CO HB1324

Modifies state income tax deductions for qualified state tuition program (collegeinvest) contributions and distributions starting January 1, 2018, with rates based on federal adjusted gross income: 200% for income under $100,000; 100% for $100,000–$199,999; 50% for $200,000–$499,999; and 25% for $500,000 or more.

Creates refundable state income tax credits for qualified rural teachers ranging from $1,000 for the first year of teaching to $5,000 for the fifth consecutive year in rural schools, with credits increasing annually.

Establishes one-time refundable tax credit up to $2,500 for qualified rural student teachers who complete at least 100 days of student teaching in rural schools.

Requires the Department of Education to submit annual lists to the Department of Revenue by December 1 of each year identifying eligible teachers and student teachers to claim the credits.

Effective January 1, 2018, with credits treated as non-taxable income for purposes of determining public assistance and medical assistance benefit eligibility.