Giving
Colorado Child Care Contribution Credit
(5C)
The Colorado Child Care Contribution Credit (5C) was established to encourage greater private support of Colorado child care programs, like those provided by Ramah in the Rockies. Because monetary contributions to Ramah in the Rockies qualify for this tax credit, you may be able to decrease the after-tax cost of your gifts by 50%.*
A gift of $250 or more to Ramah in the Rockies could earn you a tax credit of 50% of your gift, for up to a $100,000 donation!
$250
donation =
$125
tax credit
$500
donation =
$250
tax credit
$1,000
donation =
$500
tax credit
$1,800
donation =
$900
tax credit
$10,000
donation =
$5,000
tax credit
$100,000
donation =
$50,000
tax credit
Donation =
Tax Credit
$250
$125
$500
$250
$1,000
$500
$1,800
$900
$10,000
$5,000
$100,000
$50,000
The effect of the credit is that half of your donation is offset by a reduction of your Colorado income taxes. You will still be able to claim your full contribution as a charitable deduction on your Federal and State income tax returns if you itemize deductions, meaning your donation earns even greater returns!
State Guidelines
-The maximum credit you may take in any one year is $100,000 or your actual Colorado income tax liability for the year, whichever is less. However, any unused credit may be carried forward for up to five additional tax years.
-Only monetary donations are eligible. In-kind gifts, such as stock or other securities, labor, or equipment do not qualify for the tax credit.
-Contributions for which an Enterprise Zone Credit is taken are not eligible for this credit.
How it works at ramah in the rockies
-Only donations of $250 or greater are eligible for the 5C tax credit.
-IMPORTANT: Please write “Colorado Child Care Contribution Credit” or “5C” in the memo line of your check. If giving online, please note that your gift is for the Colorado Child Care Contribution Credit (5C) option.
-As required by law, Ramah in the Rockies will provide each donor with a signed statement confirming the amount of the monetary contribution eligible for the credit and the eligible purpose for which the contribution will be used.
*We always recommend that you consult with your tax advisor to determine how the credit will specifically benefit you.