TITLE: CONCERNING THE CONTINUATION OF THE CREDIT AGAINST STATE INCOME TAXES FOR CONTRIBUTIONS MADE FOR PURPOSES OF PROMOTING EMPLOYMENT FOR HOMELESS PERSONS.

Under current law, any taxpayer who makes a monetary or in-kind contribution for the purpose of implementing the economic development plan for an enterprise zone to persons or agencies designated as the enterprise zone administrator by the Department of Local Affairs is authorized a tax credit equal to 50 percent of the total value of the certified contribution. The value of the credit may not exceed $100,000 or the total amount of the income tax imposed in the year in which the credit is claimed. Monetary or in-kind contributions to promote temporary, emergency, or transitional housing programs for the homeless that meet certain criteria qualify for the tax credit.

• donating money, real estate, or property for the establishment of temporary, emergency, or transitional housing for the homeless to include child care and job placement services;

• donating money to establish grant or loan programs for homeless individuals;

• pooling of moneys of several businesses for programs that provide referrals;

• donating money for the training of homeless individuals to obtain employment; and

• donating money, services, or equipment for the establishment of an information dissemination program to provide information and referral services to assist a homeless individual in obtaining temporary, emergency, or transitional housing, child care, or employment.

The tax credit for qualified tax contributions to these programs is scheduled to be repealed, effective July 1, 1998. This bill would eliminate the repeal date, thereby continuing the tax credit indefinitely.

Data provided to the Department of Revenue by the Department of Local Affairs identifies the value of donations to homeless services in enterprise zones during the past four years. The value of the credit is equal to 50 percent of the value of the certified contribution.

FY 1993-94	FY 1994-95	FY 1995-96	FY 1996-97
$328,860	$279,770	$1,229,495	$1,793,998

A survey of 24 of the state’s 37 homeless agencies that provide homeless services within the boundaries of enterprise zones was conducted by the Colorado Coalition for the Homeless. The survey reports a total of 1,481 pledges in the amount of $11,520,265 during the course of the next four years to the 24 homeless agencies surveyed.

Since this bill is viewed as authorizing the continuation of an existing tax credit, the bill is assessed as having no fiscal impact. The bill would become effective upon signature of the Governor.