Enterprise Zone Donations

The Enterprise Zone contribution tax credit was created by the State Government to encourage taxpayers to increase their giving to specific organizations that benefit our community. Donors who write a check for $250 or more through the El Paso County Enterprise Zone receive a 25 percent Colorado state income tax credit in addition to their charitable contributions! Even cash equivalent gifts that are sold for their case value such as stocks, bonds, or real estate will also receive the 25 percent.  In-kind contributions, like labor, materials, and goods are also welcome and will receive a 12.5 percent Colorado state income tax credit with some added stipulations.

This funding option is only valid for donations to benefit the Extreme Dream Project and we will be able to accept donations for the Enterprise Zone tax credit through 12/31/2020.

  1. Write a check payable to “Enterprise Zone,” and in the memo line, write “Dream Centers Extreme Dream” as well as the last four digits of your Social Security Number or Colorado Account Number*.  You only need to provide the last four digits of your SSN or Colorado Account Number to us once; all subsequent EZone donations will only need “Dream Centers Extreme Dream” in the memo line. Your donation must be at least $250 to qualify.
  2. Mail the check to Dream Centers, Attn: EZONE, 11025 Voyager Pkwy, Colorado Springs, CO 80921
  3. If paying by credit card online – please write “enterprise zone” in the comments area while filling out your gift.
  4. You will receive a donation receipt shortly after you make your donation, and in about 45 business days, you will receive a tax credit certificate from the county.
  5. At the end of the year, your state income taxes will need to be filed electronically.

If you have any questions feel free to call 719.204.6543.

 

Example: Assume you are taxed at a 35% tax bracket.

A.Cash Donation$500$1,000$10,000
B.Colorado State Income Tax Savings (assume 4.63%)$  23$     46$     463
C.Colorado Income Tax Credit (25%)$125$   250$  2,500
D.Federal Income Tax Savings*$123$   246$  2,463
E.Returned to You at Tax Time (B+C+D)$271$   542$  5,426
After Tax Cost of Giving $1,000 (A-E)$229$   458$  4,574

 

* Federal Tax Deduction Benefit is reduced because of the add-back effect of reduced state taxes. For more information:

https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-charitable-contributions-and-state-and-local-tax-credits

(e.g., $1,000-$46-$250 = $704 * 35% = $246)

This information is provided for illustrative purposes only and should not be construed as tax advice. Please consult your tax advisor as situations may vary.

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