Signed by Governor Jared Polis

Vote Smart's Synopsis:

Vote to concur with senate amendments and pass a bill that establishes an income tax credit for employer assistance to employees in making a home purchase.

Highlights:

• Allergies that the general assembly has found and declares that the purpose of of this bill is to encourage home ownership through providing tax credits to employers for participation in assistance for employee housing (Sec. 1) 

• Specifies that the general assembly and the state auditor shall measure the effectiveness of the credit in achieving the purposes specified in previous acts (Sec. 1).

• Defines terms related to home ownership (Sec. 2). 

• Authorizes that for every year before 2027, if an employer makes a contribution of money to an employee during the income tax year for the explicit use of helping the employee with a qualifying home purchase then the employer shall receive a credit equal to 5% of the credit contributions (Sec. 3). 

• Requires the employer to establish policies concerning the contribution, how it is to be made and procedures for an  employee to follow to withdraw money for qualifying expenses (Sec. 3).

• Specifies that an employer must keep records for which employees receive the assistance (Sec. 4). 

• Specifies that if the amount of credit allowed under this section exceeds the amount of income taxes otherwise due on the employer's income in the income tax year for which the credit is claimed (Sec. 5). 

• Nothing in this section is intended to prevent an employee from having a first-time home buyer savings account (Sec. 6).

Full Bill Text

Vote Smart's Synopsis:

Vote to concur with senate amendments and pass a bill that establishes an income tax credit for employer assistance to employees in making a home purchase.

Highlights:

• Allergies that the general assembly has found and declares that the purpose of of this bill is to encourage home ownership through providing tax credits to employers for participation in assistance for employee housing (Sec. 1) 

• Specifies that the general assembly and the state auditor shall measure the effectiveness of the credit in achieving the purposes specified in previous acts (Sec. 1).

• Defines terms related to home ownership (Sec. 2). 

• Authorizes that for every year before 2027, if an employer makes a contribution of money to an employee during the income tax year for the explicit use of helping the employee with a qualifying home purchase then the employer shall receive a credit equal to 5% of the credit contributions (Sec. 3). 

• Requires the employer to establish policies concerning the contribution, how it is to be made and procedures for an  employee to follow to withdraw money for qualifying expenses (Sec. 3).

• Specifies that an employer must keep records for which employees receive the assistance (Sec. 4). 

• Specifies that if the amount of credit allowed under this section exceeds the amount of income taxes otherwise due on the employer's income in the income tax year for which the credit is claimed (Sec. 5). 

• Nothing in this section is intended to prevent an employee from having a first-time home buyer savings account (Sec. 6).

Full Bill Text