HB 24-1144

House Bill 24-1144, which has been signed into law, offers Colorado residents who sell their homes a tax break. If the seller helps reduce the buyer's mortgage interest rate by paying some of the costs upfront (known as "buying down" the rate), they can claim a tax credit worth half of what they spent on this buy-down. This benefit applies to sales starting from January 1, 2024, through December 31, 2025. The tax credit is refundable and transferable, meaning it can be used by the seller or given to another taxpayer if not fully utilized.

Official Summary

The bill creates an income tax credit (tax credit) that is available for income tax years starting on or after January 1, 2024, but before January 1, 2026, for sellers of residential property in Colorado who buy down the interest rates on the mortgage of the buyer of the property. The amount of the tax credit is 50% of the cost of the mortgage interest rate buy down. The tax credit is refundable and transferrable to any other taxpayer.(Note: This summary applies to this bill as introduced.)