Home Modification Tax Credit

Basic Program Eligibility Criteria

Requirements for qualified individuals

• Have an illness, impairment, or disability that necessitates the requested home modification, and
• Anticipate owing more in state income taxes over the next eight (8) years than the value of the work or $5,000, whichever is less.
• If the qualified individual is not the homeowner of the residence being modified, they must have the owner’s permission to modify the residence.
• Be a state income taxpayer with an adjusted family 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

Requirements for eligible residence

• The residence being modified must exist before the work begins – the work may not be completed during the initial construction of the residence.
• The residence must be currently occupied as the home of the qualified individual and the person for whom the retrofit is required.
• The residence must be located in Colorado.

Requirements for modification to the residence

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

Retrofits (or modifications) to the residence must:

• Be necessary to ensure the health, welfare, and safety of the qualified individual and/or their dependent(s);
• Increase the residence’s visibility;
• Enable greater accessibility and independence in the residence for the qualified individual and/or their dependent(s);
• Be required due to the qualified individual’s and/or their dependent(s) illness, impairment, or disability;
• Allow the qualified individual and/or their dependent(s) to age in place;
• Meet the Division of Housing's Home Modification Construction Specifications; and 
• Be completed in the tax year for which the qualified individual will receive the tax credit.Reference Material

Yearly Maximum Allocated Tax Credits

Maximum tax credits per year are limited to $1,000,000.

• Available Funding to Date