Starting January 1st, 2023, the existing Enterprise Zone (EZ) tax credit will be replaced with Colorado’s Homeless Contribution Tax Credit (HCTC). This is a new Homeless Contribution Tax Credit that is available in the entire state for a broader range of homelessness response related activities. Going forward, you will be able to utilize this tax credit program similarly to previous years in the EZ program.
Tax benefits are: 25% of their donation (monetary or value of in-kind) as a state income tax credit for gifts of $250 or higher in cash or above $5,000 in in-kind donations (stocks, bonds, and other). PLEASE NOTE: the State of Colorado and the Division of Housing in the Department of Local Affairs, does require a full Social Security Number on file to receive credit. To learn more about Colorado’s Homeless Contribution Tax Credit, visit the state’s website here.
Please note: the State limits the number of credits available to each participating organization each calendar year. Consult with your professional tax adviser to be sure the HCTC program will be of benefit to your specific tax situation.
Have questions? Need to make changes? Contact Us
Looking for Enterprise Zone Tax Credit Information for your 2022 Tax Preparation?
How HCTC Donations Work
Homeless Contribution Tax Credits allow a dollar-for-dollar reduction in state taxes owed by an amount equal to 25% of cash donations to Denver Rescue Mission of $250 or more.
1. Give a Gift of $250 or more.
Monetary donations of $250 or more qualify for HCTC.
(Certain limitations apply. Learn more here.)
2. Tell us you want HCTC tax credit.
You must indicate your desire for Homeless Contribution Tax Credit. For example, write “HCTC” on the memo line of your check. Or, when donating online, write “HCTC” in the donor comments section.
You also must call us at 303.313.2422 to provide one of the following:
- Federal Employer Tax Identification Number (FEIN)
- Or your FULL Social Security Number (this is a State requirement for the HCTC program).
Please do not include your SSN in a comment on an online gift, within an email or within a voicemail message. Instead, please call us at 303.313.2422 anytime between 9 AM and 5 PM, Monday through Friday, to provide your information securely by phone.
3. Receive your gift receipt and tax credit certificate.
First, within 7-14 days you will receive a tax receipt in the mail from the Mission. This is separate from the HCTC tax credit certificate.
Then, based on current processing guidelines set by the State, HCTC certificates will be mailed out on a rolling basis, and could take 6-8 weeks (or longer during busy periods*) from the time the Mission receives a qualified gift and full SSN from the donor. This timeline is subject to change. Electronic versions of tax credit certificates are currently not available in the new HCTC program.
You must file your tax return electronically with the Colorado Department of Revenue.
*Please expect a delay in receiving your tax credit certificate from the State of Colorado due to the change in processing.
HCTC Limitations
According to the Colorado Department of Local Affairs (DOLA), the State entity that manages the new Homeless Contribution Tax Credit Program, donations made through workplace giving programs facilitated by third-party organizations like Benevity and other intermediary or “pass-through” organizations such as a Donor Advised Fund, Mile High United Way, Colorado Gives Foundation (Colorado Gives Day) will not be eligible for the 25% HCTC tax credit. Gifts made directly by your employer or handled through a payment processor or donation software platform to Denver Rescue Mission on your behalf would still qualify.
Please reference the State’s FAQ document and other resources below for more details. Additionally, check with your employer to verify your workplace giving process prior to making a donation to ensure a gift qualifies.
HCTC Resources
For your convenience, we’ve gathered several HCTC resources here that can help you learn more about the program and how it may apply to your donations.
Donate Stock
A donation of stocks, mutual funds or securities can qualify for HCTC if it is a valuation of more than $5,000 and offers a number of valuable financial benefits:
- No capital gain to be recognized
- Full value of stock is tax deductible
- Stocks, bonds and most mutual funds accepted
Workplace Giving
Gifts that qualify for HCTC may also be eligible for an employer matching gift. Many employers offer matching gift programs up to one full year after you donate or volunteer grants to increase your impact in the community. Find out if your employer offers a matching gift program or volunteer grants today!
Need to Make Changes?
If the information listed on your certificate is incorrect or you are missing a certificate, please contact us at HCTC@DenRescue.org or call 303.313.2422 .
Make Your HCTC Eligible Donation Today!
Any monetary gift of $250 or more qualifies, but tax credit availability is limited. Make your gift today to take advantage of this special tax credit while making a difference in your community.