HB 22-1203

House Bill 22-1203, which has been signed into law in Colorado, provides tax credits for families who choose private or home-based education over public schools. For private school tuition, the credit is based on either the cost of tuition or a portion of state funding per student (50% for full-time and 25% for half-time attendance), up to certain limits. Similarly, parents who opt for homeschooling can claim a tax credit of $1,500 if their child was previously enrolled full-time in public school, or $750 if the child attended part-time. These credits are available from January 1, 2023, until December 31, 2027, and can be carried forward for up to three years but cannot be refunded directly. This bill benefits families choosing nonpublic education options by reducing their tax burden.

Official Summary

The bill establishes a private school tuition income tax credit for income tax years commencing on or after January 1, 2023, but prior to January 1, 2028, that allows any taxpayer to claim a credit when the taxpayer enrolls a qualified child in a private school or the taxpayer provides a scholarship to a qualified child for enrollment in a private school. The private school issues the taxpayer a credit certificate and the amount of the credit is: For full-time attendance, an amount equal to either the tuition paid or the scholarship provided to a qualified child, as applicable, or 50% of the previous year's state average per pupil revenues, whichever is less; and For half-time attendance, an amount equal to either the tuition paid or the scholarship provided to a qualified child, as applicable, or 25% of the previous year's state average per pupil revenues, whichever is less. The bill also establishes an income tax credit for income tax years commencing on or after January 1, 2023, but prior to January 1, 2028, that allows any taxpayer who uses home-based education for a qualified child to claim an income tax credit in an amount equal to: $1,500 for a taxpayer who uses home-based education for a qualified child who was enrolled on a full-time basis in a public school in the state prior to being taught at home; and $750 for a taxpayer who uses home-based education for a qualified child who was enrolled on a half-time basis in a public school in the state prior to being taught at home. Both credits may be carried forward for 3 years but may not be refunded. In addition, the credits may be transferred, subject to certain limitations. (Note: This summary applies to this bill as introduced.)