CO HB1139

Creates a refundable state income tax credit for income tax years beginning January 1, 2026, allowing honorably discharged veterans with service-connected disabilities of at least 10% to offset property taxes paid on their primary residence

Credit amount equals the veteran's VA disability rating percentage applied to property taxes paid (e.g., 10% disability rating = 10% credit, 100% disability rating = 100% credit)

Veterans must apply to their county assessor by September 1 each year, submitting a VA decision letter documenting their disability rating; the assessor issues a tax credit certificate to file with the state income tax return

Surviving spouses or legal dependents may continue claiming the credit at the veteran's last percentage until they die, sell/transfer the residence, or no longer occupy it as their primary residence

The credit continues indefinitely and effectiveness will be measured by the General Assembly and State Auditor based on the number and value of credits claimed