HB 24-1434: Affordable Housing Tax Credit Expansion

• Repeals the 30% cap on affordable housing tax credits and allocates $116 million in additional credits from 2024-2031, with amounts ranging from $12-20 million annually depending on the year

• Creates a new Colorado Affordable Housing in Transit-Oriented Communities Income Tax Credit with $30 million in total allocations between 2025-2029, targeting developments in certified transit-oriented communities

• Establishes accelerated credit claiming schedules requiring taxpayers to claim 70% of credits in year one and remaining amounts over years two through five or six, instead of spreading claims equally across the credit period

• Implements 15-year compliance periods requiring affordable housing developments to maintain affordability standards and remain subject to recapture provisions if basis declines

• Redirects $35.99 million annually from the state's housing development grant fund for fiscal years 2024-25 through 2031-32 to support these tax credit programs