Community Investment Tax Credits: Time Is Running Out for 2014!

Donors may contribute to individual CDCs, or they may contribute to the United Way Community Partnership fund, which was established by the Department of Housing and Community Development to raise and distribute funds to all eligible CDCs across the Commonwealth.  More information about the CITC tax credit is available by emailing sdickason@supportunitedway.org or MACDC at johnf@macdc.org.

Less than 8 weeks remain for donors to claim the new Community Investment Tax Credits for the 2014 tax year and support the work of Community Development Corporations across the Commonwealth.  The Community Investment Tax Credit Program (CITC), which went into effect earlier this year, is a new program designed to help improve the quality of life and economic opportunity for families and neighborhoods across the Commonwealth.

The Community Investment Tax Credit offers individuals, corporations and nonprofit institutions the opportunity to obtain a 50% Massachusetts state tax credit and up to a 35% standard federal tax deduction (depending on tax bracket) while investing in the economic development of the communities that need help most. That means if someone donates $1,000, for example, they will receive both a $500 credit from the State and a $175 net reduction from their Federal taxes, leaving just $325 in out-of-pocket cost for the donor.

From now until the end of 2014, up to $3 million is available to donors and corporations that want to invest in this innovative economic development strategy and receive a tax credit.  Once the $3 million is used, donors must wait until 2015 to participate in this great opportunity to have a lasting impact on their community.

“Every day, in neighborhoods and cities across the Commonwealth, Community Development Corporations are working hard to spur affordable housing and job creation, incubate small businesses and revitalize neighborhoods,” said Michael K. Durkin, president at United Way of Massachusetts Bay and Merrimack Valley.  “Now, we all have an opportunity to accelerate this work and the benefits to us all – and receive a 50% tax credit in return.”

“Over the past ten years alone, CDCs across the Commonwealth have invested $2.9 billion in our economy, created or preserved over 24,000 job opportunities and supported over 325,000 individuals and families,” said Joe Kriesberg, President of the Massachusetts Association for Community Development Corporations.  “These impressive results help drive our economy forward for everyone.”

The CITC program utilizes the tax credit incentive to leverage private contributions to seed innovation and amplify community impact. Tax credits can be used for affordable housing, job training, business development, neighborhood revitalization and other vital economic development projects.

The donations, and tax credits, will support only CDCs that are based in Massachusetts, have been carefully selected for participation in this program, and are creating programs and economic development that benefit Massachusetts residents. Thirty-six CDCs from across the state are eligible. For example:

• In East Boston, Neighborhood of Affordable Housing (NOAH) will work to construct over 50 new low-to-moderate income housing units, advocate for increased green space to expand sports and recreational programs to low-income children and youth, and provide affordable housing counseling and placement.
• In Waltham, WATCH will organize home weatherization projects to help low-income residents save on their utility bills, expand its English as a Second Language (ESL) programs and teach first-time home buyer classes.
• In Lawrence, Lawrence CommunityWorks (LCW) will pursue and bolster strategic partnerships with other key organizations to strengthen the institutional fabric of the City and increase educational attainment and financial resilience for the people of Lawrence through financial education and coaching, ESL and computer classes, career and job readiness training and youth development programming.  LCW is also working to create a vibrant mixed use community in the heart of the City with 71 affordable rental homes, five home ownership properties and 25,000 square feet of new commercial space.

From now until the end of 2014, up to $3 million is available to donors and corporations that want to invest in this innovative economic development strategy and receive a tax credit.  Once the $3 million is used, donors must wait until 2015 to participate in this great opportunity to have a lasting impact on their community.

Donors may contribute to individual CDCs, or they may contribute to the United Way Community Partnership fund, which was established by the Department of Housing and Community Development to raise and distribute funds to all eligible CDCs across the Commonwealth.  More information about the CITC tax credit is available by emailing sdickason@supportunitedway.org or MACDC at johnf@macdc.org.