17-1007

House Bill 17-1007, which has now been signed into law, allows employers in Colorado to deduct from their state income taxes any contributions they make to college savings or trust accounts for their employees through the CollegeInvest program. This deduction can be claimed even if the contribution was already deducted at the federal level. The bill benefits both employers and employees by providing a financial incentive for companies to help fund their workers' education expenses. Since it has been signed, employers can now start claiming these deductions when filing their state taxes.

Official Summary

The starting point for determining state income tax liability is federal taxable income. This number is adjusted for additions and subtractions (deductions) that are used to determine Colorado taxable income, which amount is multiplied by the state's 4.63% income tax rate. The bill allows an employer, whether filing as an individual or a corporation, to claim a deduction for any amount that the employer contributes to an employee's college trust account or savings account that is administered by collegeinvest. This deduction may be claimed even if the contribution has already been deducted from the employer's federal taxable income. (Note: This summary applies to this bill as introduced.)

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