HB 18-1202

HB 18-1202, which is now signed into law, allows Colorado employers to receive a tax credit of up to 35% for paying employees who take time off to donate an organ. The leave can last up to 10 working days or the equivalent in hours. Employers can also claim credits for hiring temporary workers to cover the employee's duties during this leave. However, employers cannot claim this credit if they pay their employees more than $80,000 annually. This law supports organ donors by providing financial relief to businesses that support them with paid leave.

Official Summary

Beginning January 1, 2020, an employer is allowed an income tax credit that is an amount equal to 35% of the employer's expenses incurred: Paying an employee during his or her leave of absence period, which is paid leave given to an employee for the purpose of making an organ donation, but which does not exceeding 10 working days or the hourly equivalent thereof; and For the cost of temporary replacement help, if any, during an employee's leave of absence period. An employer shall not claim a tax credit related to a leave of absence period for an employee who the employer pays wages of $80,000 or more during the income tax year. The tax credit is not refundable, but unused credits may be carried forward up to 5 years. Upon request of the department of revenue as part of an audit, a taxpayer must provide the department of revenue with documentation from the employee's medical provider that verifies the employee's organ donation. The department is granted an exception from a law that prohibits it from requesting medical records or medical information. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.) , Read More

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