It Pays to Give Big

A $5,000 contribution to the Discovery Museum can cost you less than $2,500.

The Durango Discovery Museum is one of just 19 Southwest Colorado Enterprise Zone Projects approved as of August 2006.  A taxpayer who makes a contribution to the Museum may claim a Colorado income tax credit equal to 25% of the value of the contribution, up to $100,000 (12.5% for in-kind contributions up to $50,000 in credit). 

Individual Contribution Example:

An individual in the 28% tax bracket who makes a $5,000 contribution to the Discovery Museum could receive a reduction in Federal income taxes of $1,400 and a state credit of $1,250, so that your net out-of-pocket would be $2,350.

Business Contribution Example:

A business pledges $20,000 to the Discovery Museum over a four-year period. For each year, the business contributes $5,000. The shareholders in a 28% bracket could receive a reduction in Federal income taxes of $1,400 and a State credit of $1,250, so that the net out-of-pocket would be $2,350.

Other Benefits to Your Business:

If, on the advice of the business’s accountant, the business treats your contribution to the Discovery Museum as a promotion expense, the contribution can reduce the shareholder’s income. This can reduce the effects of the alternative minimum tax and phase-out deduction rules.

Please consult with your CPA for more details and the best way for you or your company to take advantage of the Discovery Museum’s Enterprise Zone status.

Enterprise Zone Credits

All About E-Zone Tax Credits

The Durango Discovery Museum is designated by the State of Colorado as an Enterprise Zone project. That means your cash and in-kind contribution might qualify for substantial income tax credits.

Through the last day of 2011, your annual cumulative cash or non-cash/in-kind contributions to the museum of $500 or more might qualify for a special Colorado State Enterprise Zone tax credit. (In 2010 the contribution minimum was $250. Submission deadline for 2010 has expired.)

Your cash donations may entitle you to a 25% state tax credit; in-kind donations (services, labor, goods, stocks and bonds, etc.) may entitle you to a 12.5% state tax credit. 

We hope you can make the most of this special incentive for supporting the museum and its mission in 2011 and beyond.