HB 22-1010 Summary

• Establishes an income tax credit for eligible early childhood educators earning up to $75,000 (single filer) or $150,000 (joint filer) who hold an Early Childhood Professional Credential (Level I-VI) and work at a quality-rated program for at least six months of the tax year.

• Credit amounts are $750 for Level I, $1,000 for Level II, and $1,500 for Levels III-VI, with automatic annual inflation adjustments beginning in 2023.

• Credit applies to tax years beginning January 1, 2022 through December 31, 2025, and any excess credit amount is refunded to the educator.

• Requires the Department of Human Services to provide annual reports to the Department of Revenue listing credential holders and their credential levels to verify eligibility.

• Appropriates $156,743 to the Department of Revenue for the 2022-23 fiscal year for implementation, including staffing and IT system support; the credit provision sunsets July 1, 2030.