DENVER, CO - A bipartisan law to support retired military members and their families will go into effect on January 1, 2024.
HB23-1084, sponsored by Representatives David Ortiz, D-Centennial, and Mary Bradfield, R-El Paso County, and Senators Rachel Zenzinger, D-Arvada, and Bob Gardner, R-El Paso County, extends the income tax deduction for military retirement benefits through 2028. Under this law, veterans under the age of 55 are able to deduct up to $15,000 from their state income taxes.
“Veterans make great sacrifices to defend our country, so it's essential that we do the same for them,” said Zenzinger. “With this law, we’re reducing the amount of taxes retired veterans owe and keeping money in their pockets. I look forward to seeing this law continue to improve economic security for thousands of veterans and their families.”
“Colorado is an amazing place to live, work, and explore the outdoors, but rising costs make it harder for people to call Colorado home,” said Ortiz. “Senior enlisted and junior officers, who are more likely to be people of color and women, are especially vulnerable to being priced out of Colorado. Our law continues state income tax deductions for military retirement benefits to honor the service and sacrifice of our veterans.”
This law continues the tax deduction for retired military members created by HB18-1060 for an additional five years, which was set to expire in 2023. The Department of Revenue reported that around 7,000 veterans took advantage of this deduction in 2020.