HB 25-1045

HB 25-1045 is a Colorado bill that aims to make long-term care insurance more accessible and affordable by increasing the income limit for people who can claim a tax credit when they buy this type of insurance. It also doubles the amount of the tax credit available starting in 2026, making it worth more to those who qualify. This change will benefit individuals looking to purchase long-term care insurance by providing them with greater financial support through tax credits. Since the bill has been signed into law, these changes are set to take effect as planned.

Official Summary

Legislative Oversight Committee Concerning Tax Policy. For income tax years commencing on or after January 1, 2025, the bill both: Increases the amount of federal taxable income a taxpayer may have and still qualify for the state income tax credit for purchasing long-term care insurance and annually adjusts that federal taxable income amount for inflation; and Doubles the amount of the credit a taxpayer may claim and, for income tax years commencing on or after January 1, 2026, annually adjusts the credit amount for inflation. (Note: This summary applies to this bill as introduced.)