McCluskie Bill to Save Families Money on Child Care Passes Committee

DENVER, CO - The House Finance Committee today passed bipartisan legislation sponsored by Speaker Julie McCluskie that would save Colorado families money on child care and spur the creation of more high-quality and affordable child care facilities in our communities. HB26-1004 passed unanimously by a vote of 10-0.

“The Child Care Contribution Tax Credit helps establish affordable, quality child care options that save families money, create jobs and help get parents back into the workforce so they can earn more and live their Colorado Dream,” said Speaker Julie McCluskie, D-Dillon. “While the Trump Administration tries to slash millions in child care funding, Colorado Democrats are building an economy that rewards hardworking people by expanding affordable child care options, especially in rural communities like mine on the Western Slope. This legislation will save Colorado families money and create more quality child care options so families can thrive.”

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.