2026 Colorado Tax Credits for Bathroom Modifications
For Colorado homeowners living with a disability, impairment, or chronic illness — or caring for a qualifying dependent — 2026 presents a valuable opportunity to reduce the cost of essential bathroom upgrades.
Through Colorado’s Home Modification Tax Credit (HMTC) Program, qualifying residents may receive up to $5,000 per qualified individual in state income tax credits for eligible accessibility retrofits — including bathroom renovations.
Below is an easy-to-understand overview of how the program works, who qualifies, and how bathroom modifications may be eligible for tax credits.
Please Note: Bath Fitter is not associated with the Colorado HMTC Program and does not offer free remodels. We simply provide bathroom remodeling services that may qualify under certain programs. Eligibility and tax credit applications must be handled directly through the State of Colorado or a licensed tax advisor.
What Is the Home Modification Tax Credit?
The HMTC Program was created through Colorado legislation (HB18-1267, HB19-1135 and SB23-196) and is administered by the Colorado Department of Local Affairs (DOLA), Division of Housing.
Officially recognized by the Colorado Department of Revenue as a:
Retrofitting a Residence to Increase a Residence’s Visitability Credit
This credit helps Colorado taxpayers offset costs associated with home accessibility and safety improvements.
Program Purpose
The HMTC Program assists eligible residents in modifying their homes to:
- Improve accessibility and visitability
- Enhance health, welfare, and safety
- Support aging in place and independent living
- Install medically necessary plumbing or structural systems
The program runs statewide through 2028, with a $1 million annual credit cap and allows credits to be used for up to eight years from the tax year the work was completed.
The Benefits of Remodeling Your Bathroom for Aging in Place
For many Colorado homeowners, aging in place is a long-term priority — and the bathroom is one of the most important spaces to update for safety and comfort. Slippery floors, high tub walls, and tight layouts can increase fall risks, especially for those with mobility challenges.
An accessible bathroom remodel offers:
- Improved safety – Low-threshold showers, grab bars, and slip-resistant flooring help prevent falls
- Greater independence – Thoughtful layouts and built-in seating make daily routines easier
- Better accessibility – Wider entryways and curbless showers allow smoother mobility
- Long-term adaptability – Designed to support changing health and mobility needs
- Added peace of mind – Families feel confident knowing the space is safer
- Increased home appeal – Accessible features are attractive for multigenerational living and future buyers
A safer, more accessible bathroom helps homeowners remain confident, comfortable, and independent for years to come.
Who Is Eligible for the Home Modification Tax Credit?
To qualify for the HMTC:
- You must be a Colorado state income taxpayer
- You (or a dependent you claim) must have an illness, impairment, or disability that requires the modification
- You must live in the home being modified at the time of application
- Your adjusted household income must be at or below the yearly limit (examples below)
Income Limits by Tax Year
Year
Income Limit by Year
2019 - $150,000
2020 - $151,931
2021 - $156,024
2022 - $158,915
2023 - $172,554
2024 - $182,191
These limits are adjusted annually for inflation.
If a couple files jointly and both meet the criteria as qualified individuals, each may qualify for up to $5,000 in tax credits.
How the Tax Credit Works
- Lifetime maximum: $5,000 per Qualified Individual
- Non-refundable: Reduces your state tax liability (may result in refund depending on withholdings)
- Carryforward: Unused credit can be carried forward for up to eight years
- Annual cap: $1,000,000 in credits issued per year on a first-come, first-served basis
Once a tax credit certificate is issued by DOLA’s Division of Housing, you use that certificate with your Colorado tax return and complete Form DR 0104CR to claim your credit.
Eligible Bathroom Modifications
Modifications must be:
- Retrofitted to your existing home
- Necessary to ensure health, welfare, and safety
- Installed or permanently affixed
Examples include:
- Barrier-free or low-threshold showers
- Professionally installed grab bars
- Wider doorways for wheelchair access
- Accessible layouts and improved circulation space
Not eligible: portable items, general home repairs, appliances, or equipment not permanently installed.
HMTC Program Guidelines
The detailed program criteria — including residence requirements, eligible retrofits, application steps, documentation needed, inspections, and appeals procedures — are outlined in the official Home Modification Tax Credit Program Guidelines.
Read the full official guidelines here
Applying for the Tax Credit
The process has three key stages:
- Fill out the Pre-Qualification Survey
- Initial Application
- Provide income verification, medical justification, proof of ownership or landlord authorization, scope of work, and before photos.
- Final Application
- Submit after-photos, receipts, invoices, contractor licenses, and permits.
Applicants may apply retroactively, though doing so does not guarantee approval — especially if the credit allocation for that tax year has been exhausted.
Tips for Bathroom Remodel Planning in 2026
- Start early — approvals are issued on a first-come, first-served basis
- Follow the application sequence before starting major work
- Work with professionals familiar with accessibility standards
- Keep thorough documentation and photos before, during, and after the project
At Bath Fitter of Colorado & Southern Wyoming, we specialize in accessible bathroom solutions designed to improve safety, comfort, and independence — including ADA-friendly showers and barrier-free designs.
Get Started
A safe, accessible bathroom is one of the most important steps you can take to age in place comfortably and confidently. With Colorado’s Home Modification Tax Credit available through 2028, eligible homeowners may qualify for up to $5,000 per person to help offset the cost of approved retrofits.
If you’re planning to remain in your home long-term, now is the time to explore your options. Review the program guidelines, complete the Pre-Qualification Survey, and partner with experienced professionals to design a bathroom that supports your safety and independence for years to come.
Bath Fitter of Colorado & Southern Wyoming is ready to help you take that next step.
