As a pilot program to promote employer-assisted housing projects in rural areas, for income tax years commencing on or after January 1, 2019, but prior to January 1, 2023, the bill creates a state income tax credit for a donation a taxpayer makes to a sponsor that is used solely for the costs associated with employer-assisted affordable housing in a rural area. The bill defines "sponsor" to mean the Colorado housing and finance authority, a housing authority operated by a county or municipality, a nonprofit corporation that has been designated as a community development corporation under the federal tax code, or an international, nongovernmental, not-for-profit organization whose mission is concentrated on constructing affordable housing.
The amount of the credit allowed by the bill is 20% of the approved donation amount; except that the aggregate amount of the credit awarded to any one taxpayer is limited to $400 in any one income tax year.
The bill contains additional requirements pertaining to the manner in which the taxpayer submits information to receive the tax credit. The bill also requires periodic reporting of information on the use of the tax credit.
(Note: This summary applies to this bill as introduced.)