Colorado offers a unique opportunity for individuals and businesses to support local childcare centers and providers through an innovative tax credit. The Child Care Contribution Tax Credit (CCCTC) allows any taxpayer to make a qualifying contribution and are eligible to receive a tax credit equal to 50% of the qualifying contributions. Employers find that attracting and retaining talent is difficult when workers struggle to find reliable, available, and affordable childcare. According to the Colorado Children’s Campaign, the CCTC generates nearly twice as much funding for the Colorado Child Care Assistance Program as the state’s general fund contribution. This incentive allows employers across size and industry to invest directly in the childcare infrastructure their workforce depends on.
How does the Tax Credit Work?
- Taxpayers (individuals, business, estates, etc) may make a qualified monetary contribution to promote child care in Colorado.
- Taxpayers can claim a Colorado income tax credit of up to $100,000 per year for 50% of the total contribution.
- After donating, you will receive a DR 1317 Child Care Contribution Tax Credit Certification form from the child care center or organization that you donated to.
According to the Denver Early Childhood Council, if a business donated $1,000 to a qualifying childcare center –
- They could receive up to $500 in the child care tax credit
- In addition to receiving $160 in federal income tax savings and $23 in Colorado tax savings as credit for charitable contributions
- Resulting in a total of $683 returned at tax time
A $1,000 contribution could cost just $317
Where to Donate
FInd a qualifying childcare center here. Consider donating to a center your employees take their kids or donating to a center in the community in the same community as your business.
Additionally, intermediary organizations like Early Childhood Partnership of Adams County qualify for donations as well.
Resources to Learn More
Colorado Department of Revenue: Child Care Contribution Credit
Executives Partnering to Invest in Children Child Care Contribution Tax Credit FAQs
Early Childhood Partnership of Adams County
The Colorado Child Care Contribution Tax Credit makes it easier for employers to support the childcare ecosystem their employees rely on, all while offering a meaningful financial incentive. It also creates an innovative opportunity for business leaders to strengthen early childhood infrastructure, and improve access and affordability for working families, both locally and across the state.
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