HB19-1164 (Singer/Zenzinger & Priola) Child Tax Credit
This bill would fund the state Child Tax Credit created by the legislature in 2013 now that the intent of the trigger included in the 2013 legislation has been met. In 2018, the U.S. Supreme Court ruled that states could begin collecting sales tax from remote, internet sellers, and Colorado will begin collecting sales tax this year, satisfying the intent behind the trigger for the state Child Tax Credit. The state credit would be available to families with children age five and under in an amount between five percent and 30 percent of the federal Child Tax Credit.
The Children’s Campaign strongly supports this bill. Children under the age of six are more likely to live in poverty than any other age group, and these early years are a critical time for children’s brain development. The stress caused by living in poverty can inhibit this early brain development and negatively impact children’s ability to succeed in school and develop the social-emotional skills needed to function well as adults. Nationally, the federal Child Tax Credit lifted 1.5 million children out of poverty and lessened poverty for another 6.1 million children in 2016. Increases in family income, including through refundable tax credits, improve short- and long-term health and academic outcomes for children. In addition, research found that low-income children who experienced an increase in family income of $3,000 at age five earned an average of 17 percent more as adults.
Assigned to the House Finance Committee where it is scheduled to be heard on Mon., Feb. 25 at 1:30pm in LSB-A.