CO HB1126

Creates a refundable state income tax credit for Colorado kindergarten through twelfth grade teachers and classroom paraprofessionals who work at least 900 hours during a school year for their classroom expenses.

Eligible classroom expenses include books, supplies, computer equipment with software and services, and supplementary classroom materials, but exclude expenses claimed under the federal educator expense deduction or for which the educator is reimbursed.

Maximum credit amount is $500 per income tax year; educators who file joint returns may each claim the full $500 credit.

Credit applies to income tax years beginning January 1, 2022 through December 31, 2026, with the provision automatically repealing on December 31, 2031.

Refunds any portion of the credit that exceeds the eligible educator's state income taxes due; effectiveness measured by the number of credits claimed.