FirstHB1007_H_ED.001 RegularNOT SessionAMENDED Seventy-firstHOUSE GeneralCOMMITTEE AssemblyOF STATEREFERENCE OFREPORT COLORADO_______________________________ INTRODUCEDApril LLS12, NO.2017 Chairman of Committee Date Committee on Education .

17-0505.01After Edconsideration DeCeccoon x4216the HOUSEmerits, BILLthe 17-1007Committee HOUSErecommends SPONSORSHIPthe Garnett,following: SENATE SPONSORSHIP Gardner, House Committees Senate Committees Education Finance A BILL FOR AN ACT CONCERNINGATAXBENEFITFORANEMPLOYERWHOCONTRIBUTESTO AN EMPLOYEE 'S COLLEGEINVEST ACCOUNT , AND , IN CONNECTIONTHEREWITH ,ENACTINGTHE "INCREASE C OLLEGE SAVINGS A CT".

BillHB17-1007 Summarybe (Note:postponed indefinitely.

This** summary*** applies** to*** this** bill*HB1007_H_ED.001* as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) The starting point for determining state income tax liability is federal taxable income.

This number is adjusted for additions and subtractions (deductions) that are used to determine Colorado taxable Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

Capital letters indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

income,whichamountismultipliedbythestate's4.63%incometaxrate.

The bill allows an employer, whether filing as an individual or a corporation, to claim a deduction for any amount that the employer contributestoanemployee'scollegetrustaccountorsavingsaccountthat is administered bycollegeinvest.

This deduction may be claimed even if the contribution has already been deducted from the employer's federal taxable income.

Be it enacted by the General Assembly of the State of Colorado:

SECTION 1.

Short title.

The short title of this act is the "Increase College Savings Act".

SECTION 2.

Legislative declaration.

The general assembly hereby finds and declares that the college savings program administered by collegeinvest is beneficial for all of the reasons identified in section 23-3.1-301, Colorado Revised Statutes, and that the purpose of the tax deduction created bythis act is to provide an additional tax incentive for employersto help their employees save for college bycontributingtothe employees' college trust account or savings accounts administered by collegeinvest.

SECTION 3.

In Colorado Revised Statutes, 39-22-104, add (4)(x) as follows:

39-22-104.

Income tax imposed on individuals, estates, and trusts - single rate - legislative declaration - definitions - repeal.

(4) There shall be subtracted from federal taxable income:

(x) FRINCOME TAX YEARS BEGINNING ON OR AFTER JANUARY 1, 2018, FOR AN EMPLOYER , AN AMOUNT EQUAL TO ANY AMOUNT THE EMPLOYERCONTRIBUTESTOANEMPLOYEE 'STRUSTACCOUNTORSAVINGS ACCOUNT ESTABLISHED PURSUANT TO PART 3OFARTICLE 3.1 OFTITLE23 DURING THE TAXABLE YEAR .

THIS SUBTRACTION IS ALLOWABLE EVEN IF THE CONTRIBUTION IS OTHERWISE EXCLUDED FROM FEDERAL TAXABLE -2- HB17-1007 INCOME .

SECTION 4.

In Colorado Revised Statutes, 39-22-304, add (3)(p) as follows:

39-22-304.

Net income of corporation-legislativedeclaration - definitions - repeal.

(3) There shall be subtracted fromfederal taxable income:

(p) FOR INCOME TAX YEARS BEGINNING ON OR AFTJANUARY 1, 2018, FOR AN EMPLOYER ,AN AMOUNT EQUAL TO ANY AMOUNT THE EMPLOYERCONTRIBUTESTOANEMPLOYEE 'STRUSTACCOUNTORSAVINGS ACCOUNT ESTABLISHED PURSUANT TO PART3 OFARTICLE 3.1OFTITLE23 DURING THE TAXABLE YEAR .

HIS SUBTRACTION IS ALLOWABLE EVEN IF THE CONTRIBUTION IS OTHERWISE EXCLUDED FROM FEDERAL TAXABLE INCOME .

SECTION 5.

Act subject to petition - effective date.

This act takes effect at 12:01 a.m.

on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 9, 2017, if adjournment sine die is on May 10, 2017);

except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2018 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

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