JOINT RELEASE: SIGNED! Bill to Save Families Money on Child Care
HB26-1004 extends a tax credit that makes life more affordable for working Coloradans
DENVER, CO - Governor Jared Polis today signed legislation into law to spur the creation of more high-quality and affordable child care facilities in our communities.
“Child care is essential for hardworking families to have a fair shot at the Colorado Dream, and this law will create quality child care options to save Colorado families money,” said Speaker Julie McCluskie, D-Dillon. “The Child Care Contribution Tax Credit is an important tool to support hardworking families while creating jobs, which is why I sponsored this bipartisan law so communities across the state can continue to benefit from this tax credit.”
“Colorado’s families, communities, and economy are all stronger when we have a vibrant child care ecosystem,” said Senate President James Coleman, D-Denver. “This law drives donations toward child care facilities, which means more good jobs and more options for hardworking families at all price points. For many Colorado families, child care is their number one expense every month. This law is about taking action to make child care more available and affordable.”
The Child Care Contribution Tax Credit allows taxpayers who donate money to a licensed child care facility in Colorado to receive an income tax credit of 50 percent of their contribution. HB26-1004, also sponsored by Minority Leaders Cleave Simpson, R-Alamosa, and Jarvis Caldwell, R-Monument, extends the Child Care Contribution Tax Credit until 2037.
These child care facilities could include qualifying child care centers, homeless youth shelters and residential treatment centers. These donations can be used to create or maintain a child care facility, fund child care financial assistance programs for families and train child care providers. In tax year 2023, around $33 million in credits were claimed by almost 16,000 taxpayers, generating a total of $66 million for the child care ecosystem.
In January, the Trump Administration attempted to freeze over $300 million of funding for child care and social services that thousands of Colorado families rely on. As a result, Colorado Democrats are stepping up to create more avenues to fund affordable care.