Colorado’s House members on Thursday approved legislation to create a refundable income tax credit totaling $100 million that sponsors say will boost older residents’ income amid rising housing costs.

The temporary tax credit in House Bill 22-1205 applies to individuals 65 and older who have not claimed a homestead property tax exemption for the 2022 property tax year. To be eligible, their income must fall below $75,000. Under the proposal, eligible Coloradans may claim up to $1,000 in tax credit, depending on their income level. A household can only claim a total of $1,000.

State budget analysts estimate the legislation would apply to roughly 155,000 residents, 80% of whom are expected to file returns and claim the proposed credit. If enacted, the measure will cost the state $100 million over two fiscal years, starting in FY 2021-2022, and reduce the Taxpayer’s Bill of Rights refund by the same amount.   

The bill is among several measures that their Democratic proponents say will offer economic relief to residents amid skyrocketing prices of commodities and soaring inflation. Republican critics view some of the proposals as a cynical ploy to court voters in an election year.

Unlike most of those proposals, however, HB 22-1205 attracted significant bipartisan support. The House approved the measure on a 51-12 vote.   

The existing homestead exemption, which reduces the value of a home for property taxation purposes, is another benefit that applies to older adults, but to be eligible, they must have occupied their home as a primary residence for at least 10 years. HB 22-1205 benefits older residents who rent or haven’t owned their homes long enough to qualify for the homestead exemption. 

“This legislation will put money back into seniors’ pockets, save seniors money on housing, and help vulnerable Coloradans afford the rising cost of living in Colorado,” Rep. Mike Weissman, D-Aurora, said in a news release. 

Rep. Kim Ransom, a Lone Tree Republican, said she voted against the measure because it competes with the homestead exemption program without allowing older residents to claim both, and it reduces the amount of Taxpayer’s Bill of Rights refund by $100 million.  

“Which means that they are picking picking winners and losers,” she said, adding that’s not the intention of Coloradans when they passed TABOR.