What is a Tax Credit?

A tax credit is a dollar for dollar reduction on the taxes you owe, as opposed to a deduction that reduces the gross income on which your taxes are calculated. The tax credit program through which you donate determines the credit amount.

Which tax credits are currently available in Colorado?


Comparison of Program Benefits

Child Care
Tax Credit

Enterprise Zone
Tax Credit

Purpose

Seeks to increase the quality and availability of child care in metro Denver.

Encourage businesses to locate and expand in economically distressed areas of the state.

Colorado State Tax Credit

50% up to the lesser of $100,000 or your CO state tax liability.

25% up to the lesser of $400,000 or your CO state tax liability.

Minimum Contribution

$300 (Preferred Minimum)

$250 to Denver's Samaritan House; $100 to The Mission in Larimer County; $100 to The Guadalupe Community Shelter in Weld County.

Stock or Bond Contributions

Not Allowed

Allowed. If 1/7 of donation is in cash, the full 25% credit is provided.  If entire donation is in stocks/bonds it is eligible for 12.5% credit. (limited to your CO state tax liability).

Corporate Contributors Eligible

Yes

Yes

Electronic Tax Return Required

No

Yes

The impact on income tax costs of a contributor who gives $1,000*

Program

Child Care
Tax Credit

Enterprise Zone
Tax Credit

Contribution

$1,000

$1,000

Credit

($500)

($250)

Federal Tax Savings

($150)

($232)

Colorado Tax Savings

($46)

($46)

Returned to you at tax time

$696

$529

After tax cost of giving

$304

$471

*Figures in the table are cash contributions based on a 33% tax bracket.  This information should not be construed as tax advice.  Please consult your tax advisor as situations may vary.