The Patrick Administration has awarded $3 million of state tax credits to community development corporations throughout the commonwealth to boost local economic development initiatives. The tax credits are given to nonprofits who promote housing and economic development at the local and regional level. It is now up to the nonprofits to undertake private fundraising and then make the tax credits available to taxpayers. When a donor makes a gift to the CDC, he or she will get a state tax credit equal to fifty percent of the donation. The remainder of the donation can be taken as a charitable deduction on his or her federal tax return. It is a great opportunity for donors to (a) make a high impact on their community and (b) get a tax break half of which offsets (dollar for dollar) their state income. Unlike the Low Income Housing Tax Credit Program, which has been a great success in developing housing for low and moderate income homebuyers but requires significant up-front investment, the state CITC program has a low cost of entry and is more accessible to individuals who want to make a difference in their community.
The list of organizations receiving the tax credits can be found at http://www.mass.gov/hed/economic/eohed/dhcd/3m-community-investment-tax-credits.html. For more information on the tax credit, check out this link: http://macdc.org/community-investment-tax-credit
The Massachusetts Association of Community Development Corporations is hosting several events for tax professionals and others interested in learning more about the CITC program. An informational session will be held on April 2 at 12 noon at the Clarion Hotel and Conference Center in Northampton, Massachusetts and a second session will be held on April 17 from 7:30 to 9:00 am. at the Boston College Club. For more information, contact John Fitterer at the Massachusetts Association of CDCs, <email@example.com>.