HB18-1013 Summary

• Creates the "Nonprofit Sustainability Act of 2018" to provide a 25% income tax credit for individual contributions to eligible endowment funds held by Colorado charitable organizations (501(c)(3) entities) for tax years 2019-2021.

• Maximum credit per individual per tax year is $5,000; unused credits are not refunded and cannot be carried forward to future years.

• Charitable organizations must issue credit certificates to donors, who must file the certificates with their tax returns; credit cannot be claimed if taxpayer claims any other state tax credit for the same contribution.

• Department of Revenue must track all credits claimed and disallow subsequent claims once total credits reach $12 million per tax year; credits are allowed in the order claimed by taxpayers until the cap is reached.

• Section automatically repeals on December 31, 2025; Act takes effect 90 days after final adjournment of the general assembly, subject to voter approval if a referendum petition is filed.