First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 25-0681.01 Nicole Myers x4326
HOUSE BILL 25-1139
House Committees Senate Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE CREATION OF AN INCOME TAX CREDIT ALLOWED TO101
VETERANS WITH A SERVICE-CONNECTED DISABILITY TO OFFSET102
THE PROPERTY TAX PAID ON THE VETERAN 'S PRIMARY103
RESIDENCE.104
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
For income tax years commencing on or after January 1, 2026, the
bill allows a veteran who is honorably discharged, possesses a
service-connected disability rating of at least 10%, and owns and
HOUSE SPONSORSHIP
Keltie,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law. occupies a primary residence in the state (eligible veteran) to claim a
refundable income tax credit (tax credit) in an amount equal to a
percentage, based on the eligible veteran's service-connected disability
rating, of the amount of property tax that the eligible veteran paid on their
primary residence during the income tax year.
To claim a tax credit, a taxpayer must apply to the county assessor
for the county in which the taxpayer's primary residence is located and
submit a decision letter from the U.S. department of veterans affairs that
sets forth their service-connected disability rating. The county assessor is
required to determine whether the taxpayer is an eligible veteran and if so,
the amount of the income tax credit the eligible veteran may claim, based
on the property tax paid by the eligible veteran and the eligible veteran's
service-connected disability rating. The county assessor is required to
issue a tax credit certificate to an eligible veteran in an amount equal to
the amount of the tax credit that may be claimed.
Upon the death of an eligible veteran, the eligible veteran's
surviving spouse or legal dependents are eligible to claim the tax credit
until specified events have occurred.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, add 39-22-571 as2
follows:3
39-22-571. Tax credit for eligible veterans - property tax paid4
on primary residence - tax preference performance statement -5
legislative declaration - definitions. (1) (a) I
N ACCORDANCE WITH6
SECTION 39-21-304 (1), WHICH REQUIRES EACH BILL THAT CREATES A NEW7
TAX EXPENDITURE TO INCLUDE A TAX PREFERENCE PERFORMANCE8
STATEMENT AS PART OF A STATUTORY LEGISLATIVE DECLARATION , THE9
GENERAL ASSEMBLY FINDS AND DECLARES THAT THE PURPOSE OF THE TAX10
CREDIT PROVIDED IN THIS SECTION IS TO PROVIDE TAX RELIEF FOR CERTAIN11
INDIVIDUALS, SPECIFICALLY TO HONORABLY DISCHARGED V ETERANS WHO12
HAVE A SERVICE-CONNECTED DISABILITY RATING OF AT LEAST TEN13
PERCENT AND WHO PAY PROPERTY TAXES ON A PRIMARY RESIDENCE IN14
THE STATE, BY ALLOWING AN INCOME TAX CREDIT IN AN AMOUNT EQUAL15
HB25-1139-2- TO A PORTION OF THE PROPERTY TAX PAID ON THE PRIMARY RESIDENCE .1
(b) T
HE GENERAL ASSEMBLY AND THE STATE AUDITOR SHALL2
MEASURE THE EFFECTIVENESS OF THE CREDIT IN ACHIEVING THE PURPOSE3
SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION BASED ON THE NUMBER4
AND VALUE OF CREDITS CLAIMED.5
(2) A
S USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE6
REQUIRES:7
(a) "D
ISABILITY RATING" MEANS THE PERCENTAGE ASSIGNED BY8
THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS TO INDICATE THE9
DEGREE OF A VETERAN'S SERVICE-CONNECTED DISABILITY.10
(b) "E
LIGIBLE VETERAN" MEANS A VETERAN WHO:11
(I) I
S HONORABLY DISCHARGED ;12
(II) P
OSSESSES A DISABILITY RATING OF AT LEAST TEN PERCENT ;13
AND14
(III) O
WNS AND OCCUPIES A PRIMARY RESIDENCE .15
(c) "P
RIMARY RESIDENCE" MEANS A PROPERTY IN THE STATE THAT16
A VETERAN OWNS AND OCCUPIES AS THEIR PRINCIPAL PLACE OF17
RESIDENCE.18
(d) "V
ETERAN" MEANS A PERSON WHO HAS SERVED IN THE UNITED19
S
TATES ARMED FORCES.20
(3) F
OR ANY INCOME TAX YEAR COMMENCING ON OR AFTER21
J
ANUARY 1, 2026, AN ELIGIBLE VETERAN IS ALLOWED AN INCOME TAX22
CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE 22 IN AN AMOUNT23
EQUAL TO A PERCENTAGE, SPECIFIED IN SUBSECTION (4) OF THIS SECTION,24
OF THE AMOUNT THAT THE ELIGIBLE VETERAN PAID IN PROPERTY TAX ON25
THEIR PRIMARY RESIDENCE DURING THE INCOME TAX YEAR .26
(4) T
HE AMOUNT OF THE TAX CREDIT ALLOWED TO AN ELIGIBLE27
HB25-1139
-3- VETERAN PURSUANT TO SUBSECTION (3) OF THIS SECTION IS AS FOLLOWS:1
(a) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF TEN2
PERCENT TO NINETEEN PERCENT, AN AMOUNT EQUAL TO TEN PERCENT OF3
THE AMOUNT OF PROPERTY TAX PAID ;4
(b) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF5
TWENTY PERCENT TO TWENTY -NINE PERCENT, AN AMOUNT EQUAL TO6
TWENTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;7
(c) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF8
THIRTY PERCENT TO THIRTY-NINE PERCENT, AN AMOUNT EQUAL TO THIRTY9
PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;10
(d) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF11
FORTY PERCENT TO FORTY-NINE PERCENT, AN AMOUNT EQUAL TO FORTY12
PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;13
(e) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF FIFTY14
PERCENT TO FIFTY-NINE PERCENT, AN AMOUNT EQUAL TO FIFTY PERCENT15
OF THE AMOUNT OF PROPERTY TAX PAID ;16
(f) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF SIXTY17
PERCENT TO SIXTY-NINE PERCENT, AN AMOUNT EQUAL TO SIXTY PERCENT18
OF THE AMOUNT OF PROPERTY TAX PAID ;19
(g) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF20
SEVENTY PERCENT TO SEVENTY -NINE PERCENT, AN AMOUNT EQUAL TO21
SEVENTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;22
(h) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF23
EIGHTY PERCENT TO EIGHTY -NINE PERCENT, AN AMOUNT EQUAL TO24
EIGHTY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ;25
(i) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF26
NINETY PERCENT TO NINETY -NINE PERCENT, AN AMOUNT EQUAL TO27
HB25-1139
-4- NINETY PERCENT OF THE AMOUNT OF PROPERTY TAX PAID ; AND1
(j) F
OR AN ELIGIBLE VETERAN WITH A DISABILITY RATING OF ONE2
HUNDRED PERCENT, AN AMOUNT EQUAL TO ONE HUNDRED PERCENT OF3
THE AMOUNT OF PROPERTY TAX PAID .4
(5) (a) (I) T
O CLAIM A TAX CREDIT PURSUANT TO THIS SECTION , A5
TAXPAYER MUST SUBMIT AN APPLICATION FOR A TAX CREDIT CERTIFICATE6
TO THE COUNTY ASSESSOR FOR THE COUNTY IN WHICH THE TAXPAYER 'S7
PRIMARY RESIDENCE IS LOCATED . A TAXPAYER MUST SUBMIT AN8
APPLICATION FOR A TAX CREDIT CERTIFICATE ON OR BEFORE SEPTEMBER9
1
OF THE YEAR FOR WHICH THE TAXPAYER INTENDS TO CLAIM THE TAX10
CREDIT.11
(II) W
ITH AN APPLICATION SUBMITTED PURSUANT TO SUBSECTION12
(5)(a)(I)
OF THIS SECTION, A TAXPAYER MUST SUBMIT A DECISION LETTER13
FROM THE UNITED STATES DEPARTMENT OF VETERANS AFFAIRS THAT SETS14
FORTH THE TAXPAYER'S DISABILITY RATING.15
(b) T
HE DIVISION OF PROPERTY TAXATION IN THE DEPARTMENT OF16
LOCAL AFFAIRS, IN CONSULTATION WITH THE DEPARTMENT OF MILITARY17
AND VETERANS AFFAIRS, SHALL DEVELOP AND PROVIDE TO EACH COUNTY18
ASSESSOR THE APPLICATION TO BE USED BY A TAXPAYER TO APPLY FOR A19
TAX CREDIT CERTIFICATE PURSUANT TO SUBSECTION (5)(a) OF THIS20
SECTION AND SHALL INCLUDE ANY NECESSARY INSTRUCTIONS FOR A21
COUNTY ASSESSOR IN THEIR REVIEW OF AN APPLICATION PURSUANT TO22
SUBSECTION (5)(c) OF THIS SECTION.23
(c) T
HE COUNTY ASSESSOR SHALL REVIEW A TAXPAYER 'S24
APPLICATION SUBMITTED PURSUANT TO SUBSECTION (5)(a) OF THIS25
SECTION TO DETERMINE:26
(I) W
HETHER THE TAXPAYER IS AN ELIGIBLE VETERAN ; AND27
HB25-1139
-5- (II) IF THE TAXPAYER IS AN ELIGIBLE VETERAN, THE AMOUNT OF1
THE CREDIT THAT THE ELIGIBLE VETERAN MAY CLAIM FOR THE APPLICABLE2
INCOME TAX YEAR BASED ON THE AMOUNT OF PROPERTY TAX PAID BY THE3
ELIGIBLE VETERAN ON THEIR PRIMARY RESIDENCE IN THE APPLICABLE4
PROPERTY TAX YEAR AND ON THE ELIGIBLE VETERAN 'S DISABILITY RATING.5
(d) U
PON APPROVING AN ELIGIBLE VETERAN 'S APPLICATION AND6
MAKING THE DETERMINATIONS DESCRIBED IN SUBSECTION (5)(c) OF THIS7
SECTION, THE APPLICABLE COUNTY ASSESSOR SHALL ISSUE A TAX CREDIT8
CERTIFICATE TO THE ELIGIBLE VETERAN IN AN AMOUNT EQUAL TO THE9
AMOUNT DETERMINED BY THE COUNTY ASSESSOR PURSUANT TO10
SUBSECTION (5)(c)(II) OF THIS SECTION.11
(e) E
ACH COUNTY ASSESSOR SHALL , IN A SUFFICIENTLY TIMELY12
MANNER TO ALLOW THE DEPARTMENT TO PROCESS RETURNS CLAIMING13
THE TAX CREDIT ALLOWED IN THIS SECTION , PROVIDE THE DEPARTMENT14
WITH AN ELECTRONIC REPORT FOR THE PRECEDING TAX YEAR THAT LISTS15
EACH ELIGIBLE VETERAN TO WHICH THE COUNTY ASSESSOR ISSUED A TAX16
CREDIT CERTIFICATE AND INCLUDES THE FOLLOWING INFORMATION :17
(I) T
HE ELIGIBLE VETERAN'S NAME;18
(II) T
HE AMOUNT OF THE INCOME TAX CREDIT THAT THE19
CERTIFICATE INDICATES THE ELIGIBLE VETERAN IS ELIGIBLE TO CLAIM ;20
AND21
(III) T
HE ELIGIBLE VETERAN'S SOCIAL SECURITY NUMBER OR22
C
OLORADO ACCOUNT NUMBER AND FEDERAL EMPLOYER IDENTIFICATION23
NUMBER.24
(6) T
O CLAIM THE CREDIT AUTHORIZED BY THIS SECTION , AN25
ELIGIBLE VETERAN SHALL FILE THE TAX CREDIT CERTIFICATE ISSUED BY26
THE COUNTY ASSESSOR PURSUANT TO SUBSECTION (5) OF THIS SECTION27
HB25-1139
-6- WITH THE ELIGIBLE VETERAN'S STATE INCOME TAX RETURN.1
(7) U
PON THE DEATH OF AN ELIGIBLE VETERAN , THE ELIGIBLE2
VETERAN'S SURVIVING SPOUSE OR LEGAL DEPENDENTS ARE ELIGIBLE TO3
CLAIM THE INCOME TAX CREDIT ALLOWED IN THIS SECTION AT THE4
PERCENTAGE SPECIFIED IN SUBSECTION (4) OF THIS SECTION LAST CLAIMED5
BY THE ELIGIBLE VETERAN, UNTIL:6
(a) T
HE DEATH OF THE SURVIVING SPOUSE OR LEGAL DEPENDENTS ;7
(b) T
HE PRIMARY RESIDENCE THAT IS THE BASIS OF THE INCOME8
TAX CREDIT IS SOLD OR TRANSFERRED; OR9
(c) T
HE SURVIVING SPOUSE OR LEGAL DEPENDANTS OF THE10
ELIGIBLE VETERAN NO LONGER OCCUPY THE RESIDENCE THAT IS THE BASIS11
OF THE INCOME TAX CREDIT AS THEIR PRIMARY RESIDENCE .12
(8) I
F THE AMOUNT OF THE TAX CREDIT ALLOWED PURSUANT TO13
THIS SECTION EXCEEDS THE AMOUNT OF INCOME TAXES OTHERWISE DUE14
ON THE INCOME OF THE ELIGIBLE VETERAN IN THE INCOME TAX YEAR FOR15
WHICH THE CREDIT IS BEING CLAIMED, THE AMOUNT OF THE CREDIT NOT16
USED AS AN OFFSET AGAINST INCOME TAXES IN THE INCOME TAX YEAR IS17
REFUNDED TO THE ELIGIBLE VETERAN .18
(9) N
OTWITHSTANDING SECTION 39-21-304 (4), THE CREDIT19
ALLOWED BY THIS SECTION CONTINUES INDEFINITELY .20
SECTION 2. Act subject to petition - effective date. This act21
takes effect at 12:01 a.m. on the day following the expiration of the22
ninety-day period after final adjournment of the general assembly; except23
that, if a referendum petition is filed pursuant to section 1 (3) of article V24
of the state constitution against this act or an item, section, or part of this25
act within such period, then the act, item, section, or part will not take26
effect unless approved by the people at the general election to be held in27
HB25-1139
-7- November 2026 and, in such case, will take effect on the date of the1
official declaration of the vote thereon by the governor.2
HB25-1139
-8-