Using the community investment tax credit
You are used to getting a federal charitable deduction, how about adding a 50-percent tax refund on top of that?
If you would like to reduce or eliminate your state tax obligation, or even receive a refund, check out the Community Investment Tax Rebate.
The Massachusetts Community Investment Tax Credit (CITC) provides a 50-percent refundable tax credit to donations to selected Community Development Corporations (CDCs). This program is designed to improve the quality of life and promote economic opportunity in neighborhoods across the commonwealth by driving new and increased donations into high-performing CDCs.
In 2014, more than 1,000 Bay State individuals, businesses and nonprofits paid less in taxes by taking advantage of the CITC. This program is a way to decrease tax liability while investing in organizations that have a proven track record for strengthening communities like Union Hill Oak Hill Community Development Corp. in Worcester.
Signed into law in 2012 as part of a larger economic development bill, the CITC was designed to support high-impact, community-led economic development initiatives across the commonwealth. In 2014 alone, the CITC garnered 1,100 donations generating $4.8 million for 38 participating organizations serving 145 cities and towns in Massachusetts.
Here's how it works:
Through their donations, individuals, businesses and nonprofits can invest in their local CDC's business plan, providing flexible working capital that can be used to seed new programs, fill funding gaps and leverage other resources.
• Donors include individuals, corporations, nonprofits and donor advised funds. Donors do not need to be a Massachusetts resident or entity to participate.
• Banks can invest in CDCs using CITCs to help meet their Community Reinvestment Act (CRA) requirements.
• Nonprofit hospitals can use the CITC program to invest in local CDCs that are working to improve public health. By strengthening CDCs with their support, nonprofit hospitals can also work to improve their compliance with the Affordable Care Act.
This program isn't just for individuals. Corporations, foundations and donor-advised funds can receive the same 50-percent donation tax credit. Even if an organization doesn't have a tax liability, it can claim a refund from the commonwealth. A local bank can use the CITC to help improve its Community Reinvestment Act rating because CDCs invest in the community. CDCs improve the health of residents in their communities by providing safe housing and improved neighborhoods, so this program is also a great option for nonprofit hospitals and health insurance companies.
Mullen Sawyer is the president and CEO of the Oak Hill Community Development Corp. For more information, contact Oak Hill CDC at 508-754-2858 or www.oakhillcdc.org.
WBJ Web Partners
Most Recent
Most Recent
0 Comments