HB 22-1127

HB 22-1127, which is now signed into law, allows tenants in Colorado who earn less than $40,000 (or $80,000 for head-of-household or married couples) to deduct up to $17,500 of their rent payments from their state income tax. This means that eligible renters can reduce the amount of income they report for state tax purposes by the amount of rent they pay, potentially lowering their tax bill. The law is now in effect and benefits low- to moderate-income individuals who are renting homes in Colorado.

Official Summary

The bill creates an income tax deduction of up to $17,500 for tenants with taxable income under $40,000 for an individual or under $80,000 for a head-of-household or a married couple for rent paid on a rental residence in Colorado. (Note: This summary applies to this bill as introduced.)