Colorado Child Care Contribution Tax Credit

The credit is a direct reduction in the Colorado income taxes you owe. For example, if you owe $1,000 in income tax to the state of Colorado and donate $1,000 to DCF, you receive a $500 reduction in your state income tax.

Cash donations are eligible (cash, check, credit card). Distributions from a Donor Advised Fund (DAF) are also eligible. Unfortunately, donated stock securities are not eligible, unless the shareholder first transacts a sale then make a direct contribution. The State of Colorado’s rules require direct contributions.

Individuals or entities (e.g., corporations, partnerships, family trusts, foundations, etc.) who pay state of Colorado income taxes are eligible to receive the 50% tax credit.

DCF offers the tax credit to donations starting as low as $1,000. State regulations enable annual donations of $100,000 (total annually) to receive the 50% tax credit.

You can claim a Federal income tax deduction of the remaining 50% of your donation when you file tax returns with the IRS.

After your donation is received, DCF sends you a charitable contribution letter (by mail or electronic) and a form specifying the amount of the donation and tax credit (form DR 1317). Complete the form and provide to your tax preparer. Enjoy the 50% tax credit!