Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to pass a bill that extends income tax deductions that were imposed under the CARES Act.

Highlights:

• Defines “Colorado taxable income” as federal taxable income as modified by this Article 22 without regard to this subsection (3)(p) (Sec. 3-IV.B).

• Specifies a resident individual is allowed an earned income tax credit against the taxes due that is equal to 10% of the federal credit that the resident individual would have been allowed, but for the fact that the resident individual, the resident individual's spouse, or one or more of the resident individual's dependents do not have a social security number that is valid for employment (Sec. 2).

• Specifies for income tax years beginning on or after January 1st, 2021, but before January 1st, 2022. The sum of the amount by which taxable income for the specified tax years exceeds the taxable income for the modified specified tax years computed separately for each income tax year (Sec. 3-1.A).

• Transfers $130,254 to the Department of Revenue from the General Fund for the 2020-2021 fiscal year to be used as follows (Sec. 4):

• $125,934 for use by the taxpayer service division for personal services, which amount is based on an assumption that the division will require an additional 2.6 FTE; and

• $4,320 for use by the taxpayer service division for operating expenses.

• Transfers $96,905 to the Department of Revenue from the General Fund. To implement this act, the department may use this appropriation as follows:

• $4,608 for use by the executive director's office administration and support division for personal services;

• $41,850 for tax administration IT system (GenTax) support;

• $14,805 for use by the taxation and compliance division for personal services; and

• $35,642 for use by the taxpayer service division for personal services, which amount is based on an assumption that the division will require an additional 0.7 FTE.

Full Bill Text