{"id":2572,"date":"2026-06-19T13:04:12","date_gmt":"2026-06-19T13:04:12","guid":{"rendered":"https:\/\/denvermovingchronicle.com\/?p=2572"},"modified":"2026-06-19T13:04:12","modified_gmt":"2026-06-19T13:04:12","slug":"state-revenue-forecast-may-leave-colorado-families-without-tax-credit-for-2-years","status":"publish","type":"post","link":"https:\/\/denvermovingchronicle.com\/?p=2572","title":{"rendered":"State revenue forecast may leave Colorado families without tax credit for 2 years"},"content":{"rendered":"
\n

\n

This story was first published at Colorado Newsline.<\/em><\/p>\n

DENVER<\/strong> | A Colorado tax credit for low-income families could be turned off for the next two tax years, state economists announced Thursday.<\/p>\n

<\/div>\n

That\u2019s because state revenue will likely not increase enough to trigger Colorado\u2019s Family Affordability Credit. Since its creation in 2024, families have benefited from it just once, in 2025, and experts say that one-time benefit\u00a0\u00a0child poverty by 37% in the state.<\/p>\n

\u201cOur forecast assumes the credits are off and increases revenue to account for the inability of taxpayers to claim those credits in those years,\u201d Greg Sobetski, the chief economist for the nonpartisan Legislative Council Staff, told lawmakers on Thursday morning. At the same time, he said there is a chance the revenue forecast could change to turn on the credit.<\/p>\n

The governor\u2019s Office of State Planning and Budgeting has a similar prediction, though the availability of the credit in 2027 will be officially determined during the December economic forecast. Annual revenue growth has to be at least 3% to activate it at the lowest level, and OSPB predicts growth at 1.8% and 2.8% for the next two fiscal years.<\/p>\n

The Legislature partially revived the benefit this year by\u00a0creating a family affordability credit\u00a0funded through sales tax on downloadable software that was previously exempted, as well as a rearrangement of some other tax incentives. Other strategies to fully fund the credit by decoupling the state\u2019s corporate tax code from federal law\u00a0did not pass. The smaller credit means families will get a few hundred dollars per child next year.<\/p>\n

The bipartisan Joint Budget Committee, a panel of six lawmakers tasked with crafting the state budget, hears four economic forecasts per year \u2014 many of which have lately been filled with dire warnings from state economists about the size of the state\u2019s budget deficit. This year, lawmakers had to cut about $1 billion to balance the budget, and future years will also have significant budget challenges.<\/p>\n

Sobetski called the revenue forecast on Thursday a \u201cGoldilocks\u201d scenario, though expectations will almost certainly change in the September and December forecasts. If the FATC ends up activating for 2027, for example, it will in turn reduce the state\u2019s revenue.<\/p>\n

\u201cWe\u2019re in a position where revenue is hitting just right for the (Fiscal Year 2027-2028) budget to essentially be the best-case scenario I can be presenting to you right now,\u201d he said.<\/p>\n

Both the LCS and OSPB forecasts predicted modest surpluses in future years over the cap set by the Taxpayer\u2019s Bill of Rights, the constitutional amendment that allows the government to retain a certain amount of tax revenue before returning excess to taxpayers. OSPB predicts surpluses of $470 million in the upcoming fiscal year, and $52 million in the next one, decreasing over time because of expected high inflation.<\/p>\n

Economists expect the state to collect more income tax revenue than previously predicted in March, but there is still a larger-than-anticipated drag on corporate income tax collections tied to H.R.1, the package of tax and spending cuts passed by congressional Republicans last year. LSC revised their revenue prediction up by $489 million the current fiscal year, and OSPB increased by $371 million.<\/p>\n

\u201cThe impacts of H.R.1 are constantly being updated, and we will continue to make updates as we continue to get more information,\u201d said OSPB Deputy Director Bryce Cook. \u201cOur main suggestion is that compared to our initial estimates, that more of the impacts are hitting corporate income than individual income.\u201d<\/p>\n

The governor\u2019s office predicts that the effects of H.R.1 \u2014 between a reduction in hospital provider fees, loss of nutrition assistance funding matches and administrative and compliance costs \u2014 will cost the state about $252 million in the 2027 fiscal year and then ramp up to about $1 billion.<\/p>\n

That office also predicts a 40% chance of an economic recession over the next year, with pressure coming from sustained inflation, increased trade barriers and the country\u2019s war in Iran. Data shows that wage growth is slowing, household savings rates are dropping and families are increasingly delinquent in credit card and student loan payments.<\/p>\n

\u201cThe forecast reflects what many Coloradans already feel. The cost of gas, housing, and childcare continues to put pressure on family budgets,\u201d JBC Vice Chair Sen. Jeff Bridges, an Arapahoe County Democrat, said in a statement. \u201cCombined with uncertainty from Washington, these challenges create real strain on Colorado\u2019s economy and our state budget.\u201d\n <\/p>\n

Read more Arizona prosecutors dismissing fake elector case but vow to seek new indictment<\/a><\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n

Read more Eager to work, teens find a frustrating summer job search<\/a><\/p>\n<\/p>\n<\/p>\n<\/p>\n<\/p>\n

Read more Movie Review: \u2018Leviticus\u2019 makes a demon out of desire in an auspicious debut for Adrian Chiarella<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

This story was first published at Colorado Newsline. DENVER | A Colorado tax credit for low-income families could be turned off for the next two tax years, state economists announced Thursday. That\u2019s because state revenue will likely not increase enough to trigger Colorado\u2019s Family Affordability Credit. Since its creation in 2024, families have benefited from […]<\/p>\n","protected":false},"author":1,"featured_media":2571,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[258],"tags":[4206,4207,4208],"class_list":["post-2572","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-colorado-news","tag-greg-sobetski","tag-sara-wilson","tag-senator-jeff-bridges"],"yoast_head":"\nState revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/denvermovingchronicle.com\/?p=2572\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"State revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle\" \/>\n<meta property=\"og:description\" content=\"This story was first published at Colorado Newsline. DENVER | A Colorado tax credit for low-income families could be turned off for the next two tax years, state economists announced Thursday. That\u2019s because state revenue will likely not increase enough to trigger Colorado\u2019s Family Affordability Credit. Since its creation in 2024, families have benefited from […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/denvermovingchronicle.com\/?p=2572\" \/>\n<meta property=\"og:site_name\" content=\"Denver Moving Chronicle\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-19T13:04:12+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/#\\\/schema\\\/person\\\/860d8c9be7e4969f72ed251197548d9b\"},\"headline\":\"State revenue forecast may leave Colorado families without tax credit for 2 years\",\"datePublished\":\"2026-06-19T13:04:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572\"},\"wordCount\":785,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/denvermovingchronicle.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/c81dd91d0f395019727cb885785c2999.jpg\",\"keywords\":[\"Greg Sobetski\",\"Sara Wilson\",\"Senator Jeff Bridges\"],\"articleSection\":[\"Colorado News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572\",\"url\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572\",\"name\":\"State revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/denvermovingchronicle.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/c81dd91d0f395019727cb885785c2999.jpg\",\"datePublished\":\"2026-06-19T13:04:12+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/#\\\/schema\\\/person\\\/860d8c9be7e4969f72ed251197548d9b\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#primaryimage\",\"url\":\"https:\\\/\\\/denvermovingchronicle.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/c81dd91d0f395019727cb885785c2999.jpg\",\"contentUrl\":\"https:\\\/\\\/denvermovingchronicle.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/c81dd91d0f395019727cb885785c2999.jpg\",\"width\":1024,\"height\":672,\"caption\":\"Members of the Colorado House of Representatives toil as lawmakers try to wrap up the 2020 session in the State Capitol Monday, June 15, 2020, in Denver. (AP Photo\\\/David Zalubowski)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?p=2572#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/denvermovingchronicle.com\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"State revenue forecast may leave Colorado families without tax credit for 2 years\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/#website\",\"url\":\"https:\\\/\\\/denvermovingchronicle.com\\\/\",\"name\":\"Denver Moving Chronicle\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/denvermovingchronicle.com\\\/#\\\/schema\\\/person\\\/860d8c9be7e4969f72ed251197548d9b\",\"name\":\"admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g\",\"caption\":\"admin\"},\"sameAs\":[\"http:\\\/\\\/denvermovingchronicle.com\"],\"url\":\"https:\\\/\\\/denvermovingchronicle.com\\\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"State revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/denvermovingchronicle.com\/?p=2572","og_locale":"en_US","og_type":"article","og_title":"State revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle","og_description":"This story was first published at Colorado Newsline. DENVER | A Colorado tax credit for low-income families could be turned off for the next two tax years, state economists announced Thursday. That\u2019s because state revenue will likely not increase enough to trigger Colorado\u2019s Family Affordability Credit. Since its creation in 2024, families have benefited from […]","og_url":"https:\/\/denvermovingchronicle.com\/?p=2572","og_site_name":"Denver Moving Chronicle","article_published_time":"2026-06-19T13:04:12+00:00","author":"admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"admin","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/denvermovingchronicle.com\/?p=2572#article","isPartOf":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572"},"author":{"name":"admin","@id":"https:\/\/denvermovingchronicle.com\/#\/schema\/person\/860d8c9be7e4969f72ed251197548d9b"},"headline":"State revenue forecast may leave Colorado families without tax credit for 2 years","datePublished":"2026-06-19T13:04:12+00:00","mainEntityOfPage":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572"},"wordCount":785,"commentCount":0,"image":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572#primaryimage"},"thumbnailUrl":"https:\/\/denvermovingchronicle.com\/wp-content\/uploads\/2026\/06\/c81dd91d0f395019727cb885785c2999.jpg","keywords":["Greg Sobetski","Sara Wilson","Senator Jeff Bridges"],"articleSection":["Colorado News"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/denvermovingchronicle.com\/?p=2572#respond"]}]},{"@type":"WebPage","@id":"https:\/\/denvermovingchronicle.com\/?p=2572","url":"https:\/\/denvermovingchronicle.com\/?p=2572","name":"State revenue forecast may leave Colorado families without tax credit for 2 years - Denver Moving Chronicle","isPartOf":{"@id":"https:\/\/denvermovingchronicle.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572#primaryimage"},"image":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572#primaryimage"},"thumbnailUrl":"https:\/\/denvermovingchronicle.com\/wp-content\/uploads\/2026\/06\/c81dd91d0f395019727cb885785c2999.jpg","datePublished":"2026-06-19T13:04:12+00:00","author":{"@id":"https:\/\/denvermovingchronicle.com\/#\/schema\/person\/860d8c9be7e4969f72ed251197548d9b"},"breadcrumb":{"@id":"https:\/\/denvermovingchronicle.com\/?p=2572#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/denvermovingchronicle.com\/?p=2572"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/denvermovingchronicle.com\/?p=2572#primaryimage","url":"https:\/\/denvermovingchronicle.com\/wp-content\/uploads\/2026\/06\/c81dd91d0f395019727cb885785c2999.jpg","contentUrl":"https:\/\/denvermovingchronicle.com\/wp-content\/uploads\/2026\/06\/c81dd91d0f395019727cb885785c2999.jpg","width":1024,"height":672,"caption":"Members of the Colorado House of Representatives toil as lawmakers try to wrap up the 2020 session in the State Capitol Monday, June 15, 2020, in Denver. (AP Photo\/David Zalubowski)"},{"@type":"BreadcrumbList","@id":"https:\/\/denvermovingchronicle.com\/?p=2572#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/denvermovingchronicle.com\/"},{"@type":"ListItem","position":2,"name":"State revenue forecast may leave Colorado families without tax credit for 2 years"}]},{"@type":"WebSite","@id":"https:\/\/denvermovingchronicle.com\/#website","url":"https:\/\/denvermovingchronicle.com\/","name":"Denver Moving Chronicle","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/denvermovingchronicle.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/denvermovingchronicle.com\/#\/schema\/person\/860d8c9be7e4969f72ed251197548d9b","name":"admin","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/50b1ad2e498f523425ee0a8cc5180a210646db1622662a3d56cc405d3e0c346a?s=96&d=mm&r=g","caption":"admin"},"sameAs":["http:\/\/denvermovingchronicle.com"],"url":"https:\/\/denvermovingchronicle.com\/?author=1"}]}},"_links":{"self":[{"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/posts\/2572","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2572"}],"version-history":[{"count":0,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/posts\/2572\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=\/wp\/v2\/media\/2571"}],"wp:attachment":[{"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2572"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2572"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/denvermovingchronicle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2572"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}