HB 18-1125 Summary

• Creates a state income tax credit equal to 20% of donations to sponsors developing affordable housing in rural areas, capped at $400 per taxpayer per year, for tax years 2019-2022

• Defines eligible sponsors as the Colorado Housing and Finance Authority, county/municipal housing authorities, federally-designated community development corporations, and international nonprofits focused on affordable housing construction

• Allows unused credits to be carried forward for up to 5 succeeding tax years but prohibits refunds if credit exceeds income tax liability

• Requires sponsors receiving $10,000 or more in certified donations annually to report economic activity and impact to the General Assembly by March 1 of each year through 2023

• Sunsets the tax credit effective July 1, 2032