CO HB1189

Establishes a tax credit for employers who contribute money to employees for down payments and closing costs on a home purchase for tax years 2024-2026.

Credit equals 5% of the employer contribution, capped at $5,000 per employee and $500,000 total per employer per year.

Requires employers to establish savings accounts, allow employees to authorize payroll deductions as matching contributions, and maintain detailed records of contributions and expenses.

Employees forfeit any unused employer contributions if they leave employment or use funds for non-eligible expenses; employers must repay the full tax credit claimed in such cases.

Allows unused credits to carry forward for up to 5 years; employees can claim employer contributions as a federal taxable income subtraction for 2024-2026, with repayment required if contributions are forfeited.