C.R.S. § 39-22-544 — Credit against tax - qualifying seniors - creation - legislative declaration - definitions - repeal

(1) (a) The general assembly hereby finds and declares that: (I) Colorado's affordable housing shortage is hurting seniors, making it more difficult for many seniors to afford housing; (II) The senior property tax exemption was adopted by Colorado voters in 2000 in order to help seniors afford to stay in their homes; (III) Many seniors are ineligible for the senior property tax exemption because they have owned their home for fewer than ten years or because they rent; and (IV) Property tax rebates or tax-equivalent rebates for renters available under section 39-31-102 only assist seniors with incomes below very low thresholds. (b) (I) Therefore, in order to help more seniors afford the high cost of housing in Colorado, the general assembly hereby intends to establish a refundable income tax credit for income-qualified seniors who do not qualify for the senior property tax exemption to help them afford the high cost of housing. (II) In accordance with section 39-21-304 (1), the purpose of the tax expenditure created in this section is to provide tax relief for income-qualified seniors. (c) The general assembly and the state auditor shall measure the effectiveness of the exemption in achieving the purpose specified in subsection (1)(b)(II) of this section based on the number of taxpayers who have claimed the exemption. (2) As used in this section, unless the context otherwise requires: (a) Credit means a credit against income tax that is created in this section. (b) Repealed. (3) (a) (I) For the income tax year commencing on January 1, 2022, a qualifying senior is allowed a credit against the tax imposed by this article 22 in an amount set forth in subsection (4) of this section. (II) As used in this subsection (3)(a), qualifying senior means a resident individual who: (A) Is sixty-five years of age or older at the end of 2022; (B) Has a federal adjusted gross income that is less than or equal to seventy-five thousand dollars for the income tax year commencing on January 1, 2022; and (C) Has not claimed a property tax exemption under section 39-3-203 for the property tax year commencing on January 1, 2022. (b) (I) For the income tax year commencing on January 1, 2024, a qualifying senior is allowed a credit against the tax imposed by this article 22 in an amount set forth in subsection (4.5) of this section. (II) As used in this subsection (3)(b), qualifying senior means a resident individual who: (A) Is sixty-five years of age or older at the end of 2024; (B) Has, for the income tax year commencing on January 1, 2024, a federal adjusted gross income less than or equal to seventy-five thousand dollars for an individual filing a single return, or has a federal adjusted gross income less than or equal to one hundred twenty-five thousand dollars for an individual filing a joint return; and (C) Has not claimed a property tax exemption under section 39-3-203 for the property tax year commencing on January 1, 2024, on or before August 15, 2024. (4) (a) For the income tax year commencing on January 1, 2022, the amount of the credit is one thousand dollars for a qualifying senior with federal adjusted gross income that is twenty-five thousand dollars or less. For every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by ten dollars. (b) For the income tax year commencing on January 1, 2022, the credit is the same whether it is claimed by one taxpayer filing a single return or two taxpayers filing a joint return. In the case of two taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, both taxpayers may claim the credit, but the maximum credit for each is five hundred dollars and, for every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by five dollars. (c) (I) For the income tax year commencing on January 1, 2022, notwithstanding subsections (4)(a) and (4)(b) of this section, a taxpayer who also qualifies for a grant under article 31 of this title 39 during calendar year 2022 is eligible to receive the full credit without an income-based reduction that otherwise applies for the taxpayer under subsection (4)(a) or (4)(b) of this section. (II) This subsection (4)(c) is repealed, effective December 31, 2026. (4.5) For the income tax year commencing on January 1, 2024: (a) The amount of the credit is eight hundred dollars for a qualifying senior filing a single return with a federal adjusted gross income that is twenty-five thousand dollars or less. For every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by eight dollars. (b) The amount of the credit is eight hundred dollars for two taxpayers filing a joint return with a federal adjusted gross income that is twenty-five thousand dollars or less. For every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by four dollars. (c) In the case of two taxpayers who share the same primary residence and who may legally file a joint return but actually file separate returns, both taxpayers may claim the credit, but the maximum credit for each taxpayer is four hundred dollars and, for every five hundred dollars of adjusted gross income above twenty-five thousand dollars, the amount of the credit is reduced by four dollars. (d) Notwithstanding subsections (4.5)(a), (4.5)(b), and (4.5)(c) of this section, a taxpayer who also qualifies for a grant under article 31 of this title 39 during calendar year 2024 is eligible to receive the full credit without an income-based reduction that otherwise applies for the taxpayer pursuant to subsections (4.5)(a), (4.5)(b), and (4.5)(c) of this section. (e) In the case of a part-year resident, the credit allowed under this subsection (4.5) is apportioned in the ratio determined under section 39-22-110 (1). (5) (a) Any amount of the credit that exceeds the qualifying senior's income taxes due is refunded to the qualifying senior. (b) 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. (6) The department of revenue may use the reports received from the property tax administrator in accordance with section 39-3-207 (8) for purposes of confirming that a taxpayer meets the eligibility requirement set forth in subsection (3)(b)(II)(C) of this section. Source: L. 2022: Entire section added, (HB 22-1205), ch. 436, p. 3071, § 2, effective August 10. L. 2024: (2)(b) repealed, (3), (4), and (6) amended, and (4.5) added, (HB 24-1052), ch. 473, p. 3322, § 2, effective August 7. L. 2025: (4)(c) amended, (HB 25-1296), ch. 202, p. 914, § 11, effective May 16. Cross references: For the legislative declaration in HB 25-1296, see section 1 of chapter 202, Session Laws of Colorado 2025.