The Community Investment Tax Credit (CITC) provides a 50% tax credit against Commonwealth of Massachusetts tax liability. The CITC program is a refundable tax credit.
Donors will invest in a CDC's Community Investment Plan, providing flexible capital to seed new programs, fill funding gaps and leverage other resources. If the donor does not have sufficient tax liability, the credit is refundable, whereby the Commonwealth will issue a check for the balance of the credit to the donor. The maximum donation each year of the program is $2 million per tax paying entity. The minimum donation each year is $1,000.
WHAT ARE THE BENEFITS?
- Considerable Tax Savings
- Individuals and Corporations can take advantage of tax credit
- Excess tax credit is refundable
|Tax Savings Examples|
|(Illustration - 35% Tax Bracket)|
|Situations vary. Consult your tax advisor.|
|$ 1,000||$ 2,000,000|
|Community Investment Tax Credit||$ 500||$ 1,000,000|
|Federal Tax Deduction (35%)||$ 175||$ 350,000|
|Total Tax Savings||$ 675||$ 1,350,000|
|Final Out-of-Pocket Donation||$ 325||$ 650,000|
HOW TO PARTICIPATE
For information on how CITC applies to SCC, how to invest in Somerville, and how to start receiving tax breaks, please contact Meridith Levy at 617.776.5931, ext. 242 or firstname.lastname@example.org.