Committee advances bill to extend Colorado Homelessness Contribution Tax Credit through 2030 after hearing and testimony

The House Finance Committee voted 10–1 to send House Bill 1015 to the Appropriations Committee with a favorable recommendation after sponsors and witnesses described the proposal as a proven public–private tool for homelessness services.

Representative McCormick, co-prime sponsor, told the committee the Homelessness Contribution Tax Credit (HCTC) has operated since 1994, was expanded in 2022, and that House Bill 1015 would extend the credit through 2030. She said the program allows individuals to claim 25% of an eligible donation as a nonrefundable income tax credit (30% in rural areas) and described eligible uses such as outreach, prevention, youth services and emergency shelter.

Co-sponsor Representative Taggart described the credit as a public–private partnership that yields measurable returns and explained that the fiscal note reflects continuation of existing staff at the Department of Local Affairs that administer the program; the committee would defer final funding decisions to Appropriations and the first-quarter revenue forecast.

Committee members raised several fiscal and legal questions. Representative Marshall asked why the fiscal note includes 1.5 FTE if the program has operated for decades; McCormick and Taggart said the positions are continuations required to administer the program if it remains active. Representative Marshall and others pressed on whether credits would automatically draw on the General Fund if TABOR surplus is not available.

Pierce Lively of the Office of Legislative Legal Services advised that tax credits are not uniformly conditioned on TABOR surplus and that whether changes to a credit would require voter approval depends on the specific statutory form; pausing or narrowing a credit in a way that yields net revenue gain could trigger TABOR voter-approval requirements.

Supporters from across the state testified in favor. Kathy Alderman of the Colorado Coalition for the Homeless said the program drives private donations to frontline providers and gave recent figures: "more than $25,000,000 in funds" channeled to providers with about "$6,000,000 in revenue reduction to the state," characterizing that as roughly a 4-to-1 leverage. Jack Murphy of the Colorado Nonprofit Association, Brad Jesson of Denver Rescue Mission, Travis Williams of Springs Rescue Mission and others described similar fundraising results and urged the committee to preserve the incentive.

Representative Marshall offered an amendment to add a TABOR trigger to the bill, arguing for automatic guardrails to limit general-fund exposure, but said he would withdraw the amendment to allow further internal discussion; the amendment was formally withdrawn.

After closing remarks from sponsors, the vice chair moved to send HB1015 to Appropriations as a favorable recommendation; Representative Gonzalez seconded and the committee voted 10–1 to route the bill to Appropriations.

The committee recorded the vote and adjourned.