County residents can give to nonprofits, get a tax break

If you’re looking for a way to help your community and get a tax break doing it, contributing to an El Paso County Enterprise Zone project will accomplish both.

The enterprise zone program is part of a statewide initiative to encourage Colorado taxpayers to make contributions to nonprofit entities that support and work toward creating a stronger local economy.

Although the enterprise zone program has been around since 1990, only recently have contributions begun to soar.

In the past four years, local residents have donated more than $15 million to 39 enterprise zone projects through the El Paso County program, and almost half of that was made last year — $6.7 million.

In addition to cash, donations of materials, land or stock topped $3 million last year.

The surge in donations last year was the result of more projects being added to the county’s program and also fundraising drives by some nonprofits, said DeAnne McCann of the county’s Economic Development Office, which oversees the program. When the program started, it included only nonprofit organizations related to economic development. Now it includes nonprofits that benefit the community with social, business, cultural or health assistance programs.

The number of projects eligible for enterprise zone benefits has more than tripled since 2003, McCann said, leading to the increase in donations.

Projects include the Colorado Springs Technology Incubator, Peak Vista Community Health Center, Colorado College Cornerstone Arts Center, Venetucci Farm Project, Springs Rescue Mission and Marian House Soup Kitchen. A list of projects is at www.elpasoco. com/ed.

So where does the tax break come in? Cash donations are eligible for a 25 percent credit on state income taxes in addition to being deductible as a charitable contribution. Contributions other than cash get a 12.5 percent state tax credit. The maximum credit is $100,000 and the minimum donation to a project is $250, with many having a $500 minimum.

To receive the credit, write a check payable to the El Paso County Enterprise Zone with a notation on what project is to receive the money and give it to the eligible nonprofit. The project administrator will certify the donation and file it with the county, which then mails the money to the organization and you a copy of the certification form to file with your state taxes as proof.

The enterprise zone credit is a way to give with an extra tax savings bonus that gives back to the donor.

Contact the writer: dan.serra@gazette.com