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Transit and Housing Investment Zones

Concerning transit and housing investment zones, and, in connection therewith, making an appropriation.

HB26-1065 2026 Regular Session Signed into Law Fiscal Policy & Taxes Housing

Cost estimates

At the first note read
$397,456
FACT February 19, 2026
At the last note read
$237,456
FACT September 3, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The bill carries its own money. A note saying a bill “requires and includes” an appropriation means the money is in the bill itself.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: For FY 2026-27, the bill requires and includes an appropriation of $213,349 to the Office of Economic Development and International Trade.

Bill summary

     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; and
  • Authorizes 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.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)