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HB 1066

Tax Exemptions Low Income Rental Property Development

2026 Regular Session

HB 1066 exempts qualifying low-income rental properties from taxes to incentivize affordable housing development, trading government revenue for private investment in Colorado's housing shortage.

House Committee on Appropriations Lay Over Unamended - Amendment(s) Failed
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Bill Summary · HB 1066

Legislative bill overview

HB 1066 creates tax exemptions for developers and property owners who build or maintain affordable rental housing for low-income households in Colorado. The bill uses tax incentives as a financial mechanism to encourage private investment in affordable housing development, potentially reducing the tax burden on qualifying properties.

Why is this important

Colorado faces a significant affordable housing shortage, with rental costs consuming increasing portions of low-income households' budgets. Tax exemptions can reduce development costs and operating expenses, theoretically making affordable housing projects more financially viable and encouraging more construction in a competitive market.

Potential points of contention

  • Revenue impact: Tax exemptions reduce state and local government revenue, potentially limiting funding for other public services unless offset by appropriations or decreased demand elsewhere
  • Definition and verification: Questions about how "low-income" and "affordable" are defined, what rents must be charged, how long exemptions last, and how compliance is monitored to prevent abuse
  • Equity concerns: Whether tax incentives primarily benefit developers and investors rather than actual residents, and whether exemptions create fairness issues for property owners who don't receive them
  • Effectiveness uncertainty: Limited evidence whether tax exemptions substantially increase affordable housing supply compared to alternative approaches like direct subsidies or zoning reforms

Compiled from official sources — confirm details with the bill’s official record.

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