SB 24-016

Senate Bill 24-016 in Colorado allows taxpayers to claim state income tax credits for charitable donations made through a qualified intermediary, which is a charity that collects and forwards contributions to other charities. This bill also updates the homeless contribution tax credit by using a unique certificate number instead of full social security numbers or employer identification numbers for privacy reasons. The bill has been signed into law and will take effect on August 7, 2024. Additionally, it allocates funds for the implementation of these changes.

Official Summary

A qualified intermediary is a charitable organization that collects charitable contributions from donors and forwards the contributions to charitable recipient organizations. The act authorizes a taxpayer to make a charitable contribution for which the taxpayer may claim a state income tax credit to a charitable recipient organization through a qualified intermediary that forwards the contribution to the charitable recipient organization, rather than making the contribution directly to the charitable recipient organization, without losing the right to claim the credit. For the Colorado homeless contribution tax credit, the act requires a tax credit certificate to include a unique certificate identification number and the last 4 digits, rather than all digits, of the taxpayer's social security number or the taxpayer's full federal employer identification number. For the 2024-25 state fiscal year, $41,769 is appropriated from the general fund to the department of revenue and $5,000 is appropriated from the general fund to the department of local affairs for implementation of the act. APPROVED by Governor June 7, 2024 EFFECTIVE August 7, 2024(Note: This summary applies to this bill as enacted.)

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