Brian Eason

Colorado House Democrats on Monday unveiled a bill to dramatically expand the state child care income tax credit, an estimated $14 million effort that they say would benefit roughly 40,000 families.

The draft bill provided to reporters Monday is the latest bid by Democrats to address the rising cost of living in Colorado and part of a legislative agenda focused on the middle class that is likely to foreshadow the party’s messaging in the looming 2018 elections.

Child care costs in Colorado today are among the nation’s highest. A 2017 Democratic staff report from the U.S. Congress Joint Economic Committee found that typical infant care costs in the state — $14,950 a year — eat up nearly 19.5 percent of Colorado’s median family income — the third-most in the country, behind only California and New York. For single mothers, that figure balloons to 49.8 percent of median income.

Today, Coloradans making less than $25,000 qualify for 50 percent of the federal child care tax credit on their state income taxes. Families making less than $35,000 qualify for 30 percent, and those making up to $60,000 can claim 10 percent of the federal credit.

The House proposal, sponsored by Speaker Crisanta Duran, D-Denver, and Rep. Faith Winter, D-Westminster, would expand eligibility to those making up to $150,000 a year — and provide 80 percent of the federal income tax credit.

Duran and Winter said the higher threshold was needed because many families who don’t qualify for the credit today still struggle with the costs of care.

“We want to recognize and reward hard work,” Duran told reporters in a press briefing, “and address the high costs of child care.”

The draft bill has a Republican sponsor, Sen. Beth Martinez Humenik, R-Thornton, but its path through the GOP-led Senate it unclear. Top Republican leaders are pushing a separate plan to cut the state income tax rate across the board by 0.2 percent — a tax break worth $365 million next year, according to a fiscal note.

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