HB 24-1134 Summary

• Increases the Colorado earned income tax credit from 20% to 50% of the federal credit for tax year 2024, with percentages decreasing to 25% by 2026, and includes revenue-based adjustments to potentially increase credits further starting in 2025.

• Modifies the child and dependent care expenses credit to increase from 50% to 70% of the federal credit beginning January 1, 2026, with income limits adjusted annually for inflation starting in 2027.

• Repeals obsolete corporate income tax provisions from 1981-1993 and replaces Colorado's combined reporting standard with the Multistate Tax Commission's standard for tax years beginning January 1, 2026.

• Implements unitary combined reporting for affiliated groups of C corporations, including all amounts sourced to Colorado in the apportionment calculation regardless of which separate entity holds those factors.

• Takes effect 90 days after final adjournment of the general assembly, subject to referendum petition; if challenged, requires voter approval at the November 2024 election to take effect.