Colorado Senate Bill SB146

Colorado 2024 Regular Session

• Introduced: 2/7/24
• Report Pass: 2/22/24
• Refer: 2/7/24
• Report Pass: 4/19/24
• Refer: 2/22/24
• Engrossed: 4/29/24
• Refer: 4/19/24
• Report Pass: 5/1/24
• Refer: 4/29/24
• Refer: 5/1/24

Caption

Tax Credit for Qualified Renters

Impact

The implementation of SB146 is anticipated to enhance the financial stability of numerous, lower-income renters across Colorado. This legislation not only aids tenants in managing their rental payments but also indirectly supports the state's housing market by reducing the risk of evictions and enhancing housing security. Additionally, the bill stipulates that the tax credit will not be considered income or resources for determining eligibility for public assistance programs, which helps integrate housing support with broader state welfare initiatives. However, the credit is nonrefundable and will not carry forward if unused, limiting its immediate impact for some eligible taxpayers.

Summary

Senate Bill 24-146 establishes a temporary income tax credit aimed at providing financial relief for income-qualified renters in Colorado. Effective from the 2024 tax year through 2026, the bill allows qualifying renters to receive a nonrefundable tax credit based on their federal adjusted gross income (AGI). For instance, joint filers with an AGI of $75,000 or less can receive a maximum credit of $2,000, while single filers with an AGI of $25,000 or less can receive up to $1,000. These amounts decrease with higher income levels, providing a structured gradient to aid the most financially vulnerable segments of renters in the state.

Sentiment

The sentiment surrounding SB146 appears to be generally positive, especially among renters and housing advocates who emphasize the need for more support for low-income families. While some lawmakers and advocacy groups applaud the measure for addressing urgent economic challenges faced by many, there remains some concern about the nonrefundable nature of the credit, which could limit its effectiveness for those who need substantial assistance. The bill's proponents emphasize its role in fostering a stable housing environment, while critics call for more comprehensive solutions that include broader renter protections.

Contention

Notable points of contention arise regarding the need for various housing assistance programs and the adequacy of the tax credit amid ongoing housing affordability crises. Some stakeholders argue that the relatively narrow eligibility criteria may exclude many renters who still face significant financial hardships. Furthermore, the potential temporary nature of the bill raises concerns about the long-term commitment of the state to assist low-income renters, with advocates pushing for a more robust and permanent framework to ensure continuous support beyond the next three years. The nuances of the credit design also spark debates about the most effective means of supporting renters while balancing the state's budget priorities.