New Laws to Cut Taxes for Child Care Centers and Workers, Seniors & Consumers

Signed by Governor Polis & Passed By Legislature Took Effect August 10, Certain Savings Kick in Immediately and Others Begin in Early 2023

New laws signed by Governor Polis and passed by the Colorado legislature took effect on August 10 including new laws to cut taxes for child care centers, early childhood educators, and seniors. Certain savings will kick in immediately and others will begin in early 2023.

“I’m proud these new bipartisan tax cuts for consumers, seniors, and child care centers are starting now to save people money. We are delivering real results for Coloradans and acting to reduce costs,” said Governor Polis.

This Spring, Gov. Polis signed transformational legislation to support childcare providers and hardworking parents. The bipartisan HB22-1006 Child Care Property Tax Exemption sponsored by Representatives Dylan Roberts and Kevin Van Winkle, Senators Kerry Donovan, and Jim Smallwood will expand the existing property tax exemption for nonprofit child care centers, allowing these exemptions to include properties that are leased by a child care center. This new law signed by Gov. Polis and passed by the legislature incentivizes the creation of new childcare spaces and will reduce rent for existing childcare tenants and therefore reduce childcare costs for parents.

“Child care in Colorado has become increasingly expensive and scarce — particularly in our rural and mountain communities — and that is why this was my first bill of the year: to provide significant tax relief to child care centers that will allow them to hire more employees, open new child care spots, and save families money,” said Rep. Dylan Roberts, D-Avon. “The lack of affordable child care hurts working families and this new bipartisan tax reduction law will help to increase the number of available spaces for child care facilities, driving down the cost of child care for both providers and families.”

“With pandemic-fueled inflation raising prices and hitting families hard, Democrats are laser-focused on making Colorado a more affordable place to live,” said Senator Kerry Donovan, D-Vail. “This new law will give child care providers a much-needed break, and help address our workforce shortage by allowing them to open up new facilities and free up parents to return to work.”

Community leaders cheered the passage and signing of HB22-1006. This law went into effect on August 10 and will provide savings for child care centers starting in early 2024.

This summer in Frisco Gov. Polis signed bipartisan legislation to extend and expand an income tax credit to more health care workers, providing relief to this workforce during a critical time. HB22-1005 Health-care Preceptors Tax Credit is sponsored by Representatives Julie McCluskie and  Will and Sen. Bob Rankin. This law went into effect on August 10 and will provide savings beginning early next year.

“Boosting our health care workforce, especially in the rural areas of our state, is important to ensure we’re helping build a healthier, safer Colorado for everyone,” said Rep. Julie McCluskie D-Dillon. “This tax credit encourages more talented individuals to pursue careers in medicine, nursing, counseling, behavioral health, and other high-demand health care positions. Our health care workforce has stepped up to provide above and beyond care throughout the last two-plus years, and we need to ensure their workforce is strong.”

Here’s what community leaders are saying about HB22-1010 Early Childhood Educator Income Tax Credit, which will provide savings for early childhood educators early next year:

“Save the Children Action Network (SCAN) applauds the passage of the Early Childhood Educator Tax Credit (House Bill 22-1010). Early childhood professionals are the backbone of quality early childhood education, and recruitment and retention of these professionals are essential for Colorado to expand early learning opportunities. SCAN stands alongside early childhood professionals and advocates in celebrating as this recruitment and retention tool is signed into law,” – Save the Children Action Network.

“HB1010 is vital to our state’s continued pandemic recovery and families’ ability to return to work. It is essential we recognize the role that our state’s child care providers play in supporting our families and strengthening communities. These dedicated professionals serve as a strong foundation for Colorado families – and our state and economy need as many of them as possible,” said Melissa Mares, Director of Early Childhood Initiatives at the Colorado Children’s Campaign.

Another new law signed by Governor Polis and passed by the legislature will soon kick in to help save seniors money on housing starting early next year. Rep. Chris Kennedy, Rep. Mike Weissman, Sen. Chris Hansen, and Sen. James Coleman helped guide this new law to the Governor’s desk.

“This year we took important steps to alleviate the pressure many families are facing due to pandemic-induced inflation and the rising cost of living, and this new law is a key component of that progress,” said Senator Chris Hansen, D-Denver. “This measure will save older Coloradans millions of dollars on housing, make Colorado a more affordable place to live, and ensure seniors can remain in the communities they have called home for years.”

“In addition to cutting property taxes and putting more money back into the pockets of hardworking families, thousands of low-income Colorado seniors will now save $100 million on housing,” said Rep. Chris Kennedy, D-Lakewood. “This will cut taxes and directly boost the incomes of older Coloradans who rent their homes or haven’t owned them long enough to qualify for the senior homestead exemption. It’s important that older Coloradans have an affordable place to call home, and this tax credit directly saves them money.”

“This rising cost of housing is putting folks all across Colorado in a bind, and it’s hitting those on fixed incomes, like many seniors, especially hard, which is why we took action,” said Senator James Coleman, D-Denver. “I am proud to have helped secure this immediate relief that will save thousands of Colorado money on housing and help them stay in their homes and their communities, and I’m excited to see this new law go into effect.”

“Older Coloradans are not immune to rent increases, higher property taxes, and unaffordable housing, and our law provides immediate relief to nearly 140,000 low-income seniors through a new refundable tax credit,” said Rep. Mike Weissman, D-Aurora. “Under this law, Colorado seniors will save $100 million on housing, delivering much-needed relief and making housing more affordable.”

Here’s what people are saying about HB22-1205 Senior Housing Income Tax Credit:

“We believe the $1000 to help low-income older adults who make less than $25,000 will benefit them with the continued costs of housing. Housing for many older adults takes as much as 50 to 75% of their monthly income. We look forward to assisting as many older adults as possible to apply for this benefit. Thank you to Rep Kennedy for his support of providing additional income/tax credits to low-income older adults.” – Colorado Gerontological Society

“I am thrilled with the passage of The Senior Housing Income Tax Credit. It has been a long time coming. This will provide relief to renters as well as to those who have recently moved. Just as importantly, it removes an incentive for staying in a house that is no longer suitable. I can’t count the number of seniors who have told me that they would like to move but don’t want to lose their tax credit. This effectively allows them to take it with them.” – Scott Kersgaard, Jefferson County Assessor.