Colorado 2024 Regular Session

Colorado House Bill HB1144 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Second Regular Session
2	2	Seventy-fourth General Assembly
3	3	STATE OF COLORADO
4	4	INTRODUCED
5	5
6	6
7	7	LLS NO. 24-0827.01 Rebecca Bayetti x4348
8	8	HOUSE BILL 24-1144
9	9	House Committees Senate Committees
10	10	Finance
11	11	A BILL FOR AN ACT
12	12	C
13	13	ONCERNING THE CREATION OF AN INCOME TAX CREDIT FOR SELLERS101
14	14	OF RESIDENTIAL REAL PROPERTY THAT BUY DOWN THE102
15	15	MORTGAGE INTEREST RATE OF THE BUYER OF THE PROPERTY .103
16	16	Bill Summary
17	17	(Note: This summary applies to this bill as introduced and does
18	18	not reflect any amendments that may be subsequently adopted. If this bill
19	19	passes third reading in the house of introduction, a bill summary that
20	20	applies to the reengrossed version of this bill will be available at
21	21	http://leg.colorado.gov
22	22	.)
23	23	The bill creates an income tax credit (tax credit) that is available
24	24	for income tax years starting on or after January 1, 2024, but before
25	25	January 1, 2026, for sellers of residential property in Colorado who buy
26	26	down the interest rates on the mortgage of the buyer of the property. The
27	27	amount of the tax credit is 50% of the cost of the mortgage interest rate
28	28	HOUSE SPONSORSHIP
29	29	Bockenfeld,
30	30	SENATE SPONSORSHIP
31	31	(None),
32	32	Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
33	33	Capital letters or bold & italic numbers indicate new material to be added to existing law.
34	34	Dashes through the words or numbers indicate deletions from existing law. buy down. The tax credit is refundable and transferrable to any other
35	35	taxpayer.
36	36	Be it enacted by the General Assembly of the State of Colorado:1
37	37	SECTION 1. In Colorado Revised Statutes, add 39-22-560 as2
38	38	follows:3
39	39	39-22-560. Tax credit for mortgage rate buydowns - tax4
40	40	preference performance statement - legislative declaration -5
41	41	definitions - repeal. (1) (a) I
42	42	N ACCORDANCE WITH SECTION 39-21-304,6
43	43	WHICH REQUIRES EACH BILL THAT CREATES A NEW TAX EXPENDITURE TO7
44	44	INCLUDE A TAX PREFERENCE PERFORMANCE STATEMENT AS PART OF A8
45	45	STATUTORY LEGISLATIVE DECLARATION , THE GENERAL ASSEMBLY FINDS9
46	46	AND DECLARES THAT THE PURPOSES OF THE TAX CREDIT CREATED IN THIS10
47	47	SECTION ARE TO INDUCE CERTAIN DESIGNATED BEHAVIOR BY TAXPAYERS11
48	48	AND TO IMPROVE INDUSTRY COMPETITIVENESS BY ALLOWING A SELLER OF12
49	49	RESIDENTIAL PROPERTY THAT BUYS DOWN THE MORTGAGE INTEREST RATE13
50	50	OF THE BUYER OF THE PROPERTY TO CLAIM A TAX CREDIT . SPECIFICALLY,14
51	51	THIS TAX CREDIT IS INTENDED TO INCENTIVIZE PROPERTY OWNERS TO SELL15
52	52	THEIR RESIDENTIAL PROPERTY IN A WAY THAT BENEFITS HOME BUYERS BY16
53	53	REDUCING THEIR MORTGAGE INTEREST RATES AND TO STIMULATE THE17
54	54	REAL ESTATE MARKET.18
55	55	(b) T
56	56	HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL19
57	57	MEASURE THE EFFECTIVENESS OF THE TAX CREDIT IN ACHIEVING THE20
58	58	PURPOSES SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE21
59	59	NUMBER AND VALUE OF TAX CREDITS CLAIMED AND ANY ADDITIONAL22
60	60	INFORMATION THAT IS MAINTAINED AND REPORTED TO THE STATE23
61	61	AUDITOR BY THE DEPARTMENT PURSUANT TO SUBSECTION (6) OF THIS24
62	62	SECTION.25
63	63	HB24-1144-2- (2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE1
64	64	REQUIRES:2
65	65	(a) "B
66	66	UY DOWN" MEANS PERMANENTLY REDUCING THE INTEREST3
67	67	RATE ON A MORTGAGE BY PAYING A LUMP SUM AT CLOSING TO SECURE A4
68	68	LOWER INTEREST RATE.5
69	69	(b) "D
70	70	EPARTMENT" MEANS THE COLORADO DEPARTMENT OF6
71	71	REVENUE.7
72	72	(c) "H
73	73	OMEBUYER" MEANS AN INDIVIDUAL WHO TAKES OUT A8
74	74	MORTGAGE TO BUY RESIDENTIAL REAL PROPERTY IN THE STATE THAT WILL9
75	75	BE USED AS THE INDIVIDUAL'S PRIMARY RESIDENCE.10
76	76	(d) "Q
77	77	UALIFIED SELLER" MEANS AN INDIVIDUAL TAXPAYER WHO ,11
78	78	WHEN SELLING RESIDENTIAL REAL PROPERTY THAT THE TAXPAYER OWNS12
79	79	IN THE STATE, PROVIDES A BUY DOWN TO A HOMEBUYER .13
80	80	(e) "T
81	81	AX CREDIT" MEANS THE CREDIT AGAINST INCOME TAX14
82	82	CREATED IN THIS SECTION.15
83	83	(f) "T
84	84	AXPAYER" MEANS A PERSON SUBJECT TO TAX PURSUANT TO16
85	85	THIS ARTICLE 22.17
86	86	(3) (a) S
87	87	UBJECT TO THE LIMITATIONS SET FORTH IN SUBSECTION18
88	88	(3)(b)
89	89	OF THIS SECTION, FOR INCOME TAX YEARS COMMENCING ON OR19
90	90	AFTER JANUARY 1, 2024, BUT BEFORE JANUARY 1, 2026, A QUALIFIED20
91	91	SELLER IS ALLOWED A CREDIT AGAINST THE INCOME TAXES IMPOSED BY21
92	92	THIS ARTICLE 22 IN AN AMOUNT EQUAL TO FIFTY PERCENT OF THE LUMP22
93	93	SUM DOLLAR AMOUNT PAID BY THE QUALIFIED SELLER AT CLOSING TO BUY23
94	94	DOWN A HOMEBUYER 'S MORTGAGE INTEREST RATE.24
95	95	(b) T
96	96	O CLAIM THE TAX CREDIT, A QUALIFIED SELLER SHALL SUBMIT25
97	97	INFORMATION TO THE DEPARTMENT , IN A FORM AND MANNER REQUIRED26
98	98	BY THE DEPARTMENT , THAT DETAILS THE QUALIFYING MORTGAGE27
99	99	HB24-1144
100	100	-3- INTEREST RATE BUY DOWN . IN ADDITION TO OTHER INFORMATION1
101	101	REQUIRED BY THE DEPARTMENT , THIS INFORMATION MUST INCLUDE:2
102	102	(I) T
103	103	HE NUMBER OF PERCENTAGE POINTS BY WHICH THE INTEREST3
104	104	RATE OF THE MORTGAGE WAS REDUCED BY THE BUY DOWN ;4
105	105	(II) T
106	106	HE DOLLAR AMOUNT OF THE LUMP SUM PAID AT CLOSING TO5
107	107	BUY DOWN THE MORTGAGE INTEREST RATE ; AND6
108	108	(III) E
109	109	VIDENCE OF THE TRANSFER OF TITLE OF THE RESIDENTIAL7
110	110	PROPERTY FROM THE QUALIFIED SELLER TO THE HOMEBUYER .8
111	111	(4) I
112	112	F THE AMOUNT OF THE TAX CREDIT EXCEEDS THE TAXES DUE9
113	113	ON THE INCOME OF THE QUALIFIED SELLER FOR THE TAXABLE YEAR FOR10
114	114	WHICH THE CREDIT IS BEING CLAIMED, THE QUALIFIED SELLER MAY ELECT11
115	115	TO HAVE THE AMOUNT OF THE CREDIT NOT USED TO OFFSET INCOME TAXES12
116	116	IN THAT INCOME TAX YEAR REFUNDED TO THE QUALIFIED SELLER .13
117	117	(5) A
118	118	QUALIFIED SELLER MAY TRANSFER ALL OR A PORTION OF A14
119	119	TAX CREDIT ALLOWED PURSUANT TO SUBSECTION (3) OF THIS SECTION TO15
120	120	ANOTHER TAXPAYER FOR THE OTHER TAXPAYER , AS TRANSFEREE, TO16
121	121	APPLY AS A CREDIT AGAINST THE TAXES IMPOSED BY THIS ARTICLE 2217
122	122	SUBJECT TO THE FOLLOWING LIMITATIONS :18
123	123	(a) T
124	124	AX CREDIT TRANSFERS PURSUANT TO THIS SUBSECTION (5)19
125	125	ARE SUBJECT TO ANY NOTICE AND VERIFICATION REQUIREMENTS20
126	126	DETERMINED BY THE DEPARTMENT ;21
127	127	(b) A
128	128	QUALIFIED SELLER OR A TRANSFEREE MAY ONLY TRANSFER22
129	129	THE PORTION OF THE TAX CREDIT THAT HAS NOT BEEN APPLIED AGAINST23
130	130	THE INCOME TAXES IMPOSED BY THIS ARTICLE 22 OR USED TO OBTAIN A24
131	131	REFUND; AND25
132	132	(c) A
133	133	NY TRANSFEREE OF A TAX CREDIT MAY USE THE AMOUNT OF26
134	134	THE TAX CREDIT TRANSFERRED TO OFFSET ANY OTHER TAX DUE UNDER27
135	135	HB24-1144
136	136	-4- THIS ARTICLE 22, OR THE TRANSFEREE MAY FREELY TRANSFER ANY1
137	137	PORTION OF THE TAX CREDIT THAT HAS NOT BEEN APPLIED AGAINST THE2
138	138	INCOME TAXES IMPOSED BY THIS ARTICLE 22 BY THE TRANSFEREE OR ANY3
139	139	OTHER TAXPAYER.4
140	140	(6) T
141	141	HE DEPARTMENT SHALL MAINTAIN A DATABASE OF5
142	142	INFORMATION ABOUT THE NUMBER AND VALUE OF TAX CREDITS CLAIMED6
143	143	AND ANY OTHER INFORMATION DETERMINED NECESSARY BY THE7
144	144	DEPARTMENT TO EVALUATE THE EFFECTIVENESS OF THE TAX CREDIT8
145	145	ALLOWED IN THIS SECTION IN ACHIEVING THE PURPOSES SET FORTH IN9
146	146	SUBSECTION (1)(a) OF THIS SECTION AND SHALL PROVIDE THIS10
147	147	INFORMATION, AND ANY OTHER INFORMATION THAT MAY BE NEEDED , TO11
148	148	THE STATE AUDITOR AS PART OF THE STATE AUDITOR 'S EVALUATION OF12
149	149	TAX EXPENDITURES UNDER SECTION 39-21-305.13
150	150	(7) P
151	151	URSUANT TO ARTICLE 4 OF TITLE 24, THE DEPARTMENT MAY14
152	152	PROMULGATE RULES FOR THE IMPLEMENTATION OF THIS SECTION .15
153	153	(8) T
154	154	HIS SECTION IS REPEALED, EFFECTIVE DECEMBER 31, 2033.16
155	155	SECTION 2. Act subject to petition - effective date -17
156	156	applicability. (1) This act takes effect at 12:01 a.m. on the day following18
157	157	the expiration of the ninety-day period after final adjournment of the19
158	158	general assembly; except that, if a referendum petition is filed pursuant20
159	159	to section 1 (3) of article V of the state constitution against this act or an21
160	160	item, section, or part of this act within such period, then the act, item,22
161	161	section, or part will not take effect unless approved by the people at the23
162	162	general election to be held in November 2024 and, in such case, will take24
163	163	effect on the date of the official declaration of the vote thereon by the25
164	164	governor.26
165	165	HB24-1144
166	166	-5- (2) This act applies to sales of residential real property that close1
167	167	on or after January 1, 2024.2
168	168	HB24-1144
169	169	-6-