CO SB029

Creates a Colorado income tax credit equal to 25% of contributions made to a health savings account (HSA) that supports a high deductible health plan as defined under federal law

Maximum credit amounts are $500 for single filers, $1,000 for joint filers, and $1,500 for contributions to a family health plan

Credit applies to tax years beginning January 1, 2027, through December 31, 2032, and is available only to Colorado resident individuals

Credit is non-refundable and cannot be carried forward to future tax years if it exceeds taxes owed

State Auditor and Department of Revenue will measure effectiveness by tracking increases in HSA contributions attributable to the credit