House Bill 24-1340 Summary

• Creates a refundable state income tax credit for eligible Colorado students attending public higher education institutions in their first two years, equal to tuition and fees paid minus scholarships or grants.

• Eligible students must be in-state residents who matriculated within two years of high school graduation, maintain a 2.5+ GPA, enroll in at least 6 credit hours per semester, and have household income of $90,000 or less.

• Tax credit applies to students attending public four-year universities, two-year colleges, area technical colleges, and Colorado Mountain College or AIMS Community College for tax years 2025-2032.

• Requires Colorado public institutions of higher education to maintain their baseline percentage of need-based financial aid to low- and middle-income resident students, with annual reporting to legislature.

• Appropriates $101,756 to the Department of Higher Education for administration in fiscal year 2024-25 and sunsets the entire program on December 31, 2037.