Colorado Tax Credit

 

Child Care Contribution Tax Credit (CCTC) – Business and individual taxpayers that make a monetary contribution to promote child care in Colorado may claim an income tax credit for 50% of the contribution.  Each year the credit is limited to the taxpayer's Colorado income tax liability with a maximum of $100,000. CCTC is available for individuals and businesses.  The unused portion of the tax credit due to a tax liability limitations or the donation is in excess of the $100,000 cap is carried-forward for up to five years.  To learn more visit the CCTC website or consult your tax advisor. For more than 20 years this tax credit is and has been an important revenue source for Colorado’s child care sector.

 

Qualified contributions promote child care for children ages 12 and younger include:

    • Donating money for the establishment or operation of a Colorado child care facility or program to include:
        • A licensed child care center,
        • A licensed child placement agency,
        • A licensed family child care home,
        • A licensed foster care home,
        • A licensed homeless youth shelter,
        • A licensed residential child care facility,
        • A licensed secure residential treatment center,
        • A registered child care program that provides services similar to a licensed child care center.
    • Donating money for a registered grant or loan program for Colorado parents requiring child care financial assistance;
    • Donating money for a registered training program for child care providers in Colorado;
    • Donating money for a registered information dissemination program that assists parents with child care information and referral services; or
    • Donating money for a registered grandfathered child care organization. (Grandfathered organizations may also accept qualified donations for the care of children ages 13-18.)