What is Enterprise Zone?
The Enterprise Zone Program encourages job creation and capital investment in economically depressed areas by providing tax credits to businesses and projects to promote and encourage economic development activities.
What is a tax credit?
A tax credit is a dollar for dollar reduction on the taxes you owe, as opposed to deduction that reduces the gross income on which your taxes are calculated. The tax credit program through which you donate determines the credit amount. Contributions to agencies in a Denver Enterprise Zone are eligible for tax credit of 25%.
Does my donation still qualify as a charitable deduction on my federal income tax?
Yes!
If I do not itemize my tax return, can I still use the tax credit?
Yes, the credit can be used whether you itemize or not.
Can both Individual donors and corporations take advantage of the Enterprise Zone tax credit program?
Yes, both individual and corporate donors can take advantage of the Enterprise Zone tax credit.
How does it work?
Inner City Health Center is designated as an Enterprise Zone Contribution Project. Your one time donation of $250 or more, or cumulative gifts of $500 in a calendar year, or 12.5% of volunteer time qualifies for this program, which is designed to build Denver’s infrastructure and provide benefits to low-income inner city residents. For complete information please check with your tax advisor.
Example:
$1,000 Cash Gift Donation Breakdown:
Colorado State Income Tax Savings $46
Colorado State Income Tax Credit $250
Federal Income Tax Deduction* $150
Returned to you at tax time $446
After tax cost of giving $1,000 is just $554
*assuming 15% tax bracket and varies with tax bracket
Dollar for dollar savings from Colorado state income tax is in addition to your regular federal tax charitable deduction.
For more information please visit the Office of Economic Development.
