All Roll Calls
Yes: 93 • No: 23
ColoradoSB25-3192025 Regular SessionSenateWALLET
Modification Higher Education Expenses Income Tax Incentive
Sponsored By: Jeff Bridges (Democratic), Judy Amabile (Democratic), Rick Taggart (Republican), Shannon Bird
Signed by Governor
Fiscal Policy & TaxesHigher Education
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
College tax help targets eligible students
The law sets eligibility for Colorado’s college tax incentive for undergraduates seeking a degree or credential at public colleges. Students must qualify for in-state tuition and complete a FAFSA or Colorado alternative aid application for the term. They must have completed high school or an equivalent on or after January 1, 2024, or been enrolled in fall 2024. They must also have entered a Colorado public college within two academic years after high school completion. Household adjusted gross income from the second preceding tax year must be $90,000 or less. For dependent students, both student and parent income count. Independent status follows federal student-aid rules; single independent students count their own income, while married independent students also count spouse income. The law provides spouse-income exceptions for divorce, separation, or death.
Students get tuition-based college tax help
Eligible students can claim a Colorado tax incentive equal to tuition and fees paid for each qualifying term, minus scholarships and grants. Payments made by the student or on the student’s behalf count. For tax years beginning in 2025, claims cover qualifying terms completed during the academic year ending that year. They also cover any other qualifying terms completed during that tax year. For tax years beginning in 2026 through 2032, claims cover qualifying terms completed during the tax year.
Colleges report student tax incentive amounts
Colorado public colleges must electronically report student eligibility and incentive amounts to the Department of Higher Education each January 31, from 2026 through 2033. Each reported student must receive a statement showing eligibility information and the amount reported; electronic delivery is allowed. If federal law blocks income-based reporting or disclosure, colleges report students meeting the other eligibility rules without applying the $90,000 limit. This reporting exception does not remove the incentive’s income limit. The department must send the information, including corrections and additions, to the Department of Revenue each February 15, from 2026 through 2034. Revenue must share annual claim data with higher education officials, subject to tax confidentiality protections and penalties. By December 1, 2026, the agencies must report on implementation and estimate total incentives claimed for tax years beginning in 2025. Annual reports are due each December 1 from 2027 through 2037 to the legislature’s budget and education committees. They must analyze aid allocation, enrollment by incentive status, and available retention, completion, and student-debt outcomes. Aid comparisons cover the three academic years before 2024–25 and later years, including resident students with family income of $90,000 or less. Colleges must supply student-level aid, tuition, fee, and eligibility data needed to measure costs and results.
State funds college tax incentive administration
The law provides $135,446 from Colorado’s general fund for fiscal year 2025–26 to administer the college tax incentive. The money goes to the Department of Revenue’s Taxation Business Group. It includes $113,004 for staff costs, based on 1.9 additional full-time-equivalent positions, and $22,442 for operating costs. This funding supports state administration, not direct payments to households.
Sponsors & Cosponsors
Sponsors
Jeff Bridges
Democratic • Senate
Judy Amabile
Democratic • Senate
Rick Taggart
Republican • House
Shannon Bird
Affiliation unavailable
Cosponsors
Andrew Boesenecker
Democratic • House
Chad Clifford
Democratic • House
Eliza Hamrick
Democratic • House
Julie McCluskie
Democratic • House
Jacque Phillips
Democratic • House
Lesley Smith
Democratic • House
Michael Carter
Democratic • House
Naquetta Ricks
Democratic • House
Steven Woodrow
Democratic • House
Cathy Kipp
Democratic • Senate
Dafna Michaelson Jenet
Democratic • Senate
Iman Jodeh
Democratic • Senate
Lisa Cutter
Democratic • Senate
Tony Exum
Democratic • Senate
Roll Call Votes
House vote • 5/5/2025
Third reading: Bill
Yes: 44 • No: 20
House vote • 5/3/2025
Refer Senate Bill 25-319 to the Committee of the Whole.
Yes: 8 • No: 3
Senate vote • 5/2/2025
Third reading: Bill
Yes: 34 • No: 0
Senate vote • 5/1/2025
Refer Senate Bill 25-319 to the Committee of the Whole and with a recommendation that it be placed on the consent calendar.
Yes: 7 • No: 0
Actions Timeline
Governor Signed
6/4/2025HouseSent to the Governor
5/13/2025HouseSigned by the President of the Senate
5/13/2025SenateSigned by the Speaker of the House
5/13/2025HouseHouse Third Reading Passed - No Amendments
5/5/2025HouseHouse Committee on Appropriations Refer Unamended to House Committee of the Whole
5/3/2025HouseHouse Second Reading Special Order - Passed - No Amendments
5/3/2025HouseSenate Third Reading Passed - No Amendments
5/2/2025SenateIntroduced In House - Assigned to Appropriations
5/2/2025HouseSenate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
5/1/2025SenateSenate Second Reading Special Order - Passed - No Amendments
5/1/2025SenateIntroduced In Senate - Assigned to Appropriations
4/29/2025Senate
Bill Text
Engrossed
Final Act
Introduced
Reengrossed
Rerevised
Revised
Signed Act