Colorado taxpayers, who make monetary or in-kind contributions to the Uncompahgre Watershed Partnership (UWP), may receive a Colorado income tax credit of 12.5 or 25 percent of their donations. UWP was approved by the Colorado Economic Development Commission to offer the Colorado Enterprise Zone Contribution Tax Credit in February 2016, because our nonprofit activities support economic activity and job creation in our area as well as events like the Ridgway RiverFest that bring customers and revenue to local businesses. We administer the tax credit with the assistance of Region 10 League for Economic Assistance and Planning.
Tax Credit FAQs
Is a minimum donation required?
Monetary contributions of $100 or more qualify for the 25 percent state income tax credit. In-kind contributions valued at $100 or more qualify for the 12.5 percent state income tax credit.
Is there any limit to the tax credit amount?
The amount of the credit that may be claimed each year by a taxpayer is capped by the state at $100,000.
How is this different than a charitable tax deduction?
Unlike charitable contribution deductions, these tax credits benefit the taxpayer by decreasing the donor’s Colorado state income tax liability dollar for dollar. Donations to UWP continue to be tax-deductible for federal and Colorado state income tax purposes to the fullest extent allowed by the law.
What are the required steps for me to claim the tax credit?
- Make a donation to UWP by paying with cash, check, credit card, or online through PayPal, or providing in-kind contributions.
- At the time you make the donation, give UWP your full name, the same address and phone number used on your tax return, and your Colorado Account Number or the last four digits of your Social Security Number or Federal Employer Tax Identification Number. (This information is only shared with Region 10 and the state.)
- UWP will mail you a Form DR0075 Contribution Certificate when the paperwork is processed by Region 10. Retain this form for your tax records!
We recommend donors interested in benefiting from the tax credit consult their tax advisors about necessary forms and their ability to claim the credit.
Where can I find more information about this tax credit?
Go online to the state website to find general information and a calculation form at Enterprise Zone Contribution Credit, and a list of nonprofits approved to administer the credit at EZ Contribution Project List.