The purpose of the Enterprise Zone contribution tax credit is to encourage taxpayers to assist local enterprise zones that have been established by the state of Colorado. There may be a substantial tax benefit for donations made to Metro CareRing.

Your contribution in excess of $250 receives all the normal federal and state benefits of making a charitable contribution to a non-profit organization plus a 25% Colorado income tax credit.  Unused credits may be carried forward for up to five years.  Specific net after-tax benefit for the same gift will differ based on individual tax situations.

Enterprise Zone Tax Credits also increase the tax credit for in-kind contributions.  The standard tax credit for an in-kind contribution is 12.5%. By giving a cash gift equal to approximately 1/7th of the value of the in-kind contribution, the gift becomes eligible for the full 25% tax credit. This is an easy way to increase the net effect of an Enterprise Zone Gift.  Gifts of stock are eligible as an in-kind donation.

The net after-tax cost of giving to Metro CareRing is drastically reduced when the state tax credit of 25% for cash contributions and 12.5% for in-kind contributions is coupled with the allowable deductions under federal and state tax codes.  Please consult a tax advisor regarding your individual tax eligibility and for more information on this credit.

How to make an eligible gift to Metro CareRing:

Donors make a contribution by check (or online), $1,000 minimum amount to $400,000 maximum amount.  To make an Enterprise Zone Tax Credit eligible donation to Metro CareRing, please make checks payable to Metro CareRing and specify “Enterprise Zone” in the memo section of your check

Donors send check to the Metro CareRing, P.O. Box 30045, 1100 E. 18^th Avenue, Denver, CO, or click here to make an online contribution.  Metro CareRing will provide to you the appropriate paperwork for your tax purposes.

Enterprise Zone Tax Credit Program Benefits:

• Decreases donor's state tax liability through a 25% state tax credit for cash gifts and 12.5% for in-kind donations (there must be a state tax liability);  
• Decreases the net cost of the contribution through potential federal pre-tax deductions and state tax credits;   
• Provides the opportunity to help more people in need by increasing the level of the gift;
• Increases the level of donor’s gifts without increasing the cost of the contribution.

An example of the benefits of giving an eligible gift:

The impact on income tax costs given the scenario of a contributor in the 33 percent federal tax bracket who gives a gift of $1,000:

The above example is for illustrative purposes only. Please consult your tax advisor to relate this to your particular circumstances.

Contact us at 303-860-7200 to discuss more on Enterprise Zone.