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Community Investment Tax Credit (CITC)
For qualified investments of $1,000 or more,
please consider the Community Investment Tax Credit (CITC).
What is it?
The Community Investment Tax Credit (CITC) is a refundable state tax credit aimed at forging new financial support and partnerships in support of community development corporations such as NewVue Communities. The CITC program enhances community support for the work of organizations like NewVue Communities. This program provides a 50% tax credit against Commonwealth of Massachusetts tax liability.
The CITC program is a refundable tax credit.
Donors will invest in the agency’s Community Investment Plan (i.e. our business plan) providing flexible working capital that can be used to seed new programs, fill funding gaps and leverage other resources and achieve maximum impact. If the donor does not have sufficient tax liability, the credit is refundable, whereby the Commonwealth will issue a check for the balance of the credit to the donor.
- Considerable Tax Savings
- Individuals, Foundations & Corporations can take advantage of tax credit
- Excess tax credit is refundable
How does it work?
|Individual, Itemized||Individual, AMT- 1||Corporation, Business||Nonprofit|
|35% Tax Bracket||39.6% Tax Bracket||35% Tax Bracket|
|Federal Charitable Tax Deduction – 2||$(3,500)||$(3,960)||$(3,500)||N/A|
|1st Year Tax Savings||$8,500||$8,960||$8,500||$5,000|
|1st Year Out-of-Pocket Cost||$1,500||$1,040||$1,500||$5,000|
|Possible 2nd Year “Add Back” – 3||$1,750||N/A||$1,750||N/A|
|Possible Final Out-of-Pocket Cost – 4||$3,250||$1,040||$3,250||$5,000|
- Alternative Minimum Tax
- Donations through the CITC program qualify for the Federal Charitable Tax Deduction on the TOTAL donation.
- 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 year 2 federal tax impact will be half the year 1 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.
- Please consult a professional tax advisor to determine the final out-of-pocket cost for specific donors.
Utilize these Credits
To utilize these credits, please make a charitable investment of $1,000
by clicking here and fill out this simple online form. Save answers and resume later. This will prompt you to put in an email. Please enter email@example.com and we will process the rest! Your credit certificates will come in the mail.
To Give Now, through the CITC, click here: