The Colorado Child Care Contribution Tax Credit enables qualified child care providers and intermediary organizations to receive financial donations directly from individuals and businesses. These funds can be used by the child care program in a number of ways, including:
- Purchase enrichment materials
- Send staff to professional development
- Establish or operate a child care facility
- Grant or loan programs for parents
- Training programs for child care providers
- Information dissemination programs that assist parents with child care information and referral services
Colorado leads the nation in providing a tax-advantaged tool for child care through the Child Care Contribution Tax Credit (CCTC). This unique public / private partnership allows individuals and businesses to claim a 50% state income tax credit for qualified contributions to child care providers (up to $100,000). You can find a licensed child care provider to donate to here.
CCTC contributions are used to establish and operate licensed child care facilities, fund grant programs (scholarships) for parents who need help paying for care and supplement professional development costs for individuals working in the child care sector.
When receiving donations, child care facilities must complete Colorado Department of Revenue Form DR 1317 and provide it to the donor for submission with their Colorado Income Tax Return.
Organizations providing similar services to a licensed child care provider may be considered a qualified intermediary and must complete Colorado Department of Revenue Form DR 1318 to register to become a qualified organization for purposes of the CCTC. These organizations include:
- Child care services similar to those provided by a licensed child care facility
- A grant or loan program for parents in Colorado requiring financial assistance for child care
- Training of child care providers in Colorado
- An information dissemination program in Colorado to provide information and referral services to assist parents in obtaining child care
Organizations and facilities that received qualifying contributions prior to January 1, 2004 may qualify for exception from certain rules applicable to the credit. If this applies, please use the Child Care Contribution Tax Credit Grandfathered Organization Application DR 1319.
Questions about CCTC? Download our FAQs.
**The Colorado Department of Revenue, Division of Taxation, is hosting workgroup meetings in early 2024 to study the Colorado Child Care Contribution Credit (CCTC). Learn more about the CCTC workgroups here.