HB 20-1204 Summary

• Allows individual and corporate taxpayers to deduct contributions to eligible scholarship granting organizations from Colorado state income tax for tax years 2021-2025, provided the amount is not claimed as a federal deduction.

• Defines eligible organizations as 501(c)(3) charitable nonprofits that provide scholarships for private school tuition to dependent children who qualify for free or reduced-cost lunch under federal law.

• Requires eligible scholarship organizations to undergo annual financial and compliance audits by independent certified public accountants and submit results to the Department of Education.

• Directs the Department of Education to review audits and submit a list of compliant organizations to the Department of Revenue by March 1 each year from 2022 through 2027.

• Sunsets the tax deduction provision effective July 1, 2030.