Community Investment Tax Credit (CITC) promotes partnerships between
businesses and nonprofit organizations by allocating $1 million in
Maryland tax credits to support projects serving communities in
Priority Funding Areas.
supports initiatives to revitalize older communities throughout the
State through projects such as
Community services, including child care and recreational services;
Redevelopment assistance, supporting physical improvements to
Employment training and job placement services for individuals of
Education and literacy training; and
Community crime prevention.
CITC complements other State programs which offer resources to assist
communities in their revitalization efforts.
How the Community Investment Tax
Credit Program Works:
- Tax credits are awarded annually by
the Maryland Department of Housing and Community Development on a
competitive basis to nonprofit organizations that sponsor community
activities in Priority Funding Areas.
- Nonprofit organizations must have
IRS 501(c)(3) status to be eligible.
- Nonprofit organizations market the
tax credits to Maryland businesses in exchange for contributions of
cash or goods to support the nonprofits' approved projects. Maryland
businesses may claim a State tax credit equal to 50 percent of their
contributions. This credit is in addition to deductions for
charitable contributions, which they may claim on their federal and
State tax returns.
- Approximately 200 nonprofit projects
have been awarded tax credit allocations since the program was
authorized in 1996. The applicant organizations competed for the
allocations of credits, and those who were successful were able to
demonstrate that their proposed projects were well conceived,
consistent with public purpose, and needed in the target areas they
served. They also were selected based on organizational capacity to
carry out the projects and successfully market the tax credits.
- Annually DHCD awards tax credits to
projects described in applications which are submitted in early
fall. Prospective applicants should monitor the DHCD web site for
information about the date for pre-application training and the
deadline for application submission.
Advantages of the Community
Investment Tax Credit Program:
- CITC tax credits of $1 million
generate $2 million in private contributions to support worthy
projects in priority funding areas (PFAs).
- As noted above, any Maryland
business may claim the tax credits in addition to State and Federal
deductions for charitable contributions. Based on the income and tax
structure of the business, the net cost of a contribution may be
less than 27 cents for each dollar contributed.
- CITC promotes and strengthens
public-private partnerships essential to community revitalization.
Experience in other states with similar programs demonstrates that,
as a result of the tax credit, businesses establish long-term
partnerships with nonprofits to revitalize neighborhoods.
For More Information About the Program:
Call 410-514-7280, 1-800-756-0119 x7280, email
Maryland Department of Housing and Community Development
Division of Neighborhood Revitalization
Community Investment Tax Credit
100 Community Place
Crownsville, MD 21032