Homeless Contribution Tax Credit
A new tax credit that encourages investments toward ending homelessness is now available for qualifying gifts to The PLACE. As of January 1, 2023, significant changes to Colorado tax credit programs went into effect. The PLACE is now part of the Homeless Contribution Income Tax Credit program (HCTC), and no longer an El Paso County Enterprise Zone Tax Credit project.
What this means for YOU…
- Contributions of $100 or more to The PLACE remain eligible for a 25% state tax credit through the newly launched HCTC program.
- Checks can be made out directly to The PLACE rather than the office managing the tax credit program.
- While the EZ program only required the last four digits of the donor’s Social Security Number, the state now requires a donor’s full Social Security Number must be provided in order for a tax credit certificate to be issued.
If you have concerns regarding sharing identifying information, Department of Local Affairs (DOLA) is offering two options for providing the required sensitive information:
- You can opt to provide their SSN to The PLACE at the time of the donation. If you are not comfortable providing that through the mail or online, we will gladly accept the SSN over the phone. The PLACE then submits a donation verification form to DOLA. The for must include donor name, address, email, and full SSN. Once verified, DOLA will distribute the tax credit certificate directly to you via encrypted email.
- COMING SOON: The second option is still in development with an anticipated launch sometime this summer. This option will make it possible to access an online form to submit the information directly to DOLA, without providing The PLACE with your full SSN. The State receives the form and verifies the donation with The PLACE. After we confirm that the donation is valid, the State will issue the tax credit certificate directly to you.
We appreciate your patience and grace as we all learn together, as a state, how to implement the HCTC with the strictest of oversight and confidentiality with your information. If you want to learn more details about the Colorado Homeless Contribution Income Tax Credit, HB 2022-1083, keep reading.
What is HCTC?
Created by Colorado House Bill 2022 – 1083 (HB22-1083), the Colorado Homeless Contribution Income Tax Credit provides a tax credit to Colorado taxpayers that contribute to eligible homelessness related projects within Colorado. When taxpayers make a certified contribution, they can claim 25% of their donation as a state income tax credit if contributed to a qualified project – like The PLACE. The Homeless Contribution Income Tax Credit is administered by the Division of Housing in the Department of Local Affairs (DOLA) at the state level rather than by local county representatives. You can visit DOLA’s site by clicking here.