CO HB1034

Allows Colorado state income tax deductions for contributions to 529 qualified state tuition programs used for elementary and secondary school tuition expenses, aligning with the federal Tax Cuts and Jobs Act of 2017.

Expands the definition of qualified distributions from 529 accounts to include tuition at public, private, or religious elementary and secondary schools, not just higher education expenses.

Limits deductions for K-12 tuition expenses to the annual dollar amount cap established in Internal Revenue Code Section 529(e)(3)(A)(iii).

Prevents tax recapture of claimed deductions when 529 contributions are withdrawn for qualified elementary or secondary tuition expenses, death, disability, or scholarships.

Takes effect 90 days after final adjournment of the general assembly (August 5, 2020), subject to referendum petition requirements.