Governor Signs Nonprofit Enterprise Zone Bill
On May 3, Gov. John Hickenlooper signed HB 13-1190, sponsored by Rep. Dominick Moreno (D-Commerce City) and Sen. Rollie Heath (D-Boulder).
Currently, a donor can receive a tax credit for contributing to a nonprofit in an Enterprise Zone (EZ) that is certified as a Contribution Project by a local EZ administrator. HB 13-1190 allows donors to give to a Contribution Project through a “nonprofit intermediary” such as a federated giving campaign or a nonprofit giving website (e.g. ColoradoGives.org). The legislation clarifies that donors are still eligible for the tax credit if they give to a Contribution Project via a nonprofit intermediary.
Colorado’s Enterprise Zone program “provides tax incentives to encourage businesses to locate and expand in designated economically distressed areas of the state (high unemployment rate, low per capita income, and/or slower population growth rate).” (Office of Economic Development and International Trade). Click here for more information on Colorado’s Enterprise Zone program.
Donors can contribute to either the EZ administrator or directly to certified EZ Contribution Projects. These Projects help implement the Enterprise Zone’s economic development plan by promoting child care, facilitating employment for homeless persons, and coordinating community development programs. More than 400 entities throughout the state are certified EZ Contribution Projects and most are run by nonprofit organizations.