CO HB1012

Eliminates the state income tax subtraction for active duty military compensation for individuals who have reacquired Colorado residency, effective January 1, 2027

Creates a refundable income tax credit for Colorado National Guard members as tuition assistance for tax years 2027-2031, administered by the Department of Military and Veterans Affairs

Caps total tax credit certificates at $1 million per income tax year, with individual credits limited to existing tuition assistance program maximums

Requires eligible members to apply for and use all available federal tuition assistance before qualifying for the state tax credit

Tax credit certificates may be revoked if members fail to meet program requirements, with recapture of credited amounts added to the following year's tax return