HB 21-1197 Summary

• Establishes a temporary income tax credit for Colorado tax years 2021-2025 that reduces state income tax to zero for qualified low-income taxpayers as pandemic relief.

• Defines qualified taxpayers as individuals filing federal returns with less than $20,000 taxable income or married couples filing jointly with combined federal taxable income less than $40,000.

• Credit amount equals the income tax imposed on the qualified taxpayer for that year, reducing their Colorado tax liability to zero.

• Credit cannot generate a refund and must be applied before all other income tax credits.

• Section automatically repeals on December 31, 2030; act takes effect 90 days after legislative adjournment, unless subject to referendum petition requiring voter approval in November 2022.