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Works Better Corporation, a nonpartisan public benefit corporation, builds this site.

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Health Savings Account Tax Credit

Concerning an income tax credit for a contribution to a health savings account.

SB26-029 2026 Regular Session Postponed Indefinitely Fiscal Policy & Taxes

Cost estimates

At the first note read
$0
FACT January 26, 2026
At the last note read
$0
FACT September 8, 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 note states no appropriation is required.

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

The appropriation field, read from the note: No appropriation would have been required.

Bill summary

The bill creates an income tax credit for a resident individual's contributions to a health savings account that supports a high deductible health plan, as defined pursuant to federal law (credit). The credit is an amount equal to 25% of the amount of the contribution, limited to:

  • $500 for a single filer;
  • $1,000 for joint filers; and
  • $1,500 for contributions to a family health plan.

The credit is available beginning January 1, 2027, through December 31, 2032.

If the credit exceeds the income taxes due on the resident individual's income, the amount of the credit not used to offset income taxes is not carried forward as tax credits against the resident individual's subsequent years' income tax liability and is not refunded to the individual.

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)