Community Investment Tax Credit

Since 2014, Housing Assistance Corporation (HAC) has annually been awarded tax credits that are available to individuals, foundations, corporations and businesses who donate over the $1,000 threshold and are either new donors or current donors looking to double their donation from previous years.  

If interested in learning more about this opportunity, you can contact HAC's Margaret Benaka at 508-771-5400, ext. 272 or mbenaka@haconcapecod.org. Please note that HAC's tax credits are limited and you should contact us first to determine if we have any available. 

WHAT IS IT?

A tax credit offered to donors (individuals, foundations, corporations, businesses, banks, etc.) as an incentive for them to increase their donations given to Community Development Corporations (CDCs) such as HAC.

It is being offered through the Department of Housing & Community Development (DHCD) and was signed into law on August 6, 2012 by former Governor Deval L. Patrick and went into effect on January 1, 2014.

HAC qualified for the Community Investment Tax Credit (CITC) Program based on its Community Investment Plan that is focused on the development of affordable housing, serving as the administrator for Section 8 vouchers, services aimed at the homeless (prevention and treatment), financial education, weatherization programs and home repairs. HAC is one of only three CDCs on Cape Cod to be accepted for the tax credit program. 

HOW DOES IT HELP HAC?

HAC will be able to increase the revenue it receives that will go directly towards programs and services that assist its clients in need, whether they are in shelter, struggling to remain in their homes or looking to become a first-time homebuyer on Cape Cod and the Islands.

WHAT IS THE BENEFIT TO DONORS OR POTENTIAL DONORS?

As a donor, you will receive 50 percent of your donation as a tax credit that will be refunded to you in your taxes. So for a $1,000 donation you would receive $500; for a $5,000 donation you would receive $2,500; for a $10,000 donation you would receive $5,000.

That 50 percent tax credit is on top of your federal tax deduction that is allowed to be deducted from your taxes.

           Tax Savings Example*

Your Donation to HAC

$10,000

CITC Tax Credit

$5,000

*Federal Tax Deduction (35 percent)

$3,500

Total Tax Savings

$8,500

ACTUAL OUT OF POCKET EXPENSES**

(First Year)

$1,500

*NOTE: This assumes a 35% tax bracket. The actual amounts can vary. Please consult your accountant. 

**NOTE: A donor's federal income tax may be impacted in the subsequent year depending on their individual tax situation. Because state tax payments can be tax deductible, a reduction in state taxes may reduce your federal deduction, thereby increasing your federal taxable income by the amount of your CITC credit/refund. At most, the second year federal tax impact will be half the first year federal tax savings. In contrast, taxpayers subject to the Alternative Minimum Tax will not be impacted in this manner. Please consult a tax advisor regarding specific situations. 

By increasing your contributions as a donor, you can make your dollars go further to help HAC in its mission.

This provides foundations and corporate entities additional funding, at the end of the tax year, to give back to either HAC or other organizations, or to put that money back into their own operating budgets.

Your gift is leveraged to produce an even greater impact on the community and those HAC serves.

ADDITIONAL INFORMATION

This program only applies to cash contributions (stock donations do not qualify).

If interested, you will have to fill out a minimal amount of paperwork that is easy to complete. DHCD will then issue a CITC interim certification in a form to be completed to the taxpayer for submission to the Massachusetts Department of Revenue which issues a Tax Credit Certificate.

Individuals and corporations with Massachusetts tax liability can participate.

Donations must be over a $1,000 threshold.

Tax credits have to be used in the same tax year as when the donation was made. 

CONTACT INFO:            

Margaret Benaka, Resource Development Coordinator

508-771-5400, ext. 272 or mbenaka@HAConCapeCod.org