Boulder Institute for Psychotherapy and Research

Colorado State Child Care Tax Credit:

Donors Benefit from 50% Income Tax Credit

Your donation to the Boulder Institute of Psychotherapy and
Research will help us launch the Therapeutic
Preschool.   The Preschool’s mission is to provide early intervention
for emotionally troubled children (ages 2.5 to 6 years old) in a
supportive, therapeutic preschool environment.

The Colorado Child Care Contribution Credit was established to stimulate greater
private support of Colorado child care programs.  Any individual or business that
makes a monetary donation to support child care can take a 50% tax credit on
their state tax bill. Coupled with the federal tax deduction for charitable contributions, this credit will allow donors to substantially reduce overall tax bills.

CO Child Care Contribution Credit is available for contributions made through December 31, 2009.

Tax Saving Example*

Federal Income Tax Bracket

33%

2009 Donation to BIPR

$      1,000

2009 Tax Savings

Colorado Child Care Credit (50%)

$       (500)

Colorado Charitable Deduction (4.6%)

$        (46)

Total 2009 STATE TAX SAVINGS

$       (546)

Federal Charitable Deduction

$       (330)

$       (876)

2010 Tax Increase

**Federal Tax Add Back

$       (180)

(**Based on $546 CO tax return, 33%)

Net Tax Savings Over Two Years:

$        696

Actual Net Cost of $1000 Donation

$        304

*   Illustration only – please consult with your tax advisor regarding your specific
situation.

**  A reduction in 2007 state income taxes means that on 2008 federal returns
there will be a reduction in deductions for state taxes paid in 2009.

Guidelines for Donations:

• Boulder Institute of Psychotherapy and Research (BIPR) will provide each
  donor with a statement (Form DR 1317) confirming the amount of the monetary contribution eligible for the credit and the purpose for which contribution will be used.
• For more information, please call Mary Rozaklis, Executive Director, at 303-442-4562.
• The maximum credit you may take in one year is $100,000 or your actual Colorado income tax liability for the year, whichever is less.  Any unused credit may be carried forward for up to five additional tax years.
• Only monetary donations are eligible.  In-kind gifts, such as stock or other securities, labor, or equipment do not qualify.
• Contributions for which an Enterprise Zone Credit is taken are not eligible.