How does a $5K tax credit for home renovations sound?
New Colorado program offers tax credits for health and safety improvements
Thinking about starting a home renovation project? Colorado has a new tax credit available for qualified individuals and home improvements you should be aware of. If you and your home improvements qualify for the program created by the "Income Tax Credit for Retrofitting Home for Health" bill, you're eligible for up to $5,000 of tax credits starting in 2019.
How to qualify?
The program is earmarked for people with illnesses, impairments, or disabilities who make less than $150,000. In short, your home renovation project must increase your home's visitability and accessibility, help ensure your independence, be required due to your health condition, and allow you to age in place.
Interestingly, you don't need to own the home that's being renovated to qualify. For example, if you're a grandparent living with your older children in a home in Sterling Ranch and you want to modify your children's home to meet your health needs, you may qualify for the tax credit.
Given that 20% of Americans now live in multi-gen homes - in fact, the multi-gen trend is so prevalent even the largest builder in the U.S. is now building a multi-gen model called the "SuperHome" in Sterling Ranch and other communities - this is a great opportunity for multi-gen households with older grandparents or family members with disabilities or illnesses to potentially receive a home improvement tax credit. (If you're curious, you can also find a live video of me touring the SuperHome model on the Sterling Ranch Roundup's Facebook page!)
Examples of projects that might qualify?
New flooring that's easier to navigate, pull out shelving for cabinets, automatic door openers, accessible showers and bathtubs, handrails, grab rails, shower seats, accessible kitchens and bathrooms, ramps, and more could qualify. The State of Colorado links to this "Look Book" if you'd like to seeing potential examples of home improvements that could qualify.
You need to act quickly if you want to apply for the tax credit. Colorado has set aside $1,000,000 for the program, so only the first 200 qualified and approved applicants will receive the credit (assuming all 200 max. out the $5,000 credit).
If you'd like more information, check out this State of Colorado website. Of course, other terms, conditions, and requirements may apply, so do your diligence and work with the State of Colorado and tax advisor to make sure you qualify for the credit. Last but not least, keep in mind that we here at the Sterling Ranch Roundup can't provide tax or legal advice, so please don't rely on this Roundup post - consult with your tax advisor!