State Bill Colorado

Amendments for HB24-1311

House Journal, April 9
17 HB24-1311 be amended as follows, and as so amended, be referred to
18 the Committee on Appropriations with favorable
19 recommendation:
20
21 Amend printed bill, page 3, line 8, strike "ONE BILLION EIGHT HUNDRED
22 MILLION" and substitute "TWO BILLION TWENTY-EIGHT MILLION".
23
24 Page 9, strike lines 3 through 25.
25
26 Page 9, line 26, strike "TAX YEAR," and substitute:
27
28 "(4) (a) (I) THE FULL CREDIT AMOUNTS SET FORTH IN SUBSECTION
29 (3) OF THIS SECTION ARE ONLY ALLOWED FOR AN INCOME TAX YEAR IN
30 WHICH THE ESTIMATE OF EXCESS STATE REVENUES, AS DEFINED IN
31 SUBSECTION (4)(a)(II) OF THIS SECTION, EXCEEDS THE SUM OF THE
32 PROJECTED AGGREGATE AMOUNT OF THE CREDIT CLAIMED FOR THE
33 INCOME TAX YEAR PLUS THE AMOUNTS PROJECTED TO BE REFUNDED AS
34 REQUIRED BY PART 2 OF ARTICLE 3 OF THIS TITLE 39 IN THE INCOME TAX
35 YEAR.
36 (II) AS USED IN THIS SUBSECTION (4), "ESTIMATE OF EXCESS STATE
37 REVENUES" MEANS THE LESSER ESTIMATE, AS BETWEEN THE QUARTERLY
38 SEPTEMBER FORECAST OF THE LEGISLATIVE COUNCIL STAFF AND THE
39 QUARTERLY SEPTEMBER FORECAST OF THE OFFICE OF STATE PLANNING
40 AND BUDGETING, OF STATE REVENUES FOR THE STATE FISCAL YEAR
41 BEGINNING IN THAT INCOME TAX YEAR THAT IS EXPECTED TO EXCEED THE
20 42 LIMITATION ON STATE FISCAL YEAR SPENDING IMPOSED BY SECTION
43 (7)(a) OF ARTICLE X OF THE STATE CONSTITUTION. FOR THE PURPOSE OF
44 DETERMINING THE ESTIMATE OF EXCESS STATE REVENUES AS SET FORTH
45 IN THIS SUBSECTION (4), IN THE QUARTERLY SEPTEMBER FORECAST OF THE
46 LEGISLATIVE COUNCIL STAFF AND THE QUARTERLY SEPTEMBER FORECAST
47 OF THE OFFICE OF STATE PLANNING AND BUDGETING, THE LEGISLATIVE
48 COUNCIL STAFF AND THE OFFICE OF STATE PLANNING AND BUDGETING
49 SHALL EXCLUDE THE PROJECTED AGGREGATE AMOUNT OF THE CREDIT
50 ALLOWED BY THIS SECTION FOR THE INCOME TAX YEAR IN THEIR
51 ESTIMATES OF FISCAL YEAR SPENDING FOR THE STATE FISCAL YEAR.
52 (b) IF THE ESTIMATE OF EXCESS STATE REVENUES DOES NOT EXCEED
53 THE SUM OF THE PROJECTED AGGREGATE AMOUNT OF THE CREDIT CLAIMED
54 FOR THE INCOME TAX YEAR PLUS THE AMOUNTS PROJECTED TO BE
55 REFUNDED AS REQUIRED BY PART 2 OF ARTICLE 3 OF THIS TITLE 39 IN THE
1 INCOME TAX YEAR, BUT EXCEEDS THE AMOUNTS PROJECTED TO BE
2 REFUNDED AS REQUIRED BY PART 2 OF ARTICLE 3 OF THIS TITLE 39 IN THE
3 INCOME TAX YEAR,".
4
5 Page 10, strike lines 4 through 10.
6
7 Page 10, line 11, strike "AS REQUIRED BY PART 2 OF ARTICLE 3 OF THIS
8 TITLE 39," and substitute:
9
10 "(c) FOR AN INCOME TAX YEAR IN WHICH THERE IS NO ESTIMATE OF
11 EXCESS STATE REVENUES BECAUSE THE QUARTERLY SEPTEMBER
12 FORECAST OF THE LEGISLATIVE COUNCIL STAFF OR THE QUARTERLY
13 SEPTEMBER FORECAST OF THE OFFICE OF STATE PLANNING AND
14 BUDGETING PROJECT THAT THE STATE WILL NOT BE REQUIRED TO REFUND
15 EXCESS REVENUES UNDER SECTION 20 (7)(d) OF ARTICLE X OF THE STATE
16 CONSTITUTION, OR FOR AN INCOME TAX YEAR IN WHICH THE ESTIMATE OF
17 EXCESS STATE REVENUES IS NOT PROJECTED TO EXCEED THE AMOUNTS
18 PROJECTED TO BE REFUNDED AS REQUIRED BY PART 2 OF ARTICLE 3 OF THIS
19 TITLE 39 IN THE INCOME TAX YEAR,".
20
21 Page 10, strike lines 13 to 21.
22
23 Strike "FOR" and substitute "IN ADDITION TO THE CHILD TAX CREDIT
24 ALLOWED BY SECTION 39-22-129, FOR" on: Page 6, lines 8 and 25; Page
25 7, line 18; and Page 8, line 9.
26
27 Strike "BETWEEN SIX AND SIXTEEN" and substitute "SIX YEARS OF AGE OR
28 OLDER BUT LESS THAN SEVENTEEN" on: Page 7, line 2, and Page 8, line
29 13.
30
31

House Journal, April 30
32 HB24-1311 be amended as follows, and as so amended, be referred to
33 the Committee of the Whole with favorable
34 recommendation:
35
36 Strike the Finance Committee Report, dated April 8, 2024, and substitute:
37
38 "Amend printed bill, strike everything below the enacting clause and
39 substitute:
40
41 "SECTION 1. In Colorado Revised Statutes, add 39-22-130 as
42 follows:
43 39-22-130. Family affordability tax credit - legislative
44 declaration - definitions - repeal. (1) (a) THE GENERAL ASSEMBLY
45 HEREBY FINDS AND DECLARES THAT:
46 (I) COLORADO FAMILIES STRUGGLE TO AFFORD MANY NECESSARY
47 GOODS AND SERVICES, SUCH AS CHILD CARE, HOUSING, AND HEALTH CARE.
48 EIGHTY-THREE PERCENT OF COLORADO PARENTS WORRY THAT THEIR
49 CHILDREN WON'T BE ABLE TO AFFORD TO LIVE IN THE STATE IN THE
50 FUTURE.
51 (II) TARGETED TAX CREDITS ARE A PROVEN TOOL TO LIFT FAMILIES
52 OUT OF POVERTY. RESEARCH HAS SHOWN THAT FAMILIES THAT CLAIM
53 THESE TYPES OF TAX CREDITS, SUCH AS THE STATE AND FEDERAL CHILD
54 TAX CREDIT AND THE STATE AND FEDERAL EARNED INCOME TAX CREDIT,
55 HAVE BETTER HEALTH, IMPROVED SCHOOLING OUTCOMES, AND INCREASED
1 ADULT EARNING POTENTIAL. AS THE COST OF RAISING CHILDREN HAS
2 INCREASED, A FAMILY AFFORDABILITY TAX CREDIT IS CRITICAL FOR THE
3 WELL-BEING OF MANY CHILDREN AND FAMILIES ACROSS COLORADO.
4 (III) ACCORDING TO THE INSTITUTE ON TAXATION AND ECONOMIC
5 POLICY, "[T]O CUT CHILD POVERTY RATES BY HALF, THE MAJORITY OF
6 STATES WOULD REQUIRE A BASE CREDIT VALUE OF BETWEEN THREE
7 THOUSAND DOLLARS AND FOUR THOUSAND FIVE HUNDRED DOLLARS PER
8 CHILD PLUS A TWENTY PERCENT BOOST FOR YOUNG CHILDREN." WHEN
9 COUPLED WITH THE STATE AND FEDERAL EARNED INCOME TAX CREDIT AND
10 THE STATE AND FEDERAL CHILD TAX CREDIT, THE ADDITIONAL
11 INVESTMENT PROVIDED BY THE FAMILY AFFORDABILITY TAX CREDIT
12 WOULD ESTABLISH COLORADO AS A NATIONAL LEADER IN EQUITABLE
13 ECONOMIC POLICY.
14 (IV) COLORADO IS DEALING WITH RISING COSTS AND FUNDING
15 SHORTFALLS IN MANY AREAS ACROSS OUR STATE, AND IT IS NECESSARY TO
16 PROVIDE TAX CREDITS TO THE PEOPLE WHO NEED IT MOST IN A WAY THAT
17 WILL DO THE MOST GOOD. ESTABLISHING THE FAMILY AFFORDABILITY TAX
18 CREDIT IS A PROVEN WAY TO DO THAT; AND
19 (V) BY PRIORITIZING THE STATE'S LOWEST-INCOME FAMILIES,
20 EXPANDING THE CHILD AGE ELIGIBILITY, AND INCLUDING MORE FAMILIES,
21 THE STATE CAN PROVIDE RESEARCH-BACKED INVESTMENTS FOR FAMILIES.
22 THROUGH THOUGHTFUL AND STRATEGIC INVESTMENT, COLORADO CAN
23 CUT CHILD POVERTY NEARLY IN HALF.
24 (b) THE GENERAL ASSEMBLY DECLARES ITS INTENT TO
25 PERIODICALLY REVIEW THE TAX CREDIT CREATED IN THIS SECTION IN AN
26 EFFORT TO PREVENT A SIGNIFICANT INCREASE OR DECREASE, ADJUSTED
27 FOR INFLATION, IN THE TOTAL AMOUNT OF THE CREDIT CLAIMED BY
28 TAXPAYERS YEAR OVER YEAR STARTING IN INCOME TAX YEAR 2025.
29 (c) IN ACCORDANCE WITH SECTION 39-21-304 (1), WHICH
30 REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO INCLUDE
31 A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A STATUTORY
32 LEGISLATIVE DECLARATION, THE GENERAL ASSEMBLY HEREBY FINDS AND
33 DECLARES THAT THE PURPOSES OF THE TAX EXPENDITURE CREATED IN
34 SUBSECTION (3) OF THIS SECTION ARE TO SUBSTANTIALLY REDUCE CHILD
35 POVERTY, MAKE COLORADO MORE AFFORDABLE FOR FAMILIES, AND HELP
36 FAMILIES AFFORD EXPENSES ASSOCIATED WITH HAVING CHILDREN BY
37 PROVIDING TAX RELIEF FOR CERTAIN INDIVIDUALS.
38 (d) THE GENERAL ASSEMBLY AND THE STATE AUDITOR, IN
39 CONSULTATION WITH THE DEPARTMENT OF REVENUE, SHALL MEASURE THE
40 EFFECTIVENESS OF THE EXEMPTION ALLOWED BY THIS SECTION BY
41 DETERMINING THE NUMBER OF COLORADO FAMILIES WHO, AFTER
42 CLAIMING A CREDIT OR CREDITS IN THIS SECTION, NO LONGER FALL BELOW
43 THE FEDERAL POVERTY LEVEL IN THE TAX YEAR IN WHICH THEY CLAIMED
44 THE CREDIT OR CREDITS.
45 (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE
46 REQUIRES:
47 (a) "ELIGIBLE CHILD" MEANS A QUALIFYING CHILD, AS DEFINED IN
48 SECTION 152 (c) OF THE "INTERNAL REVENUE CODE OF 1986"; EXCEPT
49 THAT THE AGE REQUIREMENTS ARE AS SET FORTH IN SUBSECTIONS
50 (3)(a)(I), (3)(a)(II), (3)(b)(I), AND (3)(b)(II) OF THIS SECTION.
51 (b) (I) "ESTIMATED ADJUSTMENT FACTOR" MEANS, FOR A GIVEN
52 INCOME TAX YEAR, THE CAGR FOR NONEXEMPT REVENUE THAT IS
53 CALCULATED ACCORDING TO THE FOLLOWING FORMULA, AS ADJUSTED
54 PURSUANT TO SUBSECTION (2)(b)(IV) OF THIS SECTION:
55
56 CAGR= EV
56 1/n
56 !1 × 100BV
1 (II) AS USED IN THIS SUBSECTION (2)(b):
2 (A) "APPLICABLE STATE FISCAL YEAR" MEANS THE FISCAL YEAR
3 THAT BEGINS IN THE INCOME TAX YEAR FOR WHICH THE CREDIT IS
4 ALLOWED.
5 (B) "BV" MEANS THE AMOUNT OF THE STATE'S NONEXEMPT
6 REVENUE FOR STATE FISCAL YEAR 2024-25.
7 (C) "CAGR" MEANS THE ESTIMATED COMPOUND ANNUAL GROWTH
8 RATE.
9 (D) "EV" MEANS THE ESTIMATE OF THE STATE'S NONEXEMPT
10 REVENUE FOR THE APPLICABLE STATE FISCAL YEAR INCLUDED IN THE
11 ECONOMIC AND REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL
12 STAFF IN THE DECEMBER IMMEDIATELY PRECEDING APPLICABLE FISCAL
13 YEAR.
14 (E) "N" MEANS, FOR THE APPLICABLE STATE FISCAL YEAR, THE
25 15 NUMBER OF STATE FISCAL YEARS THAT HAVE PASSED SINCE THE 2024-
16 STATE FISCAL YEAR.
17 (F) "NONEXEMPT REVENUE" MEANS, FOR THE APPLICABLE STATE
18 FISCAL YEAR, THE REVENUE THAT IS IDENTIFIED AS NONEXEMPT TABOR
19 REVENUES IN THE ANNUAL COMPREHENSIVE FINANCIAL REPORT PUBLISHED
20 BY THE OFFICE OF THE STATE CONTROLLER.
21 (G) "TABOR" MEANS SECTION 20 OF ARTICLE X OF THE STATE
22 CONSTITUTION.
23 (III) THE EXECUTIVE DIRECTOR SHALL CALCULATE THE ESTIMATED
24 ADJUSTMENT FACTOR IN ACCORDANCE WITH THIS SECTION.
25 (IV) THE ESTIMATED ADJUSTMENT FACTOR MUST BE INCREASED
26 BY ONE-TENTH OF ONE PERCENTAGE POINT IF THE COLORADO
27 UNEMPLOYMENT RATE, AS CALCULATED BY THE UNITED STATES BUREAU
28 OF LABOR STATISTICS, REACHES FIVE PERCENT AND MUST BE INCREASED
29 BY AN ADDITIONAL ONE-TENTH OF ONE PERCENTAGE POINT FOR EVERY
30 ONE PERCENTAGE POINT INCREASE IN THE COLORADO UNEMPLOYMENT
31 RATE ABOVE FIVE PERCENT.
32 (c) "FEDERAL POVERTY LEVEL" MEANS THE POVERTY LINE THAT
33 IS REQUIRED TO BE UPDATED ANNUALLY WITHIN THE FEDERAL POVERTY
34 GUIDELINES ADOPTED BY THE UNITED STATES DEPARTMENT OF HEALTH
35 AND HUMAN SERVICES PURSUANT TO 42 U.S.C. SEC. 9902 (2).
36 (d) "INFLATION" MEANS THE ANNUAL PERCENTAGE CHANGE IN THE
37 UNITED STATES DEPARTMENT OF LABOR BUREAU OF LABOR STATISTICS
38 CONSUMER PRICE INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL
39 ITEMS PAID BY ALL URBAN CONSUMERS, OR ITS APPLICABLE SUCCESSOR
40 INDEX.
41 (3) (a) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY
42 SECTION 39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER
43 JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2034, A RESIDENT INDIVIDUAL
44 WHO FILES A SINGLE RETURN IS ALLOWED A FAMILY AFFORDABILITY TAX
45 CREDIT AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:
46 (I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS
47 FIVE YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR
48 IN THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS, ADJUSTED
49 FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF
50 THIS SECTION; AND
51 (II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUAL WHO IS SIX
52 YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT
53 THE CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS
54 SEVENTY-FIVE PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
55 (3)(a)(I) OF THIS SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6)
56 OF THIS SECTION.
1 (b) IN ADDITION TO THE CHILD TAX CREDIT ALLOWED BY SECTION
2 39-22-129, FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
3 1, 2024, BUT BEFORE JANUARY 1, 2034, TWO RESIDENT INDIVIDUALS WHO
4 FILE A JOINT RETURN ARE ALLOWED A FAMILY AFFORDABILITY TAX CREDIT
5 AGAINST THE INCOME TAXES DUE UNDER THIS ARTICLE 22 FOR:
6 (I) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS
7 FIVE YEARS OF AGE OR YOUNGER AT THE CLOSE OF THE INCOME TAX YEAR
8 IN THE AMOUNT OF THREE THOUSAND TWO HUNDRED DOLLARS, ADJUSTED
9 FOR INFLATION AND AS MODIFIED BY SUBSECTIONS (4), (5), AND (6) OF
10 THIS SECTION; AND
11 (II) EACH ELIGIBLE CHILD OF THE RESIDENT INDIVIDUALS WHO IS
12 SIX YEARS OF AGE OR OLDER BUT LESS THAN SEVENTEEN YEARS OF AGE AT
13 THE CLOSE OF THE INCOME TAX YEAR IN AN AMOUNT THAT IS
14 SEVENTY-FIVE PERCENT OF THE AMOUNT ALLOWED IN SUBSECTION
15 (3)(b)(I) OF THIS SECTION, AS MODIFIED BY SUBSECTIONS (4), (5), AND (6)
16 OF THIS SECTION.
17 (4) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
18 1, 2024, BUT BEFORE JANUARY 1, 2025, THE CREDIT AMOUNTS IN:
19 (a) SUBSECTION (3)(a)(I) OF THIS SECTION ARE REDUCED, BUT NOT
20 BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
21 SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
22 DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME
23 EXCEEDS FIFTEEN THOUSAND DOLLARS; AND
24 (b) SUBSECTION (3)(b)(I) OF THIS SECTION ARE REDUCED, BUT NOT
25 BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND EIGHT HUNDRED
26 SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH FIVE THOUSAND
27 DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS
28 INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS.
29 (5) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
30 1, 2025, BUT BEFORE JANUARY 1, 2026, IF THE ESTIMATED ADJUSTMENT
31 FACTOR IS:
32 (a) GREATER THAN OR EQUAL TO TWO PERCENT:
33 (I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)
34 OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A
35 SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND
36 DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN
37 SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT
38 INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME
39 OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;
40 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
41 IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
42 EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH
43 FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED
44 GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS; AND
45 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
46 SECTION IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX
47 AND EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR
48 EACH FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS'
49 ADJUSTED GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS; OR
50 (b) LESS THAN TWO PERCENT, NO CREDIT IS ALLOWED PURSUANT
51 TO THIS SECTION.
52 (6) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
53 1, 2026, BUT BEFORE JANUARY 1, 2034, IF THE ESTIMATED ADJUSTMENT
54 FACTOR FOR THE INCOME TAX YEAR IS:
55 (a) GREATER THAN OR EQUAL TO THREE AND SEVENTY-FIVE
56 ONE-HUNDREDTHS PERCENT:
1 (I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)
2 OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A
3 SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND
4 DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN
5 SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT
6 INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME
7 OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;
8 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
9 IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX AND
10 EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR EACH
11 FIVE THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED
12 GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS; AND
13 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
14 SECTION IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO SIX
15 AND EIGHT HUNDRED SEVENTY-FIVE ONE-THOUSANDTHS PERCENT FOR
16 EACH FIVE THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS'
17 ADJUSTED GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;
18 (b) GREATER THAN OR EQUAL TO THREE AND FIFTY-SIX
19 ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND SEVENTY-FIVE
20 ONE-HUNDREDTHS PERCENT, THEN:
21 (I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)
22 OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A
23 SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND
24 DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN
25 SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT
26 INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME
27 OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;
28 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
29 IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINE AND
30 SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS BY
31 WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS
32 FIFTEEN THOUSAND DOLLARS; AND
33 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
34 SECTION IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO
35 NINE AND SIX ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
36 DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS
37 INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;
38 (c) GREATER THAN OR EQUAL TO THREE AND THIRTY-SEVEN
39 ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND FIFTY-SIX
40 ONE-HUNDREDTHS PERCENT, THEN:
41 (I) THE FULL CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I)
42 OF THIS SECTION IS ALLOWED FOR A RESIDENT INDIVIDUAL WHO FILES A
43 SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND
44 DOLLARS OR LESS, AND THE FULL CREDIT AMOUNT SET FORTH IN
45 SUBSECTION (3)(b)(I) OF THIS SECTION IS ALLOWED FOR TWO RESIDENT
46 INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME
47 OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;
48 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS SECTION
49 IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTEEN
50 AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND
51 DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME
52 EXCEEDS FIFTEEN THOUSAND DOLLARS; AND
53 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
54 SECTION IS REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO
55 THIRTEEN AND FIFTY-NINE ONE-HUNDREDTHS PERCENT FOR EACH FIVE
1 THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED
2 GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;
3 (d) GREATER THAN OR EQUAL TO THREE AND EIGHTEEN
4 ONE-HUNDREDTHS PERCENT, BUT LESS THAN THREE AND THIRTY-SEVEN
5 ONE-HUNDREDTHS PERCENT, THEN:
6 (I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
7 THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED DOLLARS,
8 ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO FILES A
9 SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN THOUSAND
10 DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN SUBSECTION
11 (3)(b)(I) OF THIS SECTION IS REDUCED TO TWO THOUSAND SIX HUNDRED
12 DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT INDIVIDUALS
13 WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME OF
14 TWENTY-FIVE THOUSAND DOLLARS OR LESS;
15 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS
16 SECTION, AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, IS
17 REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN
18 AND TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE
19 THOUSAND DOLLARS BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED
20 GROSS INCOME EXCEEDS FIFTEEN THOUSAND DOLLARS; AND
21 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
22 SECTION, AS MODIFIED BY SUBSECTION (6)(d)(I) OF THIS SECTION, WILL BE
23 REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO NINETEEN
24 AND TWENTY-THREE ONE-HUNDREDTHS PERCENT FOR EACH FIVE
25 THOUSAND DOLLARS BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED
26 GROSS INCOME EXCEEDS TWENTY-FIVE THOUSAND DOLLARS;
27 (e) GREATER THAN OR EQUAL TO THREE PERCENT, BUT LESS THAN
28 THREE AND EIGHTEEN ONE-HUNDREDTHS PERCENT, THEN:
29 (I) THE CREDIT AMOUNT SET FORTH IN SUBSECTION (3)(a)(I) OF
30 THIS SECTION IS REDUCED TO ONE THOUSAND SIX HUNDRED FIFTY
31 DOLLARS, ADJUSTED FOR INFLATION, FOR A RESIDENT INDIVIDUAL WHO
32 FILES A SINGLE RETURN WITH AN ADJUSTED GROSS INCOME OF FIFTEEN
33 THOUSAND DOLLARS OR LESS, AND THE CREDIT AMOUNT SET FORTH IN
34 SUBSECTION (3)(b)(I) OF THIS SECTION IS REDUCED TO ONE THOUSAND SIX
35 HUNDRED FIFTY DOLLARS, ADJUSTED FOR INFLATION, FOR TWO RESIDENT
36 INDIVIDUALS WHO FILE A JOINT RETURN WITH AN ADJUSTED GROSS INCOME
37 OF TWENTY-FIVE THOUSAND DOLLARS OR LESS;
38 (II) THE CREDIT AMOUNT IN SUBSECTION (3)(a)(I) OF THIS
39 SECTION, AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS
40 REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND
41 THIRTY ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS
42 BY WHICH A RESIDENT INDIVIDUAL'S ADJUSTED GROSS INCOME EXCEEDS
43 FIFTEEN THOUSAND DOLLARS; AND
44 (III) THE CREDIT AMOUNT IN SUBSECTION (3)(b)(I) OF THIS
45 SECTION, AS MODIFIED BY SUBSECTION (6)(e)(I) OF THIS SECTION, IS
46 REDUCED, BUT NOT BELOW ZERO, BY AN AMOUNT EQUAL TO THIRTY AND
47 THIRTY ONE-HUNDREDTHS PERCENT FOR EACH FIVE THOUSAND DOLLARS
48 BY WHICH TWO RESIDENT INDIVIDUALS' ADJUSTED GROSS INCOME EXCEEDS
49 TWENTY-FIVE THOUSAND DOLLARS; OR
50 (f) LESS THAN THREE PERCENT, NO CREDIT IS ALLOWED PURSUANT
51 TO THIS SECTION.
52 (7) FOR INCOME TAX YEARS COMMENCING ON OR AFTER JANUARY
53 1, 2025, THE DEPARTMENT OF REVENUE SHALL ADJUST THE FEDERAL
54 ADJUSTED GROSS INCOME AMOUNTS SET FORTH IN THIS SECTION TO
55 REFLECT INFLATION FOR EACH INCOME TAX YEAR IN WHICH THE CREDIT
56 DESCRIBED IN THIS SECTION IS ALLOWED IF CUMULATIVE INFLATION SINCE
1 THE LAST ADJUSTMENT, WHEN APPLIED TO THE CURRENT LIMITS, RESULTS
2 IN AN INCREASE OF AT LEAST ONE THOUSAND DOLLARS WHEN THE
3 ADJUSTED LIMITS ARE ROUNDED TO THE NEAREST ONE THOUSAND
4 DOLLARS.
5 (8) IN THE CASE OF A PART-YEAR RESIDENT, THE CREDIT ALLOWED
6 UNDER THIS SECTION IS APPORTIONED IN THE RATIO DETERMINED UNDER
7 SECTION 39-22-110 (1).
8 (9) THE CREDIT ALLOWED UNDER THIS SECTION IS NOT
9 CONSIDERED TO BE INCOME OR RESOURCES FOR THE PURPOSE OF
10 DETERMINING ELIGIBILITY FOR THE PAYMENT OF PUBLIC ASSISTANCE
11 BENEFITS AND MEDICAL ASSISTANCE BENEFITS AUTHORIZED UNDER STATE
12 LAW OR FOR A PAYMENT MADE UNDER ANY OTHER PUBLICLY FUNDED
13 PROGRAMS.
14 (10) THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SECTION
15 THAT EXCEEDS THE RESIDENT INDIVIDUAL'S INCOME TAXES DUE IS
16 REFUNDED TO THE INDIVIDUAL.
17 (11) THE DEPARTMENT OF REVENUE IS AUTHORIZED AND
18 ENCOURAGED TO DEVELOP A MEANS OF PAYING THE CREDITS ALLOWED BY
19 THIS SECTION TO RESIDENT INDIVIDUALS WHO QUALIFY FOR THE CREDITS
20 IN TWELVE EQUAL MONTHLY PAYMENTS RATHER THAN ANNUALLY.
21 (12) THIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2037.
22 SECTION 2. Appropriation. (1) For the 2024-25 state fiscal
23 year, $178,494 is appropriated to the department of revenue. This
24 appropriation is from the general fund. To implement this act, the
25 department may use this appropriation as follows:
26 (a) $88,604 for use by the taxation business group for personal
27 services related to taxation services, which amount is based on the
28 assumption that the division will require an additional 1.2 FTE;
29 (b) $33,604 for tax administration IT system (GenTax) support;
30 (c) $8,206 for use by the taxation business group for operating
31 expenses related to taxation services;
32 (d) $22,085 for use by the executive director's office for personal
33 services related to administration and support; and
34 (e) $25,995 for document management services.
35 (2) For the 2024-25 state fiscal year, $25,995 is appropriated to
36 the department of personnel. This appropriation is from reappropriated
37 funds received from the department of revenue under subsection (1)(e) of
38 this section. To implement this act, the department of personnel may use
39 this appropriation to provide document management services for the
40 department of revenue.
41 SECTION 3. Act subject to petition - effective date. This act
42 takes effect at 12:01 a.m. on the day following the expiration of the
43 ninety-day period after final adjournment of the general assembly; except
44 that, if a referendum petition is filed pursuant to section 1 (3) of article V
45 of the state constitution against this act or an item, section, or part of this
46 act within such period, then the act, item, section, or part will not take
47 effect unless approved by the people at the general election to be held in
48 November 2024 and, in such case, will take effect on the date of the
49 official declaration of the vote thereon by the governor.".
50
51 Page 1 of the bill, line 102, strike "CREDIT." and substitute "CREDIT, AND,
52 IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.".".
53
54

House Journal, April 30
42 Amendment No. 1, Appropriations Report, dated April 30, 2024, and
43 placed in member's bill file; Report also printed in House Journal,
44 April 30, 2024.
45
46 Amendment No. 2, by Representative deGruy Kennedy:
47
48 Amend the Appropriations Committee Report, dated April 30, 2024, page
49 3, after line 5 insert:
50 "(A) "APPLICABLE FORECAST" MEANS EITHER THE QUARTERLY
51 DECEMBER REVENUE FORECAST PREPARED BY LEGISLATIVE COUNCIL
52 STAFF OR THE QUARTERLY DECEMBER REVENUE FORECAST PREPARED BY
53 THE OFFICE OF STATE PLANNING AND BUDGETING IN THE DECEMBER
54 IMMEDIATELY PRECEDING THE APPLICABLE STATE FISCAL YEAR, AS
55 DETERMINED BY WHICH IMMEDIATELY PRECEDING MARCH FORECAST THE
1 JOINT BUDGET COMMITTEE OF THE GENERAL ASSEMBLY USED IN THE
2 PREPARATION OF THE STATE BUDGET.".
3
4 Reletter succeeding sub-subparagraphs accordingly.
5
6 Page 3, strike lines 9 and 10 and substitute:
7 "(C) "BV" MEANS, ON OR BEFORE DECEMBER 31, 2024, THE
8 ESTIMATE OF THE STATE'S NONEXEMPT REVENUE FOR STATE FISCAL YEAR
9 2024-25 INCLUDED IN THE APPLICABLE FORECAST EXCLUDING THE
10 PROJECTED AGGREGATE AMOUNT OF THE TAX CREDIT ALLOWED PURSUANT
11 TO THIS SECTION AND THE PROJECTED AGGREGATE AMOUNT OF THE
12 INCREASED PORTION OF THE EARNED INCOME TAX CREDIT ALLOWED
13 PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED IN HOUSE BILL
14 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR, AND AFTER
15 DECEMBER 31, 2024, THE AMOUNT OF THE STATE'S NONEXEMPT REVENUE
16 FOR STATE FISCAL YEAR 2024-25 EXCLUDING THE AGGREGATE AMOUNT OF
17 THE TAX CREDIT ALLOWED PURSUANT TO THIS SECTION AND THE
18 AGGREGATE AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME
19 TAX CREDIT ALLOWED PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED
20 IN HOUSE BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX
21 YEAR.".
22
23 Page 3, strike lines 15 through 17 and substitute "APPLICABLE FORECAST
24 EXCLUDING THE PROJECTED AGGREGATE AMOUNT OF THE TAX CREDIT
25 ALLOWED PURSUANT TO THIS SECTION AND THE PROJECTED AGGREGATE
26 AMOUNT OF THE INCREASED PORTION OF THE EARNED INCOME TAX CREDIT
27 ALLOWED PURSUANT TO SECTION 39-22-123.5 (3.5), CREATED IN HOUSE
28 BILL 24-1134, ENACTED IN 2024, FOR THE GIVEN INCOME TAX YEAR.".
29
30 As amended, ordered engrossed and placed on the Calendar for Third
31 Reading and Final Passage.
32

Senate Journal, May 4
After consideration on the merits, the Committee recommends that HB24-1311 be
amended as follows, and as so amended, be referred to the Committee on Appropriations
with favorable recommendation.
Amend reengrossed bill, page 15, line 8, strike "PAYING" and substitute
"REFUNDING".

Page 15, line 10, strike "PAYMENTS" and substitute "REFUNDS".

Finance