An important part of financial planning is anticipating how you will adapt to the impact of aging or disability. In 2008 the CDC estimated that 13.7% of all adults live with a mobility disability, defined as a serious difficulty walking or climbing stairs.
Retrofitting one’s home with adaptive equipment or features can be expensive. In 2018 the Colorado Legislature enacted HB 18-1267, the Income Tax Credit for Retrofitting Home for Health bill, available for retrofits completed during tax years 2019-2023. A State tax credit of up to $5,000 per person with a disability in the household may be awarded.
Here’s what you should know
There are a number of qualifications and restrictions, however. Before you begin any work, visit www.colorado.gov/pacific/dola/home-modification-tax-credit for a full list of requirements, or call 303-864-8425 or 303-864-7849.
Sharie H, a client from Arvada, was recently awarded the full $5,000 credit for a kitchen remodel which included pull-down and pull-out cabinet inserts. She told me, “It’s great to be able to safely use all of the cabinet space, even the back corners I could never reach before!”
The tax credit will enable her family to forego making quarterly estimated Colorado tax payments for quite a while, putting a little extra money straight into their household budget!
Thanks so much to Sharie for informing me (and now you!) about this important benefit to those with a change in mobility. Any tool we can use to stay in our homes as we age is a bonus.