CO HB1005

Creates an income tax credit for early childhood educators holding professional credentials (levels I-VI) employed by or owning eligible early childhood education programs from 2020 through 2024.

Eligible educators must earn less than $75,000 annually (single filers) or $85,000 (joint filers) and work at least six months in a program with a Level 2 or higher Colorado SHINES quality rating or be affiliated with Head Start/Early Head Start or child care assistance programs.

Credit amounts range from $500 for Early Childhood Professional I to $1,000 for Professional III, with Professionals IV, V, and VI receiving $500; amounts adjust annually for inflation beginning in 2021.

Excess credits exceeding tax liability are refunded to eligible educators, and each educator can claim only one credit per year even if earning a higher credential level.

Section expires December 31, 2029; requires Department of Human Services to provide credential holder data annually to Department of Revenue through January 2025.