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HB24-1434

Expand Affordable Housing Tax Credit

Concerning an expansion to the affordable housing tax credit.
Session:
2024 Regular Session
Subjects:
Fiscal Policy & Taxes
Housing
Bill Summary

The Section 1 of the bill expands the affordable housing tax credit by increasing the credit amounts that the Colorado housing and finance authority (authority) may allocate to qualified taxpayers by the following amounts:

  • $20,000,000 for credits allocated in 2024;
  • $20,000,000 for credits allocated in 2025;
  • $20,000,000 for credits allocated in 2026;
  • $16,000,000 for credits allocated in 2027;
  • $16,000,000 for credits allocated in 2028;
  • $16,000,000 for credits allocated in 2029;
  • $10,000,000 for credits allocated in 2030; and
  • $10,000,000 for credits allocated in 2031.

The bill also accelerates the credit by requiring that a qualified taxpayer claim 70% of the total amount of the credit awarded by the authority in the first year of the credit period and claim 6% of the total amount of the credit awarded by the authority in each of the second through sixth years of the credit period.

Section 2 creates the Colorado affordable housing in transit-oriented communities income tax credit (tax credit). The tax credit is a refundable tax credit and administered in the same manner as the Colorado affordable housing tax credit; except that the tax credit:

  • Is awarded in connection with qualified low-income housing projects in certified transit-oriented communities;
  • Must be claimed over a 5-year credit period; and
  • Must be claimed in an accelerated manner such that 70% of the tax credit is claimed in the first year of the credit period, 8% in both the second and third years of the credit period, and 7% in both the fourth and final years of the credit period.

The bill allows for the following tax credit amounts to be awarded:

  • $8,600,000 for the 2025 calendar year;
  • $7,200,000 for the 2026 calendar year;
  • $5,600,000 for the 2027 calendar year;
  • $5,000,000 for the 2028 calendar year; and
  • $3,600,000 for the 2029 calendar year.

Section 3 reduces the amount of money transferred to the housing development grant fund by $35 million for state fiscal year 2024-25 through state fiscal year 2031-32.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Passed
Became Law

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Bill Text

The effective date for bills enacted without a safety clause is August 7, 2024, if the General Assembly adjourns sine die on May 8, 2024, unless otherwise specified. Details