Media Contact:
Shannon Gray | shannon.gray@state.co.us | (970)-505-7937
The Colorado Department of Local Affairs (DOLA) highlights the Colorado Homeless Contribution Income Tax Credit (HCTC) as a powerful tool to support homelessness prevention and response efforts throughout the state. Established by House Bill 2022-1083, the HCTC provides a state income tax credit to Colorado taxpayers who contribute to eligible homelessness-related projects. Taxpayers making certified contributions can claim 25% of their monetary or in-kind donation as a state income tax credit for qualified projects in non-rural communities, or 30% for projects located in rural communities.
By incentivizing donations to nonprofits, the HCTC strengthens programs that address homelessness and housing insecurity, helping meet critical community needs across Colorado.
The impact of the HCTC has already been seen in 2023, with nonprofits reporting significant growth in contributions:
- “Seven Open Door Ministries programs qualify for HCTC donations, and we recently compared revenue received to support those programs between 2022 (before HCTC) and 2023. We found that giving to fund these seven qualifying programs increased by 82% in 2023 compared to the previous year!” – Open Door Ministries
- “The Colorado Homeless Contribution Tax Credit (HCTC) has made a significant impact on Step Denver in 2023. Step donors expressed that HCTC eligibility allowed them to increase their support of our mission. That was exhibited by a 19% increase in total dollars raised for the year and a 20% increase in funds raised during the giving season (November-December). This additional support will aid Step Denver in helping more men overcome the consequences of addiction, exit homelessness, and become contributing, self-sufficient members of their community.” – Step Denver
- “By offering an additional tax benefit to potential donors making significant contributions to our work, HCTC has incentivized deeper investments in our programs, which allows us to adequately fund them to respond to escalating community need. Also, the fee that was previously paid to El Paso County Enterprise Zone was eliminated with HCTC, allowing more of the donors' money to go directly to services.” – Westside CARES
- “It has given further incentive to donors to specifically designate their gifts to our shelter services. Those specified funds help us better serve our community and estimate budgets for running these services.” – The Salvation Army
Colorado Gives Day (December 10), Giving Tuesday (December 3), and year-end charitable giving offer key opportunities to support nonprofit organizations that qualify for the HCTC. Participating organizations including Open Door Ministries, Step Denver, Westside CARES, and the Salvation Army are making measurable impacts across the state. 85 organizations accepting 2024 HCTC contributions have bolstered 114 projects directly fostering stronger communities through a spectrum of housing-focused services, including prevention, street outreach, shelter, and transitions to permanent housing. Over 2,200 donors have already contributed to HCTC projects.
The Division of Housing’s Office of Homeless Initiatives (DOH-OHI) works with local, state, and federal stakeholders to build, promote, and support collaborative approaches to make homelessness rare, brief, and one-time in Colorado. OHI’s vision is to advance solutions that combine affordable housing with accessible services so no one languishes in homelessness. Our mission is to work with community partners to create a robust continuum of efficient and effective solutions that reduce and prevent instances of homelessness and ensure that every Coloradan has a safe place to call home.
More information about the HCTC, including eligibility requirements, is available on DOLA’s Colorado Homeless Contribution Income Tax Credit website.
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