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Colorado Bill Would Increase Annual LIHTC Cap; Allow Credit to be Claimed Faster

Wednesday, April 3, 2024 - 1:29PM

Legislation introduced in Colorado would increase the annual statewide cap for the state’s low-income housing tax credit (LIHTC) for the next eight years and accelerate the rate at which taxpayers can claim the new credit. Under H.B. 1434, the annual cap–currently $10 million–would increase by $20 million for 2024, 2025 and 2026; $16 million for 2027, 2028 and 2029; and $10 million for 2030 and 2031. The legislation would allow 70% of the increased credit resources to be taken in the first year, with 6% taken in each of the remaining five years. This is additive to the current $10 million Colorado LIHTC that will continue to be taken evenly over six years.

The interaction of state and federal LIHTC equity, along with other funding sources, will be a topic at the Novogradac 2024 Affordable Housing Conference, May 2-4 in San Francisco.

Note: Edited April 8 for accuracy and clarity.

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