The more you give, the more you get
When you give $250 or more to the Craig Hospital Foundation you may be eligible for a 25 percent tax credit on your Colorado state income tax. This allows you to give more and make a bigger impact on Craig’s future.
Colorado provides an incentive to encourage economic development in certain areas, designated Enterprise Zones. Because Craig Hospital is in one of these zones, donors who make qualifying gifts are eligible to receive a state income tax credit of 25 percent, which is over and above the normal tax benefits of a charitable contribution. This credit may be used to directly offset any Colorado state income tax that you may owe.
THE ENTERPRISE ZONE TAX CREDIT Program Guidelines
- Both individuals and businesses qualify.
- Eligible donations must be a minimum of $250.
- New gifts as well as pledge payments of $250 or more qualify for the credit.
- The limit per donor is a $400,000 gift per tax year which qualifies for a $100,000 state tax credit.
- Gifts of stock qualify for 12.5 percent of the value of the contribution, however, an additional gift of cash may be added to the stock gift to increase the tax credit amount to 25 percent.
- Excess tax credits may be carried over for up to five years.
- The taxpayer must file his or her state income tax return electronically with the Colorado Department of Revenue.
- There is a limit to the amount of credits that can be given in any one calendar year, so credits will be given on a first come, first serve basis.
To learn more or to ask a question about the Enterprise Zone credit, contact the Craig Hospital Foundation at 303-789-8650 or firstname.lastname@example.org.
MAKE YOUR GIFT GO FARTHER
A gift of $100,000 may have an after-tax cost of $42,503—less than half of the original gift! This allows you to make a much larger gift—and a much larger impact—at no extra cost to you!
For example, if you are in the 39.6 percent federal tax bracket and give a qualifying cash contribution of $100,000, your tax benefit will be calculated as follows:
|Tax Savings: Federal Deduction (39.6%)||($39,600.00)|
|Tax Savings: Colo. Deduction (4.63%)||($4,630.00)|
|Lost Federal Deduction on Colo. Tax Exp. (39.6% of State)||$1,833.48|
|Value of Deduction||($42, 396.52)|
|State Tax Credit Generated (25%)||($25,000.00)|
|Lost Fed. Deduction on Colo. Tax Exp. (39.6% of State)||$9,900.00|
|Value of Tax Credit||($15,100.00)|
|Net Cost of $100,000 Gift||$42,503.48|
Consult your tax advisor as every situation is different. The information represented on this page is not offered as legal, accounting or tax advice. The services of an attorney or other professional advisor should be obtained before taking action based on this information.
How Do I Get This Credit?
To qualify for the Enterprise Zone credit, you are required to file your state income tax return electronically with the Colorado Department of Revenue. To receive the tax credit, you may provide the last four digits of your Social Security number to the Craig Foundation by calling 303-789-8650, or you may obtain a Colorado Account Number, which may take several weeks to receive. You can also download, complete and return this form to us.
To request a Colorado account number, visit https://www.colorado.gov/revenueonline.
- Under the Additional Services section, click “request letter ID”
- Click the red “next” arrow on the next screen.
- On the pull down menu, select “Social Security Number” and input your SSN and name.
- Hit “submit.” You will receive a confirmation number that your Colorado Account Number is being generated. A letter from the State with your actual Colorado Account Number should arrive within a few weeks. The Colorado Account Number is an eight-digit, all numeric number found in the upper right-hand corner of the letter next to “Account.”
- Once received, please contact the Craig Hospital Foundation at 303-789-8650 or email@example.com to provide us with your Colorado Account Number.
To claim the credit, you must provide us with your information by the following deadlines:
- July 6, 2018: for gifts received between January 1, 2018 and June 30, 2018
- January 11, 2019: for gifts received between July 1, 2018 and December 31, 2018