SB 26-29

Senate Bill 26-29 in Colorado introduces a tax credit for individuals who contribute to health savings accounts (HSAs) that support high-deductible health plans. The credit is worth up to $500 for single filers, $1,000 for joint filers, and $1,500 for family plans, amounting to 25% of the contribution. This benefit will be available from January 1, 2027, through December 31, 2032. The bill has been signed into law, meaning taxpayers who qualify can start claiming this credit when they file their taxes in 2028 for contributions made in 2027.

Official Summary

The bill creates an income tax credit for a resident individual's contributions to a health savings account that supports a high deductible health plan, as defined pursuant to federal law (credit). The credit is an amount equal to 25% of the amount of the contribution, limited to:$500 for a single filer;$1,000 for joint filers; and$1,500 for contributions to a family health plan.The credit is available beginning January 1, 2027, through December 31, 2032.If the credit exceeds the income taxes due on the resident individual's income, the amount of the credit not used to offset income taxes is not carried forward as tax credits against the resident individual's subsequent years' income tax liability and is not refunded to the individual.(Note: This summary applies to this bill as introduced.)

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