Colorado 2020 Regular Session Status: Died 2 D cosponsors

HB 20-1203 — EITC Earned Income Tax Credit And Child Tax Credit And Income Definition

Last action — House Committee on Appropriations Lay Over Unamended - Amendment(s) Failed

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

The starting point for determining state income tax liability is federal taxable income. This number is adjusted for additions and subtractions that are used to determine Colorado taxable income, which amount is multiplied by the state's income tax rate. Section 3 of the bill requires an individual to add to his or her federal taxable income an amount equal to the federal income tax deduction that he or she took for his or her combined qualified business income amount. The federal deduction may be claimed for income tax years commencing prior to January 1, 2026. The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 4 increases the percentage from 10% to 20% beginning in 2021. The state child tax credit, which is also a percentage of the federal child tax credit based on the taxpayer's income, is only allowed after the United States Congress enacts a version of the "Marketplace Fairness Act". Section 5 repeals this condition and instead allows the credit to be claimed beginning in 2021.(Note: This summary applies to this bill as introduced.)

Bill Text

What changed in the latest version

50 added · 43 removed

Plain-language change summary

The amendment to HB 20-1203 makes changes to the child tax credit provisions in Colorado law. Specifically, it adjusts the percentage of the federal credit that a resident individual can claim on their state taxes and removes the requirement for federal legislative action before the credit can be claimed. This means that residents who qualify for the federal child tax credit can now receive a corresponding state tax credit without waiting for additional federal laws to pass.

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Second Regular Session Seventy-second General Assembly STATE OF COLORADO INTRODUCED LLS NO.
Second Regular Session Seventy-second General Assembly STATE OF COLORADO PREAMENDED This Unofficial Version Includes Committee Amendments Not Yet Adopted on Second Reading LLS NO.
(c) Thestateincometaxiscoupledwiththeinternalrevenuecode, and so federal income tax deductions automaticallychange state taxable -2- HB20-1203 income;
(c) Thestateincometaxiscoupledwiththeinternalrevenuecode, and so federal income tax deductions automaticallychange state taxable -2- 1203 income;
-3- HB20-1203 (3) There shall be added to the federal taxable income:
-3- 1203 (3) There shall be added to the federal taxable income:
FR AN INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2021,A RESIDENT INDIVIDUAL WHO CLAIMS AN EARNED INCOME TAX CREDIT ON THE INDIVIDUAL S FEDERAL TAX RETURN IS ALLOWED AN EARNED INCOME TAX CREDIT AGAINST THE TAXES DUE UNDER THIS ARTICLE 22 THAT IS EQUAL TO TWENTY PERCENT OF THE FEDERALCREDITTHATTHERESIDENTINDIVIDUALCLAIMEDONHISORHER -4- HB20-1203 FEDERAL TAX RETURN FOR THE SAME TAX YEAR .
FR AN INCOME TAX YEAR COMMENCING ON OR AFTER JANUARY 1, 2021,A RESIDENT INDIVIDUAL WHO CLAIMS AN EARNED INCOME TAX CREDIT ON THE INDIVIDUAL S FEDERAL TAX RETURN IS ALLOWED AN EARNED INCOME TAX CREDIT AGAINST THE TAXES DUE UNDER THIS ARTICLE 22 THAT IS EQUAL TO TWENTY AND TWELVE ONE HUNDREDTHSPERCENTOFTHEFEDERALCREDITTHATTHERESIDENT -4- 1203 INDIVIDUALCLAIMEDONHISORHERFEDERALTAXRETURNFORTHESAME TAX YEAR .
In Colorado Revised Statutes, 39-22-129, amend (3)(a);
In Colorado Revised Statutes, 39-22-129, amend (3)(a)repeal (4);
and repeal (4) as follows:
and add (3)(d) as follows:
(3) (a) For anincome tax year specified in subsection (4)ofthissectionCOMMENCINGONORAFTER JANUARY 1,2021,aresident individualwhoclaimsafederalchildtaxcreditforaneligiblechildonthe individual's federal tax return is allowed a child tax credit against the income taxes due under this articleCLE 22 for the same tax year.
(3) (a) For anncome tax year specified in subsection (4)ofthissectioCOMMENCINGONORAFTER JANUARY 1,2021,aresident individualwhoclaimsafederalchildtaxcreditforaneligiblechildonthe individual's federal tax return is allowed a child tax credit against the income taxes due under this articleLE22 for the same tax year.
(d) IN THE CASE OF TWO RESIDENT INDIVIDUALS WHO MAY LEGALLY FILE A JOINT RETURN BUT ACTUALLY FILE SEPARATE RETUR,S ONLY ONE OF THE RESIDENT INDIVIDUALS MAY CLAIM A CREDIT UNDER THIS SECTIO.
The credit allowed under this section may be claimed for any income tax year beginning with the income tax year during which the last prerequisite bill under this subsection(4)becomeslaw;exceptthat,if thelastbillbecomeslawafter October 1 of a given year, the credit is first available in the next income tax year and in no case may the credit be claimed prior to the 2014 income tax year.
The credit allowed under this section may be claimed for any income tax year beginning with the income tax year during which the last prerequisite bill under this subsection(4)becomeslaw;exceptthat,if thelastbillbecomeslawafter -5- 1203 October 1 of a given year, the credit is first available in the next income tax year and in no case may the credit be claimed prior to the 2014 income tax year.
on the day following the expiration of the -5- HB20-1203 ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 5, 2020, if adjournment sine die is on May 6, 2020);
on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly(August 5, 2020, if adjournment sine die is on May 6, 2020);
-6- HB20-1203
-6- 1203
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Amendments

1 amendment

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Action History

  1. House Committee on Appropriations Lay Over Unamended - Amendment(s) Failed

  2. House Committee on Finance Refer Amended to Appropriations

  3. Introduced In House - Assigned to Finance + Appropriations

Sponsors

Sponsorship breakdown

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3 sponsors · 0 co-sponsors · 99 not signed on

Sponsors (3)

Co-sponsors (0)

None.

Not signed on (99)

99 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Subjects

taxation
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Frequently asked questions

What does HB 20-1203 do?
The starting point for determining state income tax liability is federal taxable income. This number is adjusted for additions and subtractions that are used to determine Colorado taxable income, which amount is multiplied by the state's income tax rate. Section 3 of the bill requires an individual to add to his or her federal taxable income an amount equal to the federal income tax deduction that he or she took for his or her combined qualified business income amount. The federal deduction may be claimed for income tax years commencing prior to January 1, 2026. The earned income tax credit is equal to a percentage of the federal earned income tax credit. Section 4 increases the percentage from 10% to 20% beginning in 2021. The state child tax credit, which is also a percentage of the federal child tax credit based on the taxpayer's income, is only allowed after the United States Congress enacts a version of the "Marketplace Fairness Act". Section 5 repeals this condition and instead allows the credit to be claimed beginning in 2021.(Note: This summary applies to this bill as introduced.)
Who sponsors HB 20-1203?
HB 20-1203 is sponsored by Julie Gonzales (Democrat), Matt Gray, and Emily Sirota (Democrat).
What is the current status of HB 20-1203?
This bill died with 2020 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HB 20-1203?
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