The federal government is currently in a shutdown. At this time, there are no immediate impacts to federally funded child and family programs operated by the Colorado Department of Early Childhood. Families should continue to access care and services as usual. We are monitoring the situation closely with federal partners and will share updates as soon as more information becomes available.

El gobierno federal se encuentra actualmente en un cierre. Por el momento, no hay impactos inmediatos en los programas financiados con fondos federales que opera el Departamento de Primera Infancia de Colorado. Las familias deben continuar accediendo a los servicios de cuidado infantil y del CDEC con normalidad. Estamos monitoreando de cerca la situación con nuestros socios federales y compartiremos información actualizada en cuanto tengamos más información.

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Early Childhood Educator Income Tax Credit

Early Childhood Educator Income Tax Credit

In 2022, House Bill 22-1010 (HB22-1010)created a refundable income tax credit for credentialed early childhood educators. The refundable tax credit first pays for whatever taxes are owed (if any) and then any extra is awarded to the taxpayer as a refund payment.

Early childhood educators who hold an active PDIS Early Childhood Credential (ECPC)  may qualify for the tax credit. Qualifying individuals will be awarded a tax credit amount based on the highest credential level held during the calendar year. For 2025, the following credit amounts apply: 

  • ECPC Level 1 = $872
  • ECPC Level 2 = $1,162
  • ECPC Levels 3-6 = $1,743
     

Qualifying early childhood educators are eligible to receive the refundable income tax credit after they file their taxes by the due date.

If you and your spouse are both qualifying early childhood professionals and file jointly, the amount of credit you are eligible for and may claim is the sum of the amounts for each of your individual credential levels.
 

To receive the refundable income tax benefit offered by HB22-1010, early childhood professionals must have:

  • An active PDIS Early Childhood Professional Credential (ECPC) Level 1-6 at any point in the year; and
  • Worked for at least six months in a licensed child care center or family child care home; and
  • An individual adjusted gross income of less than or equal to $75,000 or joint adjusted gross income of less than or equal to $150,000.

Individuals must also file taxes to receive the credit, even if they don’t owe any taxes. To learn more about filing taxes, you can visit the Colorado Department of Revenue’s website and connect with organizations in your community that can help you navigate filing taxes. 

Finally, to be eligible for this tax credit, your Colorado Shines PDIS profile should be up to date. An active Early Childhood Professional Credential approval and expiration date will show on your PDIS dashboard under Credentials & Qualifications. Be sure the following are correct in your PDIS profile: 

  • First and last name
  • Social security number (SSN), or Individual Tax Identification Number (ITIN)

You can review and edit your PDIS profile by going to My Account > Profile Settings.
PDIS How-To Guide: Updating “My Profile

If you had an active Level 1-6 Early Childhood Professional Credential during the year, you are already eligible for the Early Childhood Educator Tax Credit and do not need to submit a new application for this purpose.
We recommend all PDIS users interested in the Tax Credit revisit and complete your PDIS account profile to include a Social Security Number (SSN) or Individual Tax Identification Number (ITIN) to assist the Colorado Department of Revenue in matching this credit to your tax information.