DENVER, CO - The House today passed legislation to put more money back into the pockets of hardworking Coloradans by increasing the state Earned Income Tax Credit for tax year 2023. The bill passed the House by a vote of 39-20.
“The Earned Income Tax Credit helps hardworking families that are the most at-risk for housing insecurity and poverty due to the rising cost of living in Colorado,” said Rep. Jenny Willford, D-Northglenn. “Boosting this credit will put more money back into the pockets of the people who need it most right now, who are disproportionately people of color, women, and people with a disability. Our legislation will bolster the economic security of the Coloradans feeling the brunt of our affordability crisis and make it easier for all Coloradans to call our state home.”
“This bill will boost the incomes of over 400,000 hardworking Colorado families, making it easier for them to afford rent, groceries, childcare, and other costs,” said Rep. Mary Young, D-Greeley. “Getting $185 million out to hardworking Coloradans will help grow our economy, support local business owners and enable more Coloradans to afford to live in Colorado.”
HB23B-1002 would expand the state Earned Income Tax Credit (EITC) for tax year 2023 to one of the highest state matches in the country. With the current state EITC at 25 percent, the average tax credit is $521. By increasing the EITC, families could see hundreds of additional dollars back in their wallets next year.
The bill builds on legislation passed by Colorado Democrats in recent years to make Colorado more affordable for working-class families. The General Assembly passed HB20-1420 and HB21-1311, which more than doubled the state's EITC and funded the Child Tax Credit for the first time in Colorado, saving hundreds of thousands of Colorado families money.
Additionally, Colorado Democrats passed HB23-1112 last session to increase the Colorado EITC from 25 percent to 38 percent of the federal EITC for tax year 2024. The bill’s demographic note showed that EITC recipients were more likely to be women, people of color, and people living with disabilities.