DENVER, CO – The House today passed HB22-1205, which will save seniors money on housing by creating a temporary new income tax credit. The bill passed 51-12 with half of all House Republicans opposing this relief for Colorado seniors.
“This bill will save nearly 140,000 Colorado seniors money on housing by creating a new refundable income tax credit,” said Rep. Chris Kennedy, D-Lakewood. “This credit will boost the incomes of seniors who rent their homes or haven’t owned them long enough to qualify for the senior homestead exemption. Rising housing costs and property values are hurting Colorado seniors, and this bill will bring much needed relief and save them money.”
“With housing costs rising, Colorado seniors need relief, and that’s exactly what this bill provides through a new refundable tax credit,” said Rep. Mike Weissman, D-Aurora. “This legislation will put money back into seniors’ pockets, save seniors money on housing, and help vulnerable Coloradans afford the rising cost of living in Colorado.”
HB22-1205 will save Colorado seniors $100 million on their housing costs by creating a new refundable income tax credit. Seniors with incomes under $75,000 who have not claimed the senior homestead exemption will be eligible for the tax credit. The credit starts at $1,000 for taxpayers with incomes below $25,000 and phases out slowly by $10 for every $500 of income above $25,000. Because the credit is refundable, taxpayers will receive the benefit even if the credit exceeds their tax liability. According to the bill’s fiscal note prepared by nonpartisan staff, nearly 60,000 Coloradans will receive the full $1,000 credit, and up to 77,000 Coloradans will see tax relief under the bill.
The chart below shows the tax credit amount as it phases out by income level.