(Feb. 11) –A bill to ensure that the financial aid Colorado’s military families receive from the military family relief fund remains tax free passed the House today unanimously.
HB13-1024 is a bipartisan measure sponsored by Reps. Jovan Melton (D-Aurora) and Dan Nordberg (R-Colorado Springs) that will alleviate a tax burden on military families by ensuring the tax-free status of military family relief fund grants, which are given when a service member is deployed or called to active duty.
“I am happy that we can help these families who sacrifice while their loved ones are off defending our country,” Rep. Melton said. “This is important to my district because of its proximity to Buckley Air Force Base as I know it is to Rep. Nordberg’s district near Fort Carson, Peterson Air Force Base and the Air Force Academy.”
Rep. Nordberg echoed Rep. Melton. “It isn’t appropriate to tax financial aid for the families of our servicemen and women,” Rep. Nordberg said. “The military family relief fund was created for families, and I’m glad Rep. Melton could join me in honoring our commitment to them.”
Currently, federal tax law does not clearly define whether grants received from the military family relief fund are included under federal taxable income. For any Colorado taxpayer who receives a grant from the military relief fund and must pay federal income tax on their grant, Reps. Nordberg and Melton’s bill subtracts that amount from their Colorado income tax liability.
House Bill 1024 now moves to the Senate for further consideration.