First Regular Session
Sixty-first General Assembly
LLS NO. 970227.01 MKD
SENATE BILL 97068
STATE OF COLORADO
BY SENATOR Tanner;
also REPRESENTATIVE Schwarz.
FINANCE
A BILL FOR AN ACT
CONCERNING A STATE INCOME TAX CREDIT FOR EMPLOYEES
OF CHILD CARE FACILITIES.
Bill Summary
"Child Care Employee Income Tax Credit"
(Note: This summary applies to this bill as introduced
and does not necessarily reflect any amendments which may be subsequently
adopted.)
Beginning with the 1997 income tax year, allows fulltime
employees of qualified child care facilities a refundable tax
credit against state income taxes. Specifies the amount of the
credit, depending on the number of months out of the tax year
that the taxpayer is so employed.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. Part 1 of article 22 of title 39, Colorado Revised Statutes, 1994 Repl. Vol., as amended, is amended BY THE ADDITION OF A NEW SECTION to read:
3922120. Child care employees credit against state tax. (1) (a) FOR INCOME TAX YEARS BEGINNING ON AND AFTER JANUARY 1, 1997, THERE SHALL BE ALLOWED A CHILD CARE EMPLOYEE CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR ANY TAXPAYER WHO WAS EMPLOYED FULL TIME AT A QUALIFIED CHILD CARE FACILITY FOR AT LEAST SIX CALENDAR MONTHS DURING THE TAX YEAR. FOR PURPOSES OF THIS SECTION, "QUALIFIED CHILD CARE FACILITY" MEANS ANY FACILITY LICENSED UNDER ARTICLE 6 OF TITLE 26, C.R.S.
(b) THE CREDIT PROVIDED PURSUANT TO THIS SUBSECTION (1) SHALL BE DETERMINED AS FOLLOWS:
(I) FOR A TAXPAYER EMPLOYED FULL TIME AT ONE OR MORE QUALIFIED CHILD CARE FACILITIES FOR LESS THAN SIX CALENDAR MONTHS, NO CREDIT SHALL BE ALLOWED UNDER THIS SECTION;
(II) FOR A TAXPAYER EMPLOYED FULL TIME AT ONE OR MORE QUALIFIED CHILD CARE FACILITIES FOR SIX CALENDAR MONTHS OR MORE BUT LESS THAN TWELVE CALENDAR MONTHS OF THE TAX YEAR, THE CREDIT SHALL BE IN THE AMOUNT OF TWO HUNDRED FIFTY DOLLARS;
(III) FOR A TAXPAYER EMPLOYED FULL TIME AT ONE OR MORE QUALIFIED CHILD CARE FACILITIES FOR NO LESS THAN TWELVE CALENDAR MONTHS OF THE TAX YEAR, THE CREDIT SHALL BE IN AN AMOUNT OF FIVE HUNDRED DOLLARS.
(2) FOR PURPOSES OF THIS SECTION, "FULL TIME" SHALL HAVE THE SAME MEANING AS "FULLY EMPLOYED" AS SET FORTH IN SECTION 870103 (12.5), C.R.S.
(3) IF THE CREDIT ALLOWED UNDER THIS SECTION EXCEEDS THE INCOME TAXES OTHERWISE DUE ON THE CLAIMANT'S INCOME, THE AMOUNT OF THE CREDIT NOT USED AS AN OFFSET AGAINST INCOME TAXES SHALL BE REFUNDED.
(4) THE DEPARTMENT OF REVENUE MAY REQUIRE PROOF BY THE TAXPAYER OF THE TAXPAYER'S FULLTIME EMPLOYMENT STATUS AT ANY DULY LICENSED FACILITY DURING THE TAX YEAR, AS WELL AS PROOF BY THE TAXPAYER THAT SUCH FACILITY OR FACILITIES ARE SO LICENSED.
(5) THE EXECUTIVE DIRECTOR SHALL PROMULGATE SUCH RULES AND PREPARE SUCH FORMS AS MAY BE NECESSARY TO CLAIM A CREDIT UNDER THIS SECTION.
SECTION 2. Safety
clause. The general assembly hereby finds, determines, and
declares that this act is necessary for the immediate preservation
of the public peace, health, and safety.