The Child Care Contribution Tax Credit

The Child Care Contribution Tax Credit (the CCTC) provides a valuable tax credit against a taxpayer’s CO state income tax. The credit equals 50 percent of the amount of a contribution made to a qualifying Colorado charitable organization that promotes child care, like The Family Center/ La Familia.

Thanks to the generosity of past major donors, up to $27K of contributions this year will be matched dollar for dollar until the end of the year! As added incentive, donations also qualify for the Colorado Child Care Contribution Tax Credit, which offers an additional deduction on your state income taxes. 50% of your contribution comes right off of your taxable income. To illustrate the impact of your gift (for someone in the 22% tax bracket):

Colorado Child Care Credit Tax Example:

Illustration only. Please consult with your tax advisor. Federal Income Tax Rate: 22%

The CCTC applies to contributions of cash, to Colorado institutions that support child care for children under 12 and to certain approved charities.  Under prior law, these contributions were deductible as charitable contributions for federal and state income tax purposes.  In addition, a taxpayer could credit 50% of the contribution against the taxpayer’s Colorado state income tax liability.  These deductions and credits substantially reduced the after -tax cost of such donations to taxpayers. 

There are three easy ways to schedule your tax-deductible gift:

With your support, we can grow our non-profit program, allowing parents to work/attend school, afford childcare, receive resources and assistance, and pay fair wages to our valuable staff. All we do for our Northern Colorado families is done through the focus of our core values:

Trust – Compassion – Diversity – Equity – Inclusion – Love