Director of Advancement and Communications
(719) 434-3506, Cell: (719) 210-3499
Colorado Childcare Tax Credit
Grow Your Giving With The Colorado Childcare Tax Credit
In order to promote giving to nonprofit organizations that provide quality childcare in Colorado, the state offers a special 50% income tax credit to taxpayers who donate to qualifying programs. The effect of this credit is that half of your donation is offset by a dollar-for-dollar reduction of your Colorado income taxes. Nearly $500,000 of The Colorado Springs School’s budget is associated with childcare expenses for Early Childhood, including but not limited to facilities and maintenance, teacher salaries, and programmatic resources. By designating your Annual Fund gift to Early Childhood you are still able to claim a full contribution on your federal and state income tax returns if you itemize your deductions.
Please consult your tax accountant to confirm the effects of this credit on your individual finances.
If you would like your gift to The Colorado Springs School Annual Fund to be earmarked for the tax credit, please write “Early Childhood Tax Credit” in the memo line of your check or on your donation envelope. If giving online, please designate your gift to Early Childhood. The Advancement Office will issue corresponding paperwork for the tax credit in the form of a DR 1317.
Tax Credit Eligibility Rules
• Donations cannot exceed $100,000 per taxpayer per year;
• Donations cannot exceed the tax liability for the tax year;
• The credit has been approved through 2022.
• Availability subject to legislative action.
• Stock transfers and in-kind donations are not eligible.
Annual Fund gifts designated to Early Childhood may be eligible for a 50% tax credit.
Related Tax Articles
- Understanding the Colorado Childcare Contribution Tax Credit by Holland & Hart provides further discussion about the impact of this tax credit in light of recent tax reform.)
- Final IRS Rules on State Giving Tax Credits by the Colorado Nonprofit Association. This article addresses federal tax treatment of charitable giving when donations also generate state and local tax (SALT) credit.
- Additional information may be found on the Colorado Department of Revenue website by referencing Income 35 Child Care Tax Credit.