Massachusetts tax credits for citizens who invest in community revitalization

The Community Investment Tax Credit (CITC) was established as a way to incentivize Commonwealth of Massachusetts residents to invest in community development corporations (CDCs).

The CITC program allows taxpayers to realize considerable tax savings when they make a qualified investment (cash contribution) in a CDC’s community development plan.1

The CITC is an outstanding tax incentive for both individuals and corporations who are inclined to donate $1,000 or more, with an annual cap of $1 million in credits. Donors are eligible to receive a Massachusetts tax credit equal to 50% of the total qualified investments for the tax year in which the investment was made.

The credit must be taken in the year the qualified investment was made, and any amount in excess of the taxpayer’s tax liability may be either refunded or carried forward to offset future tax liabilities. This credit is available for tax years 2014 – 2019.

Donors that meet CITC qualifications are able to make significant financial contributions to the community with less of an impact to your wallet. For example, if you contribute $5000 to a CDC, you will receive a partial benefit on your income tax return.

Donors have three ways to get involved and participate in this great program:

  • Donate to a specific CDC of your choosing. (A complete list of participating CDCs can be found on DHCD’s website).
  • Donate to the United Way of Massachusetts Bay and Merrimack Valley’s (United Way) Community Partnership Fund and have your donation distributed to CDCs across the state. The United Way has been chosen by DHCD to administer CITCs the on behalf of the CDCs.
  • Donate to one of the community support organizations that have been designated to provide training and technical assistance to CDCs, including: Massachusetts Association of Community Development Corporations (MACDC) and Local Initiatives Support Corporation (LISC).

Photo of Boston from Dollar Photo Club.

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