CO HB1240

Removes the maximum age requirement for Colorado's state earned income tax credit, allowing workers age 65 and older to claim the credit for tax years beginning January 1, 2028

Currently, age-based eligibility limits prevent low- and moderate-income older workers from claiming the state EITC even when they meet the same income and work requirements as younger filers

Sets the credit amount at 25% of what the federal credit would have been under the American Rescue Plan Act of 2021 provisions that temporarily removed age limits

Applies existing percentage increase provisions (up to 15 percentage points) to the new credit based on the estimated adjustment factor used for other EITC calculations

Takes effect August 12, 2026, unless a referendum petition is filed, in which case it would require voter approval in November 2026