House Bill 1048: Income Tax Credits For Nonpublic Education

Colorado
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Last Updated: May 3, 2011
House Bill 1048: Income Tax Credits For Nonpublic Education
Sponsors:
Representative Spencer Swalm and Senator Lundberg
Summary:

This bill creates an income tax credit for parents who remove their children from public school in order to homeschool them or enroll them in a private school.

The bill establishes a private school tuition income tax credit for income tax years commencing on or after January 1, 2012, that allows any taxpayer to claim a credit when a private school issues the taxpayer a credit certificate for enrolling a dependent qualified child in the private school or when the taxpayer awards a scholarship to a qualified child for enrollment in the private school. This section allows the credit to be carried forward for 3 years but not refunded and grants the executive director of the department of revenue rule-making authority.

The amount of the credit is:

  • For any qualified child attending a private school on a full-time basis as described in the state board of education rules, either an amount equal to the scholarship awarded to the qualified child or 50% of the previous year's state average per pupil revenue, whichever is less; or
  • For any qualified child attending a private school on a half-time basis as described in the state board of education rules, either an amount equal to the scholarship awarded to the qualified child or 25% of the previous year's state average per pupil revenue, whichever is less.

Section 4 of the bill establishes an income tax credit for income tax years commencing on or after January 1, 2012, that allows any taxpayer who decides to home-school a qualified child to claim an income tax credit:

  • In an amount equal to $1,000 for a taxpayer who homeschools a qualified child who was enrolled on a full-time basis as described in the state board of education rules in a public school in the state prior to being homeschooled; or
  • In an amount equal to $500 for a taxpayer who homeschools a qualified child who was enrolled on a half-time basis as described in the state board of education rules in a public school in the state prior to being homeschooled.

This section allows the credit to be carried forward for 3 years but not refunded.

HSLDA's Position:
Support.
Action Requested:
None at this time
Status:

01/12/2011     (House)     Introduced and assigned to Education
02/07/2011     (House)     House Education Committee hearing
02/07/2011     (House)     Committee on Education Refer Unamended to Finance
02/09/2011     (House)     Committee on Finance Witness Testimony and/or Committee Discussion Only
02/23/2011     (House)     Hearing scheduled in the Finance Committee in LSB-A at 1:30 p.m.—Hearing rescheduled to March 2.
03/02/2011     (House)     Hearing in Finance Committee at 1:30 p.m.
03/03/2011     (House)     Committee on Finance Refer Amended to Appropriations
05/03/2011     (House)     Committee on Appropriations Committee Vote—Final Action Failed

Background:

The bill establishes a private school tuition income tax credit for income tax years commencing on or after January 1, 2012, that allows any taxpayer who decides to homeschool a qualified child to claim an income tax credit of either $1,000 or $500. Although the bill does require that the child must have been enrolled in the public school the previous school year, this bill is a starting place for nonpublic educational tax credits. HSLDA hopes it can be expanded in the future to include more families. Tax credits are not considered government money and thus carry virtually no risk of increased regulation on homeschooling. The bill will assist families who wish to escape from public schools be better able to choose homeschooling instead of enrollment in virtual public school programs.

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Bill Text

Bill History