Hogan Administration Awards More Than $1.7 Million Through the Community Investment Tax Credit Program
More Than 100 Nonprofit Organizations Across Maryland Receive State Tax Credits
New Carrollton, Md. (May 2, 2022) — The Maryland Department of Housing and Community Development announced today the award recipients for the Community Investment Tax Credit Program. More than 100 nonprofit organizations, designated as 501(c)(3) organizations by the Internal Revenue Service, applied for these tax credits in order to attract private contributions to support projects or activities in communities located within a designated Priority Funding Area.
Qualifying projects for the tax credits include education and youth services; housing and community development; enhancement of neighborhoods and business districts; arts, culture and historic preservation; economic development and tourism promotion, and; services for at-risk populations. Visit GIVE Maryland for information on specific projects and activities funded by Community Investment Tax Credits.
“With these tax credits, nonprofit organizations can focus more on the good work they are doing in Maryland’s communities and less on the income tax owed to the federal and state governments,” said Secretary Kenneth C. Holt of DHCD. “Our department will continue to work with these organizations to ensure they have the resources, like these tax credits, to keep serving and supporting communities across the State.
One of the State of Maryland’s successful revitalization programs, the Community Investment Tax Credit program provides state tax credits to nonprofits who then offer the credits to businesses and individuals to support their activities. If a business or individual donates $500 or more to a qualified organization’s approved project(s), the donor can earn State tax credits equal to 50% of the value of their contribution of money, goods or real property.
Since 2015 nearly $22 million in contributions have been donated to support more than 400 local nonprofit projects and services. For the 2021 tax year nearly 840 businesses and donated $3.4 million to support 121 projects and services statewide.
Individuals and businesses must use the tax credits against taxes owed for the year in which the contribution was made and may not be used retroactively for taxes from a prior year. Any individual or business contemplating making a donation is encouraged to consult with their accountant or tax professional for information about their specific tax benefits.
Applications for the FY23 Community Investment Tax Credits Program will open May 5, 2022. Interested applications can visit the Community Investment Tax Credits Program page to learn more.
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