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Home Modification Tax Credit

title-line
The Income Tax Credit for Retrofitting Home for Health bill (HB18-1267) created a state income tax credit of up to $5,000 to help people with an illness, impairment or disability retrofit their residence for greater accessibility and independence.  The credit is available for retrofits completed in tax years 2019 through 2023.

 

NEW starting August 2nd:  The Colorado Legislature recently passed clarifying legislation (HB19-1135) to make dependents and spouses eligible.  It also allows for up to a $5,000 credit per person in the family with a disability.

 

Picture of a ranch-style house with a ramp built for the front door

 

Maximum tax credits per year are limited to $1,000,000.

 

Basic Program Eligibility Criteria

Requirements for qualified individuals

  • Have an illness, impairment or disability that necessitates the requested home modification; and
  • Be a state income taxpayer with an adjusted family income at or below the income limit, which is $150,000 for the 2019 income tax year.
  • Anticipate owing more in state income taxes over the next five years than the value of the work or $5,000, whichever is less.
  • If the qualified individual is not the homeowner of the residence being modified, they must have the owner’s permission to modify the residence.
* The Colorado Legislature has passed clarifying legislation (HB19-1135) to make dependents and spouses eligible, effective August 2, 2019. It also allows for up to a $5,000 credit per person in the family with a disability.



Requirements for eligible residence

  • The residence being modified must exist before the work begins – the work may not be completed during initial construction of the residence.
  • The residence must be currently occupied as the home of the qualified individual and the person for whom the retrofit is required.
  • The residence must be located in Colorado.

Requirements for modification to the residence

Retrofits (or modifications) to the residence must:

  • Be necessary to ensure the health, welfare, and safety of the qualified individual and/or their dependent(s);
  • Increase the residence’s visitability;
  • Enable greater accessibility and independence in the residence for the qualified individual and/or their dependent(s);
  • Be required due the qualified individual’s and/or their dependent(s) illness, impairment or disability;
  • Allow the qualified individual and/or their dependent(s) to age in place;
  • Meet the Division of Housing’s Home Modification Construction Specifications; and
  • Be completed in the tax year for which the qualified individual will receive the tax credit.
*Please note, durable medical equipment and other items that are not installed or affixed to the residence are not eligible modifications.


Denver’s 7 ABC News article about this, can also be found here: https://www.thedenverchannel.com/news/local-news/colorados-home-modifications-tax-credit-expanding

Important Notice
CCDC’s employees and/or volunteers are NOT acting as your attorney. Responses you receive via electronic mail, phone, or in any other manner DO NOT create or constitute an attorney-client relationship between you and the Colorado Cross-Disability Coalition (CCDC), or any employee of, or other person associated with, CCDC. The only way an attorney-client relationship is established is if you have a signed retainer agreement with one of the CCDC Legal Program attorneys.

Information received from CCDC’s employees or volunteers, or from this site, should NOT be considered a substitute for the advice of a lawyer. www.ccdconline.org DOES NOT provide any legal advice, and you should consult with your own lawyer for legal advice. This website is a general service that provides information over the internet. The information contained on this site is general information and should not be construed as legal advice to be applied to any specific factual situation.

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