Colorado Homeless Contribution Tax Credit
Starting January 1, 2023, the existing Enterprise Zone (EZ) tax credit will be replaced with Colorado’s Homeless Contribution Tax Credit (HCTC). This is a new Homeless Contribution Tax Credit that is available in the entire state for a broader range of homelessness response related activities. Going forward, you will be able to utilize this tax credit program similarly to previous years in the EZ program.
Tax benefits are: 25% of their donation (monetary or value of in-kind) as a state income tax credit for gifts of $250 or higher in cash or $5,000 or higher in in-kind (stocks, bonds, and other). PLEASE NOTE: the State of Colorado and the Division of Housing in the Department of Local Affairs, does require a full Social Security Number on file to receive credit. To learn more about Colorado’s Homeless Contribution Tax Credit, visit the state’s website here.
The State limits the number of credits available to each participating organization each calendar year. Consult with your professional tax adviser to be sure the HCTC program will be of benefit to your specific tax situation.
How HCTC Donations Work
Homeless Contribution Tax Credits allow a dollar-for-dollar reduction in state taxes owed by an amount equal to 25% of cash donations to Warren Village of $250 or more.
1. Give a gift of $250 or more
Monetary donations of $250 or more qualify for the HCTC. Please note that due to state regulations, donations made through a Donor Advised Fund do not qualify.
2. Tell us you want the Homeless Contribution Tax Credit.
• Federal Employer Tax Identification Number (FEIN)
• Your full Social Security Number (this is a State requirement for the HCTC program)
3. Receive your gift receipt and tax credit certificate
Within 7-14 days, you will receive a tax receipt in the mail from Warren Village. This is separate from the HCTC tax credit certificate. Then, based on current processing guidelines set by the State, HCTC certificates will be mailed out on a rolling basis. This could take 6-8 weeks (or longer during busy periods*) from the time Warren Village receives a qualified gift and full SSN from the donor. This timeline is subject to change. Electronic versions of tax credit certificates are currently not available in the new HCTC program.
You must file your tax return electronically with the Colorado Department of Revenue.
*Please expect a delay in receiving your tax credit certificate from the State of Colorado due to the change in processing.
