COLORADO CHILD CARE TAX CREDIT

Maximize Your Gift With the Colorado Childcare Tax Credit

Taxpayers who make a monetary contribution to promote childcare in Colorado may claim an income tax credit of 50% of the total donation. You do not need to have children in childcare to benefit from this contribution tax credit.

Both corporate and individual donors may benefit. Taxpayers who make a cash contribution to the YMCA of Northern Colorado’s Community Support Campaign may claim an income tax credit of 50% of the total donation on their Colorado income tax return. Please check with your accountant; you may need to itemize to take advantage of this tax benefit.

EXAMPLE

• Donation Amount: $1,000
  
• Federal Tax Savings at 32%: -$320
  
• Colorado Tax Savings at 4.55%: -$46
  
• Colorado Child Care Tax Credit: -$500
  
• Total Donor Out of Pocket: $134

Colorado Childcare Tax Credit Guidelines

• In-kind contributions of property (non-monetary donations) do not qualify for the credit.
• Donors may not receive any goods or services in return for their contribution.
  
• The credit shall not exceed $100,000 per year.
  
• The credit allowed shall not exceed the tax liability for the year. Any excess credits may be carried forward for up to
  five years.
  
• The Y will provide you with the DR 1317 Child Care Contribution Credit Certification in January of the following year.
  
• Donors should contact their tax advisors for advice about how the credit affects their tax picture. Information provided
  here is not tax advice.
• Individuals who donate funds out of their RMDs (required minimum distributions) will receive credit without federal consequences.