COMMUNITY INVESTMENT TAX CREDITS (CITC)
support 501(c)(3) nonprofit organizations by awarding allocations of State tax credits to use as incentives for business contributions.

WHO CAN APPLY ELIGIBLE PROJECTS ELIGIBLE CONTRIBUTIONS USEFUL LINKS CONTACT

CITC New Beginnings Youth (Cambridge) CMYK
New Beginnings received tax credits to raise funds to support activities that focus on social skills, character building and academics for at-risk youth and their parents.

As part of a competitive application process, 501(c)(3) nonprofit organizations apply to the Maryland Department of Housing and Community Development for tax credit allocations.

Nonprofit organizations utilize the tax credits as incentives for businesses to donate money, goods or real property to support operational and programmatic costs associated with specific, approved projects delivering services to communities across Maryland.

These tax credits are in addition to the deductions on both Federal and State taxes as a result of the charitable contribution. Based on the income and tax structure of the individual business, the net cost of the donation could be as low as $0.27 for every $1.00 contributed.

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 business contemplating making a donation is encouraged to consult with their accountant or tax professional for information about their specific tax benefits.

Over the past ten years, the Community Investment Tax Credit Program has leveraged almost $19.8 million in charitable contributions for 296 nonprofit projects.

WHO CAN APPLY
Nonprofit organizations designated a 501(c)(3) organization by the IRS are eligible to apply for CITCs for a project or activity that is either located in or serving a community in a Priority Funding Area. Community Investment Tax Credits are awarded annually through a competitive application process. Nonprofits applying for CITC must maintain "good standing" with the Maryland Department of Assessment and Taxation, as well as, maintain their charitable organization status with the Office of the Secretary of State Charitable Organization Division for the duration of the project.
Training is mandatory for those who have either never applied to the Community Investment Tax Credit Program before or for those who have never applied electronically. Anyone wishing to attend the training as a refresher course is welcome to attend. Click here to Register.

Sample Application (PDF)
Note: This application is for reference only. Applications must be submitted electronically and only after attending the application training.

Once awarded tax credits, nonprofit organizations are required to submit a semi-annual report (PDF) (MS WORD)
detailing:
  • Project activity
  • Use of tax credits/contributions received
  • Description of how the organization is marketing the tax credits
In an effort to assist nonprofits with a marketing strategy, DHCD Catalyst offers a “How to Market Tax Credits” workshop prior to each funding round.

Nonprofits should consider using Community Investment Tax Credits to complement other State funding programs which offer resources to assist communities with revitalization efforts.
ELIGIBLE PROJECTS & DIRECTORY OF CURRENT PROJECTS
Projects must be located in or serve residents of a Priority Funding Area and typically involve activities such as:
  • Education and Youth Services
  • Housing and Community Development  
  • Job and Self-Sufficiency Training
  • Enhancing Neighborhoods and Business Districts  
  • Arts, Culture and Historic Preservation
  • Economic Development and Tourism Promotion
  • Technical Assistance and Capacity Building
  • Services for At-Risk Populations
CITC 2007 Directory of Projects(PDF)
Sandtown Habitat
Sandtown Habitat’s tax credits are raising contributions to
construct homes for purchase by low and very low-income
families in the Sandtown-Winchester neighborhood of
Baltimore City.
ELIGIBLE CONTRIBUTIONS Back to Top
Contributions of money, goods or real property worth $500 or more are eligible for Tax Credits.
Contributions of services or labor are not eligible for tax credits. Businesses may claim a maximum of $250,000 in tax credits per year, representing $500,000 in contributions.

Any entity that conducts a trade or business in the State and is subject to:
the State income tax on individuals or corporations; the public service company franchise tax or the insurance premiums tax can make a contribution. These types of entities generally include corporations, public utility companies, insurance companies, financial institutions, S corporations, partnerships, sole proprietorships and limited liability corporations.

Businesses making donations are required to complete a simple one-page form(PDF) (MSWORD) and submit it to the nonprofit organization receiving the contribution, along with documentation of the value of the contribution. Businesses that wish to donate real property must contact the Maryland Department of Housing and Community Development/Community Investment Tax Credit Program for approval prior to making the donation.

Businesses that make charitable contributions benefit by:
  • Reducing their Maryland tax liability
  • Helping a local nonprofit organization achieve an essential community goal
  • Making a targeted community impact
  • Improving community relations and increasing their visibility
Download Viewers: Having trouble viewing PDF/ MSWord/ MS Excel/ MS Powerpoint/ Flash files on our website? Download a list of available viewers!
USEFUL LINKS
The following documents and links may be useful to both businesses making contributions as well as nonprofit participants with the Community Investment Tax Credit Program. This information is for reference only and any business contemplating making a donation, that has questions about their specific tax advantages, is encouraged to consult with their accountant or tax professional: FOR MORE INFORMATION
Dayna Harris
Project Manager
410-514-7241
1-800-756-0119, Ext: 7281
Or Email harrisd@mdhousing.org


Pyramid Atlantic Workshop
Pyramid Atlantic used tax credits to raise matching
funds for a National Endowment for the Arts grant
to support visiting artists working with Maryland high school students and teachers.

Back to Top
ELIGIBLE PROJECTS  FOR NON PROFITS  ELIGIBLE CONTRIBUTIONS   USEFUL LINKS  CONTACT

Legal Notices & Privacy Policy Directions NeighborhoodRevitalization@mdhousing.org