CO HB1127

Creates an income tax deduction for qualified tenants of up to $17,500 per year for rent paid on a primary residence in Colorado, effective for tax years beginning January 1, 2023.

Limits eligibility to individuals with taxable income under $40,000 (individual filers) or under $80,000 (joint filers or head-of-household).

Requires qualified tenants to attach a copy of their lease or rent agreement and landlord certification to their tax return to claim the deduction.

Requires the Department of Revenue to track the total number of taxpayers claiming the deduction and aggregate deduction amounts annually, reporting this information upon request to the General Assembly or State Auditor.

Exempts this tax expenditure from the standard requirement that new tax expenditures include a sunset provision and repeals clause.