Skip to main content
CivicGate

HB 1065 CO
Became Law

Transit and Housing Investment Zones

CO · session 2026A · Assembly / House · bill

A state bill is a proposed law in a state legislature — separate from the U.S. Congress. Learn more →

Introduced Jan 21, 2026

Latest action (May 27, 2026) Introduced In House - Assigned to Finance

Summary

This bill creates the Transit Investment Area Act to finance transit and rail station infrastructure through partnerships between local governments and transit agencies. It authorizes designated financing entities to use state sales tax increment revenue (revenues above a baseline amount, plus 20% for out-of-area deliveries) to issue bonds and finance eligible transit improvements. The bill creates an affordable housing tax credit for housing projects in transit and housing investment zones, authorizing the Colorado Housing and Finance Authority to allocate up to $8.3 million annually in tax credits from 2027 through 2033. The bill caps the approval authority at no more than three projects per calendar year and six projects in total, with a $75 million per fiscal year cap on state sales tax increment revenue.

AI-generated plain-language summary of the bill (from the OpenStates abstract — no full text available yet) — neutral, and may be imperfect.

Official abstract

The act creates the 'Transit Investment Area Act' to facilitate the financing of transit and rail station infrastructure. Specifically, the act:Allows a local government and a transit agency to jointly undertake a transit investment project. To finance the project, the local government may apply to the Colorado economic development commission (commission) to designate a transit investment area and an approved financing entity;Authorizes the approved financing entity, which may be a newly created transit investment authority, a county revitalization authority, a metropolitan district, or an urban renewal authority, to receive state sales tax increment revenue. This revenue consists of the state sales tax collected in the designated area above a base amount, plus an additional 20% to account for out-of-area deliveries.Permits the financing entity to issue bonds and use the state sales tax increment revenue to finance eligible improvements related to the transit project;Prohibits the financing entity from using the state sales tax increment revenue to acquire property through eminent domain;Requires projects to comply with specified hiring, apprenticeship, and workforce standards;Caps the commission's approval authority at no more than 3 transit investment projects in any calendar year and no more than 6 in total and caps the total state sales tax increment revenue dedicated to all projects at $75 million per fiscal year; andAuthorizes the commission to revoke project approval if substantial work does not commence within 5 years and requires financing entities to submit annual reports and independent financial audits.     The act requires the Colorado office of economic development, in consultation with the department of local affairs and the department of transportation, to publish a transit and housing investment zone map on or before October 30, 2026.     The act creates the Colorado affordable housing in transit and housing investment zones tax credit (tax credit). The tax credit is administered in the same manner as the Colorado affordable housing in transit-oriented communities income tax credit; except that the tax credit is awarded in connection with housing projects in transit and housing zones. The act authorizes the Colorado Housing and Finance Authority to allocate up to $8,333,333 in tax credits each calendar year beginning in the 2027 calendar year through the 2033 calendar year.     For the 2026-27 state fiscal year, the act appropriates $213,349 to the office of the governor for use by economic development programs.(Note: This summary applies to this bill as enacted.)

Sponsors (15)
25 coauthors / cosponsors

Action history (15)
  1. May 27, 2026 Governor Signed · executive
  2. May 18, 2026 Sent to the Governor · executive
  3. May 18, 2026 Signed by the President of the Senate · upper
  4. May 18, 2026 Signed by the Speaker of the House · lower
  5. May 13, 2026 House Considered Senate Amendments - Result was to Concur - Repass · lower
  6. May 12, 2026 Senate Third Reading Passed - No Amendments · upper
  7. May 11, 2026 Senate Second Reading Special Order - Passed with Amendments - Committee · upper
  8. May 11, 2026 Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole · upper
  9. May 7, 2026 Senate Committee on Finance Refer Amended to Appropriations · upper
  10. May 4, 2026 Introduced In Senate - Assigned to Finance · upper
  11. May 4, 2026 House Third Reading Passed - No Amendments · lower
  12. May 1, 2026 House Second Reading Special Order - Passed with Amendments - Committee, Floor · lower
  13. May 1, 2026 House Committee on Appropriations Refer Amended to House Committee of the Whole · lower
  14. Feb 23, 2026 House Committee on Finance Refer Amended to Appropriations · lower
  15. Jan 21, 2026 Introduced In House - Assigned to Finance · lower
Subjects
Fiscal Policy & TaxesHousing

Full text

The full text hasn’t been imported yet. CivicGate fetches it from the state legislature’s published version documents — check now.

Comments

Comments

Loading comments…

Data from OpenStates. View on OpenStates →