HB 23B-1002

HB 23B-1002 increases the Colorado Earned Income Tax Credit (EITC) from 25% to 50% of the federal EITC for the 2023 tax year. This means that eligible residents, including those without a valid social security number for employment, can claim a larger credit on their state taxes. The bill also sets aside funds to cover this increase and was signed into law by the governor on November 20, 2023, making it effective immediately. This change will provide more financial support to low- and moderate-income workers in Colorado.

Official Summary

The act creates a one-time TABOR refund mechanism for excess state revenues for the 2022-23 state fiscal year that are required to be refunded in the 2023-24 state fiscal year. The TABOR refund mechanism allows for an increase in the earned income tax credit that a resident individual, including a resident individual who does not have a social security number valid for employment, may claim on the resident individual's state income tax return from 25% to 50% of the federal credit claimed on the resident individual's federal income tax return or the federal credit that the resident individual would have been allowed but for the fact that the resident individual does not have a social security number that is valid for employment. For the 2023-24 state fiscal year, $51,483 is appropriated from the general fund to the department of revenue and $516 of that amount is reappropriated to the department of personnel for implementation of the act. APPROVED by Governor November 20, 2023 EFFECTIVE November 20, 2023(Note: This summary applies to this bill as enacted.)

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