In June 2024, Governor Jared Polis signed HB 1312, creating a refundable state income tax credit of $1,200 for qualifying early childhood professionals, as well as certain other types of workers. With this tax credit, Colorado aims to boost the recruitment, retention, and income of care workers. The program is funded for tax years 2025 through 2028.
Among the early childhood workforce, the tax credit is available to employees and operators of licensed child care centers, licensed family child care homes, and family, friend, and neighbor care providers registered with the Colorado Department of Early Childhood’s Professional Development Information System. To be eligible, they must have an income of $75,000 or less for single filers or $100,000 or less for joint filers.
This tax credit differs from the Early Childhood Educator Income Tax Credit, created in 2022, which offers a refundable income tax credit up to $1,500 for credentialed early childhood educators in Colorado.
Sources:
Colorado Department of Early Childhood. (n.d.). Care Worker Tax Credit.
Colorado Senate Democrats. (n.d.). Gov Signs Family Affordability Tax Credit, Bill to Support the Care Workforce.
Connections to Key Early Learning Study at Harvard (ELS@H) Findings:
The early education workforce is the foundation upon which all daily work and any expansion and quality improvement efforts rest. Research suggests that states and cities should invest in the workforce across all early education setting types, focusing on enhancing educators’ professional learning, compensation, and workplace conditions.
Findings from the Early Learning Study at Harvard (ELS@H) show:
- Early educators play a critical role in supporting the well-being of young children and families across setting types.
- Yet their pay, benefits, and other professional supports are often inadequate in light of the job demands and their cost of living.