2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › INCOME TAX (§§ 39-22-101 — 39-22-5508) › Article 22 - Income Tax (§§ 39-22-101 — 39-22-5508) › Part 5 - SPECIAL RULES (§§ 39-22-501 — 39-22-570) › Section 39-22-541 - Credit for retrofitting a residence to increase a residence's visitability - tax preference performance statement - legislative declaration - definitions - repeal

(1)
In accordance with section
39-21-304 (1)
, which requires any bill that creates a new tax expenditure or extends an expiring tax expenditure to include a tax preference performance statement as part of a statutory legislative declaration, the general assembly finds and declares that:
(a)
The general legislative purpose of the tax credit allowed by this section is to provide tax relief for certain individuals;
(b)
The specific legislative purpose of the tax credit allowed by this section is to make retrofitting a residence for health, welfare, and safety reasons more affordable; and
(c)
The credit certificates required from the division of housing pursuant to subsection (3)(b)(I) of this section will allow the general assembly and the state auditor to measure the effectiveness of the credit in achieving its purpose based on the number and amount of credits that are claimed.
(2)
As used in this section:
(a)
"Dependent" means:
(I)
A qualifying child or qualifying relative as defined in sections 152 (c) and 152 (d), respectively, of the internal revenue code; and
(II)
A qualified individual's spouse or the person in a civil union with the qualified individual.
(b)
"Division of housing" means the division of housing in the department of local affairs created in section
24-32-704
.
(c)
"Qualified individual" means an individual with a family income at or below one hundred fifty thousand dollars for the income tax year commencing on or after January 1, 2019, and as adjusted for inflation for each income tax year thereafter.
(d)
"Retrofit" means changes made to a residence that must:
(I)
Be necessary to ensure the health, welfare, and safety of a qualified individual or a dependent;
(II)
Increase the residence's visitability;
(III)
Enable greater accessibility and independence in the residence for a qualified individual or a dependent;
(IV)
Be required due to a qualified individual's or dependent's illness, impairment, or disability; and
(V)
Allow a qualified individual or dependent to age in place.
(e)
"Visitability" means a measure of a residence's ease of access for persons with disabilities.
(3)
(a)
(I)
Except as provided in subsection (3)(b)(III) of this section, for income tax years commencing on or after January 1, 2019, but prior to January 1, 2029, a qualified individual who retrofits or hires someone to retrofit the qualified individual's residence and who meets any additional requirements established by the division of housing is allowed a credit against the income taxes imposed by this article 22 in an amount equal to the cost of the retrofit or five thousand dollars per residence, whichever is less. Only one credit is allowed per residence; except that if a retrofit is required for the qualified individual and for one or more dependents residing in the qualified individual's residence or a retrofit is required for more than one dependent residing in the qualified individual's residence, then a credit is allowed in an amount equal to the cost of the retrofit or five thousand dollars per individual for whom the retrofit is required, whichever is less.
(II)
The division of housing shall consult with stakeholders in establishing any additional requirements for the income tax credit as required in subsection (3)(a)(I) of this section.
(b)
(I)
The division of housing is responsible for issuing credit certificates to qualified individuals. The credit certificate must identify the taxpayer and certify that the individual meets the requirements set forth in this section.
(II)
To claim the credit under this section, the qualified individual must include the credit certificate with the income tax return filed with the department of revenue.
(III)
The division of housing shall track all the credit certificates issued under this section in each income tax year and, when the total amount of credit certificates issued equals one million dollars per income tax year, shall cease issuing credit certificates in that income tax year. Until the one million dollar per income tax year cap is reached, the credit certificates shall be issued in the order in which they are requested.
(4)
If the amount of the credit allowed in this section exceeds the amount of income taxes otherwise due on the qualified individual's income in the income tax year for which the credit is being claimed, the amount of the credit not used as an offset against income taxes in the current income tax year may be carried forward and used as a credit against subsequent years' income tax liability for a period not to exceed eight years and must be applied first to the earliest income tax years possible. Any credit remaining after the period may not be refunded or credited to the qualified individual.
(5)
No later than January 1, 2020, and no later than January 1 of each year thereafter through January 1, 2029, the division of housing shall provide the department of revenue with an electronic report of the taxpayers receiving a credit certificate as allowed in this section for the previous calendar year that includes the following information:
(a)
Each taxpayer's name;
(b)
Each taxpayer's social security number or federal employee identification number; and
(c)
The amount of the credit allocated.
(6)
This section is repealed, effective December 31, 2041.
Amended by 2023 Ch. 280,§ 1, eff. 8/7/2023.
Amended by 2019 Ch. 107, § 1, eff. 8/2/2019.
Amended by 2019 Ch. 97, § 1, eff. 8/2/2019.
Added by 2018 Ch. 345, § 1, eff. 8/8/2018.
L. 2018: Entire section added, (HB 18-1267), ch. 345, p. 2061, § 1, effective August 8.
2023 Ch. 280, was passed without a safety clause. See Colo. Const. art. V, § 1(3).