Tax Credit Program Will Provide up to $3M for Donors to CDCs
November 11, 2014 Foundations and other nonprofits that want to invest in Community Development Corporations in Massachusetts have until the end of the year to do so and, under a new program, claim a state tax credit equal to half of their donation.
The Community Investment Tax Credit Program, which went into effect earlier this year, designed to help improve the quality of life and economic opportunity for families and neighborhoods across Massachusetts, is making up to $3 million available to nonprofits, individuals, and corporations who invest in Community Development Corporations (CDCs).
In addition to the 50% Massachusetts state tax credit, donors can claim the donation as a charitable deduction on federal taxes.
Nonprofits that dont pay state taxes, instead of receiving a tax credit, will receive a check equal to 50% of their donation to a CDC, explained Patricia Latimore, chief financial officer of United Way of Massachusetts Bay and Merrimack Valley
, which operates the United Way Community Partnership fund, established to raise and distribute funds to all eligible CDCs.
Investors can invest directly in a CDC or via the United Way Community Partnership fund, which will distribute funds across the 36 CDCs participating in the program.
The current program runs until Dec. 31. Tax credits can be used for affordable housing, job training, business development, neighborhood revitalization, and other vital economic development projects.
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.