SB 17-287

Senate Bill 17-287, which has been signed into law, allows Colorado residents to get a tax break for donating money or assets to certain endowment funds. For contributions made between January 1, 2019, and December 31, 2021, individuals can claim an income tax credit worth up to 25% of their donation, with a maximum credit of $25,000 per year. This benefit encourages donations to endowments that follow specific financial management rules but doesn’t allow taxpayers to claim other state credits for the same contribution. The law is now in effect and benefits those who make qualifying donations during the specified period.

Official Summary

For income tax years commencing on or after January 1, 2019, but prior to January 1, 2022, the bill allows an individual taxpayer to claim an income tax credit for a contribution of money, securities, or property to an eligible endowment that is equal to 25% of the contribution. An 'eligible endowment fund' is defined in the bill as an endowment fund that is managed in accordance with the 'Uniform Prudent Management of Institutional Funds Act'. A Colorado charitable organization that receives the credit is required to provide a credit certificate to the taxpayer, who must submit the certificate to the department of revenue along with his or her tax return. The maximum credit an individual may claim for an income tax year is $25,000. Unused credits are not refunded but may be carried forward for up to 5 income tax years. A taxpayer may not claim the credit if he or she claims any other state income tax credit for the same charitable contribution. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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