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HB 1240

State Earned Income Tax Credit Age Limit

2026 Regular Session

HB 1240 modifies Colorado's earned income tax credit age eligibility requirements, affecting tax benefits for lower-wage workers and state revenue allocations.

House Committee on Appropriations Lay Over Unamended - Amendment(s) Failed
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Bill Summary · HB 1240

Legislative bill overview

HB 1240 modifies Colorado's state Earned Income Tax Credit (EITC) by adjusting age eligibility requirements for claimants. The bill appears to expand or restructure how age limits apply to workers claiming the credit, which supplements income for lower-wage workers. The specific changes to age thresholds will affect eligibility for a subset of Colorado taxpayers.

Why is this important

The EITC is one of the largest anti-poverty programs in the U.S., and state-level versions directly impact working families' take-home pay. Changes to age limits can either expand assistance to additional workers (such as younger or older workers historically excluded) or narrow eligibility, affecting thousands of Colorado households and state revenue by millions of dollars annually.

Potential points of contention

  • Fiscal impact: Expanding age eligibility increases state tax expenditures; narrowing it reduces benefits to affected workers during critical earning years
  • Equity across age groups: Whether current age restrictions unfairly exclude younger or older workers, or whether new limits create unintended consequences for vulnerable populations
  • Administrative burden: Changes require IRS coordination and may create confusion during tax filing; unclear which direction the bill moves on this issue

Compiled from official sources — confirm details with the bill’s official record.

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