Colorado Gov. Jared Polis signed legislation to increase the annual statewide cap for the State’s LIHTC, accelerate the rate at which taxpayers can claim the credit and create a State LIHTC for transit-oriented (TOD) communities. H.B. 1434 increases the annual general state LIHTC cap from $10 to $20 million for 2024, $16 million in 2025, $12 million in 2026 and 2027, $16 million in 2028 and $20 million in 2029, 2030 and 2031. It also allows taxpayers to take 70 percent of the credit in the first year and six percent per year for the following five years, compared to the current credit, which is taken evenly over six years. The new TOD LIHTC has a state cap of $2 million per year for 2025 to 2027, going to $11 million in 2028 and $13 million in 2029.