HB 22-1203: Income Tax Credits For Nonpublic Education

• Creates a private school tuition income tax credit for tax years 2023-2027 allowing taxpayers to claim credits when enrolling qualified children in private schools or providing scholarships, with credit amounts capped at 50% of state average per pupil revenues for full-time attendance or 25% for half-time attendance

• Establishes a home-based education income tax credit for tax years 2023-2027 providing $1,500 for taxpayers using home education for children previously enrolled full-time in public school, or $750 for those previously enrolled half-time

• Qualifies only dependent children who were enrolled in Colorado public schools the prior year or were not yet kindergarten-age, excluding children already in private school or home education as of the bill's effective date

• Allows both credits to carry forward for 3 years without refund and permits transferability to other taxpayers subject to specific limitations and reporting requirements

• Private schools must report issued credit certificates to the Department of Revenue by December 15 annually, with credits becoming effective subject to voter approval in November 2022