New Colorado Tax Credit Offers Two Years Free College: What to Know
Thanks to a new state tax credit, some Coloradans will soon have access to two years of free college tuition.


Colorado Gov. Jared Polis recently signed a landmark bill to make higher education more accessible in the Centennial State. Proponents say the new law, the Colorado Promise: Two Free Years of College Expanded, will help reduce financial barriers for many students and families.
In a release, Polis pointed out that under Colorado Promise, any public four-year college, community college, or trade school will be free for more Coloradans.
“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 stated.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The initiative, which starts this fall, is designed to help more students from families with lower and middle incomes pursue higher education without the burden of significant debt.
Here’s more of what you need to know.
Is college tuition free in Colorado?
The Colorado Promise program will offer two years of tuition and fees at any public four-year college, community college, or trade school in Colorado for students whose families earn less than $90,000 annually.
According to the Colorado Department of Education website, “the tax credit covers up to the first 65 credits a student takes, not counting any concurrent enrollment, AP/IB, military credit, or credit for prior learning.”
- To be eligible for this program, students must qualify for in-state tuition and complete either the Free Application for Federal Student Aid (FAFSA) or the Colorado Application for State Financial Aid (CASFA).
- Additionally, they must enroll in college within two years of graduating high school to pursue a degree and have a semester minimum 2.5 grade point average (GPA).
Qualifying students initially pay tuition out-of-pocket and the reimbursement is for tuition and fees after accounting for any scholarships or grants. However, eligible students can claim reimbursement during tax season through a refundable income tax credit.
- For example, students starting their education in the fall of 2024 will claim their tax credit on their 2025 returns, filed in early 2026.
- That means families cover tuition upfront, with reimbursement following the subsequent tax year.
The lag between paying tuition and receiving the tax credit could be challenging for some. Still, long-term benefits of reducing student debt and enhancing access to education are potentially substantial.
Note: According to state officials, the program specifics may vary depending on the requirements of each educational institution.
TABOR Colorado
Funding for the free tuition initiative involves reallocating state tax revenues to fund the educational costs for eligible students. The program leverages funds collected above the Taxpayer’s Bill of Rights (TABOR) cap. (TABOR requires that excess revenue be returned to Colorado taxpayers.)
TABOR payments/refunds are based on whether the state exceeds a surplus revenue threshold. For example, as Kiplinger has reported, 2024 TABOR payments will be flat or equal across the board. Current estimates are that single filers could receive about $847 and joint filers, $1,694.
Other Colorado tax relief
In addition to the Colorado Promise initiative, Gov. Polis recently signed other tax bills designed to support families and improve economic conditions. Meanwhile, Coloradans will also have the opportunity to vote on property tax proposals in November.
Two proposed property tax measures on the state ballot would provide tax relief to homeowners facing soaring property values.
Related
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
Social Security Will Continue Sending Paper Checks, Reversing Course
The Social Security Administration has backed off from plans to eliminate paper checks. However, it will only send checks in the mail as a matter of last resort.
-
Ask the Editor — Tax Questions on Four New Tax Deductions
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on four new tax deductions in the "One Big Beautiful Bill."
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)
Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund next year, a smaller one, or something in between. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ Pockets
Tax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's Finances
Tax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Why Your Summer Budget Feels Tighter: Tariffs Push Up Inflation
Tariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Alabama Tax-Free Weekend 2025
Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
Key 2025 Tax Changes for Parents in Trump's Megabill
Tax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
‘I Play Pickleball in Retirement.’ Is It HSA-Eligible?
Retirement Tax Staying active after you retire may be easier with these HSA expenses. But there’s a big catch.
-
Mississippi Tax-Free Weekend 2025
Tax Holiday Just in time for Prime Day, Mississippi celebrated a tax holiday in July. Find out what back-to-school essentials were included.