1 First Regular Session

2 Seventy-first General Assembly
3 STATE OF COLORADO
4 PROPOSED
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8 A BILL FOR AN ACT
9 CONCERNING A NON-REFUNDABLE UNIVERSAL CHARITABLE CREDIT AGAINST STATE
10 INCOME TAX LIABILITY, AND IN CONNECTION THEREWITH, ENACTING THE
11 “COLORADO UNIVERSAL CHARITABLE CREDIT”.

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13 Bill Summary

14 (Note: This summary applies to this bill as introduced and does not reflect any
15 amendments that may be subsequently adopted. If this bill passes third reading in the
16 house of introduction, a bill summary that applies to the reengrossed version of this bill
17 will be available at http://leg.colorado.gov.)

18 The general assembly recognizes that nonprofits provide vital public services to Coloradans, and
19 a charitable tax credit should be instituted so taxpayers can direct a portion of their tax dollars
20 to those vital services.
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23 Be it enacted by the General Assembly of the State of Colorado:

24 SECTION 1. Short title. The short title of this act is the “Colorado Universal Charitable Credit”.

25 SECTION 2. In Colorado Revised Statutes, Title 39, Article 22, add part 48 as follows:

26 “39-22-4801. Short title

27 The short title of this act is the “Colorado Universal Charitable Credit”.

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1 39-22-4802. Legislative declaration

2 The general assembly declares that the purpose of the Colorado Universal Charitable
3 Credit established in accordance with section 39-22-48 is to permit taxpayers to direct a
4 portion of their state income tax liability to “qualified charitable organizations”
5 designated exempt from federal income taxation under section 501(c)(3) in the Internal
6 Revenue Code resulting in significant financial and civic benefits for our state.

7 39-22-4803. Definitions

8 As used in this part 48, unless the context otherwise requires:

9 "Qualified charitable organizations" means charitable organizations that are:

10 (1) exempt from federal income taxation under section 501(c)(3) of the internal
11 revenue code, incorporated in the State of Colorado, in good standing with the Colorado
12 Department of Revenue, and

13 (2) not under suspension per section 501(p) of the internal revenue code, or revocation
14 per the Internal Revenue Bulletin at the time of the contribution.

15 39-22-4804. Colorado Universal Charitable Credit

16 (1) A credit is allowed against the taxes imposed by this title for voluntary cash
17 contributions by the taxpayer or on the taxpayer's behalf during the taxable year to
18 qualified charitable organizations not to exceed:

19 a. Five hundred dollars in any taxable year for a taxpayer who files as: single
20 individual, head of household or married filing separately.

21 b. One thousand dollars in any taxable year for a married couple filing a joint return.

22 (2) The credit allowed by this section is in lieu of a deduction pursuant to section 170 of
23 the internal revenue code and taken for state tax purposes.

24 (3) Taxpayers taking a credit authorized by this section shall provide the names of the
25 qualified charitable organizations and the amount of the contributions to the

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1 department of revenue on forms provided by the department.

2 (4) The department of revenue shall compile and make available to the public a list of
3 qualified charitable organizations.

4 (5) Taxpayers choosing to make voluntary cash contributions through an umbrella
5 charitable organization that collects donations on behalf of member charities shall
6 designate that the donations be directed only to member charitable organizations that
7 would qualify under this section on a stand-alone basis.

8 (6) Carryover.

9 (a) The allowable credit shall be applied against the qualified tax liability for the
10 year in which it is claimed, but shall not exceed the total liability of the taxpayer
11 for that year.

12 (b) A credit granted under this article shall not be carried back or refunded.

13 (7) Notwithstanding any other provision of law, the department of revenue shall settle,
14 assess or determine the tax of an applicant under this subsection within 90 days of the
15 filing of all required final returns or reports in accordance with the Colorado Revised
16 Statutes.

17 (8) Retroactivity.

18 This act applies retroactively to taxable years beginning from and after December 31,
19 2016.
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