SB 24-146

Senate Bill 24-146, which has been signed into law, provides tax relief for low-to-middle-income renters in Colorado by offering a nonrefundable income tax credit. For the years 2024 through 2026, eligible individuals who rent their primary residence and have an adjusted gross income (AGI) of up to $75,000 for single filers or $125,000 for joint filers can receive a tax credit ranging from $1,000 to $2,000 depending on their income level. The bill also ensures that those who qualify for rent or heat assistance will be eligible for the full credit amount regardless of their AGI. This new law aims to help ease the financial burden of housing costs for qualifying renters in Colorado.

Official Summary

For the 2024 income tax year through the 2026 income tax year, the bill creates a nonrefundable income tax credit (credit), which cannot be carried forward, for a taxpayer who: Rents the taxpayer's primary residence in the state; and Has a federal adjusted gross income (AGI) that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 $125,000 if filing a joint return (qualifying taxpayer). The amount of the credit is: $2,000 for 2 qualifying taxpayers filing a joint return with a federal AGI that is $50,000 $75,000 or less. For every $500 of AGI above $50,000, the amount of the credit is reduced by $10 $20. $1,000 for a qualifying taxpayer filing a single return with a federal AGI that is $25,000 or less. For every $500 of AGI above $25,000, the amount of the credit is reduced by $10 $20 . Notwithstanding the income-based reductions in the allowable credit amount, a qualifying taxpayer who also qualifies for a rent or heat assistance grant during calendar year 2024, 2025, or 2026, as applicable, is eligible to receive the full credit amount. In addition, the bill specifies that, to the extent permitted by federal law, the credit is not income or resources for the purpose of determining eligibility for the payment of public assistance benefits and medical assistance benefits authorized under state law or for a payment made under any other publicly funded programs or for eligibility determinations made under any affordable housing program provided by local, state, federal, or quasi-governmental entities. The bill specifies that a qualifying taxpayer who is eligible to claim any other income tax credit that is allowed to a taxpayer who rents the taxpayer's primary residence and has a federal AGI that is less than or equal to $75,000 if filing a single return, or less than or equal to $150,000 $125,000 if filing a joint return, may claim the income tax credit allowed in the bill or the other income tax credit allowed for income-qualified renters, but not both. The bill makes appropriations to the department of revenue and the department of personnel for the implementation of the bill. (Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.) (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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