HB 16-1003 Summary

• Modifies Colorado state income tax deductions for contributions to and distributions from the CollegeInvest qualified state tuition program based on federal adjusted gross income, effective for tax years beginning January 1, 2017.

• Allows 200% deduction of contributions and investment earnings for taxpayers with federal adjusted gross income of $150,000 or less.

• Reduces deduction to 150% for taxpayers with income between $150,000 and $250,000, and to 40% for those with income between $250,000 and $500,000.

• Eliminates deductions entirely for taxpayers with federal adjusted gross income exceeding $500,000.

• Act takes effect 90 days after final adjournment of the general assembly, subject to voter approval if a referendum petition is filed within that period.