First Regular Session
Sixty-second General Assembly
LLS NO. 99-0412.01 Gregg Fraser HOUSE BILL 99-1264
STATE OF COLORADO
BY REPRESENTATIVE McPherson
FINANCE
A BILL FOR AN ACT
101 CONCERNING THE CREATION OF A COLORADO EARNED INCOME TAX
102 CREDIT.
Bill Summary
(Note: This summary applies to this bill as introduced and does
not necessarily reflect any amendments that may be subsequently
adopted.)
Creates a Colorado earned income tax credit for individuals who
claim a federal earned income tax credit. Calculates the credit based
upon a specified percentage of the federal earned income tax credit.
1 Be it enacted by the General Assembly of the State of Colorado:
2 SECTION 1. Part 1 of article 22 of title 39, Colorado Revised
3 Statutes, is amended BY THE ADDITION OF A NEW SECTION to
4 read:
5 39-22-122. Colorado earned income tax credit - repeal.
6 (1) FOR TAX YEARS COMMENCING PRIOR TO JANUARY 1, 2004, IF A
7 RESIDENT INDIVIDUAL CLAIMS AN EARNED INCOME TAX CREDIT IN THE
8 INDIVIDUAL'S FEDERAL TAX RETURN, THE INDIVIDUAL SHALL BE ALLOWED
9 AN EARNED INCOME TAX CREDIT AGAINST THE INCOME TAXES DUE ON THE
10 INDIVIDUAL'S INCOME UNDER THIS ARTICLE. THE AMOUNT OF THE CREDIT
11 SHALL BE AN AMOUNT EQUAL TO THIRTY PERCENT OF THE AMOUNT OF THE
[ ] denotes HOUSE amendment. { } denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.
Dashes through the words indicate material to be deleted from existing statute.
Page 2
1 FEDERAL CREDIT CLAIMED ON THE RESIDENT INDIVIDUAL'S FEDERAL TAX
2 RETURN.
3 (2) IF THE CREDIT ALLOWED UNDER SUBSECTION (1) OF THIS
4 SECTION EXCEEDS THE INCOME TAXES DUE ON THE RESIDENT INDIVIDUAL'S
5 INCOME, THE AMOUNT OF THE CREDIT NOT USED TO OFFSET INCOME TAXES
6 SHALL NOT BE CARRIED FORWARD AS TAX CREDITS AGAINST THE RESIDENT
7 INDIVIDUAL'S SUBSEQUENT YEARS' INCOME TAX LIABILITY AND SHALL BE
8 REFUNDED TO THE INDIVIDUAL.
9 (3) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2005.
10 SECTION 2. Effective date - applicability. (1) This act shall
11 take effect at 12:01 a.m. on the day following the expiration of the
12 ninety-day period after final adjournment of the general assembly that is
13 allowed for submitting a referendum petition pursuant to article V,
14 section 1 (3) of the state constitution; except that, if a referendum petition
15 is filed against this act or an item, section, or part of this act within such
16 period, then the act, item, section, or part, if approved by the people, shall
17 take effect on the date of the official declaration of the vote thereon by
18 proclamation of the governor.
19 (2) The provisions of this act shall apply to income tax years
20 commencing on and after January 1 of the year in which this act becomes
21 effective, but prior to January 1, 2004.