Enterprise Tax Credit

Enterprise Zone Tax Credit

Not only may donors deduct their gifts on both Federal and State returns, they also may be able to claim the additional Enterprise Zone tax credit on their State of Colorado return. This means that, depending upon a donor’s tax bracket and itemizations, a donation may cost the donor less than the amount of the contribution.

Cash donations of $50 or more may be eligible for a 25% tax credit on donor’s Colorado State Income Tax Return. In-kind gifts valued at $100 or above may be eligible for a 12.5% tax credit on donor’s Colorado State Tax Return. In-kind donations of $2000 or more must be accompanied by valuation documentation.

Colorado Enterprise Zone Tax Credit EXAMPLE

Cash Donation $1,000.00

Income tax benefit of gift
*Federal tax rate – 28% – $280.00 (reduces taxable income)
Colorado tax Rate – 4.63% – $46.30 (reduces taxable income)

Colorado Enterprise
Zone Tax Credit – 25% – $250.00 (toward the CO State Tax Liability)

Total Tax Savings – 57.63%  – $576.30

 

We are not tax experts; it is unethical and illegal for our staff to offer professional tax advice. Although the information contained here is presented in good faith and believed to be correct, it is General in nature and is not intended as tax advice.

For more information on tax advice, please see your accountant or tax adviser.