HB24-1240 Summary

• Creates an income tax subtraction for Colorado taxpayers who receive Segal AmeriCorps Education Awards for service in the AmeriCorps National Service Program, effective for tax years beginning January 1, 2026 through December 31, 2033.

• Allows taxpayers to subtract the full amount of Segal AmeriCorps Education Awards from their federal taxable income in the year the award is used for eligible higher education expenses or student loan repayment.

• Requires the Department of Revenue to track the number of taxpayers claiming the subtraction and the aggregate amount claimed annually, reporting this data to the General Assembly and State Auditor upon request.

• Establishes the purpose as providing tax relief to AmeriCorps members, supporting education and workforce development, and incentivizing AmeriCorps members to seek higher education and remain in Colorado.

• Automatically repeals the tax subtraction effective July 1, 2039.