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Colorado Governor Signs Bill Increasing State LIHTC Cap, Creating Transit-Oriented LIHTC

Friday, May 31, 2024 - 5:18AM

Colorado Gov. Jared Polis Thursday signed legislation to increase the annual statewide cap for the state’s low-income housing tax credit (LIHTC), accelerate the rate at which taxpayers can claim the credit and create a state LIHTC for transit-oriented communities. H.B. 1434 increases the annual general state LIHTC cap from $10 million to $20 million for 2024, $16 million in 2025, $12 million in 2026 and 2027, $16 million in 2028 and $20 million in 2029, 2030 and 2031. It also allows taxpayers to take 70% of the credit in the first year and 6% per year for the following five years, compared to the current credit taken evenly over six years. The new transit-oriented LIHTC has a state cap of $2 million per year for 2025-2027, going to $11 million in 2028 and $13 million in 2029. 

The Novogradac Introduction to Low-Income Housing Tax Credits booklet provides a brief, substantive look into the background and structure of the state and federal LIHTC. 

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