HB 23-1122

House Bill 23-1122, which has been signed into law, increases the income limit for Colorado residents to qualify for a state tax credit when they purchase long-term care insurance. It also doubles the amount of this tax credit and adjusts both the income limit and the credit value for inflation each year starting from January 1, 2024. This bill benefits individuals who need or are planning to buy long-term care insurance by providing them with greater financial support through tax savings. Since it has been signed, the changes will take effect as scheduled.

Official Summary

Legislative Oversight Committee Concerning Tax Policy. For income tax years beginning January 1, 2024, the bill both: Increases the amount of federal taxable income taxpayers may have and still qualify for the state income tax credit for purchasing long-term care insurance and annually adjusts that amount of federal taxable income for inflation; and Doubles the amount of the credit that a taxpayer may claim and annually adjusts the credit for inflation.(Note: This summary applies to this bill as introduced.)