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DENVER, CO - The House today advanced two bipartisan bills that would spur the creation of more high-quality and affordable child care facilities in our communities and help create more jobs by incentivizing businesses to expand or relocate to Colorado.
“Everyone deserves a fair shot at the Colorado Dream, and this bill would create quality child care options and save Colorado families money,” said Speaker Julie McCluskie, D-Dillon, sponsor of HB26-1004. “The Child Care Contribution Tax Credit is an important tool to support hardworking families while creating jobs, which is why I am sponsoring this bipartisan bill so communities across the state can continue to benefit from this tax credit.”
The Child Care Contribution Tax Credit allows taxpayers who donate money to a licensed child care facility in Colorado to receive an income tax credit of 50 percent of their contribution. HB26-1004, also sponsored by Minority Leader Jarvis Caldwell, R-Monument, would extend the Child Care Contribution Tax Credit until 2037.
These child care facilities could include qualifying child care centers, homeless youth shelters and residential treatment centers. These donations can be used to create or maintain a child care facility, fund child care financial assistance programs for families and train child care providers. In tax year 2023, around $33 million in credits were claimed by almost 16,000 taxpayers, generating a total of $66 million for the child care ecosystem.
In January, the Trump Administration attempted to freeze over $300 million of funding for child care and social services that thousands of Colorado families rely on.
HB26-1014, also sponsored by Rep. Rick Taggart, R-Grand Junction, would extend the Job Growth Incentive Tax Credit through tax year 2034. The Job Growth Incentive Tax Credit was created in 2009 to help create new jobs by offering a state income tax credit of 50 percent of the Federal Insurance Contributions Act (Social Security and Medicare payroll taxes) contributions paid by the business for each new job.
“This legislation will create new, good-paying job opportunities and boost Coloradans in their career fields,” said Speaker Pro Tempore Andy Boesenecker, D-Fort Collins, sponsor of HB26-1014. “The Job Growth Incentive Tax Credit has successfully created jobs in every corner of our state and above the average pay in the area. Expanding this tax credit would help attract businesses to Colorado, which would create more good-paying jobs and jumpstart careers.”
To qualify for this state income tax credit, businesses must create at least 20 new jobs during the credit period, or at least five new jobs if the project is within an Enhanced Rural Enterprise Zone. These jobs must pay at least 100 percent of the county’s average annual wage and be maintained for at least one year.
The following projects were announced as recent recipients of the Job Growth Incentive Tax Credit:
Neon, a company in the quantum industry, that is expected to create 150 new jobs at 172-percent of the average annual wage in Boulder County,
Project Elevate, a real estate investment and modular home manufacturing company, which is expected to create nearly 100 jobs at 135-percent of the average annual wage in Mesa County, and
Frontera, a construction company, which is expected to create 40 new jobs at 104-percent of the average annual wage in Montrose County.