Enterprise Zone Tax Credit

Denver Kids is included in the Enterprise Zone Tax Credit program. This means that the State of Colorado allows you to take up to a 25% tax credit on your state income taxes when you make a donation to Denver Kids, Inc. of $250 or more via cash, check, or credit card, and a 12.5% tax credit on donations of $500 or more via stock or in-kind.

EXAMPLE: If you donate $1,000 and receive a 25% tax credit, then your out of pocket donation is $750 while Denver Kids receives $1,000.

  • Taxpayers claiming the Enterprise Zone tax credit must file their tax returns electronically.
  • The Colorado Department of Revenue will use the taxpayer identification number provided on their tax return to verify the tax credit claimed on the DR0075 form (provided by Denver Kids). This means that these two numbers must match in order for the tax credit to be claimed.
  • Taxpayers can use their Colorado Account Number in place of their social security number on the DR0075, if preferred.

** For donations to qualify for 2018 tax credits, Denver Kids must have the donor’s FEIN, Social Security number, or Colorado Account Number no later than January 4, 2019.**

Should you have any questions about the Enterprise Zone Tax Credit program, please contact Kelsey Grayson at 720.423.3571 or kelsey_grayson@dpsk12.org.

NOTE: On August 23, 2018, the IRS proposed changes that could impact the federal tax savings for charitable contributions. The proposed regulations (Charitable Contributions in Exchange for State and Local Tax Credits) have provisions which will affect the federal deductibility of charitable contributions where the contribution is tied to receiving a state tax credit.

It is our understanding that the Enterprise Zone contributions in Colorado will be impacted.

If approved (after a 45-day public comment period and regulatory review process), effective for donations that are made after August 27, 2018, the federal deduction for state taxes would have to be reduced by the amount of any state tax credits. For example, if a state grants a 25 percent state tax credit and the taxpayer pays $1,000 to an eligible charity, the taxpayer must reduce the $1,000 charitable contribution by the $250 state tax credit, leaving an allowable contribution deduction of $750 on the taxpayer’s federal income tax return. This will diminish the net value to the taxpayer for EZ contributions to charitable organizations but will not impact the State income tax credit. Note, the rule would impact those taxpayers who itemize on their federal returns.

Denver Kids and The City of Denver and Office of Economic Development does not provide guidance on federal law or taxes. Taxpayers are advised to seek tax or legal guidance. We will provide updates and information as we receive it from the City of Denver and Office of Economic Development, as this develops.

To learn more: https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-charitable-contributions-and-state-and-local-tax-credits

Enterprise Zone Tax Credit Fact Sheet