Harborlight Community Partners invites you to participate in the MA Community Investment Tax Credit (CITC) program as a donor to maximize the impact you can have on our community programs.
CITC: FORGING NEW PARTNERSHIPS
The Community Investment Tax Credit (CITC) is a Massachusetts tax credit aimed at forging new financial support and partnerships in support of Community Development Corporations (CDCs), such as Harborlight Community Partners. It is the intention of the CITC program to enhance community support of affordable housing. Donors can access CITC credits by making qualifying contributions to Harborlight Community Partners (or other participating CDCs); the donor then receives a 50% state tax credit for their donation along with a (varying) federal tax credit.
YOUR CITC DONATION BENEFIT
Through the CITC program, HCP hopes to boost new partnerships and financial support! Your gift, in tandem with the CITC program, will provide strong leverage, making an even greater impact in the communities where we work and live. Through HCP, your gift will directly impact families and seniors in need through our affordable housing programs and supportive services.
Program incentives for donors include a 50% Massachusetts tax credit refunded to them in their state tax filing.
In addition, donors may receive up to 35% of a federal charitable tax deduction on the entire donation*. Tax situations vary; please consult your tax advisor.
A Tax Savings Example*
|Your Donation to HCP||$10,000|
|CITC 50% Tax Credit||$5,000|
|**35% Federal Tax Deduction||$1,750|
|Total Tax Savings||$6,750|
|ACTUAL OUT OF POCKET EXPENSE||$3,250|
* This is an abbreviated CITC donation example to illustrate the program. More examples can be found at: https://macdc.org/how-it-works. Donations through the CITC program can qualify for the Federal Charitable Tax Deduction on the total donation. Please consult a tax advisor regarding your specific situation to determine the most effective approach and evaluate any impact of credit revenue in future years, as situations vary.
**This assumes a 35% tax bracket. Actual amounts can vary. Again, please consult your tax advisor.
Use this HCP-CITC Tax Credit Calculator to calculate your donation tax savings.
CREATING CARING COMMUNITIES: THE DIRECT IMPACT OF YOUR GIFT TO HCP
HCP is dedicated to securing affordable housing for as many of our neighbors in need as possible, with housing and supportive services that is dignified, well-maintained, and which contributes to neighborhoods characterized by compassion and integrity.
Click here to learn more about our Community Investment Plan goals .
WHO CAN PARTICIPATE?
The Massachusetts CITC 50% tax credit is available to Individuals, corporations and non-profit organizations, regardless of state residency, who make a qualified cash donation.
Out of state donors who are not required to file a return in Massachusetts may still receive the tax credit from the State of Massachusetts in the form of a refund.
Donors who have no tax liability can also utilize this program and receive a refund in the amount of the credit.
A Donor Advised Fund can participle in the CITC program and receive the CITC 50% tax credit refunded to the funds account for future giving.
Banks would qualify for credit under the Commonwealth’s Community Reinvestment Act (CRA).
WHAT IS A CITC QUALIFYING DONATION?
Please note that CITC tax credits are limited and available on a first come, first served basis. To qualify, donations to HCP must:
- Be paid by cash, check or credit card. Gifts of stock or in-kind goods or services to not qualify.
- Be a minimum of $1,000.00.
- Be amounts of $1,000 or more in excess of your previous year contribution for active HCP donors. To maximize the full impact of this great CITC opportunity, we encourage doubling the amount of your previous annual gift.
- Be received by HCP by the last calendar day of the program year. Qualified donations are claimed in the tax reporting year for which the donation is received by HCP.
Additionally, gifts may be cumulative! If you have already made a donation in the calendar year, you may make another donation to participate and take full advantage of this tax credit program.
Multi-year pledges are allowed and would show your commitment and support of HCP. However, please note the tax credit must be claimed in the year the cash is received by HCP, up to the total tax credits available.
No goods and/or services will be received in exchange for a qualifying donation, unless the value of the goods or services is disclosed with an insubstantial good faith estimated fair market value of $102.00 or less.
HOW DOES THE CITC ALLOCATION PROCESS WORK?
The process has been made easier with an online CITC Form and HCP will provide assistance along the way.
- Donors make qualifying cash donation to Harborlight Community Partners.
- Form CITC Part 1 is completed online by Donor.
- HCP completes Part II of the online form and submits completed form with any required supporting documentation on behalf of the Donor, to the Massachusetts Department of Housing and Community Development (DHCD).
- DHCD processes the completed Form CITC and then issues to the Donor a tax credit certification number
- Donor files with MA DOR for either a credit or a refund.
If you have questions regarding the CITC program, please contact Deanna at firstname.lastname@example.org or 978-922-1305 x 200.
CITC in The News:
Boston Business Journal:
CITC Source References:
Massachusetts Department of Revenue:
The Official Website of the Commonwealth of Massachusetts:
Massachusetts Association of Community Development Corporations:
Great Benefits to Donors, Even Better for Our Communities!