We want all our Colorado-based clients to know about this State tax credit. Remember, a credit reduces your tax, dollar for dollar, regardless of whether you itemize or not.
Enacted through Colorado House Bill 2022 – 1083, the Colorado Homeless Contribution Income Tax Credit stands as a powerful initiative to address homelessness within the state. This program encourages Colorado taxpayers to contribute to eligible homelessness-related projects, fostering a sense of community responsibility and commitment.
The Colorado Homeless Contribution Income Tax Credit provides taxpayers with a tangible incentive to support eligible projects dedicated to combating homelessness. Coloradans can enjoy two tiers of benefits: contributors receive a 25% state income tax credit for donations to qualified projects in non-rural communities and a higher 30% credit for contributions to projects in rural areas.
This initiative replaces a portion of an existing income tax credit, broadening its scope to encompass the entire state. Unlike its predecessor, this credit supports a more extensive range of homelessness response activities, showcasing a commitment to inclusivity and comprehensive support for those experiencing homelessness.
Administered by the Division of Housing in the Department of Local Affairs, the Homeless Contribution Income Tax Credit requires contributions to approved organizations engaged in at least one qualifying activity. If you are interested in learning more about qualified organizations and how to file for the credit, please reach out to one of the planners here at TWC.
In the face of homelessness, the Colorado Homeless Contribution Income Tax Credit emerges in support of eradicating or minimizing homelessness. By incentivizing individuals to contribute to vital projects, the program not only addresses immediate needs but also fosters a culture of compassion and shared responsibility. Please contact us for a list of qualified charities you may want to consider.
The preceding content was produced with the assistance of an AI system and should be used for informational purposes only. The content should not be considered as a substitute for professional advice, and we recommend consulting with appropriate experts or sources for specific information or guidance.