HB24-1288 Summary

• The Department of Revenue must share information about residents who claimed earned income tax credits or child tax credits with multiple state departments (Early Childhood, Health Care Policy and Financing, Human Services, Local Affairs, Corrections, Labor and Employment, Behavioral Health Administration, Higher Education, and Public Health and Environment) for benefit outreach purposes beginning July 1, 2025.

• Creates a pilot program to assist up to 100,000 Colorado households in filing or amending federal and state income tax returns to claim earned income tax credits or child tax credits for up to two prior tax years, with implementation required by August 15, 2025.

• A third-party entity will create pre-populated federal or state income tax returns for eligible households using wage data, with digital consent required from residents to share their wage information.

• All information shared remains confidential and subject to federal Internal Revenue Code Section 6103 limitations, with employees of receiving departments bound by the same confidentiality restrictions as Department of Revenue employees.

• Appropriates $167,585 to the Department of Revenue for fiscal year 2024-25 to support IT systems, personal services for taxation services, and administrative support; the pilot program provisions expire January 1, 2027.