Colorado Child Care Tax Credits
IMPORTANT INFORMATION REGARDING CHILD CARE TAX CREDITS
The Colorado Child Care Tax Credits program was suspended in December 2010, because the state's general revenue fund did not exceed the preceeding year by 6% (the 6% "trigger"). Contributions made for the 2010 tax year were honored in 2011, but credits moving forward were suspended.
On June 2, 2011, Governor John Hickenlooper signed House Bill 1014, removing the 6% trigger as of January 1, 2013. Both the 50% credit as well as the carry-forward provision remain in effect.
Donors who make eligible contributions to Child Care Tax Credits programs/agencies will not be able to claim the credit on their tax returns until it is reinstated. The availability of the credit in calendar year 2012 will be announced by the Colorado Legislative Council at the end of December 2011.
EXAMPLES:
**If the state determines in December 2011 that its General Fund Revenue WILL NOT exceed 6% growth:
|
Contribution Year |
Child Care Gift |
Credit Amount |
% Credit Allowed |
$ Credit Taken |
Carry Forward Credit |
| 2011 | $10,000 | $5,000 | 0% | $0 | $5,000 |
| 2012 | $10,000 | $5,000 | 0% | $0 | $10,000 |
| 2013 | $10,000 | $5,000 | 50% | $7,500 | $7,750 |
| 2014 | $10,000 | $5,000 | 75% | $9,375 | $3,125 |
| 2015 | $10,000 | $5,000 | 100% | $8,125 | $0 |
| |
|
|
|
||
| totals | $50,000 | $25,000 |
$25,000 |
$0 |
**If the state determines in December 2011 that its General Fund Revenue WILL exceed 6% growth:
|
Contribution Year |
Child Care Gift |
Credit Amount |
% Credit Allowed |
$ Credit Taken |
Carry Forward Credit |
| 2011 | $10,000 | $5,000 | 0% | $0 | $5,000 |
| 2012 | $10,000 | $5,000 | 100% | $10,000 | $0 |
| 2013 | $10,000 | $5,000 | 50% | $2,500 | $7,750 |
| 2014 | $10,000 | $5,000 | 75% | $5,625 | $3,125 |
| 2015 | $10,000 | $5,000 | 100% | $6,875 | $0 |
| |
|
|
|
||
| totals | $50,000 | $25,000 |
$25,000 |
$0 |
This information is provided as an overview only. As with all charitable donations, it is strongly recommended that you contact your accountant or tax specialist.
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When the Colorado Child Care Tax Credits program does resume, the details are as follows:
Colorado offers a 50% state tax credit for contributions that promote child care activities. Contributors may designate their gift to one of Foothills United Way's qualifying agencies.
BENEFITS FOR DONORS
- Donors are eligible for a 50% Colorado state tax credit.
- Both individual contributors and corporations can take advantage of the tax credit.
- Excess tax credits may be carried forward for up to five years.
GUIDELINES FOR GIVING
- Minimum contribution is $500, with at least $250 designated to each agency chosen.
- Donation must be made as a single gift, paid in full via check, cash, credit card, direct bill or electronic funds transfer.
- Credit allowed cannot exceed $100,000 per year.
- Return your donation form and gift to your Foothills United Way representative.
Make one check for entire amount payable to Foothills United Way, or complete credit card/direct bill/electronic funds transfer information on your pledge form.
Child Care Tax Credits eligible agencies:
Foothills United Way Child Care Tax Credit Fund (supports all listed eligible agencies)
Bal Swan Children’s Center
Boulder Day Nursery Association
Child Care Recruitment and Referral Program of The Early Childhood Council of Boulder County (formerly known as County Kids First)
Ed & Ruth Lehman YMCA of Longmont
Family Learning Center
I Have a Dream Foundation
Outreach United Resource (O.U.R.) Center
Over The Rainbow
St. Vrain Family Center
Tiny Tim Center
YMCA of Boulder Valley
YWCA of Boulder County
