HB21-1311 (Sirota & Weissman/Hansen & Moreno) Income Tax

Originally Posted: May 14, 2021
Last Updated: June 11, 2021

Summary

This bill would increase the state Earned Income Tax Credit (EITC) to 20 percent of the federal credit and expand the state EITC to include all workers aged 18 and over. The bill would also fully fund the state Child Tax Credit (CTC), which would be available to all Coloradans, including those filing with an ITIN. The state CTC has been in statute since 2013, but the legislature has not funded it.  

Position

The Children’s Campaign supports this bill. Tax reforms that prioritize kids are a crucial step toward eliminating child poverty and increasing economic, health, and overall well-being for families. Research and our communities’ lived experience show that the EITC and CTC are two of the most effective tools to we have to fight poverty. These tax credits together lift more kids out of poverty than any other program available. Lifting kids and families out of poverty not only helps them make ends meet, it also improves outcomes for kids – now and in the future. Elementary and middle-school students do better in school when their family income is increased through tax credits like the EITC and CTC, and they are also more likely to finish high school and go on to college. Studies also show that increased income for low-income families with young children is associated with increased work hours and earnings in adulthood for those children. Policies like the EITC and CTC that place money directly back in the hands of families help support the well-being of kids. They also show our collective commitment to providing the best chance for every kid to thrive and demonstrate our values of equity for every Colorado family.  

Current Status

House concurred with Senate Amendments. The bill repassed the House on a vote of 41-23 and now heads to the Governor for signature. 

Previous Statuses


May 28, 2021

Passed out of the Senate Finance Committee along party lines and now heads to the Appropriations Committee.  

May 14, 2021

Scheduled to be heard in the House Finance Committee on Fri., May 14 upon adjournment.