Community Investment Tax Credit (CITC)
More than a Gift: Good for You, Great for Our Communities
$500 Back for Every $1,000 You Invest in HCP
Since 2015, HCP has raised over $800,000 in CITC-related Philanthropy, directly impacting our neighbors in need and the quality of our communities.
What is CITC?
Community Investment Tax Credit, or CITC, program is a MA state program created to incentivize giving and maximize donations made to organizations like HCP (“Community Development Corporations”, or CDCs). Since its 2012 inception in MA, the CITC program has grown stronger each year. As of 2017, CITC giving has resulted in $24 million in philanthropic funds across the state.
CITC promotes public/private partnerships by supporting work of Community Development Corporations (CDC).
Why CITC? It WORKS!
CITC contributions are making it possible for HCP to forge ahead with our most robust housing development pipeline in our history.
CITC Benefits You…While You Create Transformative Change
HCP has been awarded $150,000 in Community Investment Tax Credits (CITC) for 2018.
CITC credits are limited. Don’t delay; this may be your best opportunity to capture a tax credit for your charitable contribution.
HOW CITC WORKS
With your qualifying contribution to Harborlight Community Partners, you will receive a 50% state tax credit for your contribution. You may even qualify for a federal tax deduction (for taxpayers who choose to itemize; check with your tax advisor). .
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
- Minimum of $1,000.00
- Be received by HCP by 12/31/2018.
- Can be made with one gift or your can be cumulative throughout the year (as long as all donations are received prior to 12/31; no goods or services have been received).
- Qualified donations are claimed in the tax reporting year for which the donation is received by HCP.
- NOTE: Contribution is encouraged to be in excess of your previous year’s donation. To maximize the full advantage of this CITC program, we encourage doubling the amount of your previous annual gift.
- CITC is available to Individuals, corporations and non-profit organizations, regardless of state residency, who make a qualified cash donation. (Out of state donors may file a non-resident return in MA to receive the tax credit in the form of a refund).
- Donors who have no tax liability can utilize this program and receive a refund in the amount of the credit.
- Donor Advised Funds: A gift through a DAF is eligible provided the fund manager files a return in MA; the 50% tax credit will be refunded to the DAF account for future giving. Please check with or ask your DAF manager prior to making a DAF contribution from your DAF account.
- Banks qualify for credit under the Commonwealth’s Community Reinvestment Act (CRA)
A Tax Savings Example*
|Your Donation to HCP||$10,000|
|CITC 50% Tax Credit||$5,000|
|**37% Federal Tax Deduction||$1,850|
|Total Tax Savings||$6,850|
|ACTUAL OUT OF POCKET EXPENSE||$3,150|
* 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 for taxpayers who itemize. Please consult a tax advisor.
**This example assumes a 37% tax bracket. Actual amounts can vary. Please consult your tax advisor.
Use this HCP-CITC Tax Credit Calculator to calculate your donation tax savings.
Making Your CITC Donation
Once you have made your donation, your CITC gift is processed through an on-line CITC Form; you will have HCP’s assistance all along the way.
If you have questions regarding the CITC program, please contact Bethany at firstname.lastname@example.org or 978-922-1305 x 212.