Mar 15, 2013 3:36 PM by JD Downing
DENVER - A bill to ensure that the financial aid Colorado's military families receive from the military family relief fund remains tax free was signed into law today.
House Bill 1024 was a bipartisan measure sponsored by Reps. Dan Nordberg, R-Colorado Springs, and Jovan Melton, D-Aurora, which was brought forward to alleviate the tax burden on military families by ensuring the tax-free status of military family relief fund grants, which are given when a service member is deployed or called to active duty.
"Honoring our commitment to the men and women in our Armed Forces is something I'm proud to do," Nordberg added. "We don't want to tax financial aid for the families of our service men and women."
Nordberg introduced the bill with Melton because federal tax law did not clearly define whether grants received from the military family relief fund were included under federal taxable income. For any Colorado taxpayer who received a grant from the military relief fund, if he or she must pay federal income tax on their grant. HB 1024 subtracts that amount from their Colorado income tax liability.
"I'd like to thank Rep. Melton for joining me and supporting this effort," Nordberg said.