New Laws/Rules in Place to Help Homeowners

The Colorado Association of Realtors have been busy helping important bills get passed as relates to becoming or being a Colorado homeowner. News for First Time Home Buyers and Wildfire Mitigation are highlighted below.

The following is cut and paste from the Government Affairs Division of the Colorado Realtors Capital Connection Newsletter:

The Legislative Policy Committee (LPC) was busy tracking many different bills that would affect our industry.  CAR is very pleased to announce that we were successful in helping pass many of our legislative priorities this session. The First-time Homebuyer Savings Account Bill HB 16-1467, was sent to the Governor on Tuesday May 10th thanks to the leadership of co-sponsors House Majority Leader Crisanta Duran (D – Denver), Representative Joe Salazar (D – Thornton), Senate Majority Leader Mark Scheffel (R – Parker), and Senator Beth Martinez-Humenik (R – Thornton) . Prospective Colorado first time homebuyers, and the State, will benefit by their leadership.

A First-time Homebuyer Savings Account (FHSA) allows any Coloradan to set aside up to $50,000 toward the costs of purchasing a new home. The earnings on those funds — interest and capital gains — are free from Colorado state taxes forever. FHSAs are a great way for future homeowners to start saving early for the costs of buying a home. These accounts will be simple and easy to set up. Not only can you open a new one, you can also transfer money from one existing savings account to a FHSA. To create an FHSA, you simply include a form (promulgated by the Department of Revenue) when you file your state taxes designating the qualified beneficiary. A qualified beneficiary can be a child or grandchild, or the account holder may designate himself or herself as the qualified beneficiary.”

 

CAR initiated HB16-1286, Increase Wildfire Mitigation Income Tax Deduction, sponsored by Representative KC Becker (D- Boulder) and Senator Jack Tate (R – Centennial) was sent to the governor on May 6th. The bill increases the percentage of the wildfire mitigation state income tax deduction from 50 percent to 100 percent of the costs incurred for performing wildfire mitigation on a taxpayer’s property. The tax deduction cannot exceed $2,500 per income tax year or the total amount of the taxpayer’s federal taxable income, whichever is less. The increased income tax deduction will be available for tax years 2017 through 2019.

CAR initiated HB 1286 because it is a targeted and reasonable policy solution that provides financial resources for homeowners to better prepare for and mitigate wildfire risks. This policy focuses on incentivizing activities that reduce the risk of wildfire and have a long-term impact in changing property owner behavior leading to increased protection of homeowner property.IMG_0554

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