HB20B-1022 Summary

• Creates two separate income tax credits for 2020 and 2021 tax years for Colorado residents with dependent children affected by COVID-19 school closures.

• First credit covers costs incurred due to in-person learning suspension: up to $7,084 per year (combined maximum of $7,084 across both years) for taxpayers whose child's school suspended in-person learning for at least 4 cumulative weeks during the 2020-21 school year.

• Second credit covers lost income due to providing childcare: up to $7,084 per year (combined maximum of $7,084 across both years) for taxpayers who had to stop working to care for a child when school or daycare centers couldn't provide in-person services for at least 4 cumulative weeks.

• Taxpayers must retain documentation including cost receipts/income records and obtain statements from schools or daycare centers verifying the duration of closures; a taxpayer may claim only one credit type and cannot claim both.

• Unused credits may be carried forward for 3 years but are not refundable; both credits expire December 31, 2025.