DONATING TO HVCC
You can find detailed information about the tax credit on the Colorado Department of Revenue Website using FYI Publication Income 35.
TAXPAYERS ELIGIBLE FOR THE CREDIT
Any taxpayer that makes a qualifying contribution can claim the child care contribution credit. Resident and nonresident individuals, estates, trusts, partnerships, and corporations can all claim the credit for qualifying contributions they make.
CALCULATION OF THE CREDIT
The credit is equal to 50% of the taxpayer’s qualifying contribution made during the tax year except that the credit a taxpayer can claim for any tax year cannot exceed $100,000. Additionally, the credit is nonrefundable meaning that the amount of credit a taxpayer uses for a given tax year (in combination with all other nonrefundable credits the taxpayer claims) cannot exceed the taxpayer’s tax for that year. If a taxpayer’s credit exceeds the total tax due, the taxpayer can carry forward the excess credit to the following tax year. Taxpayers can carry forward excess credits for up to five tax years, but must use the excess credits in the earliest tax year possible.
HOW TO CLAIM THE CREDIT
Taxpayers must file an annual income tax return along with the associated credit schedule in order to claim the credit. Taxpayer must submit with their return a copy of the completed Child Care Contribution Tax Credit Certification (Form DR 1317) obtained from the donee organization certifying the contribution. For electronically filed returns, a scanned copy of Form DR 1317 can be submitted either via e-file or by using the E-Filer Attachment function of Revenue Online.