Enterprise Zone Contribution Projects

Enterprise Zone Contribution Projects

Enterprise Zone (EZ) Contribution Projects encourage community participation and public-private partnerships to revitalize EZs. EZ Administrators may propose projects for EZ Project status to implement the economic development plan of that specific EZ. EZ Administrators work with their communities to bring forward proposals that meet the economic development needs, result in job creation/retention and business expansion, and have the support of the community.

Colorado taxpayers may earn Colorado income tax credits by contributing to targeted efforts. EZ Contributions follow Federal Charitable Contribution rules.

Active EZ Contribution Projects 

View the list of approved EZ Contribution Projects  (download Excel format ) that qualify for the Contribution Tax Credit. Updated February 11, 2016

Project Guidelines

EZ Project Designation:  The local EZ Administrator is responsible for implementing the EZ economic development plan. The Administrator decides which projects are aligned with the economic development plan, gets the necessary support of their community and board, and brings those to the EDC for consideration. The EZ Administrator has authority to monitor and audit project organizations and project performance.

Project Location:  Generally the project organization will be located within the EZ and serve individuals and businesses within the EZ. However, there are some circumstances where an organization located outside of the EZ may conduct programs within and that benefit the EZ.

Project Structure:  The organization running the project must be a nonprofit or government entity. Either the entire organization or a specific activity of the organization may be eligible for EZ Project status.

Project Activity/Categories:  Projects must directly link to job creation and retention and/or business expansion in an EZ. The project must support the economic development goals established for the EZ.

Fees charged to organizations by the EZ Administrator: The local EZ Administrator is authorized by the statutes to charge reasonable fees to organizations for their oversight of the program. Contribution Project Fees are: Adams County EZ, none; Arapahoe County EZ, none; Denver EZ, 1% cash/stock; East Central EZ, none; El Paso EZ, 3.5%; Greeley/Weld EZ, 1.5%; Jefferson County, none; Larimer EZ, 3%; Mesa EZ, 1% cash/stock and $1/form; Northeast EZ, 5%; Northwest EZ, 1%; Pueblo EZ, 1.5% cash up to $1,000 per project/year; Region 10 EZ, 1% and $1/form; San Luis Valley EZ, none; South Central, none; Southeast, $5/form; Southwest EZ, 3% cash up to $500; Upper Arkansas EZ, 5% cash up to $1,000.

Certification of EZ Contribution Project Donations

  1. A taxpayer (individual or business) must make a donation to an approved Enterprise Zone Contribution Project. Provide the charitable organization with your Colorado Account Number (learn how) or the last 4 digits of your Social Security Number.
  2. The project will provide the taxpayer with a DR0075 form for their donation. Contact the Project Organization or the Local Zone Administrator with questions.
  3. The taxpayer may claim the tax credit when filing one’s state income taxes – review the Colorado Department of Revenue Form DR1366.

Other State Incentives for Charitable Contributions 

Charitable Contribution Subtraction – A subtraction to income for charitable contributions in excess of $500 for taxpayers who made their federal income tax election to claim the basic standard deduction under Internal Revenue Code (IRC) section 63(c)(2) i. To be eligible for subtraction, contributions must qualify as a federal itemized deduction under §170 I.R.C. and collectively exceed a $500 threshold for the tax year. The limits applicable to §170 I.R.C. deductions apply in computing the maximum subtraction allowed. The subtraction is available to all individual Colorado taxpayers and will be applied in computing the tentative tax before apportionment for part-year and non-residents of Colorado. See Colorado Department of Revenue FYI Income 48.

Childcare Contribution Credit – Taxpayers that make a monetary contribution to promote childcare in Colorado may claim an income tax credit of 50% of the total contribution. In-kind contributions of property (non-monetary donations) do not qualify for the credit. The credit could not be claimed in 2011 and 2012, but the credit earned can be carried forward. See Colorado Department of Revenue FYI Income 35.

Gross Conservation Easement Credit – An income tax credit is available for tax years beginning on or after January 1, 2000, for the donation of a perpetual conservation easement in gross on real property located in Colorado. The credit is based on the fair market value of the easement. The donation must be made to a governmental entity or a charitable organization that is exempt under section 501(c) (3) of the Internal Revenue Code of 1954 and that was created at least two years prior to receipt of the easement. The donation must also qualify as a charitable contribution for federal income tax purposes [Internal Revenue Code section 170(h)]. See Colorado Department of Revenue FYI Income 39.

Crop and Livestock Contribution Credit – The crop and livestock contribution credit is available to C corporations that donate crops or livestock to certain charitable organizations for use in Colorado. The credit is equal to 25% of the contribution valued at wholesale market price or the most recent sale price. The credit is claimed on Form 112CR Colorado Corporation Credit Schedule. The credit is not available to individuals, S corporations, partnerships or other pass through entities. See Colorado Department of Revenue FYI Income 57.

 

Enterprise Zone Contribution Projects