Taxpayers that make a qualifying monetary contribution to promote child care in Colorado may claim an income tax credit of 50% of the total qualifying contribution. In-kind contributions of property (non-monetary donations) do not qualify for the credit.
TAXPAYERS ELIGIBLE FOR THE CREDIT Any taxpayer that makes a qualifying contribution can claim the child care contribution credit. Resident and nonresident individuals, estates, trusts, partnerships, and corporations can all claim the credit for qualifying contributions they make.
QUALIFYING CONTRIBUTIONS Contributions must meet several criteria to qualify for the child care contribution credit. The contribution must be monetary; contributions of property do not qualify for the credit. The credit is allowed only for contributions that promote child care in Colorado. Additionally, the contribution must be made for an eligible child care purpose and to a licensed child care facility, an approved facility school, or a registered or grandfathered child care program.
HOW TO CLAIM THE CREDIT
Taxpayers must file an annual income tax return along with the associated credit schedule in order to claim the credit. Taxpayer must submit with their return a copy of the completed Child Care Contribution Tax Credit Certification (Form DR 1317) obtained from the donee organization certifying the contribution. For electronically filed returns, a scanned copy of Form DR 1317 can be submitted either via e-file or by using the E-Filer Attachment function of Revenue Online. TurboTax will produce this form for you to upload or mail with your receipt.
For more information:
https://www.colorado.gov/pacific/sites/default/files/Income35.pdf.
