Summary
Colorado state income tax credit allocated by the Colorado Housing and Finance Authority (CHFA) to owners of qualified middle-income housing developments. Developments must serve households with incomes generally above LIHTC limits but below market-rate (the "missing middle"). Credit usage is for 5 consecutive tax years beginning when the development is placed in service. The owner must commit to providing middle-income housing for 15 years (the affordability commitment). Available for CHFA allocations during calendar years 2025-2029. Inaugural round (announced 2025): three developments selected for $4.8 million in credit allocations. Created by HB24-1316.
Benefit
- Percentage
- —
- Flat
- —
- Duration
- 5 years
- Max annual
- — (taxpayer)
- Max total
- — (taxpayer)
- Carryforward
- —
Program metadata
- Distribution
- allocated
- Claimant subject
- business
- Refund/transfer election
- none
- Program family
- —
- Effective
- —
- Sunset
- 2029-12-31
- Application deadline
- —
- Transfer discount
- —
Hard requirements (1)
- local_approval_requiredCHFA must allocate the credit to the owner of the qualified middle-income housing development. Allocation under HB24-1316; selection criteria similar to CHFA's LIHTC qualified-allocation-plan process but income-targets are higher (middle-income).
Preference / tiering rules (0)
None.
NAICS industries (1)
- 5311 Lessors of Real Estate (Multifamily Housing)
Geo zones (1)
- statewide — · Colorado Statewide
Tags (0)
None.
Approval requirements (1)
- requiredCHFA — Middle Income Housing Tax Credit allocation — CHFA allocates middle-income housing tax credits under HB24-1316 (separate from federal §42 allocation).
Source
HB24-1316; § 39-22-2103, C.R.S.
Last verified: 2026-04-30
CO-statewide. CHFA allocates similarly to its federal §42 LIHTC role. Eligible owners: any qualified taxpayer including governmental and quasi-governmental entities (e.g., the Middle Income Housing Authority itself). 15-year affordability commitment but only 5 years of credit usage. Sibling to CO-LIHTC (which addresses lower-income, federal-§42-overlay). Specific per-project credit cap not surfaced from accessible sources — verify on direct page fetch (rule_status=partial).