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.
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
Donations still qualify as a charitable contribution on federal income taxes. As always consult your tax specialist or accountant.
Individuals and businesses can make annual donations and/or ongoing pledges, either monthly, quarterly or semi-annually as an investment in the success of Boys & Girls Clubs.
Here is the complete Colorado Department of Revenue information on the Child Care Tax Credit.