Contributions of money, goods or real property worth
$500 or more are eligible for tax credits. Contributions of services or labor
are not eligible. Individuals and businesses may claim a maximum of $250,000 in
tax credits per year, representing $500,000 in contributions.
Individuals and businesses making donations are required to complete a simple two-page form
and submit it to the nonprofit organization receiving the contribution, along
with documentation of the value of the contribution. Individuals or businesses
that wish to donate real property must contact the Maryland Department of
Housing and Community Development’s Community Investment Tax Credit
Program for approval prior to making the donation.
Maryland provides an opportunity for individual donors to connect
directly with nonprofits that have available tax credits. Search by county for
a nonprofit organization working in your community and
Businesses: 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. These types of entities generally include
corporations, public utility companies, insurance companies, financial
institutions, S corporations, partnerships, sole proprietorships and limited
Individuals: An individual is a resident of Maryland if the
individual is domiciled in Maryland on the last day of the taxable year or if
the individual maintains a place of abode in Maryland for more than six months
of the taxable year and is physically present in the State for 183 days or more
during the taxable year.
Individuals and 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
The following information may be useful to both individuals and businesses
making contributions, as well as nonprofit participants in the Community
Investment Tax Credit program. This information is for reference only and any
individual or business contemplating making a contribution, that has questions
about their specific tax advantages, is encouraged to consult with their
accountant or tax professional.
FOR MORE INFORMATION
World Arts Focus used tax credits to raise
contributions for a capital campaign to renovate an under-utilized warehouse
and create Joe's Movement Emporium - a new community performing arts center and
anchor for the Prince George's County Gateway Arts District.