CCTC QUALIFIED CHILD CARE PROVIDER EXPENDITURES

THE COLORADO CHILD CARE CONTRIBUTION TAX CREDIT (CCTC) WAS CREATED TO PROMOTE CHILD CARE IN THE STATE.

In order to comply with the expenditure definitions embedded in the authorizing statute, each individual / business contributing funds must be issued a Form DR 1317, Child Care Contribution Tax Credit Certification, which indicates the amount of the contribution received and confirmation n by the child care provider that the funds were spent for authorized purposes.

WHAT DOES THAT MEAN?

  • Only cash contributions made to a qualified child care organization are certified on Form DR 1317
  • Contributed funds must be spent on the following, confirmed on Form DR 1317, and are eligible for the tax credit:
    • Establishment and operations of the child care program
    • Acquisition or improvements of facilities, equipment or services
    • Improvement of the quality of child care
    • Staff training
    • Improvement of staff salaries
    • Grants or a loan program for parents requiring financial assistance for child care
    • Information dissemination program to provide information and referral services to assist parents in obtaining child care

UNLICENSED CHILD CARE PROGRAMS MUST PROVIDE FOR THE CARE OF FIVE OR MORE CHILDREN WHO ARE NOT RELATED TO THE OWNER, OPERATOR OR MANAGER TO RECEIVE AND EXPEND FUNDS THAT QUALIFY FOR THE TAX CREDIT.