By Mike Kehoe, Lisa Steven and Johnna Reeder Kleymeyer

Colorado parents are struggling to find childcare, programs that serve our most vulnerable families are stretched thin, and private philanthropy has never been more critical. Since it was first enacted in 1998, the Child Care Contribution Tax Credit (CCTC) has been reauthorized with bipartisan support because it is one of the smartest tools Colorado has to support childcare. The legislature has the opportunity this session to extend it for 10 more years under HB 26-1004.

The CCTC offers Colorado taxpayers a 50% state tax credit for qualifying donations to childcare programs. It represents the best kind of public-private partnership: incentivizing private investment to maximize the reach of public dollars. Colorado is a national leader in this space, and each year, more than 15,000 Coloradans contribute more than $60 million to more than 6,000 childcare programs using the CCTC. As a 50% credit, the CCTC generates a 100% return on the state’s investment.

Hope House Colorado is one of the many programs that rely on the CCTC to keep its early childhood education program operating. Located in Arvada, Hope House serves 300 teen moms from across the Denver metro area who are working toward their GEDs, stable jobs and better futures for their kids. Every mom served by Hope House qualifies for the Colorado Child Care Assistance Program (CCCAP), and finding CCCAP-eligible spots has always been difficult. With CCCAP enrollment now frozen across much of the state, nearly 10,000 children are left without access. Private philanthropic dollars aren’t just a bonus — they’re what keep programs like Hope House accessible to families.

Alexa is a mother who has felt the stigma that comes with being a teen mom. Before Hope House, all she heard was teen mom meant bad mom, and she and her son were nothing more than a statistic. At Hope House, Alexa has finally found the support she needs to complete her education and grow into a career, which wouldn’t be possible without the Hope House Early Learning Center.  She loves how her kids are treated and has learned how to teach her children by watching it modeled for her. She was raised to fear mistakes, but now she knows missteps can be managed. If her son spills milk, she can hand him a napkin, teaching him how to handle a small mistake so he can face bigger ones as he grows. 

Hope House champion, Dana Jensen puts it plainly: “The CCTC allows me to give at this level to partner with Hope House in supporting our teen moms, who are often trying — against all odds — to build a stable future and break the cycle of poverty for two generations.” Dana gives annually to support Hope House Early Learning Center, and the CCTC allows his generosity to go further.

For business leaders, this isn’t just charity; it’s smart economics. Colorado employers lose an estimated $780 million a year in productivity because of the childcare shortage. Sixty-two percent of businesses report childcare is a factor in employee turnover. When parents can’t find care, they can’t go to work, and Colorado businesses feel it. Investing in childcare capacity isn’t philanthropy for its own sake — it’s an investment in the people who show up every day to do the work that keeps our economy moving.

The CCTC incentivizes private investment at a scale that can move the needle: strengthening capital campaigns, helping providers retain qualified teachers, keeping care more affordable for families and ensuring programs can keep their doors open. These private investments are even more important when public funding is frozen or uncertain.

This credit has worked for more than two decades. It is a proven, cost-effective model for how government and private funding can work together to address Colorado’s childcare shortage and make sure it’s a great place to start a business and raise a family. Extending the CCTC is a straightforward investment in Colorado’s families, businesses and long-term economic strength.

Mike Kehoe is vice president of finance at PCL Construction Enterprises and chairman of the Board for EPIC. Lisa Steven is founder and executive director at Hope House Colorado and an executive member of Executives Partnering to Invest in Children (EPIC). Johnna Reeder Kleymeyer is president and chief executive of the Colorado Springs Chamber & EDC.