Community Investment Tax Credits
COMMUNITY INVESTMENT TAX CREDITS (CITC)
WHC has received Community Investment Tax Credit s from Maryland Department of Housing. Any individual or business that pays taxes to the state of Maryland can instead write the Women’s Housing Coalition (must be over $500) and 50% of that can be used to reduce your tax liability.
So let’s say you owe the state $1000 in Maryland taxes. You write WHC a check for $2000 and you owe the state nothing. PLUS you also get federal and state deductions for the charitable contribution.
- $2000 - your check to WHC
- $1000 - our CITC tax deduction
- $140 - Maryland charitable deduction
- $780 - Federal Deduction
Businesses and individuals that donate to the WHC can earn tax credits equal to 50% of the value of the money, goods or real property contribution. These tax credits are in addition to the deductions on both Federal and State taxes as a result of the charitable contribution.
Individuals and businesses must use the tax credits against taxes owed for the year in which the contribution was made and may not be used retroactively for taxes from a prior year. Any individual or business contemplating making a donation is encouraged to consult with their accountant or tax professional for information about their specific tax benefits.
ELIGIBLE CONTRIBUTIONS Contributions of money, goods or real property worth $500 or more are eligible for tax credits. Contributions of services or labor are not eligible. Individuals and businesses may claim a maximum of $250,000 in tax credits per year, representing $500,000 in contributions.
Individuals and businesses making donations are required to complete a simple two-page form http://www.neighborhoodrevitalization.org/programs/citc/citc.aspx#Eligible and submit it to the WHC, along with documentation of the value of the contribution. Individuals or businesses that wish to donate real property must contact the Maryland Department of Housing and Community Development’s Community Investment Tax Credit Program for approval prior to making the donation.
ELIGIBLE DONORS Businesses: Any entity that conducts a trade or business in the State and is subject to: the State income tax on individuals or corporations; the public service company franchise tax or the insurance premiums tax. These types of entities generally include corporations, public utility companies, insurance companies, financial institutions, S corporations, partnerships, sole proprietorships and limited liability corporations.
Individuals: An individual is a resident of Maryland if the individual is domiciled in Maryland on the last day of the taxable year or if the individual maintains a place of abode in Maryland for more than six months of the taxable year and is physically present in the State for 183 days or more during the taxable year.
Individuals and businesses that make charitable contributions benefit by:
- Reducing their Maryland tax liability
- Helping a local nonprofit organization achieve an essential community goal
- Making a targeted community impact
- Improving community relations and increasing their visibility