A Bill for an Act
Page 1, Line 101Concerning the extension of an income tax credit to help
Page 1, Line 102income-qualified seniors afford housing.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/.)
Legislative Oversight Committee Concerning Tax Policy. Section 2 of the bill extends a refundable income tax credit (credit) that is available for the income tax years commencing on January 1, 2022, and January 1, 2024, so that the credit is also available for the income tax years commencing on January 1, 2025, and January 1, 2026.
For each income tax year, the credit is for a qualifying senior, which means a resident individual who:
- Is 65 years of age or older at the end of the income tax year;
- Has federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $125,000 if filing a joint return; and
- Has not claimed the senior property tax exemption for the property tax year that coincides with the income tax year.
- $800 for a qualifying senior filing a single return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $8.
- $800 for 2 taxpayers filing a joint return with federal AGI that is $25,000 or less. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.
- $400 for each taxpayer, in the case of 2 taxpayers who share the same primary residence, and may legally file a joint return but actually file separate returns and both claim the credit. For every $500 of federal AGI above $25,000, the amount of the credit is reduced by $4.
The amount of the credit for both the 2025 and 2026 income tax years is:
Notwithstanding the income-based reductions in the allowable credit amount, a taxpayer who also qualifies for a property tax and rent assistance grant or heat assistance grant during the calendar year 2025 or 2026 is eligible to receive the full amount of the credit.
Section 1 requires the property tax administrator to provide reports from counties related to taxpayers who are eligible for and actually claim the homestead property tax exemption.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. In Colorado Revised Statutes, 39-3-207, amend (8) as follows:
Page 2, Line 339-3-207. Reporting of exemptions - reimbursement to local
Page 2, Line 4governmental entities - repeal. (8) (a) On or before December 1, 2024,
Page 2, Line 5the administrator shall provide a report to the department of revenue with
Page 2, Line 6the names and social security numbers of all applicants eligible for the
Page 2, Line 7exemption for the property tax year commencing on January 1, 2024,
Page 3, Line 1based on the administrator's examination under subsection (2) of this
Page 3, Line 2section of the reports received in accordance with subsection (1) of this
Page 3, Line 3section. On or before December 1, 2025, and on or before
Page 3, Line 4December 1, 2026, the administrator shall provide the same
Page 3, Line 5report to the department of revenue containing the names and
Page 3, Line 6social security numbers of all applicants eligible for the
Page 3, Line 7exemption for the property tax years commencing on January 1, 2025, and January 1, 2026, respectively.
Page 3, Line 8(b) On or before April 1, 2025, the administrator shall provide a
Page 3, Line 9report to the department of revenue with the names and social security
Page 3, Line 10numbers of all taxpayers entitled to the exemption for the property tax
Page 3, Line 11year commencing on January 1, 2024, based on the administrator's
Page 3, Line 12examination under subsection (3.5) of this section of the reports received
Page 3, Line 13in accordance with subsection (3) of this section. On or before April 1,
Page 3, Line 142026, and on or before April 1, 2027, the administrator shall
Page 3, Line 15provide the same report to the department of revenue
Page 3, Line 16containing the names and social security numbers of all
Page 3, Line 17taxpayers entitled to the exemption for the property tax years
Page 3, Line 18commencing on January 1, 2025, and January 1, 2026, respectively.
Page 3, Line 19(c) This subsection (8) is repealed, effective
July 1, 2025Page 3, Line 20SECTION 2. In Colorado Revised Statutes, 39-1-104.6, add (8)(e) as follows:
Page 3, Line 2139-1-104.6. Qualified-senior primary residence real property
Page 3, Line 22- valuation for assessment - reimbursement to local governments for
Page 3, Line 23reduced valuation - temporary mechanism for refunding excess state
Page 4, Line 1revenues - legislative declaration - definitions. (8) Reporting to
Page 4, Line 2administrator. (e) Notwithstanding subsection (5)(a) of this
Page 4, Line 3section, the administrator shall provide reports to the department of revenue as follows:
Page 4, Line 4(I) On or before December 1, 2025, and on or before
Page 4, Line 5December 1, 2026, the administrator shall provide a report to
Page 4, Line 6the department of revenue with the names and social security
Page 4, Line 7numbers of all applicants eligible for classification of real
Page 4, Line 8property as qualified-senior primary residence real property
Page 4, Line 9commencing on January 1, 2025, and January 1, 2026, respectively.
Page 4, Line 10(II) On or before April 1, 2026, and on or before April 1,
Page 4, Line 112027, the administrator shall provide a report to the
Page 4, Line 12department of revenue with the names and social security
Page 4, Line 13numbers of all taxpayers entitled to the classification of real
Page 4, Line 14property as qualified-senior primary residence real property for
Page 4, Line 15the property tax years commencing on January 1, 2025, and January 1, 2026, respectively.
Page 4, Line 16SECTION 3. In Colorado Revised Statutes, 39-22-544, amend
Page 4, Line 17(1)(a)(III), (1)(a)(IV), (1)(b)(I), (1)(c), (4.5) introductory portion, (4.5)(d), and (6); and add (1)(a)(V) and (3)(c) as follows:
Page 4, Line 1839-22-544. Credit against tax - qualifying seniors - creation -
Page 4, Line 19legislative declaration - definitions. (1) (a) The general assembly hereby finds and declares that:
Page 4, Line 20(III) Many seniors are ineligible for the senior property tax
Page 4, Line 21exemption because they have owned their home for fewer than ten years
Page 4, Line 22or because they rent;
andPage 5, Line 1(IV) Property tax rebates or tax-equivalent rebates for renters
Page 5, Line 2available under section 39-31-102 only assist seniors with incomes below very low thresholds; and
Page 5, Line 3(V) For property tax years 2025 and 2026, the general
Page 5, Line 4assembly reduced the valuation for assessment for property
Page 5, Line 5classified as qualified-senior primary residence real property pursuant to section 39-1-104.2.
Page 5, Line 6(b) (I) Therefore, in order to help more seniors afford the high
Page 5, Line 7cost of housing in Colorado, the general assembly hereby intends to
Page 5, Line 8establish a refundable income tax credit for income-qualified seniors who
Page 5, Line 9do not qualify for the senior property tax exemption or the reduced
Page 5, Line 10valuation for assessment for property classified as
Page 5, Line 11qualified-senior primary residence real property to help them afford the high cost of housing.
Page 5, Line 12(c) The general assembly and the state auditor shall measure the
Page 5, Line 13effectiveness of the
exemptionPage 5, Line 14in subsection (1)(b)(II) of this section based on the number of taxpayers who have claimed the
exemptionPage 5, Line 15(3) (c) (I) For the income tax years commencing on January
Page 5, Line 161, 2025, and January 1, 2026, a qualifying senior is allowed a
Page 5, Line 17credit against the tax imposed by this article 22 in an amount set forth in subsection (4.5) of this section.
Page 5, Line 18(II) As used in this subsection (3)(c), "qualifying senior" means a resident individual who:
Page 5, Line 19(A) Is sixty-five years of age or older at the end of the applicable income tax year;
Page 5, Line 20(B) Has, for the applicable income tax year, a federal
Page 6, Line 1adjusted gross income less than or equal to seventy-five
Page 6, Line 2thousand dollars for an individual filing a single return, or has
Page 6, Line 3a federal adjusted gross income less than or equal to one
Page 6, Line 4hundred twenty-five thousand dollars for an individual filing a joint return; and
Page 6, Line 5(C) Has not claimed a property tax exemption under
Page 6, Line 6section 39-3-203or the reduced valuation for assessment for
Page 6, Line 7property classified as qualified-senior primary residence real
Page 6, Line 8property under section 39-1-104.6 for the property tax year that
Page 6, Line 9coincides with the applicable income tax year on or before August 15 of the applicable income tax year.
Page 6, Line 10(4.5) For the income tax
yearPage 6, Line 11(d) Notwithstanding subsections (4.5)(a), (4.5)(b), and (4.5)(c) of
Page 6, Line 12this section, a taxpayer who also qualifies for a grant under article 31 of
Page 6, Line 13this title 39 during calendar year 2024, 2025, or 2026 is eligible to
Page 6, Line 14receive the full credit without an income-based reduction that otherwise
Page 6, Line 15applies for the taxpayer pursuant to subsections (4.5)(a), (4.5)(b), and (4.5)(c) of this section.
Page 6, Line 16(6) The department of revenue may use the reports received from
Page 6, Line 17the property tax administrator in accordance with
section 39-3-207 (8)Page 6, Line 18sections 39-3-207 (8) and 39-1-104.6 (8)(e) for purposes of confirming
Page 6, Line 19that a taxpayer meets the eligibility requirement set forth in
subsectionPage 6, Line 20SECTION 4. Safety clause. The general assembly finds,
Page 6, Line 21determines, and declares that this act is necessary for the immediate
Page 6, Line 22preservation of the public peace, health, or safety or for appropriations for
Page 7, Line 1the support and maintenance of the departments of the state and state institutions.