HB26-1065 — Transit and Housing Investment Zones - Concerning transit and housing investment zones, and, in connection therewith, making an appropriation.
View the text of HB26-1065
The law creates the Transit Investment Area Act, which allows a local government and a transit agency to jointly pursue a transit investment project by designating a transit investment area and creating a transit investment authority—or designating a county revitalization authority, metropolitan district, or urban renewal authority instead—to receive and spend the state sales tax revenue generated within the area above a set base amount, plus 20% of the state sales tax increment revenue. The local government applies to the Colorado Office of Economic Development and the Colorado Economic Development Commission (the Commission), which reviews and may approve the project and authorize collection of the increment revenue for up to 30 years. The Commission may approve no more than three such projects per year (six total) and may dedicate no more than $75 million per year across all approved projects. If a transit investment authority is created, its governing board includes members appointed by the Commission and the local government, along with one member appointed by the transit agency. The authority has no power of eminent domain and cannot impose or levy any tax.
The law 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 by October 30, 2026.
The law also creates the Colorado affordable housing in transit and housing investment zones tax credit, administered in the same manner as the existing Colorado affordable housing in transit-oriented communities income tax credit, but available for qualified low- and middle-income housing projects in transit and housing investment zones. Up to $8,333,333 in credits may be awarded each calendar year from 2027 through 2033.
The law was signed by the Governor on May 27, 2026, and takes effect immediately.
