The Enterprise Zone Tax Credit
Get a tax break through your gift to COMPA Ministries using the Colorado Enterprise Zone Tax Credit. COMPA is a certified Enterprise Zone charity, which means 25% of your gift amount (of $500 or more) may be claimed as a tax credit, up to a maximum of $100,000. It’s a great way to increase the level of your gift without increasing the cost of your gift.
An example of the EZ Tax Credit is illustrated below and assumes an individual with a $100,000 taxable income, is in the 33% federal tax bracket and 4.6% Colorado tax bracket and itemizes his/her deductions.
|
Donation
|
$10,000
|
| CO Income tax deduction @ 4.6% |
$460
|
| Enterprise Zone tax credit @ 25% |
$2,500
|
| Federal tax burden @33% |
$3,300
|
| Reduced Federal and State tax liabilities |
$6,260
|
| After tax cost of donation |
$3,740
|
|
Percentage of tax dollars to donate
|
37%
|
Under the EZ Tax Credit, you get a decrease in the net out-of-pocket cash cost of your donation through potential federal and state pre-tax deductions and a state tax credit to offset any state tax liability, dollar-for-dollar. For any given year, the credit is limited to the taxpayer’s liability. Any excess credit may be carried forward for a period of up to five years. The $100,000 credit limit can be generated each year whether or not there is any carryover from prior years.
Please consult your tax advisor about the EZ Tax Credit to ensure it is right for you.