DENVER (AP) – A Colorado version of the federal earned income tax credit has won preliminary approval in the state Senate.
But Republicans questioned the Democratic tax-cut proposal because it doesn’t take effect for a year. They sought unsuccessfully Tuesday to expand the tax cut.
The bill would make permanent the Colorado earned income tax credit, to be phased in starting next year, and also would create a Colorado child tax credit. A legislative analysis projected the bill would return some $40 million to taxpayers in its first year.
One more Senate vote is required before the bill heads to the House.
If the tax credit takes effect, Coloradans would not be able to get it until 2015.
LINK: Senate Bill 1
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