Enterprise Zone Tax Credit

How to take advantage of the Enterprise Zone Tax Credit

The Colorado Legislature created the Enterprise Zone Program in 1986 as a way to encourage investment by businesses and individuals in economically depressed communities throughout the state. This legislation makes it possible for Central City Opera (CCO) to offer its donors a Colorado state income tax credit of 25% for cash contributions over $250 and 12.5% for qualifying in-kind donations of stock or valued goods.

WHAT DOES IT TAKE TO OBTAIN AN ENTERPRISE ZONE TAX CREDIT?

  1. Make a qualifying contribution of $250 or more to Central City Opera, either online or by cash, check or credit card or make a donation of stock or securities. Qualifying contributions include annual fund donations (unrelated to a special event) designated for operations, Festival performances or historic properties.
  2. Request the Enterprise Zone Tax Credit and provide one of the following to Central City Opera: Federal Employer Tax Identification Number, Colorado Taxpayer Identification Number or the last four digits of your Social Security Number.
  3. After this information has been received, Central City Opera will issue you a Certification of Qualified Enterprise Zone Contribution Form (DR0075) to support your claim for the credit.

WHAT DOES THIS MEAN FOR YOU?

You can nearly double the size of your gift – and the impact of your generosity – without increasing the net cost to you. The Colorado Enterprise Zone Tax Credit reduces the amount of state income tax you pay, in addition to federal and state charitable deductions you may receive for gifts to charity.

PLEASE NOTE: A donor must have a Colorado state income tax liability to benefit from the Enterprise Zone Tax Credit. The amount of credit taken in one year cannot exceed a donor’s state tax liability; excess credit may be carried forward for up to five years. The maximum credit a donor can claim per tax year is $100,000. Eligible contributions will receive the tax credit until Central City Opera’s annual credit limit of $750,000 is reached. The availability of the Enterprise Zone Tax Credit is subject to change at any time. There is no guarantee the credit will continue to be available in future years.

FOR MORE INFORMATION: Contact us at development@centralcityopera.org or call 303-292-6500.

This material is for informational purposes only and is not intended to replace the advice of your tax professional.