SB 25-319: Modification Higher Education Expenses Income Tax Incentive - Colorado

Rerevised (05/05/2025) → Revised (05/03/2025) · 3 edits

MINOR

The bill was revised to update its status and simplify the list of co-sponsors. A significant substantive change was added to the tax incentive section, clarifying that eligible students receive an income tax incentive for each qualifying semester or term completed during the tax year, rather than per year.

Scope change

The bill's scope regarding tax incentives was expanded to apply per qualifying semester or term completed, rather than per income tax year.

ELIGIBILITY

Added language clarifying that the income tax incentive applies for every qualifying semester or term completed during the income tax year, rather than once per year.

TECHNICAL

Removed several co-sponsors from the House sponsorship list (Boesenecker, Carter, Clifford, Hamrick, McCluskie, Phillips, Ricks, Smith, Woodrow).

Updated the document header to reflect the bill is 'Revised' rather than 'Rerevised' and adjusted the amendment adoption language.

Final Act (05/13/2025) → Rerevised (05/05/2025) · 5 edits

MODERATE

This bill clarifies and streamlines the administration of Colorado's income tax incentive for higher education costs by updating eligibility definitions, reporting requirements, and implementation timelines. The changes ensure clearer guidance for institutions and students while maintaining the core benefit of tax incentives for qualifying students.

Scope change

The bill's scope remains focused on the income tax incentive for higher education costs, but the administrative procedures and eligibility criteria have been refined for clarity and consistency.

ELIGIBILITY

Updated the definition of eligible students to clarify matriculation requirements and enrollment status, including specific references to Fall 2024 enrollment and high school completion dates.

DEFINITION

Added explicit definitions for 'dependent student' and 'independent student' to clarify how household income is calculated for different student categories.

REQUIREMENT

Revised reporting deadlines and requirements for higher education institutions to electronically report eligible student data to the Department of Higher Education and Department of Revenue.

TIMELINE

Adjusted specific dates for reporting and implementation, including changes to deadlines for electronic reporting and annual reports to legislative committees.

FISCAL

Added appropriation of $135,446 for the 2025-26 fiscal year to fund the implementation of the bill's administrative requirements.

Signed Act (06/04/2025) → Final Act (05/13/2025) · 4 edits

MODERATE

This bill makes technical corrections to the income tax incentive program for higher education costs, primarily fixing typos and formatting errors in the eligibility criteria and incentive calculation language. The changes clarify eligibility requirements for students and correct date ranges for when the tax incentive applies, ensuring the program functions as originally intended without unintended gaps or overlaps in coverage.

Scope change

The bill's scope remains the same, but eligibility criteria and application timelines were clarified through corrections to typos and formatting errors in the statute.

ELIGIBILITY

Corrected typos in eligibility criteria, such as changing 'matriculatcd' to 'matriculated' and fixing capitalization inconsistencies in the definition of eligible students.

TIMELINE

Adjusted date ranges for the income tax incentive, clarifying that the program applies to income tax years commencing on or after January 1, 2025, through January 1, 2033, with specific provisions for 2025-2026 and 2026-2033 periods.

TECHNICAL

Fixed formatting errors and removed placeholder text (such as underscores and blank lines) that were left in the statute during drafting.

DEFINITION

Corrected the definition of 'dependent student' by removing placeholder underscores and ensuring consistent capitalization throughout the statute.

Reengrossed (05/02/2025) → Signed Act (06/04/2025) · 6 edits · Jun 4, 2025

MODERATE

This bill was reengrossed to add new sponsors, correct formatting errors, and significantly expand the student tax incentive program by extending the program timeline and adding new eligibility categories. The changes clarify reporting requirements and adjust deadlines for institutions to report student data.

Scope change

The bill's scope was expanded to include students who matriculated within two academic years after high school graduation (previously only within two years) and to extend the program's operation through 2033 instead of 2032.

ELIGIBILITY

Added a new eligibility category for students who matriculated within two academic years after high school graduation or equivalent, expanding beyond the previous single academic year requirement.

TIMELINE

Extended the tax incentive program from ending in 2032 to ending in 2033, and adjusted reporting deadlines from January 15 to January 31 for institutions.

REQUIREMENT

Added new reporting requirements for higher education institutions to electronically report eligible student data to the Department of Higher Education by January 31 each year through 2033.

Added requirement for the Department of Higher Education to report information to the Department of Revenue by February 15 each year through 2034.

ENFORCEMENT

Added new requirement for a report to be submitted to the Joint Budget Committee and education committees by December 1, 2026, describing implementation and estimating total tax incentives claimed.

TECHNICAL

Corrected formatting errors in the bill text, including removing duplicate date references and fixing section numbering inconsistencies.

Engrossed (05/01/2025) → Reengrossed (05/02/2025) · 3 edits · May 2, 2025

MINOR

The bill was reengrossed to add five new co-sponsors (Cutter, Exum, Jodeh, Kipp, Michaelson Jenet) and update the bill summary to reflect third reading status. The most substantive change extends the deadline for Colorado public institutions of higher education to electronically report eligible students from January 15 to January 31, with this extended deadline applying from 2026 through 2033.

Scope change

The reporting deadline for student data was extended from January 15 to January 31 for the years 2026 through 2033, giving institutions more time to comply with federal law requirements.

ELIGIBILITY

Five new legislators were added as co-sponsors to the bill.

TIMELINE

The deadline for Colorado public institutions of higher education to electronically report eligible students was changed from January 15 to January 31 for the period from 2026 through 2033.

TECHNICAL

The bill summary was updated to indicate third reading unamended status and to note that amendments will be reflected in a reengrossed version.

Introduced (04/29/2025) → Engrossed (05/01/2025) · 3 edits · May 2, 2025

MINOR

The bill was amended from 'Introduced' to 'Engrossed' status, incorporating all amendments adopted on Second Reading in the House. The primary substantive change involves the reporting requirements for higher education institutions, which now must report eligible students to the state regardless of household income exceeding certain limits, unless prohibited by federal law.

Scope change

The bill's scope was expanded to require public higher education institutions to report all eligible students to the state, removing the previous income threshold restriction that would have exempted students whose household adjusted gross income exceeded a specified limit.

REQUIREMENT

Added requirement for Colorado public institutions of higher education to report each student who satisfies eligibility qualifications without regard to whether the student's household adjusted gross income exceeds the limit set forth in subsection (2)(c)(V).

TECHNICAL

Changed bill status from 'Introduced' to 'Engrossed' with updated date stamps and amendment tracking information.

Updated page numbering and formatting to reflect House and Senate amendments, including double underlining for Senate amendments and shading for House amendments.

Modification Higher Education Expenses Income Tax Incentive

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