HB18-1208 (Duran & Winter/Martinez Humenik) Expand Child Care Expenses Credit
This bill expands a credit available to families who pay child care expenses. Currently, Colorado offers a state tax credit for individuals making $60,000 per year or less equal to a percentage of the individual’s federal tax credit for child care expenses. The size of the credit is dependent on income level. This bill would allow individuals making $150,000 per year or less to claim a credit equal to 80 percent of the amount of the federal credit claimed by the individual.
The Children’s Campaign strongly supports this bill. Nearly two-thirds of Colorado kids under the age of six are growing up in families where all available parents are working. As a result, child care is a reality for today’s Colorado families. This credit helps families pay for safe and affordable childcare so they can work. This bill would expand access to this credit to allow more working families in Colorado to benefit, and it would also increase the size of the credit, making a more substantial impact for Colorado families who are paying child care expenses. Notably, while expanding the credit for those currently eligible, it also extends eligibility to more moderate income earners, addressing the fact that most support for affording child care falls off just as families approach self-sufficiency
Assigned to the House Finance Committee