First Regular Session Sixty-ninth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 13-0763.01 Nicole Myers x4326 SENATE BILL 13-131 SENATE SPONSORSHIP Hill, HOUSE SPONSORSHIP (None), Senate Committees House Committees Education A BILL FOR AN ACT Concerning the creation of an income tax credit for costs incurred in providing a supplemental education service to a dependent child. 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 a state 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 and who incurs costs for providing a supplemental education service to the child, to claim an income tax credit for the costs incurred in providing the supplemental education service. The amount of the credit allowed is an amount equal to the aggregate expenditures for a supplemental education service or $500, whichever is less. To claim the income tax credit, a taxpayer is required to obtain a letter from a licensed educator, mental health professional, or physician recommending that the taxpayer's qualified child receive a specified supplemental education service. The taxpayer is required to submit the letter with the taxpayer's income tax return form. 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. In Colorado Revised Statutes, add 39-22-129 as follows: 39-22-129. Supplemental education services - credit against state tax - definitions. (1) The general assembly hereby finds, determines, and declares that: (a) Students in elementary and secondary schools in the state often are in need of certain education services as a supplement to the education program provided by the child's school. A parent, educator, mental health professional, or physician may believe that the child needs and would benefit from a supplemental education service such as specialized tutoring, intervention services, vocational educational programs, therapy, or general counseling, but these services may not be available for a child through his or her school. (b) It may be cost-prohibitive or particularly difficult for Colorado families during these challenging economic times to provide these supplemental education services when the child's school is unable to do so. (c) The primary purpose of the income tax credit allowed pursuant to this section is to enable Colorado families to provide a supplemental education service to a child when necessary to augment the education program provided by the child's school and to ameliorate the economic stress that Colorado families may experience by providing such supplemental education service. (2) As used in this section, unless the context otherwise requires: (a) "Education provider" means a school district, a board of cooperative services that operates one or more public schools, a public school of a school district, including a charter school, an institute charter school, a private school, or a home-school program. (b) "Licensed professional" means an educator licensed pursuant to article 60.5 of title 22, C.R.S., a mental health professional licensed pursuant to article 43 of title 12, C.R.S., or a physician licensed pursuant to section 12-36-114, C.R.S. (c) "Qualified child" means a dependent child who is enrolled in an elementary or secondary school through an education provider in the state. (d) "Supplemental education service" means an education service or academic enrichment service that a qualified child receives to augment the educational program provided by the qualified child's education provider as recommended and deemed necessary by a licensed professional. "Supplemental education service" includes an education or academic enrichment service for a child who does not have an individualized education program pursuant to section 22-20-108, C.R.S., who has an individualized education program that does not include the education or academic enrichment service, or who is not enrolled in a public school. (e) "Taxpayer" means a resident individual as defined in section 39-22-103 (8). (3) For income tax years commencing on or after January 1, 2013, and subject to the limitation specified in subsection (5) of this section, any taxpayer who is the parent or guardian of a qualified child, who obtains a letter from a licensed professional pursuant to subsection (4) of this section, whose qualified child receives a supplemental education service, and who incurs costs during the tax year for providing such supplemental education service, shall be allowed a credit against the income taxes imposed by this article. The amount of the credit allowed is an amount equal to the aggregate expenditures for one or more supplemental education service or five hundred dollars, whichever is less. (4) Upon the request of a taxpayer, a licensed professional may issue to the taxpayer a letter stating that he or she recommends and deems it necessary that the taxpayer's qualified child receive a specified supplemental education service. To be eligible to claim an income tax credit pursuant to subsection (3) of this section, a taxpayer is required to submit with the taxpayer's income tax return form, a letter from a licensed professional for the supplemental education service for which the taxpayer is claiming the credit. (5) 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. (6) The department of revenue shall determine the form and manner of a letter from a licensed professional that a taxpayer requests to claim a credit pursuant to this section. (7) A licensed professional shall not be subject to legal action or to loss of his or her license solely on the basis of issuing a letter to a taxpayer pursuant to subsection (4) of this section. SECTION 2. 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.