CO HB1046

Employers may claim a 50% income tax credit for expenses incurred from paying employees during pre-adoption leave, effective January 1, 2024 through December 31, 2028.

Maximum pre-adoption leave for which credit may be claimed is 12 weeks per qualified employee, with credit also covering costs of temporary replacement help during the leave period.

Qualified employees must have been employed for at least one year and earned less than $80,000 in the preceding year; employers must have a written pre-adoption leave policy offering at least 2 weeks paid leave at 50% or more of normal wages.

Pre-adoption leave includes time for facilitating child placement, completing required training and home studies, meeting with legal counsel, attending adoption hearings, and bonding immediately after placement.

Unused tax credits may be carried forward and applied against income tax due in each of the five succeeding tax years, but cannot be refunded; credit is repealed effective December 31, 2034.