Child Care Tax Credit

Make a Difference for Colorado Children and Families while Leveraging your Gift with the Colorado Child Care Contribution Tax Credit (CCCTC)

When you make a qualifying gift of $100 or more to Ability Connection Colorado and designate it to support our Creative Options for Early Childhood Education program, you may be eligible for a valuable Colorado tax credit. This unique opportunity allows you to invest in brighter futures for children while receiving a significant benefit on your Colorado state taxes.

The Colorado Child Care Contribution Tax Credit

The state of Colorado allows you to claim a 50% credit on your state income taxes for all qualifying monetary contributions (up to a total of $100,000) made by an individual, estate, trust, or corporation. This does not include stock, property, or gift-in-kind contributions.

Why a Tax Credit Is More Valuable Than a Deduction

Unlike a tax deduction, which lowers your taxable income, a tax credit reduces your actual tax bill. If you owe $5,000 in Colorado state taxes and claim a $2,000 credit, you now owe $3,000. The savings are direct and immediate.

The Colorado Child Care Contribution Credit works differently and delivers significantly more value.

Example: $1,000 Donation to ACCO’S Creative Options for Early Childhood Education

For donors in lower tax brackets or those who take the standard deduction, the Colorado credit alone cuts your cost in half. For those who itemize, the combined savings can exceed 65% of your donation.

If the allowable credit exceeds the taxpayer’s net tax liability, the taxpayer can carry forward the excess credit to apply toward the tax due in subsequent tax years. Credits may be carried forward up to five tax years.

This is why the Child Care Contribution Credit is considered one of the most powerful charitable giving tools in the country.