Tax Credit for Donations

Colorado Child Care Contribution Credit

The Colorado Child Care Contribution Credit (CCCC) was established to promote child care in Colorado. When you make a donation to DCP the state of Colorado allows you to take a 50% tax credit on your state income taxes in addition to the regular state and federal deductions for a charitable contribution.

For many families a $100 donation to DCP as part of Colorado Gives Day, or any other direct donation to DCP, may have a net after tax cost of only $20 or less depending on your 2016 federal income tax filing.

Example: $100 donation to DCP
(Illustration purposes, family in 25% Federal Income Tax bracket)

2016

Donation

100.00

Colorado Tax Credit (CCCC) 

(50.00)

Tax savings from Federal charitable deduction

(25.00)

Tax savings from State charitable deduction

(4.63)

Net after tax cost of giving

$20.37

What’s the catch?

  • Non-monetary donations (e.g. donations of goods or services) do not qualify for the credit.
  • You can take advantage of the 50% tax credit (CCCC) regardless of whether you itemize or not, however the State & Federal charitable contribution deductions in the examples above are only available if you itemize deductions.
  • You will need to claim the credit on your Colorado Income Tax Return using the simple tax credit forms (104CR, 112CR) and attach the certification that DCP will provide to all donors (DR 1317)
  • You cannot claim a credit for more than you paid in Colorado Income Tax for the year, however any excess will carry forward up to 5 years.

You can find further information on the tax credit in the FYI Income 35 publication from the Colorado Department of Revenue. As always, you should consult with your tax advisor to determine how the credit will affect you personally. The information in this brochure is an illustration only and should not be considered tax advice.