Expand Affordable Housing Tax Credit
The act increases the amounts of the affordable housing tax credit that the Colorado housing and finance authority may allocate to qualified taxpayers by:
- $20,000,000 for credits allocated in 2024;
- $16,000,000 for credits allocated in 2025;
- $12,000,000 for credits allocated in 2026;
- $12,000,000 for credits allocated in 2027;
- $16,000,000 for credits allocated in 2028;
- $20,000,000 for credits allocated in 2029;
- $20,000,000 for credits allocated in 2030; and
- $20,000,000 for credits allocated in 2031.
The act accelerates the credit by requiring that a qualified taxpayer claim 70% of the total amount of the credit in the first year of the credit period and claim 6% of the total amount of the credit in each of the second through sixth years of the credit period.
The act also creates the Colorado affordable housing in transit-oriented communities income tax credit (tax credit). The tax credit is refundable 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 total amount of the tax credit is claimed in the first year of the credit period, 8% in both the second and third years, and 7% in both the fourth and final years.
The act allows the following tax credit amounts to be awarded:
- $2,000,000 for the 2025 calendar year;
- $2,000,000 for the 2026 calendar year;
- $2,000,000 for the 2027 calendar year;
- $11,000,000 for the 2028 calendar year; and
- $13,000,000 for the 2029 calendar year.
The act reduces the amount of money transferred to the housing development grant fund by $35 million for state fiscal year 2024-25 through 2031-32.
APPROVED by Governor May 30, 2024
EFFECTIVE May 30, 2024
(Note: This summary applies to this bill as enacted.)