Colorado Homeless Contribution Income Tax Credit

This new tax credit replaces a portion of an existing income tax credit available to taxpayers who make contributions to Enterprise Zone Administrators in Enterprise Zones to promote homelessness related projects to persons experiencing homelessness. This is a new Homeless Contribution Tax Credit that is available in the entire state for a broader range of homelessness response related activities. 

The Homeless Contribution Income Tax Credit is administered by the Division of Housing in the Department of Local Affairs. A taxpayer may claim the Homeless Contribution Income Tax Credit when permissible contributions are made to an approved organization that has at least one qualifying activity.  

The amount of the Homeless Contribution Income Tax Credit is 25% for each contribution made to nonprofit organizations based in urban areas, and 30% for contributions made in an underserved, rural county. 

The Homeless Contribution Income Tax Credit is capped at $750,000 for the value of tax credits that may be issued per income tax year by a nonprofit organization for one approved project that includes either (1) approved, qualifying services, or (2) an approved, qualifying capital campaign. There is an additional $750,000 cap for contributions toward all additional approved, qualifying projects. Individual taxpayers may receive up to $100,000 in credit per year. The Homeless Contribution Income Tax Credit's availability is limited to four years, and any credit in excess of a taxpayer's liability for the income tax year for which the credit is claimed may be carried forward for up to five years.

View the HCTC Annual Review for Tax Year 2023.

Program Resources

• Frequently Asked Questions
• HCTC Nonprofit Handbook
• Senate Bill 24-016 Memo
• Senate Bill 24-016 Video Training

Donor Communication Resources

• Donor Communication Guide
• Donor-Submitted Contribution Letter Guide Template
• Taxpayer Handbook

Salesforce Resources

• Nonprofit Salesforce User Guide
• Nonprofit Multifactor Authentication Login User Guide
• Salesforce Training Recording
• Formatting and Style Guide
• Taxpayer Salesforce User Guide
• Donor Contribution Page – Video Demo

Both new and existing entities may qualify for the credit. 

Nonprofit organizations need to be legal under both state and federal law and in good standing. 

Want to learn more? Watch the September 12th HCTC Information Session Recording.

Eligibility Verification 

• Submit eligibility verification form by registering on the HCTC Salesforce platform.
  • For security purposes, you will need to download the Salesforce Authenticator app in order to register and log in. See our step-by-step Multi-factor Authentication Guide for setting up this app. 
• Resources for submission: 
  • Salesforce User Guide for Eligibility Verification
  • Eligibility Verification Checklist
  • Board of Directors Support Letter - Guide and Template

Eligible Taxpayer Contributors

Any Colorado taxpayer can support a Homeless Contribution Income Tax Credit project located anywhere in the State of Colorado. A taxpayer is an individual resident or an eligible domestic or foreign corporation, a partnership, S corporation, or other similar pass-through entity, and a partner, member, and subchapter S shareholder of such a pass-through entity. 

The taxpayer cannot directly benefit from the contribution. Cash contributions must be a minimum of $100. The total value of tax credits allowed per taxpayer per year may not exceed $100,000.

HCTC Taxpayer Handbook