Governor Polis Signs Bill to Support AmeriCorps Alumni with Educational and Workforce-Development Goals

Monday, June 3, 2024

DENVER - Today, Governor Polis signed legislation to provide a state income tax subtraction on the Segal AmeriCorps Education Award for AmeriCorps members. With the signing of House Bill 24-1240, Colorado becomes just the sixth state in the nation to alleviate this financial burden for AmeriCorps alumni. This legislation, championed by the Polis-Primavera administration and supported by bipartisan lawmakers, underscores Colorado’s commitment to supporting national service and recognizing the invaluable contributions of AmeriCorps members to communities across the state.

“By saving Colorado AmeriCorps members money we are honoring the commitment and service of AmeriCorps members and empowering them to further their education and pursue their dreams without the burden of additional taxation,” said Governor Polis.

“AmeriCorps members have made an incredible impact here in Colorado in the 30 years that they have been providing community-focused service across the state. In 2023 alone, over 1,300 members served one million hours supporting environmental sustainability, education, and community resilience. With today’s legislation being signed into law, we are carrying out our commitment to invest in service members by expanding career advancement opportunities and helping them land impactful jobs. Thank you to the many AmeriCorps members past and present who work to make Colorado stronger,” said Lt. Governor Dianne Primavera.

The Segal AmeriCorps Education Award, earned by AmeriCorps members upon completion of their service, is a critical resource for individuals pursuing higher education or paying off student loans. However, until now, the award has been subject to state income tax, placing additional financial strain on those who have dedicated their time and efforts to serving others.

"At a time when many students are struggling to afford the cost of college, I applaud Governor Polis for his efforts to further expand pathways to education, employment, and greater economic opportunity for those who serve in Colorado," said Michael D. Smith, CEO of AmeriCorps. "By eliminating the state tax on the Eli Segal Educational Award, AmeriCorps members can more fully enjoy the benefits they deserve after their dedicated service."

  • This legislation will directly and indirectly benefit both AmeriCorps alumni and the State of Colorado: Beginning in 2026, AmeriCorps alumni who use their Segal Education Award in Colorado will not owe state income tax on the Award amount used in that year.
  • AmeriCorps members who served in Colorado last year earned over $9 million in Segal Education Awards. This new tax subtraction would collectively save AmeriCorps alumni over $400,000 in state taxes, a huge sum Coloradans could spend on their education through Colorado schools.
  • Colorado joins Iowa, Minnesota, Nebraska, Oregon, and Wisconsin as the only states to remove income tax from the Award. This exclusive group is leading the country in innovative support for people serving their communities through AmeriCorps.
  • Colorado can attract more AmeriCorps members and alumni to attend institutions of higher education in the state and use their skills and service mindset to support the state’s long-term workforce needs.

Colorado’s decision to remove this financial barrier for AmeriCorps alumni reflects a broader trend of states recognizing the importance of national service and taking concrete steps to support those who serve their communities. With Governor Polis’s signature, Colorado joins a select group of states leading the way in supporting AmeriCorps members and fostering a culture of service and civic engagement. This effort also supports the Polis-Primavera administration’s efforts to support AmeriCorps members and to employ national service as a workforce development tool.

About Serve Colorado

Serve Colorado, managed within the Office of the Lieutenant Governor, has been uplifting communities across the state by harnessing the power of volunteerism to tackle the state’s most pressing challenges for nearly 30 years. Learn more at: www.servecolorado.colorado.gov

About AmeriCorps

AmeriCorps, the federal agency for national service and volunteerism, provides opportunities for Americans to serve their country domestically, address the nation’s most pressing challenges, improve lives and communities, and strengthen civic engagement. Each year, the agency places more than 200,000 AmeriCorps members and AmeriCorps Seniors volunteers in intensive service roles; and empowers millions more to serve as long-term, short-term, or one-time volunteers. Learn more at AmeriCorps.gov.

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