Colorado’s Child Care Contribution Tax Credit
Colorado’s Child Care Contribution Tax Credit (CCTC) is an easy, effective way to make your donation to a qualifying entity go further and receive considerable tax savings. When you make a financial donation that benefits the T.E.A.C.H. Early Childhood® COLORADO Scholarship Program, you will receive receive a Colorado state income tax credit of 50% of your contribution and federal tax payers who itemize deductions may also claim a federal tax deduction.
Your donation provides tuition and books assistance to child care educators to advance their education and provide high-quality early learning environments to Colorado’s young children. Qualifying donations can be made by both individuals and businesses.
When making a donation, please indicate that your contribution is to be used for the T.E.A.C.H. Program. ECCLA will send you the Colorado Form DR 1317 as a receipt. This form is used with your income tax return to support the credit that your accountant may put on your Colorado tax return.
There is no minimum contribution to qualify for CCTC, but donations must be made by December 31 to claim the credit in that tax year.
- The maximum credit you may take in any one year is $100,000 or your actual Colorado income tax liability for the year, whichever is less.
- Any unused credit may be carried forward for up to five additional tax years.
Only monetary donations are eligible. Stock or other securities and in-kind gifts, such as labor or equipment, are not eligible but may qualify for other tax benefits.
- In the case of donations associated with events, only the deductible portion of your payment, reduced by the value of goods and services received, is eligible.
- Both individuals and corporations can take advantage of the credit.