CO HB1292

Creates a refundable income tax credit of $3,600 per household for middle- and low-income taxpayers who claim exemptions for both qualifying children and qualifying relatives on their federal income tax return.

Limits eligibility to taxpayers with federal gross income at or below 200% of the national median household income for their household size, based on U.S. Census Bureau data.

Allows only one credit per household, with joint filers limited to a maximum of $3,600 in any taxable year; if two taxpayers file separately, only one may claim the credit.

Makes the credit refundable, meaning excess credit amounts that exceed income tax liability are refunded to the taxpayer rather than carried forward.

Applies to tax years beginning January 1, 2016 through December 31, 2018, and is repealed effective December 31, 2024.