The Colorado State Legislature has established a number of tax credits to benefit Enterprise Zone investors, but one of the most beneficial is a 25% state income tax credit for private contributions to an Enterprise Zone contribution project. If you choose to make a cash donation to one or more of the approved Enterprise Zone contribution projects for their approved project purpose, you may be eligible to receive 25% of that amount as a credit against your state tax liability. The contribution also may be eligible to be itemized on your federal tax return. Many Mesa County Enterprise Zone projects are approved to accept donations of cash and non-cash items. Gifts of property, stocks or other in-kind donations may qualify for state tax credits, but non cash contributions are limited to a 12.5% credit. Taxpayer Benefits As a Colorado taxpayer, the enterprise zone community contribution credit benefits you in several ways:
- It decreases the amount of Colorado State taxes you owe.
- It gives you an opportunity to invest in your community.
- It lets you direct the use of your dollars in ways that have more immediate and personal meaning for you and your family.
Community Benefits Historically, communities such as ours have depended on state and federal government and private foundations for assistance with community development projects. Unfortunately, as time passes, available resources cannot keep up with increasing demands, and it becomes more and more difficult for smaller communities to make needed improvements. A contribution to an approved Enterprise Zone contribution project, however, offers several benefits for communities:
- It represents an additional source of funds.
- It can be received at any time during the year.
- It comes from a donor who has a personal interest in the project.
- It triggers other investment in the community, thus helping to stabilize the local economy.
Ready to claim your credit? Upon making your donation to an approved project, you must provide them with a valid Tax Identification Number (Social Security Number, FEIN, Colorado Account Number, etc) in order to be eligible to receive a certified DR0075. Each project has their own individual requirements on how much time donors have to provide this information to them so check with the project to ensure you get your information to them in time to receive your credit. After the project receives the information from you, they submit the form to the Enterprise Zone Administrator who reviews and certifies them. The certified form is sent back to the Enterprise Zone Contribution Project who mails them back to the donors. Interested in Becoming an approved Mesa County Enterprise Zone Contribution Project? The Mesa County Enterprise Zone administrator can help you with that! Please contact Terri Benson at e-mail Terri or (970) 243-5242. Additional information about Enterprise Zone contribution projects can be found at www.advancecolorado.com/funding-incentives/incentives/enterprise-zone-tax-credits/contribution-projects.