Expand Affordable Housing Tax Credit
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.
- 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.
- $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.
(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.)