Home Modification Tax Credit

The Income Tax Credit for Retrofitting Home for Health bills (HB18-1267, HB19-1135 and SB23-196) created a state income tax credit to help people with an illness, impairment or disability retrofit their residence for greater accessibility and independence. It allows for up to a $5,000 non-refundable tax credit per person in the family with a disability or impairment. The credit is available for home modifications completed in tax years 2019 through 2028. The credit can be utilized for up to eight years from the tax year in which the home modification was completed, or until the amount of the credit is exhausted, whichever occurs first.

Changes made to the residence may include, but are not limited to:

• Installing or building ramps
• Modifying bathrooms
• Installing grab-bars
• Widening doorways
• Modifying kitchen facilities
• Installing specialized electric and plumbing systems that are necessary to accommodate medically necessary equipment and supplies

Prequalification Survey

Take the prequalification survey to find out if you qualify for the Home Modification Tax Credit Program.

Take the prequalification survey.

If you are experiencing difficulties submitting your PreQualification Survey, don't hesitate to get in touch with dola_homemodtaxcredit@state.co.us.

Basic Program Eligibility Criteria

Requirements for Qualified Individuals

• Has or claims a dependent with an illness, impairment, or disability that necessitates the requested home modification;
• Anticipates owing more in state income taxes over the next eight (8) years than the value of the work or $5,000, whichever is less; and
• State income taxpayer with an adjusted household income at or below the income limit for the tax year in which the home modification was completed. Income limit varies from year to year and are as follows:
  • 2019: $150,000
  • 2020: $151,931
  • 2021: $156,024
  • 2022: $158,915
  • 2023: $172,554
  • 2024: $182,191

Requirements for Eligible Residence

• A qualifying home modification is a retrofit;
• Must provide proof or ownership/lease information; written authorization from the owner/landlord is required if not the owner
• Qualifying individual/dependent occupies the residence when the retrofit was completed and at the time of application;
• Qualify individual/dependent is a permanent resident at the residence in which the retrofit was completed
• Residence being modified is located in Colorado.

Note: New construction or accessibility features that are a part of the initial construction phase does not qualify

Requirements for Modification to the Residence

• Necessary due to the qualifying individual/dependent’s illness, impairment, or disability
• Enables greater accessibility and independence in the residence for the qualified individual and/or their dependent(s);
• Ensures the health, welfare, and safety of the qualifying individual/dependent
  Increases the residence’s visibility
• Meets the Division of Housing's Home Modification Construction Specifications

NOTE: Durable medical equipment and other items not installed or affixed to the residence are not eligible for modifications.

Reference Material

• Home Modification Tax Credit Program Guidelines
• Modification Examples - Home Modification Look Book
• Construction Specifications
• Dispute Resolution