The signing of a Colorado-specific child tax credit bill into law by Governor Jared Polis appears timed for maximum support of a federal effort to support families that is already underway.
“Building upon Senator Michael Bennet’s historic expansion of the child tax credit, I was proud Colorado passed our own Child Tax Credit and expanded the earned income tax credit. We welcome expanded federal relief thanks to Senator Bennet, President Biden, and members of our federal delegation who supported this transformational legislation,” said Governor Jared Polis. “Colorado continues to deliver tax relief that works for working families and individuals and Washington must extend these benefits for years to come.”
Also on Monday, the Biden-Harris Administration launched Child Tax Credit Awareness Day. This is major tax relief—$3,000 to $3,600 per child—for nearly all families and a part of what is being called the American Rescue Plan. At the state level, Colorado has recently approved transformational tax relief. Biden has proposed an extension of this tax credit in his American Families Plan.
In Colorado, is estimated that the expanded federal Child Care Tax Credit will lift 57,000 kids out of poverty and benefit more than 1 million children across the state. Colorado U.S. Senator Michael Bennet championed the Child Tax Credit in Congress.
The Polis administration has doubled the state Earned Income Tax Credit from 10 percent to 20 percent. This means that under the state child tax credit, for the first time an estimated 155,000 Colorado families with young children will now be able to claim a refundable state Child Tax Credit of up to $1,080 per child for children under age 6 and depending on income level.
Featured image: Sam (age 8) Robert (age 9) and sister Lily Inge (age six-and-a-half) of Salida, having fun at the 2019 Chaffee County Fair. Mom Jill Inge said the kids look forward to the fair all year, and she always takes the family’s “calendar picture” at the fair, something that didn’t happen last year due to the pandemic.