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Laws will slash childhood poverty, boost incomes of middle and lower-income Coloradans, and boost the care worker workforce
DENVER, CO - Governor Jared Polis today signed two bills into law that will create the Family Affordability Tax Credit to boost the incomes of hardworking Colorado families and create a state income tax credit for care workers to address the care worker workforce shortage.
Beginning tax year 2024, HB24-1311 creates the refundable Family Affordability Tax Credit. This credit will be available to parents with children 16 and younger with a maximum of $3,200 for each child under 6, and a maximum of $2,400 for each child ages 6 to 16. The credit will be adjusted for income, inflation, economic growth, and unemployment.
“This historic effort will significantly reduce childhood poverty in Colorado, boost the incomes of hardworking families, and help millions of Coloradans who are feeling the greatest impacts of the cost of living in our state,” said Speaker Pro Tempore Chris deGruy Kennedy, D-Lakewood, sponsor of HB24-1311. “Tax credit policies that benefit children and families, who could see up to thousands of dollars back under this law, will ensure our tax code works for more Coloradans and help address childhood poverty. I’m proud to have carried this law to help Coloradans afford essentials like rent payments and groceries and boost the incomes of thousands of families across the state.”
“Looking out for Colorado families means making sure they don’t have to choose between putting food on the table and paying rent or affording other necessities,” said Assistant Senate Majority Leader Faith Winter, D-Broomfield. “It’s no understatement to say that this is one of the more impactful pieces of legislation we’ll pass this year. I am extremely pleased to see this bill get signed into law, because it will cut child poverty in half while making it that much easier for working families to get by in our state.”
“There are over 133,000 Colorado kids living in poverty, and this law, coupled with the Earned Income Tax Credit, will dramatically cut our child poverty rate,” said Rep. Jenny Willford, D-Northglenn, sponsor of HB24-1311. “These tax credits boost the incomes of our lower and middle-income families so they can keep their children safe and healthy by accessing quality health care, school supplies, and fresh food. Our law will increase tax credits for Colorado parents and put millions of dollars back into the pockets of families with children.”
“Working Coloradans need our support, and I am pleased to say that we have an opportunity to make a real, transformative difference for kids and families,” said Senate President Pro Tempore James Coleman, D-Denver. “This bill will provide direct relief for families in our community while making our tax code more equitable, and will help give more Colorado families the resources they need to thrive.”
The Governor also signed HB24-1312 which creates a state income tax credit for child care workers and direct care workers to boost incomes and address workforce shortages. Taxpayers must have an income of $75,000 or less for single filers or $100,000 or less for joint filers to be eligible for this state income tax credit.
“Care workers are essential in providing care to our loved ones like our children and our parents, and they often do not receive the benefits and recognition they deserve,” said Rep. Emily Sirota, D-Denver, sponsor of HB24-1312. “This workforce is critical in supporting Coloradans in all industries and they are a crucial component of a thriving economy. This tax credit will allow us to recruit and retain these important care workers while boosting their incomes by over a thousand dollars so they can better afford their bills while staying in the care worker industry.”
“Robust access to care work increases workforce participation, creates better care for those receiving it, and supports the emotional and physical health of family members who are providing unpaid care work,” said Senate Majority Leader Robert Rodriguez, D-Denver. “Care workers are essential but aren’t treated that way. This new law is an important first step to valuing care work appropriately in Colorado.”
“Whether you receive support after an accident or have someone who helps your aging relatives, we have all benefited from the work and support that care workers provide,” said Rep. Lorena Garcia, D-Unincorporated Adams County, sponsor of HB24-1312. “This law is a small token of appreciation that we can give care workers, especially our Family, Friend and Neighbor child care providers, so they can continue the important work that they do and encourage our care workforce to grow.”
“Forty percent of Colorado’s care workers rely on public assistance – we must do more to support them,” said Jeff Bridges, D-Arapahoe County, sponsor of HB24-1312. “HB-1312 supports the care workforce across their entire lifetimes and provides economic support to all care workers, not just one group. This law will have far-reaching positive impacts on both the stability of this industry and the well-being of Colorado’s families, communities and economy.”
For tax years 2025 through 2028, this law creates a refundable state income tax credit of $1,200 for:
Direct care workers who are employed by a long-term care employer or provide community-based services and provided at least 720 hours of care in the relevant tax year,
Child care workers who are employed or licensed by an early childhood education program or a licensed family child care home and provided at least 720 hours of care in the relevant tax year, or
Informal family, friend, or neighbor child care providers who provided at least 720 hours of care to children 5 and under, and are registered with the Department of Early Childhood’s Professional Development Information System.