Polis signs bill creating tax credits for college

(COLORADO) — Governor Jared Polis signed a bill on Thursday, May 30 that will save students money and make college more accessible.

The bill, HB23-1340 , known as ‘Incentive for Post-Secondary Education’ creates a refundable income tax credit to encourage enrollment in institutions of higher education. The bill also creates the Colorado Promise: Two Free Years of College Expanded effort, which will make two years at a four-year public college, community, or trade school free.

“Two years at any public four-year college, community college, or trade school are now free for more Coloradans,” said Polis. “This will strengthen Colorado’s workforce, provide new pathways for students to gain in-demand skills, and save Coloradans thousands of dollars, helping ensure that higher education is affordable for everyone.”

The Promise program begins in Fall 2024, and it applies to students whose family incomes are $90,000 or less. The program covers a complete reimbursement of any out-of-pocket tuition and fees paid.

Students must meet certain criteria to qualify, they must be seeking a degree, have completed a FASFA or CASFA, and have a 2.5 semester GPA.

Some of Colorado’s institutions that will participate in the program include Pikes Peak State College, Colorado State University in Pueblo, University of Colorado Colorado Springs, Metropolitan State University of Denver, and more. Colorado institutions of higher education that are participating in the program will notify students if they are eligible for it each semester.

The tax credit covers up to the first 65 credits a student takes, not counting any concurrent enrollment, AP/IB, military credit, or credit for prior learning.

To claim this reimbursement, a student must file state taxes to request the credit. Credits for academic year 2024-25 should be claimed on a student’s 2025 taxes (filed by April 2026), students would receive the refund in early 2026. This is a refundable credit, even if a student earned $0 that year and paid $0 in federal taxes, they will receive the full tuition and fee payments as a refund. Even if students are listed as dependents on their parents’ taxes, students should file separately to request the tax credit.

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