Enterprise Zone (EZ) Tax Credit
The case for The Delores Project is a strong one. Who among us wouldn’t want to play a role in helping some of our must vulnerable community members have access to safe and welcoming shelter? Through gifts to The Delores Project, donors can make an immediate difference for women and transgender individuals experiencing homelessness.
Your donation to The Delores Project helps ensure more than 450 homeless individuals each year have access to safe, welcoming shelter and supportive services. Additionally, each year approximately 60 guest enroll in our Steps to Stability program to help them navigate complex social systems and secure a stable living environment. There are already so many reasons to give to The Delores Project. Now, there is yet another one: the Enterprise Zone Tax Credit. This substantial tax credit is available for Colorado residents who support The Delores Project at the level of $250 and higher.
What is the Enterprise Zone Tax Credit?
The state of Colorado provides an incentive to encourage job creation in certain areas of the state known as “Enterprise Zones.” The Delores Project in the Villa Park neighborhood is part of one of these zones. As a result, our donors are eligible to receive a generous state income tax credit when they make qualifying gifts to The Delores Project.
Gifts of $250 and higher currently qualify for the Enterprise Zone Tax Credit.
Earning the Enterprise Zone Tax Credit
To claim the Enterprise Zone tax credit, simply make a contribution of $250 or more to The Delores Project and be sure you request the EZ Credit at the time of your donation.
- You may donate online at www.TheDeloresProject.org
- Donate by phone at (303) 534-5411 x105
- Donate by mail at The Delores Project, PO Box 1406, Denver, CO 80201-1406
- You must request the EZ Credit at the time of your donation and provide the last four numbers of your SSN or your entire tax ID number.
Tax Benefit Details
Qualifying contributions entitle the donor to a 25% state income tax credit. This is over and above the normal tax benefits of a charitable contribution. A tax credit is money that you may use to directly offset any state tax expense you would have otherwise paid, on a one to one, dollar per dollar basis.
Enterprise Zone Tax Credit
This information is considered general in nature and should not be construed as legal, accounting, or tax advice. This material may not be applicable or suitable to the reader’s specific circumstances and could require the consideration of other tax and non-tax factors. Prospective donors should always consult with an appropriate tax advisor prior to taking any action based on this information.
Frequently Asked Questions
What level of gift qualifies for the Enterprise Zone Tax Credit?
Donations of $250 or more to The Delores Project are eligible for the EZ tax credit.
Are monthly gifts eligible for the Enterprise Zone Tax Credit?
Monthly gifts totaling more than $250 annually (that’s only $21 a month) are eligible for the tax credit, however you must request the credit. When donating online, please note this in the notes section of the donation form.
DO ALL GIFTS qualify for the Enterprise Tax Zone Credit?
- Cash gifts to The Delores Project qualify for a Colorado state EZ tax credit of 25%
- Stock contributions to the Delores Project qualify for a Colorado state EZ tax credit of 12.5%
- In-kind contributions of new items qualify for a Colorado state EZ tax credit of 12.5%
- Gifts made through a Donor Advised Fund DO NOT qualify
How do I claim the Enterprise Tax Credit?
You MUST request the EZ tax credit at the time of your donation. If contributing on-line, please request this in the notes section of the donation form. If mailing a check, please include this in your check memo. You MUST provide the last 4 numbers of your SSN or your business tax ID number.
Does my donation still qualify as a charitable deduction on my federal income tax?
Yes, it does.
Can individual donors and corporations take advantage of the Enterprise Zone tax credit?
Yes, the Enterprise Zone tax credit is available to both individuals and corporations.
Do I need to be at a certain income level to use the credit?
You must have Colorado state tax liability to claim the credit. There is no minimum income amount required, but the credit may only be used to offset your Colorado state tax liability. If you cannot use the entire credit, you may carry the credit forward for up to five years.
If I support an event with a gift of $250 or more, will I qualify for the credit?
No, payments where you receive any tangible benefit (tickets, dinner, etc.) in return for the payment are not eligible. Only direct contributions from which you receive no benefit will be considered as qualifying Enterprise Zone contributions.
What documentation do I need to claim the Enterprise Zone tax credit?
When you make your contribution, The Delores Project will complete an Enterprise Zone credit form for you. Donors are required to provide either the last four digits of their Social Security or entire Colorado Tax ID Number to receive the credit.
EXAMPLE OF A LARGER GIFT AT NO EXTRA COST
You are in the 33% Federal tax bracket and decide to make a qualifying contribution of $1,000 to The Delores Project. Your tax benefit may be calculated as follows:
GIFT AMOUNT $1,000
Federal tax deduction benefit (33%) $330
State tax deduction benefit (5%) $50
Tax benefit, regular contribution $380
Plus: Enterprise Zone Tax Credit $250
Total tax benefits $630
Net cost to donor $370
*The above example is for illustrative purposes only. Please consult your tax advisor to relate this to your particular circumstances.