Community Investment Tax Credits: Donors Investing Over $1K in CDCs Realize Significant Tax Benefits

AAFCPAs, a leading accounting firm in Massachusetts, released an excellent article on the value of the Community Investment Tax Credit as a way to have a significant philanthropic impact in one's community, while substantially reducing or eliminating one's Massachusetts tax obligation.

Below is an excerpt with a link to the full article.

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The Community Investment Tax Credit (CITC) was established as a way to incentivize Commonwealth residents to invest in community development corporations (CDCs). The CITC program allows taxpayers to realize considerable tax savings when they make a qualified investment (cash contribution) in a CDC’s community development plan. For the individual or corporation who is charitably inclined, they are able to combine their desire to do good with their desire to save on taxes.

DONOR BENEFITS
The CITC is an outstanding tax incentive for both individuals and corporations who are inclined to donate $1,000 or more, with an annual cap of $1 million in credits. Donors are eligible to receive a credit equal to 50% of the total qualified investments for the tax year in which the investment was made. The credit must be taken in the year the qualified investment was made, and any amount in excess of the taxpayer’s tax liability may be either refunded or carried forward to offset future tax liabilities. This credit is available for tax years 2014 – 2019.  READ MORE