CO HB1065

Creates the "Transit Investment Area Act" allowing local governments and transit agencies to designate transit investment areas within 1.5 miles of transit stations and capture state sales tax increment revenue above baseline amounts (plus 20% of base revenue) for up to 30 years to finance transit-related infrastructure improvements

Limits the program to a maximum of 3 approved transit investment projects per calendar year and 6 total projects statewide, with no more than $75 million in state sales tax increment revenue dedicated annually across all projects

Establishes a Colorado affordable housing tax credit for developments located in transit and housing investment zones, providing $50 million annually in credits from 2027 through 2033, administered similarly to the existing transit-oriented communities housing credit

Authorizes formation of transit investment authorities governed by boards with members appointed by the Colorado Economic Development Commission and local governments, with powers to receive, invest, and spend tax increment revenue and issue bonds

Requires financing entities to submit annual reports and independent audits, with provisions for recapture of misused funds and revocation of project approval if substantial work does not commence within 5 years