TAX CREDIT UPDATE

The State of Colorado has realized the value of positive after-school programming and has passed legislation to help promote such programs, called the Child Care Contribution Credit. This is a Colorado state income tax credit equal to 50% of your donation up to $100,000.  Our club sends the completed Form DR 1317, necessary for your tax preparer, to you at the end of the year. 

The credit was established in 1999 and is authorized by state statute through tax year 2019. However, the original legislation mandated that the credit be removed if the state did not have enough revenue to grow total state General Fund appropriations by 6% over the prior fiscal year's appropriations. The credit will not be available for tax years 2011-12, but will be phased back in starting in 2013.

If a taxpayer donates to BGCCC in 2012 but is not allowed to claim credits because revenue falls below the 6% threshold, the taxpayer may claim the credits that were disallowed in the next income tax year in which it is estimated that revenue will be sufficient to grow appropriations by 6% over the prior year or when the tax credit resumes.

For excess credits claimed in tax years through 2010, the carry-forward provision that allows taxpayers to use unused credits over a five-year period is not affected by the 6% threshold.
  
We know most of our investors truly care about the mission of the Boys & Girls Clubs, so we don’t anticipate a large drop in donations.  However, we respect our donors enough that we want supply them with all the proper information for financial decisions which might affect when and how much they invest in our future generations. 

Donations still qualify as a charitable contribution on federal income taxes. As always consult your tax specialist or accountant.