Colorado 2025 Regular Session Status: In Committee Bipartisan · 3 D · 2 R cosponsors

HB 25-1012 — Income Tax Expenditures for Service Members

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

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2025 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This bill is no longer active — its legislative session has ended, so there is no live prognosis.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

Legislative Oversight Committee Concerning Tax Policy. The bill changes how income tax expenditures that benefit individuals engaged in military service are provided as follows: Beginning with income tax years commencing on or after January 1, 2027, section 2 of the bill eliminates the state income tax subtraction for an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in the state to the extent that the compensation is included in federal taxable income; and For income tax years commencing on or after January 1, 2027, but before January 1, 2032, section 3 allows a refundable income tax credit (credit) as a form of tuition assistance to an actively serving member of the Colorado National Guard who is eligible for tuition assistance (eligible member) under an existing statutorily-authorized program (program) administered by the department of veterans and military affairs (department). To claim the credit, an eligible member must obtain a tax credit certificate issued by the department for each academic semester or quarter for which tuition assistance is awarded in the form of the credit. The criteria for receiving a tax credit certificate are generally the same as the criteria for receiving other tuition assistance under the program; except that, to be eligible for a tax credit certificate, an eligible member must apply for all federal government tuition assistance that is not required to be repaid and that is generally made available to eligible members and not to the general population and must use all federal government tuition assistance received. The total amount of tuition assistance that an eligible member to whom the department has issued a tax credit certificate may obtain under the program, including the credit, is subject to existing program limits. In addition, the department may issue no more than $1 million in tax credit certificates for any income tax year. Section 1 makes conforming amendments.(Note: This summary applies to this bill as introduced.)

Bill Text

What changed in the latest version

193 added · 236 removed

Plain-language change summary

The updated version of Bill HB 25-1012 makes a significant change by introducing a new income tax credit for eligible members of the Colorado National Guard who incur educational expenses while pursuing higher education. This credit aims to alleviate financial burdens for those serving in the guard, incentivizing their continued education. Additionally, a subsection regarding tax deductions for military compensation received during active duty has been extended. These changes are important because they enhance support for service members in their educational pursuits, helping them develop skills for both military and civilian careers.

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First Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO.
First Regular Session Seventy-fifth General Assembly STATE OF COLORADO PREAMENDED This Unofficial Version Includes Committee Amendments Not Yet Adopted on Second Reading LLS NO.
In Colorado Revised Statutes, 23-7.4-302, amend (2)(a.5), (2)(b) introductoryportion, (2)(b)(II), (2)(b)(IV), (2)(c), (2)(d), (5), (6), and (7) introductory portion as follows:
23-7.4-302.
Tuition for members of the National Guard - definitions.(2)(a.5) Amemberiseligiblefortuitionassistancepursuant to this sectionND SECTION 39-22-571 to the extent that the sum of the member's tuition assistance from all sources, including the federal government, does not exceed one hundred percent of the cost of tuition.
-2- HB25-1012 (b) In order to qualifyfor the tuition assistance authorized bythis sectionAND SECTION 39-22-571, a member:
(II) Must not be drawing tuition from anyother tuition assistance program funded by a private employer that, when combined with the TUITION assistanceinthissectiANDSECTION 39-22-571,wouldexceed one hundred percent of the tuition costs;
(IV) MustserveintheColoradoNationalGuardduringtheperiod of time that the member is receiving tuition and feeance.
(c) In providing the tuition assistance to members pursuant to subsection (2)(a) of this sectionECTION 39-22-571, the department of military and veterans affairs is encouraged to consider providing assistanceonaprioritybasistonewly-enlistedmembersintheirfirstterm of service and who enlist in those military specialties that are experiencing shortages as determined by the department.
(d) For purposes of this section:
(I) "Member"meansanenlistedmemberorofficeroftheNational Guard.
(II) "TUITION ASSISTANCE"INCLUDES BOTH TUITION ASSISTANCE AWARDED PURSUANT TO THIS SECTION AND AN INCOME TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-571.
(5) For each individual member of the Colorado National Guard who is a continuing student and who is receiving tuition assistance as provided in this sectionR IN SECTION39-22-571, the department of militaryandveteransaffairsshallobtaincertificationfromthedesignated institution of higher education prior to the payment to the institution THE ISSUANCE OF A TAX CREDIT CERTIFICATE PURSUANT TO SECTION 39-22-571 (5) attesting to the member's current satisfactory academic -3- HB25-1012 standing at the designated institution of higher education, as determined by military regulations promulgated pursuant to subsection (7) of this section, for each semester or quarter for which tuition assistance is requested.
Tuition assistance shall not be granted without such certification.
(6) Any member who leaves the Colorado National Guard in violation of the member's agreement under subsection (2) of this section during an academic term for which the member is receiving tuition assistance is required to repayto the department of militaryand veterans affairs the amount of tuition assistance grantedUANT TO THIS SECTION for that academic term and any and all collection fees incurred bythedepartmentofmilitaryandveteransaffairs.TherepaymentSUCH tuition assistance shall be credited to the Colorado National Guard tuition fund created in subsection (9) of this section.
(7) The department of military and veterans affairs shall promulgate military regulations for the administration of tuition assistanceasprovidedinthissectionDSECTION 39-22-571,including, but not limited to, the following:
SECTION 2.
(u) (I) For income tax years commencing on or after January 1, 2016, BUT BEFORE JANUARY 1, 2027, an amount equal to any compensation received for active duty service in the armed forces of the -4- HB25-1012 United States by an individual who has reacquired residency in the state pursuant to section 39-22-110.5, to the extent that the compensation is included in federal taxable income;
(u) (I) For income tax years commencing on or after January 1, -2- 1012 2016, BUT BEFORE ANUARY 1, 2027, an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in the state pursuant to section 39-22-110.5, to the extent that the compensation is included in federal taxable income;
SECTION 3.
SECTION 2.
Incometax creditfortuitionassistanceforeligible members of the Colorado National Guard - tax preference performance statement - report - definitions - repeal.
Income tax credit for qualifying educational expenses incurred by eligible members of the Colorado National Guard - pursuing higher education - tax preference performance statement - report - definitions - repeal.
(1) Tax preference performance statement.
(1)Tax preference performance statement.
I ACCORDANCE WITH SECTION 39-21-304 (1)WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURETOINCLUDEATAXPREFERENCEPERFORMANCESTATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION ,THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:
I ACCORDANCE WITH SECTION39-21-304(1), WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION,THE GENERAL ASSEMBLY FINDS AND DECLARES THAT :
(b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR ELIGIBLE MEMBERS OF THE C OLORADO N ATIONAL G UARD WHO ARE PURSUING HIGHEREDUCATIONBYPROVIDINGADDITIONALTUITIONASSISTANCE ;AND (c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE PURPOSES SPECIFIED IN SUBSECTION(1)(aAND (1)(bOF THIS SECTION BASEDONTHEINFORMATIONREQUIREDTOBEMAINTAINEDANDREPORTED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION(8)OF THIS SECTIO.
(b) T HE SPECIFIC LEGISLATIVE PURPOSE OF THE TAX CREDIT ALLOWED BY THIS SECTION IS TO PROVIDE TAX RELIEF FOR ELIGIBLE MEMBERS OF THE C OLORADO N ATIONAL G UARD WHO ARE PURSUING HIGHER EDUCATION BY PROVIDING REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSES ;AND (c) THE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL -3- 1012 MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE PURPOSES SPECIFIED IN SUBSECTION(1)(a)AND (1)(bOF THIS SECTION BASEDONTHEINFORMATIONREQUIREDTOBEMAINTAINEDANDREPORTED BY THE ADMINISTRATOR PURSUANT TO SUBSECTION (8)OF THIS SECTIO.
-5- HB25-1012 (2) Definitions.S USED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(2) Definitions.
(a) "ADMINISTRATOR" MEANSTHEDEPARTMENTOFMILITARYAND VETERANS AFFAIRS .
AUSED IN THIS SECTI,UNLESS THE CONTEXT OTHERWISE REQUIRES :
(a) "ADMINISTRATOR "MEANSTHEDEPARTMENTOFMILITARYAND VETERANS AFFAIRS .
(c) "ELIGIBLEMEMBER "MEANSANENLISTEDMEMBEROROFFICER OF THE C OLORADO NATIONAL GUARD WHO IS ELIGIBLE FOR TUITION ASSISTANCE PURSUANT TO SECTION 23-7.4-302.
(c) "DESIGNATED INSTITUTION OF HIGHER EDUCATION"HAS THE SAME MEANING AS SET FORTH IN SECTION23-7.4-302 (3)(a).
(d) "Q UALIFIED INDIVIDUA" MEANS AN ELIGIBLE MEMBER TO WHOM THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE.
(d) "ELIGIBLEMEMBER "MEANSANENLISTEDMEMBEROROFFICER OF THE C OLORADO N ATIONAL GUARD WHO IS ELIGIBLE FOR TUITION ASSISTANCE PURSUANT TO SECTION 23-7.4-302HAS NOT YET EARNED A BACHELOR 'SDEGREE ,ANDISENROLLEDATADESIGNATEDINSTITUTIONOF HIGHER EDUCATION FOR THE PURPOSE OF PURSUING STUDIES LEADING TO ACERTIFICATEOFCOMPLETION ,ANASSOCIATEDEGREE ,ORABACHELOR 'S DEGREE .
(e) "RULES " MEANS THE MILITARY REGULATIONS FOR THE ADMINISTRATION OF TUITION ASSISTANCE PROMULGATED BY THE ADMINISTRATOR PURSUANT TO SECTION 23-7.4-302 (7).
(e) "Q UALIFIED INDIVIDUA" MEANS AN ELIGIBLE MEMBER TO WHOM THE ADMINISTRATOR ISSUES A TAX CREDIT CERTIFICATE.
(f) "TAX CREDIT "MEANS THE INCOME TAX CREDIT ALLOWED PURSUANT TO THIS SECTION.
(f) "Q UALIFYING EDUCATIONAL EXPENSES " MEANS EXPENSES OTHER THAN TUITION THAT ARE INCURRED BY AN ELIGIBLE MEMBER IN CONNECTION WITH THE ELIGIBLE MEMBER S PURSUIT OF HIGHER EDUCATION ,SUCH AS FEES ,COSTS INCURRED TO PURCHASE BOOKS OR OTHER COURSE MATERIALS ,AND LIVING EXPENSES,AND FOR WHICH THE ELIGIBLE MEMBER HAS NOT OTHERWISE BEEN REIMBURSED .
(g) "TAX CREDIT CERTIFICAT"MEANS A CERTIFICATE ISSUED BY THE ADMINISTRATOR TO A QUALIFIED INDIVIDUAL PURSUANT TO SUBSECTION (5)OF THIS SECTIO.
(g) "RULES " MEANS THE MILITARY REGULATIONS FOR THE -4- 1012 ADMINISTRATION OF TUITION ASSISTANCE ADOPTED BY THE ADMINISTRATOR PURSUANT TO SECTION 23-7.4-302 (7).
(h) "TUITION ASSISTANCE"INCLUDES BOTH TUITION ASSISTANCE AWARDEDPURSUANTTOSECTION 23-7.4-302ANDATAXCREDITALLOWED PURSUANT TO THIS SECTION.
(h) "T AX CREDIT" MEANS THE INCOME TAX CREDIT ALLOWED PURSUANT TO THIS SECTION.
(3)Taxcreditallowed.(a) FORINCOMETAXYEARSCOMMENCING ON OR AFTER JANUARY 1, 2027, BUT BEFORE JANUARY 1, 2032,A QUALIFIEDINDIVIDUALISALLOWEDACREDITAGAINSTTHEINCOMETAXES IMPOSED BY THIS ARTICLE 22 IN THE AMOUNT SET FORTH IN THE TAX CREDIT CERTIFICATE ISSUED TO THE QUALIFIED INDIVIDU.L (b) TO CLAIM A TAX CREDI,A QUALIFIED INDIVIDUAL MUST FILE -6- HB25-1012 A TAX CREDIT CERTIFICATE WITH THE QUALIFIED INDIVIDUS INCOME TAX RETURN .
(i) "TAX CREDIT CERTIFICAT"MEANS A CERTIFICATE ISSUED BY THE ADMINISTRATOR TO A QUALIFIED INDIVIDUAL PURSUANT TO SUBSECTION (5)OF THIS SECTIO.
(j) "UITIONASSISTANCE "MEANSTUITIONASSISTANCEAWARDED PURSUANT TO SECTION 23-7.4-302.
(3)Taxcreditallowed.(a) FORINCOMETAXYEARSCOMMENCING ON OR AFTER JANUARY 1, 2027,BUT BEFORE JANUARY 1, 2032,A QUALIFIEDINDIVIDUALISALLOWEDACREDITAGAINSTTHEINCOMETAXES IMPOSED BY THIS ARTICLE 22 IN THE AMOUNT SET FORTH IN THE TAX CREDIT CERTIFICATE ISSUED TO THE QUALIFIED INDIVIDU.L (b) TO CLAIM A TAX CREDI,A QUALIFIED INDIVIDUAL MUST FILE A TAX CREDIT CERTIFICATE WITH THE QUALIFIED INDIVIDUAS INCOME TAX RETURN .
(a) AN ELIGIBLE MEMBER WHO INTENDS TO CLAIM A TAX CREDIT MUST SUBMIT AN APPLICATION TO THE ADMINISTRATOR FOR TUITION ASSISTANCE IN ACCORDANCE WITH THE RULES .
(a) A N ELIGIBLE MEMBER WHO INTENDS TO CLAIM A TAX CREDIT MUST SUBMIT AN APPLICATION TO THE ADMINISTRATOR FOR TUITION ASSISTANCE IN ACCORDANCE WITH THE RULES .
(b) WHEN REVIEWING AN APPLICATION FOR TUITION ASSISTANCE FILED BY AN ELIGIBLE MEMBER ,THE ADMINISTRATOR , TAKING INTO ACCOUNT THE FACTORS SET FORTH IN SECTION 23-7.4-302 (7)(aTHE REQUIREMENTSETFORTHINSUBSECTION (4)(cOFTHISSECTION,ANDANY ADDITIONALFACTORSINTHERULES ,SHALLDETERMINEHOWMUCHTOTAL TUITION ASSISTANCE,IF AN,TO AWARD TO THE ELIGIBLE MEMBER AND THE AMOUNTS OF SUCH TUITION ASSISTANCE TO BE AWARDED PURSUANT TO SECTION23-7.4-302AND AS A TAX CREDI.
F THE ADMINISTRATOR APPROVES THE APPLICATION,THE ADMINISTRATOR SHALL ALSO APPROVE A TAX CREDIT FOR THE APPLICANT AND DETERMINE THE AMOUNT OF THE TAX CREDIT.
(c) TO BE ELIGIBLE FOR A TAX CREDIT CERTIFI,AN ELIGIBLE MEMBER MUST APPLY FOR ALL FEDERAL GOVERNMENT TUITION ASSISTANCE THAT IS NOT REQUIRED TO BE REPAID AND THAT IS GENERALLYMADEAVAILABLETOMEMBERSOFTHE COLORADO N ATIONAL G UARD AND NOT TO THE GENERAL POPULATION AND MUST USE ALL FEDERAL GOVERNMENT TUITION ASSISTANCE RECEIVED.
(b) TO BE ELIGIBLE FOR A TAX CREDIT CERTIFIC,AN ELIGIBLE MEMBER MUST APPLY FOR ALL FEDERALGOVERNMENT BENEFITS THAT CAN BE USED TO PAY FOR EDUCATIONAL EXPENSES THAT WOULD ,IF NOT -5- 1012 PAID FOR WITH SUCH BENEFITS,BE QUALIFYING EDUCATION EXPENSES THAT ARE NOT REQUIREDTOBE REPAIDANDTHAT ARE GENERALLY MADE AVAILABLE TOMEMBERSOFTHE COLORADO NATIONAL G UARD AND NOT TO THE GENERAL POPULATION AND MUST USE ALL SUCH FEDERAL GOVERNMENT BENEFITS RECEIVED .
(a) STOTHE LIMITATIONSSET FORTH IN SUBSECTION (5)(bOF THIS SECTIO,IF THE ADMINISTRATOR DETERMINES THAT AN ELIGIBLE MEMBER SHOULD RECEIVE TUITION ASSISTANCE IN THE FORM OF A TAX CRED,THE ADMINISTRATOR SHALL ISSUE TO THE ELIGIBLE MEMBER A TAX CREDIT CERTIFICATE FOR EACH ACADEMICSEMESTERORQUARTERFORWHICHSUCHTUITIONASSISTANCE IS BEING AWARDED THAT INDICATES THE INCOME TAX YEAR FOR WHICH -7- HB25-1012 SUCHTUITIONASSISTANCEISBEINGAWARDEDANDTHEAMOUNTOFSUCH TUITION ASSISTANCE TO BE AWARDED.
(a) STOTHE LIMITATIONSSET FORTH IN SUBSECTION (5)(bOF THIS SECTIO,IF THE ADMINISTRATOR DETERMINES THAT AN ELIGIBLE MEMBER SHOULD RECEIVE REIMBURSEMENT FORQUALIFYINGEDUCATIONALEXPENSES IN THE FORM OF A TAX CREDIT,THE ADMINISTRATOR SHALL ISSUE TO THE ELIGIBLE MEMBER A TAX CREDIT CERTIFICATE FOR EACH ACADEMIC SEMESTER OR QUARTER FOR WHICH SUCH REIMBURSEMENT FOR QUALIFYING EDUCATIONALEXPENSESISBEINGAWARDEDTHATINDICATESTHEINCOME TAX YEAR FOR WHICH SUCH REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSES IS BEING AWARDED AND THE AMOUNT OF SUCH REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSES TO BE AWARDED .
(I) THE MAXIMUM AGGREGATE AMOUNT OF TAX CREDIT CERTIFICATES THAT THE ADMINISTRATOR MAY ISSUE TO ALL QUALIFIED INDIVIDUALS FOR ANY INCOME TAX YEAR IS ONE MILLION DOLLA;S (II) ATAX CREDIT CERTIFICATE MUST BE ISSUED FOR THE INCOME TAX YEAR DURING WHICH THE SEMESTER OR QUARTER FOR WHICH THE TUITION ASSISTANCE IN THE FORM OF A TAX CREDIT IS AWARDED BE;INS AND (III) THE MAXIMUM AMOUNT OF A TAX CREDIT CERTIFICATE ISSUEDTOAQUALIFIEDINDIVIDUALISTHEMAXIMUMAMOUNTOFTUITION ASSISTANCE THAT THE ADMINISTRATOR MAY AWARD TO AN ELIGIBLE MEMBER FOR AN ACADEMIC SEMESTER OR QUARTER ,AS APPLICABLE, PURSUANT TO SECTION 23-7.4-30AND IS SPECIFICALLY SUBJECT TO THE LIMITATION SET FORTH IN SECTIO23-7.4-302 (2)(a.5).
(I) THE MAXIMUM AGGREGATE AMOUNT OF TAX CREDIT CERTIFICATES THAT THE ADMINISTRATOR MAY ISSUE TO ALL QUALIFIED INDIVIDUALS FOR ANY INCOME TAX YEAR IS ONE MILLION DOLLA;AND (II) ATAX CREDIT CERTIFICATE MUST BE ISSUED FOR THE INCOME TAX YEAR DURING WHICH THE ACADEMIC SEMESTER OR QUARTER FOR WHICH THE TUITION ASSISTANCE IN THE FORM OF A TAX CREDIT IS AWARDED BEGINS .
(6) RefundabilityFTHEAMOUNTOFATAXCREDITEXCEEDSTHE AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF A QUALIFIED INDIVIDUAL IN THE INCOME TAX YEAR FOR WHICH THE TAX CREDIT IS CLAIMED,THE AMOUNT OF THE TAX CREDIT NOT USED AS AN OFFSETAGAINSTINCOMETAXESINTHEINCOMETAXYEARISREFUNDEDTO THE QUALIFIED INDIVIDUA.
-6- 1012 (6) RefundabilityFTHEAMOUNTOFATAXCREDITEXCEEDSTHE AMOUNT OF INCOME TAXES OTHERWISE DUE ON THE INCOME OF A QUALIFIED INDIVIDUAL IN THE INCOME TAX YEAR FOR WHICH THE TAX CREDIT IS CLAIME,THE AMOUNT OF THE TAX CREDIT NOT USED AS AN OFFSETAGAINSTINCOMETAXESINTHEINCOMETAXYEARISREFUNDEDTO THE QUALIFIED INDIVIDUA.
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(7) Revocation of tax credit certificate and recapture of tax credit.
(7) Revocation of tax credit certificate and recapture of tax credit.F,IN ACCORDANCE WITH SECTION23-7.4-302AND THE RULES,A QUALIFIEDINDIVIDUALTOWHOMTHEADMINISTRATORHASISSUEDATAX CREDITCERTIFICATESUBSEQUENTLYFAILSTOFULFILLALLREQUIREMENTS FOR RECEIVING TUITION ASSISTANCE FOR THE ACADEMIC SEMESTER OR QUARTER FOR WHICH REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSESCREDITTHATISSPECIFIEDONTHETAXCREDITCERTIFICATE ,THE ADMINISTRATOR SHALL REVOKE THE TAX CREDIT CERTIFICATE AND NOTIFY THE QUALIFIED INDIVIDUAL AND THE DEPARTMENT OF THE REVOCATION AND THAT THE TAX CREDIT IS DISALLOWED .
IIN ACCORDANCE WITH SECTION 23-7.4-302AND THE RULES,A QUALIFIEDINDIVIDUALTOWHOMTHEADMINISTRATORHASISSUEDATAX -8- HB25-1012 CREDITCERTIFICATESUBSEQUENTLYFAILSTOFULFILLALLREQUIREMENTS FORRECEIVINGTHETUITIONASSISTANCEPROVIDEDINTHEFORMOFATAX CREDIT THAT IS SPECIFIED ON THE TAX CREDIT CERTIFICATE , THE ADMINISTRATOR SHALL REVOKE THE TAX CREDIT CERTIFICATE AND NOTIFY THE QUALIFIED INDIVIDUAL AND THE DEPARTMENT OF THE REVOCATION AND THE TAX CREDIT IS DISALLOWED.
F THE TAX CREDIT HAS ALREADY BEEN ALLOWED TO THE QUALIFIED INDIVIDUAL BEFORE THE DEPARTMENT RECEIVES NOTICE OF THE REVOCATION OF THE TAX CREDIT CERTIFICATE,THE QUALIFIED INDIVIDUAL SHALL ADD THE FULL AMOUNT OF THE TAX CREDIT THAT WAS ACTUALLY USED TO OFFSET THE QUALIFIED INDIVIDUA'S INCOME OR REFUNDED TO THE QUALIFIED INDIVIDUALTOTHEQUALIFIEDINDIVIDUAL SINCOMETAXRETURNFORTHE NEXT INCOME TAX YEAR AS A RECAPTURED TAX CREDIT FOR THE INCOME TAX YEAR FOR WHICH THE TAX CREDIT CERTIFICATE IS REVOKED PURSUANT TO THIS SUBSECTION(7).
F THE TAX CREDIT HASALREADYBEENALLOWEDTOTHEQUALIFIEDINDIVIDUALBEFORETHE DEPARTMENT RECEIVES NOTICE OF THE REVOCATION OF THE TAX CREDIT CERTIFICATE,THE QUALIFIED INDIVIDUAL SHALL ADD THE FULL AMOUNT OFTHETAXCREDITTHATWASACTUALLYUSEDTOOFFSETTHEQUALIFIED INDIVIDUALS INCOME OR REFUNDED TO THE QUALIFIED INDIVIDUAL TO THEQUALIFIEDINDIVIDUAL SINCOMETAXRETURNFORTHENEXTINCOME TAXYEARASARECAPTUREDTAXCREDIT FOR THE INCOME TAXYEARFOR WHICH THE TAX CREDIT CERTIFICATE IS REVOKED PURSUANT TO THIS SUBSECTION (7).
(a) N LATER THAN DECEMBER 31, 2028,AND , NOTWITHSTANDINGTHEREQUIREMENTINSECTION 24-1-136(11)(a)(INO LATER THAN D ECEMBER 31OF EACH YEAR THEREAFTER THROUGH 2032, THEADMINISTRATORSHALLPROVIDEAWRITTENREPORTTOTHEGENERAL ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC.IN CONNECTION WITH TAX CREDIT,THE REPORT MUST INCLUDE:
(a) N LATER THAN DECEMBER 31, 2028AND , NOTWITHSTANDINGTHEREQUIREMENTINSECTION 24-1-136(11)(a)(INO -7- 1012 LATER THAN DECEMBER 31OF EACH YEAR THEREAFTER THROUGH 2032, THEADMINISTRATORSHALLPROVIDEAWRITTENREPORTTOTHEGENERAL ASSEMBLY AND SHALL FURTHER MAKE THE REPORT AVAILABLE TO THE PUBLIC.IN CONNECTION WITH TAX CREDIT,THE REPORT MUST INCLUDE:
(I) TE NUMBER OF TAX CREDIT CERTIFICATES ISSU;D (II) TE AGGREGATE AMOUNT OFTUITIONASSISTANCE PROVIDED THROUGH TAX CREDITS AND THE AVERAGE AMOUNT OF SUCH TUITION ASSISTANCE PROVIDED TO EACH QUALIFIED INDIVIDUAL TO WHOM THE ADMINISTRATOR HAS ISSUED A TAX CREDIT CERTIFICA;AND (III) THE AMOUNT OF ANY TAX CREDIT RECAPTURED DUE TO -9- HB25-1012 REVOCATIONOFATAXCREDITCERTIFICATEPURSUANTTOSUBSECTION (7) OF THIS SECTION.
(I) TE NUMBER OF TAX CREDIT CERTIFICATES ISSU;D (II) THE AGGREGATE AMOUNT OF REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSES PROVIDED THROUGH TAX CREDITS AND THE AVERAGE AMOUNT OF SUCH REIMBURSEMENT FOR QUALIFYING EDUCATIONAL EXPENSES PROVIDED TO EACH QUALIFIED INDIVIDUAL TO WHOMTHEADMINISTRATORHASISSUEDATAXCREDITCERTIFICATE ;AND (III) THE AMOUNT OF ANY TAX CREDIT RECAPTURED DUE TO REVOCATIONOFATAXCREDITCERTIFICATEPURSUANTTOSUBSECTION (7) OF THIS SECTIO.
(b) T HE ADMINISTRATOR SHALL ,IN A SUFFICIENTLY TIMELY MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THECREDIT ,PROVIDE THE DEPARTMENT WITHANELECTRONICREPORTOF EACH QUALIFIED INDIVIDUAL TO WHOM THE ADMINISTRATOR ISSUES ONE OR MORE TAX CREDIT CERTIFICATES FOR THE PRECEDING INCOME TAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION :
(b) T HE ADMINISTRATOR SHALL , IN A SUFFICIENTLY TIMELY MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING THETAXCREDIT ,PROVIDETHEDEPARTMENTWITHANELECTRONICREPORT OF EACH QUALIFIED INDIVIDUAL TO WHOM THE ADMINISTRATOR ISSUES ONEORMORETAXCREDITCERTIFICATESFORTHEPRECEDINGINCOMETAX YEAR THAT INCLUDES THE FOLLOWING INFORMATION:
(I) THE QUALIFIED INDIVIDUALS NAME ;
(I) TE QUALIFIED INDIVIDUA'S NAME;
(II) THE TOTAL AMOUNT OF THE TAX CREDIT AUTHORIZED TO BE CLAIMED BY THE QUALIFIED INDIVIDUAL AND ,IF MULTIPLE TAX CREDIT CERTIFICATESWEREISSUEDTOAQUALIFIEDINDIVIDUAL ,THEAMOUNTOF THE TAX CREDIT AUTHORIZED TO BE CLAIMED BY THE QUALIFIED INDIVIDUAL THAT IS SPECIFIED ON EACH TAX CREDIT CERTIFICA;AND (III) TE QUALIFIED INDIVIDUALS SOCIALSECURITY NUMBER OR , IF THE QUALIFIED INDIVIDUAL IS NOT AU NITED STATES CITIZEN,THE QUALIFIEDINDIVIDUAL SINDIVIDUALTAXPAYERIDENTIFICATIONNUMBER .
(II) TE TOTAL AMOUNT OF THE TAX CREDIT AUTHORIZED TO BE CLAIMED BY THE QUALIFIED INDIVIDUAL AN,IF MULTIPLE TAX CREDIT CERTIFICATESWEREISSUEDTOAQUALIFIEDINDIVIDUAL ,THEAMOUNTOF THE TAX CREDIT AUTHORIZED TO BE CLAIMED BY THE QUALIFIED INDIVIDUAL THAT IS SPECIFIED ON EACH TAX CREDIT CERTIFI;AND (III) TE QUALIFIED INDIVIDU'S SOCIALSECURITY NUMBER OR, IF THE QUALIFIED INDIVIDUAL IS NOT UNITED STATES CITIZEN,THE -8- 1012 QUALIFIEDINDIVIDUAL'SINDIVIDUALTAXPAYERIDENTIFICATIONNUMBER .
SECTION 4.
SECTION 3.
on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly;except that, if a referendumpetition is filed pursuanttosection 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 -10- HB25-1012 November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
on the day following the expiration of the ninety-dayperiodafterfinaladjournmentofthegeneralassembly;except that,if a referendumpetition is filed pursuant to section 1 (3) of articleV 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 bythe people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.
-11- HB25-1012
-9- 1012
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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

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3 sponsors · 2 co-sponsors · 97 not signed on

Sponsors (3)

Co-sponsors (2)

Not signed on (97)

97 members have not signed on to this bill.

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taxation veterans education
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Frequently asked questions

What does HB 25-1012 do?
Legislative Oversight Committee Concerning Tax Policy. The bill changes how income tax expenditures that benefit individuals engaged in military service are provided as follows: Beginning with income tax years commencing on or after January 1, 2027, section 2 of the bill eliminates the state income tax subtraction for an amount equal to any compensation received for active duty service in the armed forces of the United States by an individual who has reacquired residency in the state to the extent that the compensation is included in federal taxable income; and For income tax years commencing on or after January 1, 2027, but before January 1, 2032, section 3 allows a refundable income tax credit (credit) as a form of tuition assistance to an actively serving member of the Colorado National Guard who is eligible for tuition assistance (eligible member) under an existing statutorily-authorized program (program) administered by the department of veterans and military affairs (department). To claim the credit, an eligible member must obtain a tax credit certificate issued by the department for each academic semester or quarter for which tuition assistance is awarded in the form of the credit. The criteria for receiving a tax credit certificate are generally the same as the criteria for receiving other tuition assistance under the program; except that, to be eligible for a tax credit certificate, an eligible member must apply for all federal government tuition assistance that is not required to be repaid and that is generally made available to eligible members and not to the general population and must use all federal government tuition assistance received. The total amount of tuition assistance that an eligible member to whom the department has issued a tax credit certificate may obtain under the program, including the credit, is subject to existing program limits. In addition, the department may issue no more than $1 million in tax credit certificates for any income tax year. Section 1 makes conforming amendments.(Note: This summary applies to this bill as introduced.)
Who sponsors HB 25-1012?
HB 25-1012 is sponsored by Mike Weissman (Democrat), Lisa Frizell (Republican), Larry Liston (Republican), Junie Joseph (Democrat), and Bob Marshall (Democrat).
What is the current status of HB 25-1012?
This bill died with 2025 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 25-1012?
Track HB 25-1012 free on One Click Politics — get push/email alerts when it moves.

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