HB20-1203 (Sirota & Gray/ Gonzales) Helping Colorado Families Get Ahead Act
This bill would eliminate a state tax deduction that disproportionately benefits high-income business owners and use the additional revenue to expand the state Earned Income Tax Credit (EITC) and fund the state Child Tax Credit (CTC).
The Children’s Campaign supports this bill. The EITC and CTC are two of the most effective tools available to lift children and families out of poverty by putting more money back in families’ pockets. The bill would use the additional revenue to expand the state EITC, a refundable tax credit for working families. It would also use the additional revenue to fund the state CTC, a tax credit in statute for Colorado families with children ages five and under, but which has never been funded. This bill would not affect federal taxes owed, but Colorado is one of only five states that allows tax filers to deduct business income for the purposes of calculating state income taxes.
Assigned to the House Finance Committee, where it is scheduled to be heard on Monday, Mar. 2 at 1:30pm in Room 0112.