Help Make Futures Brighter
How you can support families & kids:
SHARE information about our family support programs with families you know
SPEAK UP about the importance of high quality early childhood services
VOLUNTEER to read to children through our Giggle & Grow program
SUPPORT our programs directly through a financial contribution
Donate Today
Your donation can make a difference in the lives of young children and early childhood professionals in Arapahoe County. Donations to ACECC qualify for the Colorado Child Contribution tax credit, which is a 50% state income tax credit as a community investment.
Arapahoe County Early Childhood Council: A 501(c)(3) Nonprofit Organization
Contributions made to Arapahoe County Early Childhood Council (ACECC) are tax-deductible to the fullest extent permitted by law. Please consult your tax adviser to confirm the tax deductibility of your donation.
Colorado Childcare Contribution Credit
The Colorado Childcare Contribution Credit is a tax credit that was established to promote childcare across Colorado. Individual and corporate donors who contribute financially to ACECC’s programs may be eligible for a 50% state income tax credit. ACECC will issue a signed statement detailing the amount of the monetary contribution eligible for this credit. These letters are distributed by January 31 of the year following the contribution. Donors must provide this statement to the Colorado Department of Revenue if requested.
As of January 1, 2018, donations of $250 or more may qualify for a 50% Colorado state income tax credit.
Important Update: Federal Tax Regulations
On June 13, 2019, the federal Department of Treasury and Internal Revenue Service (IRS) released a final rule regarding the federal tax treatment of charitable donations that generate state and local tax credits. This rule, effective August 12, 2019, states:
Individual taxpayers claiming the charitable deduction cannot deduct the portion of a donation that generates a state or local tax credit.
There is, however, a safe harbor provision. Individual taxpayers can deduct the value of the tax credit under the State And Local Taxes (SALT) deduction, up to the $10,000 cap.
Example:
Itemizing Taxpayer: A taxpayer donates $1,000 to a childcare facility and claims a 50% Childcare Contribution Credit ($500) on Colorado taxes. This taxpayer can only claim $500 of the donation as part of the federal charitable deduction. However, the remaining $500 can be claimed under the taxpayer’s SALT deduction if the SALT liability is less than $10,000.
Non-Itemizing Taxpayer: A taxpayer donates $1,000 to a childcare facility and claims the 50% Childcare Contribution Credit ($500) on state taxes. Since this taxpayer claims the standard deduction, they cannot deduct the contribution on federal taxes under the charitable deduction or SALT deduction.
Guidelines for Donations
Designation: Donors must specify in writing (on the check, pledge card, or by letter) that the contribution is for Arapahoe County Early Childhood Council.
Minimum Gift: A minimum donation of $250 is required to qualify for the credit.
Credit Limit: The Colorado Childcare Contribution Credit is capped at $100,000 annually, not to exceed the tax liability for the year. Excess credits can be carried forward for up to five years.
Non-qualifying Contributions: In-kind and stock contributions do not qualify for this credit.
Deadline: Contributions must be made by December 31, to qualify for this credit under current law.
Tax Advice: Donors should consult a tax adviser regarding the calculation of the credit.