CO SB118

Modifies Colorado state income tax deductions for contributions to and distributions from the CollegeInvest qualified state tuition program, effective for tax years beginning January 1, 2016.

Establishes income-based tiered deductions: taxpayers with federal adjusted gross income of $75,000 or less receive 200% deduction; those with $75,001-$200,000 receive 150% deduction; those with $200,001-$250,000 receive 100% deduction.

Eliminates deductions entirely for taxpayers with federal adjusted gross income exceeding $250,000.

Applies the tiered structure to both investment earnings distributions and direct contributions to qualified tuition programs.

Takes effect August 5, 2015, but is subject to referendum petition; if petitioned, requires approval by voters in November 2016 to take effect.