EZ Tax Zone Credit
Individuals and Businesses who donate to Habitat for Humanity of Mesa County may be eligible under the guidelines of the Colorado Economic Development Commission for Enterprise Zone Tax Credits for Cash and/or In-kind donations made to our organization.
If you are making an In-kind donation of goods to our ReStore you will need to fill out our form with details on type of item, year, brand and any other information so that our staff can submit the form to the State of Colorado Department of Revenue.
Cash donations of $50 or more may be eligible for a 25% tax credit on donor’s Colorado State Income Tax Return. In-kind gifts valued at $100 or above may be eligible for a 12.5% tax credit on donor’s Colorado State Tax Return. In-kind donations of $2000 or more must be accompanied by valuation documentation.
Not only may donors deduct their gifts on both Federal and State returns, they also may be able to claim the additional Enterprise Zone tax credit on their State of Colorado return. This means that, depending upon a donor’s tax bracket and itemization’s, a donation may cost the donor less than the amount of the contribution.
Colorado Enterprise Zone Tax Credit EXAMPLE
Cash Donation $1,000.00
Income tax benefit of gift
*Federal tax rate 28% $280.00 (reduces taxable income)
Colorado tax Rate 4.63% $46.30 (reduces taxable income)
Zone Tax Credit 25% $250.00 (toward the CO State Tax Liability)
Total Tax Savings 57.63% $576.30
Cost of $1,000 gift, after tax $423.70
*this is the incremental tax rate for Married Filed Jointly with taxable income of $123,700 to $188,400
We are not tax experts; in no way do we offer professional tax advice. Although the information contained here is presented in good faith and believed to be correct, it is General in nature and is not intended as tax advice.
For more information on tax advice, please see your accountant or tax adviser.