CO HB1295

Creates a private school tuition income tax credit for tax years beginning January 1, 2011, allowing taxpayers to claim credits when a private school issues a credit certificate for enrolling a dependent child or offering a scholarship.

Private school tuition credit amount equals either the scholarship offered or 50% of the previous year's state average per pupil revenue for full-time attendance, whichever is less; or 25% of state average per pupil revenue for half-time attendance, whichever is less.

Establishes a home-schooling income tax credit of $1,000 for taxpayers home-schooling a child previously enrolled full-time in public school, or $500 for a child previously enrolled half-time in public school, effective for tax years beginning January 1, 2011.

Credits may be carried forward for 3 years but are not refundable; unused credits are applied first to the earliest possible years and do not carry beyond the 3-year period.

Department of Revenue receives rule-making authority; private schools must issue annual electronic reports to the department documenting issued credit certificates by December 15 of each year.