Testimony in Support of the Family Affordability Credit
The Women’s Foundation of Colorado Supports Decoupling Colorado From Federal Tax Breaks To Help Create the Family Affordability Credit
On Monday, March 9, WFCO Vice President of Programs Louise Myrland joined Joshua Mantell, government affairs director at Bell Policy Center, to testify in front of the House Committee on Finance in support of House Bill 26-1222.
The bill is part of a tax package that will create the Family Affordability Tax Credit. The original testimony below was abbreviated to be delivered within the two-minute timeframe requested by the committee. The bill passed out of committee and has been sent to appropriations.
Good afternoon, Mister Chair and members of the committee. My name is Louise Myrland and I am the vice president of programs at The Women’s Foundation of Colorado. I am here today to support HB26-1222. The modifications to tax expenditures in this bill align with our advocacy to reform our state’s tax policies to prioritize investments in Colorado women and families.
The Women’s Foundation is the only statewide, community-funded foundation protecting progress and expanding economic opportunity for all Colorado women. After the passage of H.R. 1, we worked with Colorado Fiscal Institute to understand the impacts to women.
The findings were clear: H.R. 1 deepens the feminization of poverty. Women disproportionately experience poverty and heightened economic risks tied to persistent pay gaps and employment disruptions, imbalanced caregiving responsibilities, and limited access to affordable child care. As a result, cuts to programs to address poverty disproportionately impact women.
The federal tax changes in H.R. 1 benefit those with higher taxable incomes and offer little value to low-income tax filers, leaving women behind.
Since Colorado’s tax code is so deeply linked to the federal tax code, H.R. 1 gave federal and state tax breaks to businesses that strained our state budget. The reductions in state revenues were so significant that the Family Affordability Tax Credit (FATC), which boosts the state’s Earned Income Tax Credit and Child Tax Credit for working families was turned off for the 2026 and 2027 tax years. In its first year, the FATC reduced child poverty by 37 percent and benefited nearly half of Colorado’s children. That is transformative impact we should continue.
HB 26-1222 will change our tax code in two key ways that reflect Colorado values and the realities of caregiving and the rising cost of raising a family. First, it decouples Colorado from four federal tax breaks that reward business investment outside of our state. Then, it applies revenue from those changes to invest in Colorado families who need it most with a Family Affordability Credit modeled after the FATC.
Research consistently shows that investments in women and children offer huge returns. When families have economic stability, children perform better in school, parents stay attached to the workforce, and communities and the economy are stronger.
For Colorado to be a state where families can afford to live, work, and age with dignity, we must prioritize policies that reflect that commitment.
I urge you to vote yes on HB26-1222 to strengthens families and our future. Thank you.
