HB24-1311: Family Affordability Tax Credit

• Creates a refundable state tax credit for Colorado resident individuals with children, available for tax years 2024-2033, with $3,200 per year for children age 5 and younger and 75% of that amount for children ages 6-16.

• Phases in the credit based on an estimated adjustment factor (revenue growth rate) with thresholds beginning at 2% for 2025 and 3% for 2026 onward, with no credit allowed if growth falls below these minimums.

• Reduces credit amounts based on adjusted gross income, with full credits available to single filers earning $15,000 or less and joint filers earning $25,000 or less, then phasing out at higher income levels.

• Allows the Department of Revenue to refund credits through 12 equal monthly payments rather than annually and excludes credits from income calculations for public assistance and medical assistance eligibility purposes.

• Appropriates $178,494 to the Department of Revenue for 2024-25 implementation and sunsets the credit effective December 31, 2037.