CO HB1144

Creates a refundable and transferrable income tax credit equal to 50% of the cost paid by a residential property seller to buy down a homebuyer's mortgage interest rate.

Credit is available for income tax years from January 1, 2024 through December 31, 2025, and applies to property sales closing on or after January 1, 2024.

Qualified sellers must submit documentation to the Colorado Department of Revenue including the percentage points of rate reduction, the lump sum amount paid at closing, and evidence of title transfer.

Credit may be refunded if it exceeds the seller's tax liability, and unused portions may be transferred to other taxpayers who can use it to offset Colorado income taxes or other taxes under Article 22.

Department must maintain a database tracking the number, value, and effectiveness of credits claimed, with information provided to the State Auditor for tax expenditure evaluation; the provision sunsets December 31, 2033.