First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0559.01 Nicole Myers x4326 HOUSE BILL 13-1094 HOUSE SPONSORSHIP Dore, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning the creation of an income tax credit for school-related expenditures. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill creates an income tax credit for income tax years commencing on or after January 1, 2013, that allows a taxpayer who is the parent or guardian of a dependent child to claim a credit for costs incurred for school fees or school supplies in that income tax year. The amount of the credit allowed is 25% of the total expenditure for school fees or school supplies or $500, whichever is less. The bill allows the credit to be carried forward, but not refunded, for 3 years from the income tax year in which the credit is claimed. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. (1) The general assembly hereby finds, determines, and declares that: (a) Over the past several years, Colorado families have had to take on increased financial responsibility for costs in connection with their children's education. (b) These increased costs may be particularly difficult for Colorado families during these challenging economic times. (c) The primary purpose of the income tax credit allowed pursuant to House Bill 13-____, enacted in 2013, is to provide economic relief to the Colorado families that purchase school supplies and that pay school-related fees and to ease any increased financial burdens associated with sending their children to school. SECTION 2. In Colorado Revised Statutes, add 39-22-129 as follows: 39-22-129. School-related expenses - credit against state tax - definitions. (1) As used in the section, unless the context otherwise requires: (a) "Computer" means an electronic, magnetic, optical, electromagnetic, or other data processing device that performs logical, arithmetic, memory, or storage functions by the manipulations of electronic, magnetic, radio wave, or light wave impulses, and includes all input, output, processing, storage, software, or communication facilities that are connected or related to or operations in conjunction with such a device. (b) "Qualified child" means a dependent child who is enrolled in a public or private school in the state or who is home-schooled in the state or taught at home under the supervision of a private school. (c) "School fee" means a fee charged by a public or private school or public school district, or incurred in connection with a home school program, for a dependent child's participation in a transportation program, a curricular or extra-curricular activity, or any other school-related activity. (d) "School supply" means an art supply, backpack, binder pocket, binder, blackboard chalk, book bag, calculator, cellophane tape, clay and glaze, compass, composition book, computer, crayon set, dictionary or thesaurus, dry erase marker and eraser, folder, glue and paste, highlighter, index card set and box, lunch box, map or globe, marker, notebook and divider, paper or pad, pencil box or other boxes for school supplies, pencil sharpener, pencil and eraser, pen, protractor, reference book, ruler, scissors, textbook, and workbook, or other items requested by a school for use in a classroom. (e) "Taxpayer" means a resident individual as defined in section 39-22-103 (8). (2) For income tax years commencing on or after January 1, 2013, and subject to the limitation specified in subsection (3) of this section, any taxpayer who is the parent or guardian of a qualified child and who incurs costs for school fees or for the purchase of school supplies in connection with the qualified child's attendance at a public, private, or home school, shall be allowed a credit against the income taxes imposed by this article in an amount equal to twenty-five percent of the aggregate expenditures for such fees or supplies or five hundred dollars, whichever is less. (3) If the amount of the credit allowed pursuant to this section exceeds the amount of income taxes otherwise due on the income of the taxpayer in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in said income tax year may be carried forward as a credit against subsequent years' income tax liability for a period not exceeding three years and shall be applied first to the earliest income tax years possible. Any credit remaining after said period shall not be refunded or credited to the taxpayer. SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 7, 2013, if adjournment sine die is on May 8, 2013); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2014 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.