Colorado Child Care Contribution Credit: Get 50% Back When You Donate

What if you could reduce your Colorado tax bill by half the amount you donate?

Through the Colorado Child Care Contribution Credit, you can. When you make a qualifying donation to Big Brothers Big Sisters of Colorado, you receive a state tax credit equal to 50% of your contribution. That’s not a deduction that reduces your taxable income. It’s a credit that directly reduces your tax bill, dollar-for-dollar.

A $1,000 donation to BBBSC costs you just $500 after the credit. A $10,000 gift costs $5,000. And if you itemize on your federal return, you may qualify for additional savings.

This is one of the most generous charitable tax incentives in the country, and it’s available to any Colorado taxpayer who supports qualifying youth-serving organizations. Here’s how it works and how to claim it.

How the Colorado Child Care Contribution Credit Works

Taxpayers who make a qualifying monetary contribution to promote child care in Colorado may claim an income tax credit equal to 50% of the total qualifying contribution, subject to certain limitations. (Colorado Department of Revenue)

Unlike a tax deduction, which lowers your taxable income, a tax credit reduces your actual tax bill. If you owe $5,000 in Colorado state taxes and claim a $2,000 credit, you now owe $3,000. The savings are direct and immediate.

Key details:

• Credit amount: 50% of your qualifying donation
• Annual cap: The credit may not exceed $100,000 per tax year.
• Carryforward: If the allowable credit exceeds the taxpayer’s net tax liability, the taxpayer can carry forward the excess credit to apply toward the tax due in subsequent tax years. Credits may be carried forward up to five tax years.
• Who qualifies: Both individuals and businesses with Colorado tax liability

This means even if your tax bill is smaller than your credit, you don’t lose the benefit. Unused credits roll forward for up to five years.

Why a Tax Credit Is Better Than a Deduction

Many donors are familiar with charitable deductions. You give $1,000, and if you itemize, that $1,000 reduces your taxable income. Depending on your tax bracket, you might save $220 to $370 in federal taxes.

The Colorado Child Care Contribution Credit works differently and delivers significantly more value.

Example: $1,000 Donation to BBBSC

For donors in lower tax brackets or those who take the standard deduction, the Colorado credit alone cuts your cost in half. For those who itemize, the combined savings can exceed 65% of your donation.

This is why the Child Care Contribution Credit is considered one of the most powerful charitable giving tools in the country.

Does Big Brothers Big Sisters of Colorado Qualify?

Yes. Big Brothers Big Sisters of Colorado is a registered organization eligible to receive contributions that qualify for the Colorado Child Care Contribution Credit.

When you make a qualifying donation to BBBSC, we provide you with Form DR 1317 (Child Care Contribution Tax Credit Certification). Donors must obtain a completed form DR 1317 from the qualifying child care facility or program that received the contribution. Taxpayers claiming the credit must submit a copy of the certificate with their Colorado income tax return claiming the credit. (Colorado Department of Revenue)

We issue these certificates each January for donations made in the prior calendar year. If you donate in 2026, you’ll receive your DR 1317 in January 2027 to use when filing your 2026 taxes.

How to Claim the Credit: Step by Step

Step 1: Make a qualifying monetary donation to BBBSC.

Donations must be made in cash, by check, or by credit card. Stock transfers and in-kind contributions do not qualify for this credit (though they may qualify for other tax benefits).

Step 2: Receive your DR 1317 certificate.

BBBSC will mail your Child Care Contribution Tax Credit Certification (Form DR 1317) in January following your donation year.

Step 3: File your Colorado income tax return with Form DR 0104CR.

When you file, complete the Individual Credit Schedule (Form DR 0104CR) and attach your DR 1317 certificate. When filing electronically, attach this form as a PDF to the electronic return, upload a copy in Revenue Online, or mail it with form DR 1778. (Colorado Department of Revenue)

Step 4: Claim 50% of your donation as a credit.

The credit directly reduces your Colorado tax liability.

For detailed guidance, visit the Colorado Department of Revenue Child Care Contribution Credit page.

The Real Cost of Giving: What Your Donation Actually Costs You

The table below shows how the Colorado Child Care Contribution Credit, combined with potential federal deductions, reduces the true cost of your gift.

*Federal savings assume 22% marginal tax bracket and itemized deductions. Your actual savings depend on your tax situation. Consult a tax advisor for personalized guidance.

For high-income donors, the savings can be even greater. And because unused credits carry forward for five years, even donors with lower current tax liability can benefit over time.

Planning Your 2026 Charitable Giving

If you’re thinking about your charitable giving strategy for 2026, the Child Care Contribution Credit should be part of the conversation. Here’s how to maximize its value:

Give before December 31. Contributions must be made by year-end to qualify for that tax year’s credit.

Consider bunching donations. If you’re planning to give over multiple years, concentrating gifts in a single year can maximize both the Colorado credit and federal itemized deductions.

Use a Qualified Charitable Distribution (QCD). If you’re 70½ or older and have an IRA, you can make a QCD directly to BBBSC. A qualified charitable distribution of cash from an individual retirement account (IRA) to a qualifying child care facility or program is treated as a monetary contribution. Colorado Department of Revenue. This satisfies your required minimum distribution while generating the 50% Colorado credit.

Talk to your tax advisor. The interaction between state credits and federal deductions has nuances. A tax professional can help you structure your giving to maximize its benefits.

What Your Donation Supports

When you give to Big Brothers Big Sisters of Colorado, your donation funds one-to-one mentoring relationships that help young people build confidence, stay engaged in school, and develop a vision for their future.

Your gift helps us:

• Match young people with caring adult mentors
• Provide ongoing training and support for mentoring relationships
• Expand access to community-based and school-based mentoring programs across Colorado
• Advocate for policies that strengthen families and support youth

Research shows the impact is lasting. A 30-year study found that mentored youth earned 15% more in early adulthood, were more likely to attend college, and had lower rates of substance use than peers without mentors.

Your tax-advantaged gift helps make these outcomes possible.

Frequently Asked Questions

Make Your Gift Go Further

The Colorado Child Care Contribution Credit is one of the most powerful tools available for charitable giving in our state. By donating to Big Brothers Big Sisters of Colorado, you reduce your tax bill while investing in young people who need caring adults in their corner.

A $1,000 gift costs you as little as $280 after tax benefits. A $10,000 gift costs under $3,000. And every dollar supports mentoring relationships that change lives.

Ready to make a tax-smart gift?

Donate to Big Brothers Big Sisters of Colorado and request your Child Care Contribution Tax Credit certificate. If you have questions about giving strategies or need assistance, our team is here to help.

Related: Donate | Our Programs | Stories & Impact | Become a Big

Colorado Department of Revenue: Child Care Contribution Credit

Colorado Department of Revenue: DR 1317 Form