Child Care Tax Credit (CCTC)
Any taxpayer (corporate as well as individual) that makes a monetary contribution of more than $250 to promote child care in Colorado may claim an income tax credit of up to 50% of the total value of the contribution when filing Colorado state taxes. If you would like your donation to go toward CCTC, please be sure to indicate with donation is in support of KIPP Colorado’s ECE program.
Upon receipt of your donation, KIPP will send you the Child Care Tax Credit Certification (DR 1317) certifying your child care contribution. Please consult with your tax advisor as individual situations vary.
Frequently Asked Questions
Is the credit allowed for gifts of appreciated assets?
No. Only monetary contributions, including qualifying distributions from individual retirement accounts, are eligible.
Does the credit affect the amount of the charitable income tax deduction?
The IRS recently issued proposed regulations addressing the effect of state tax credits on charitable income tax deductions. Consult your tax advisor to understand how the proposed regulations may affect your individual situation.
Is there a limitation on the amount of the credit?
The credit a donor can claim for qualifying contributions made during a tax year is limited to $100,000. If the credit exceeds the donor’s tax liability, it may be carried over to the next year, for up to five additional tax years.