Committee Passes Bill to Continue Tax Credit to Keep Coloradans Safely Housed

DENVER, CO - The House Finance Committee today passed legislation that would extend the Colorado Homeless Contribution Tax Credit to continue funding to house people facing homelessness. HB26-1015, sponsored by Rep. Karen McCormick, passed by a vote of 10-1.

“Every Coloradan deserves stable housing, and the Colorado Homeless Contribution Tax Credit has been a major source of funding for non-profit organizations that help keep Coloradans safely housed,” said Rep. Karen McCormick, D-Longmont. “In its first year, the tax credit generated over $20 million to fill in funding gaps for everything from skills training to emergency housing. The public-private return on investment is over fourfold, effectively driving up funding for some of the most vulnerable Coloradans. Every Coloradan deserves a safe place to sleep and tools to succeed, and the continuation of this tax credit ensures that people have more resources to thrive.”

HB26-1015, also sponsored by Representative Rick Taggart, R-Grand Junction, would extend the Colorado Homeless Contribution Tax Credit through state income tax year 2030.

In 2022, the Colorado legislature created the Colorado Homeless Contribution Income Tax Credit. It was a bipartisan effort to drive up monetary or in-kind donations for non-profits that provide temporary, emergency or transitional housing programs for people and families experiencing homelessness. The tax credit also funds projects that offer homeless prevention services, domestic violence survivor shelters and services, Workforce Ready Services and case management.

Taxpayers can claim 25-percent of their donation as a state income tax credit for projects located in an urban community or 30-percent of their donation for projects located in a rural community.