June 5, 2013
Tues., June 5, 3013
Contact: Jenny Davies-Schley, 720-296-9545
Gov. Signs Working Family Tax Credits Bill (SB1)
State EITC and Child Tax Credits will help Colorado kids and economy
DENVER – Gov. John Hickenlooper signed “Colorado Working Families Economic Opportunity Act” (SB1) today, a bill that, when enacted, will provide a much-needed boost to Colorado’s working families and children. The law will reinstate state-level Earned Income Tax Credits and Child Tax Credits for working families.
“We are so thankful for all of the hard work of the legislature and legislative leadership to get this bill passed,” said Ali Mickelson, Tax Policy Attorney at the Colorado Fiscal Institute. “Our coalition has been working for more than ten years to make these kinds of improvements to the state EITC and CTC. It is great to see forward progress.”
The Working Family Coalition consisted of more than 40 organizations that see a state-level EITC and CTC as a critical tool in the fight against poverty and the effort to improve the lives of Colorado families.
The Colorado Fiscal Institute, a group whose members have been known to testify against tax policies in the past, is enthusiastic about this change to the tax law. “We finally have a chance to implement proven, effective and efficient tax policy in Colorado,” said Mickelson. “These tax credits have been researched and found to be successful at both a federal and state level. It is great to see Colorado adopting such mindful tax policy.
Colorado’s Earned Income Tax Credit will go into effect the first tax year after the next TABOR surplus, while the state Child Tax Credit will be available as soon as Congress passes legislation to allow states to collect sales tax from out-of-state retailers.
“We are grateful to the sponsors of this bill and leadership in both chambers for guiding the Colorado Working Families Economic Opportunity Act through the legislative process,” said Mickelson. “They are truly champions of Colorado’s working families.”
Colorado Fiscal Institute is a nonprofit, nonpartisan organization that provides credible, independent and accessible analyses of fiscal and economic issues facing Colorado in order to inform policy debates and foster greater economic prosperity for all: http://www.coloradofiscal.org