SecondHB1221_H_FIN.001 RegularNOT SessionAMENDED Seventy-fourthHOUSE GeneralCOMMITTEE AssemblyOF STATEREFERENCE OFREPORT COLORADO_______________________________ INTRODUCEDMarch LLS4, NO.2024 Chair of Committee Date Committee on Finance .

24-0300.01After Jasonconsideration Gelenderon x4330the HOUSEmerits, BILLthe 24-1221Committee HOUSErecommends SPONSORSHIPthe Marshallfollowing: and Soper, SENATE SPONSORSHIP Mullica, House Committees Senate Committees Finance A BILL FOR AN ACT CONCERNINGASTATE INCOMETAXCREDITFORALICENSEDTEACHER WHO IS EMPLOYED AS A TEACHER IN A PUBLIC SCHOOL ON A FULL TIME BASIS FOR AT LEAST ONE -HALF OF AN ACADEMIC YEAR .

BillHB24-1221 SummarybereferredfavorablytotheCommitteeon (Note:Appropriations.

This** summary*** applies** to*** this** bill 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.) ForincometaxyearscommencingonorafterJanuary1,2024,but before January 1, 2026, the bill allows a refundable state income tax credit, which is intended to offset the various expenses that licensed Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

Capital letters or bold & italic numbers indicate new material to be added to existing law.

Dashes through the words or numbers indicate deletions from existing law.

teachersoftenincurthroughoutanacademicyearforclassroomsupplies, professionaldevelopmentcosts,supplementaleducationalmaterials,field trips,and other items that improve the qualityof the educational services that they provide, to a licensed teacher who is employed as a teacher in a public school on a full-time basis for at least one-half of an academic year (eligible teacher) during the income tax year for which the credit is claimed.

The amount of the credit is $1,000 for an eligible teacher who is employed for the equivalent of an entire academic year and $500 for a teacher who is employed for one-half of an academic year.

Two eligible teachers who file a joint income tax return may each claim the credit.

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

SECTION 1.

In Colorado Revised Statutes, add 39-22-560 as follows:

39-22-560.

Credit - licensed teachers - tax preference performancestatement-legislativedeclaration-definitions-repeal.

(1) (a) TE GENERAL ASSEMBLY FINDS AND DECLARES THAT :

(I) LICENSED TEACHERS WHO TEACH IN PUBLIC SCHOOLS OFTEN SPEND THEIR OWN MONEY TO PAY FOR CLASSROOM SUPPLIES , PROFESSIONAL DEVELOPMENT COSTS , SUPPLEMENTAL EDUCATIONAL MATERIALS ,FIELD TRIP,AND OTHER ITEMS THAT IMPROVE THE QUALITY OF THE EDUCATIONAL SERVICES THAT THEY PROVIDE ;

(II) HESEITEMSPURCHASEDBYLICENSEDTEACHERSWITHTHEIR OWN MONEY BENEFIT THEIR STUDENTS AND THE PUBLIC ,AND THE PUBLIC SHOULD BE RESPONSIBLE FOR BEARING THEIR COSTS ;AND (III) TE INCOME TAX CREDIT IS INTENDED TO SHIFT SOME OFTHE COSTS CURRENTLY INCURRED BY LICENSED TEACHERS WHO TEACH IN PUBLIC SCHOOLS THAT SHOULD BE INCURRED BY THE PUBLIC FROM LICENSED TEACHERS TO THE PUBLIC.

(b) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH REQUIRESEACHBILLTHATCREATESANEWTAXEXPENDITURETOINCLUDE -2- HB24-1221 ATAXPREFERENCE PERFORMANCE STATEMENT ASPARTOFASTATUTORY LEGISLATIVEDECLARATION THEGENERALASSEMBLYFURTHERFINDSAND DECLARES THAT THE PURPOSE OF THE TAX CREDIT CREATED IN THIS SECTION IS TO PROVIDE TAX RELIEF FOR ELIGIBLE TEACHERS .

THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL MEASURE THE EFFECTIVENESSOFTHECREDITINACHIEVINGTHISPURPOSEBASEDONTHE NUMBER AND VALUE OF CREDITS CLAIMED.

(2) AS USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "ACADEMIC YEAR" HAS THE SAME MEANING AS SET FORTH IN SECTION 22-63-103 (1).

(b) "ELIGIBLE TEACHER"MEANS A TEACHER WHO IS EMPLOYED FULL-TIMEASATEACHERFORATLEASTONE HALFOFANACADEMICYEAR .

(c) "O NE-HALF OF AN ACADEMIC YEAR "MEANS EITHER THE PORTIONOFANACADEMICYEARTHATBEGINSIN JANUARYOFANINCOME TAX YEAR OR THE PORTION OF AN ACADEMIC YEAR THAT ENDS IN D ECEMBER OF AN INCOME TAX YEAR.

(d) "PBLIC SCHOOL" MEANS A SCHOOL OF A SCHOOL DISTRI,A CHARTERSCHOOLAUTHORIZEDBYASCHOOLDISTRICTPURSUANTTOPART 1 OF ARTICLE30.5OF TITL22,A CHARTER SCHOOL AUTHORIZED BY THE STATECHARTERSCHOOLINSTITUTEPURSUANTTOPART 5OFARTICLE30.5 OF TITLE 22,OR A BOARD OF COOPERATIVE SERVICES CREATED AND OPERATING PURSUANT TO ARTICLE5 OF TITL22.

(e) "TEACHER "MEANS A RESIDENT INDIVIDUAL WHO HOLDS A VALIDTEACHERLICENSEOFANYTYPEDESCRIBEDINSECTION 22-60.5-201 AND IS EMPLOYED TO INSTRUCT STUDENTS IN ANY PUBLIC SCHOOL IN THE STATE.

-3- HB24-1221 (3) (a) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2024BUT BEFORE ANUARY 1, 2026AN ELIGIBLE TEACHER IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY THIS ARTICLE 22IN THE AMOUNT OF:

(I) ONE THOUSAND DOLLARS IF THE ELIGIBLE TEACHER IS EMPLOYED FULL TIME AS A TEACHER FOR BOTH ONE -HALF OF AN ACADEMICYEARTHATBEGINSIN ANUARYOFTHEINCOMETAXYEARFOR WHICH ACREDIT ISCLAIMEDANDONE -HALFOFANACADEMICYEAR THAT ENDS IND ECEMBER OF THAT INCOME TAX YEAR;OR (II) F IVE HUNDRED DOLLARS IF THE ELIGIBLE TEACHER IS EMPLOYED FULL TIME AS A TEACHER FOR EITHER ONE -HALF OF AN ACADEMICYEARTHATBEGINSIN ANUARYOFTHEINCOMETAXYEARFOR WHICH A CREDIT IS CLAIMED OR ON-HALF OF AN ACADEMIC YEAR THAT ENDS IND ECEMBER OF THAT INCOME TAX YEAR,BUT NOT BOTH .

(b) TWOELIGIBLETEACHERSWHOFILEAJOINTRETURNMAYEACH CLAIM THE CREDIT IN THE APPLICABLE AMOUNT SPECIFIED IN EITHER SUBSECTION (3)(a)(IOR SUBSECTION(3)(a)(IOF THIS SECTIO.

(c) T HE AMOUNT OF THE CREDIT UNDER THIS SECTION THAT EXCEEDS THE ELIGIBLE TEACHERS INCOME TAXES DUE IS REFUNDED TO THE ELIGIBLE TEACHER.

(4) THIS SECTION IS REPEAL,EFFECTIVED ECEMBER 31, 2030.

SECTION 2.

Safety clause.

The general assembly finds, determines, and declares that this act is necessary for the immediate preservationofthepublicpeace,health,orsafetyorforappropriationsfor the support and maintenance of the departments of the state and state institutions.

-4- HB24-1221