The Child Care Contribution Tax Credit
The Benefits of the Child Care Contribution Credit in Colorado, a study funded by Executives Partnering to Invest in Children (EPIC), the Early Childhood Leadership Commission, and the Merage Foundation, confirms that Colorado’s Childcare Contribution Credit benefits both children and Colorado’s economy. These benefits—direct and indirect—include economic stimulus for the child care industry and the positive societal impact of providing quality, affordable child care to the state’s working families.
The Child Care Contribution Credit (CCCC) is a critical funding stream for nonprofits that serve and support Colorado’s children. Any taxpayer making a monetary contribution to an eligible nonprofit organization may receive a 50 percent tax credit when filing his or her Colorado income tax return. This powerful tax incentive increases resources for vital child care programs by encouraging private contributions to leverage and supplement public spending and by attracting federal funding to Colorado. The funds are used by the recipient agencies for facility and equipment upgrades, educational resources, keeping programs open, and providing financial assistance to low-income children. In addition, the funds support child care provider training, consumer education, and quality ratings.
This study was commissioned to better understand how the credit is used and its impact on Colorado’s economy. The results of the study, completed by Development Research Partners, are now available.
The study reports that “for every dollar that the state invests in the child care industry via the Child Care Contribution Credit, $4.65 is added to the Colorado economy through private contributions, federal matching dollars, and the multiplier effects of the spending.”
To view the complete report, click here.
Colorado Early Childhood Leadership Commission
EPIC was instrumental in establishing the Colorado Early Childhood Leadership Commission, which is comprised of 35 diverse members from all sectors and from across the state. The charge of the commission is to develop a statewide database to track investments made in children zero to five and to make legislative recommendations to improve systems and investments that involve very young children. Three EPIC CEO Roundtable members serve on the commission along with one member of the Executive Committee.
EPIC developed and deployed an employer toolkit to provide low-cost/no-cost options for employers to participate in family-friendly policies targeting children birth to age five. The toolkit focuses on four specific areas: increasing access to quality child care; supporting affordable child care; developing child friendly policies and procedures; and optimizing tax benefits. This toolkit can be viewed at www.epicemployertoolkit.org.
Business Leader Event
On the evening of November 1, 2011, EPIC hosted its 3rd Annual Business Event in Early Childhood Investments, an event highlighting the importance of early childhood for future success, and to inspire an early childhood movement in Colorado. David Lawrence, retired publisher of the Miami Herald and Chair of Florida’s Children’s Movement, spoke to approximately 150 business leaders and advocates about Florida’s successful children’s movement, and outlined why focusing on early childhood is the right thing to do for our children, our economy, and our country’s future. For a copy of Mr. Lawrence's speech, click here.