Governor to Sign Martinez Humenik Bill Expanding Child Care Tax Credit for Colorado Families
This afternoon, Governor John Hickenlooper is scheduled to sign HB18-1208, sponsored by Senator Beth Martinez Humenik of Adams County, which will expand the amount of state tax credit that families may claim for child care expenses.
“This bill expands the ability of thousands of Colorado working families and single parents to afford child care, which is very expensive. It is also a refundable tax credit for those who qualify,” said Martinez Humenik.
“It took a lot of work to get the bill shepherded through two committees and the Senate floor debate,” said Martinez Humenik. “This is especially important in a year when the Legislature added $150 million additional dollars to K-12 education and the Governor was asking for a larger increase to the state’s rainy-day reserve fund. With a bipartisan effort in both chambers, we got it done.”
The bill’s Fiscal Note estimates that 24,300 Colorado taxpayers with taxable incomes up to $60,000 will take advantage of the expanded tax credit on their 2018 state tax filing. Under current law, only taxpayers with incomes under $25,000, not $60,000, can take full advantage of the tax credit.
As originally introduced in the House in early February, the bill would have reduced state revenues by over $20 million by expanding eligibility to taxpayers with incomes up to $150,000. Because of that $20 million fiscal impact, the bill as introduced had little chance of passage. Martinez Humenik worked with Senate committee chairs, fiscal analysts, the Joint Budget Committee and House sponsors to reduce the fiscal impact to under $2 million, thereby paving the way for approval in both chambers.
HB18-1208 was supported by a broad coalition of organizations, including Executives Partnering to Invest in Children (EPIC). EPIC’s president, Gloria Higgins, commented that Senator Martinez Humenik “worked tirelessly across the partisan divide to make it happen.”