Housing Nantucket recently became eligible to participate in the Community Investment Tax Credit Program (CITC) offering individuals, corporations and non-profit institutions the opportunity to obtain a 50% state tax credit while investing in economic development where it is most needed. The benefits of participating in a CITC program are in addition to 501(c)3 charitable contribution deductions.
Housing Nantucket (HN) is a private non-profit dedicated to creating affordable housing solutions for Nantucket residents. HN uses CITC donations to implement it’s Community Investment Plan, which centers around creating and maintaining affordable rental housing for Nantucket’s workforce.
Cash donations over $1,000 to Housing Nantucket are eligible for CITC. In addition to the tax deduction for the contribution, donors with a Massachusetts state tax liability will receive a tax credit equal to one half of the donation amount. Any tax credit in excess of the donor’s tax liability is refunded by check from the state to the donor. Out of state residents receive their 50% tax credit as a refund from their respective states. The benefits are: considerable tax savings, donation dollars go further and are helping to address the critical affordable housing needs on Nantucket. Please speak with a tax professional to further understand your specific situation.
Here is an example: A taxpayer with $1,000 tax liability decides to donate $5,000 to Housing Nantucket through the CITC program (fully deductible). The donor receives a $2500 CITC tax credit, $1000 of that credit is applied back to the taxpayer’s tax liability and the remaining credit ($2500) is refunded back to the taxpayer in the form of a check from the state.
For more information please contact Anne Kuszpa, Executive Director of Housing Nantucket at 774-333-3927 or visit them at http://housingnantucket.org/donate/