(Colorado Newsline) Colorado college students can get the first two years of their education covered by the state under a new law signed by Governor Jared Polis on Thursday.

House Bill 24-1340 creates a refundable state income tax credit for lower-income students and their families to cover the gap between scholarships and the rest of their tuition and fees at a public four-year college, community college, or trade school.

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“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,” Polis said in a statement.

The goal is to increase access for higher education, but also encourage students to stay in Colorado. In 2020, about one-quarter of high school graduates went out of state for college.

The bipartisan bill was sponsored by Representative Shannon Bird, a Westminster Democrat, Representative Rick Taggart, a Grand Junction Republican, Senator Barbara Krikmeyer, a Weld County Republican, and Rachel Zenzinger, an Arvada Democrat. The four are all on the Legislature’s Joint Budget Committee.

To qualify for the credit, a student must enroll in a Colorado public institution within two years of graduating from a Colorado high school, come from a household with a yearly income of $90,000 or less, take at least six credit hours for the semester they are claiming the credit and have at least a 2.5 grade point average for that semester.

The tax credit will be available for income tax years 2024 through 2032.

It will be paid for using the refund amount owed to Coloradans under the Taxpayer’s Bill of Rights, which limits how much revenue the government can retain based on inflation and population. The bill’s most recent fiscal analysis estimates a $37 million cost for the 2025-2026 fiscal year.

On average, it is expected to save $2,700 for students at four-year colleges, $2,000 for students at technical colleges, and $1,000 for students at two-year colleges.

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