Given recent signs of reduced charitable giving nationwide, Colorado's donors thankfully can still take advantage of several different state tax incentives to donate. A key priority on our 2020 Public Policy Agenda is to create, promote, and strengthen effective tax incentives for charitable giving and volunteering.
More than 31,000 people in Colorado are experiencing homelessness including older adults, veterans, children, survivors of domestic violence, people living with disabilities, and people living with addictions. The challenges faced by people experiencing homelessness in our state are compounded by skyrocketing housing costs and the need to invest more resources in nonprofits and local governments delivering the services.
For this reason, we are proud to support legislation to bring more resources to these service providers by revising and re-branding part of the longstanding Enterprise Zone (EZ) tax credit that supports services to people experiencing homelessness. Even though the EZ tax credit has enhanced resources available for these services for the past 25 years, the recent focus of the program on supporting short-term projects that create jobs will prevent investment in the full continuum of services needed to address homelessness.
About the Homeless Contribution Tax Credit
HB 20-1335 improves upon the existing credit as follows:
- expands services covered by the credit to include those that meet basic needs, increase self-sufficiency, and support job readiness;
- makes the credit available statewide for service providers and donors;
- aligns the services with state housing priorities by moving the program to the state Division of Housing;
- requires the Division to develop a new administrative policy for the program with stakeholder input; and
- provides an enhanced 30% credit for providers in rural areas of the state [pending passage of a forthcoming amendment].
Services covered by HCTC include:
- Capital campaigns including housing, shelters, and facilities for services and administration
- Operations including homeless outreach, emergency and domestic violence shelters, preventive services, supportive housing, employment support, case management, and implementation of best practices
HCTC also builds on the foundations of the Enterprise Zone credit by maintaining:
- the 25% credit for donations of cash over $100 and in-kind over $5,000
- the five year carry-forward period, and
- the limits of $100,000 of credits per donor and $750,000 per project.
How you can help
1. Call your Rep. and ask for a Yes vote on HB 20-1335!
- First, look up your legislator by your address
- Second, click on your legislator's webpage to find the Capitol phone number
- Third, write out your message as needed and make the call
- Feel free to use our template and be sure to share your perspective or any stories or experiences that support your case for the bill
- If the Rep. or staff members has questions or concerns, let us know. It's okay to say "I don't know but I'll get back to you" and then do
2. Email and tweet your Rep. from our action page and include a comment to offer your perspective