Pyramid atlantic, inc. Community Investment Tax Credit Program Sample Contribution Summary Community tax savings to donor Investment total tax Tax Credit contribution maryland federal savings Montgomery County Pyramid Atlantic used $15,250 in tax credits to raise matching Cash $10,000 $10,000 funds for a National Endowment for the Arts grant to support visiting artists working with Maryland high school students Tax Rate* 7% 39% and teachers. State Tax Credits for Maryland’s Taxes Saved Community-Minded Businesses on donation $ 700 $ 1,677 $ 2,237 sandtown Habitat for Humanity benefits to donor Initial cash gift by donor $10,000 Maryland tax savings achieved on donation (700) Federal tax savings achieved on donation (1,677) CITC awarded (Based on 50% of donation) (5,000) Net cost to donor of contribution $ 2,623 Baltimore City Sandtown Habitat’s $50,000 in tax credits are raising contribu- tions to construct homes for purchase by low- and very low- income families in the Sandtown-Winchester neighborhood. *Note: Tax rates shown are for illustrative purposes only. Actual rates will vary based on each business’ particular income and Maryland Department of Housing and Community Development legal structure. Division of Neighborhood Revitalization Community Investment Tax Credit 100 Community Place Crownsville, Maryland 21032 www.mdhousing.org F 1-800-756-0119 Brought to you by the Maryland Department of Housing and Community Development Division of Neighborhood Revitalization DHCD-NR 03.11.09 Revitalization at Work! Martin O’Malley Anthony G. Brown Raymond A. Skinner Clarence J. Snuggs Governor Lt. Governor Secretary Deputy Secretary Community Investment Tax Credits support 501(c)(3) nonprofit organizations by awarding allocations of State tax credits to use as incentives for business contributions. How does the program work? new beginnings youtH center Businesses that make charitable contributions As part of a competitive application process, benefit by: 501(c)(3) nonprofit organizations apply to the n Reducing their Maryland tax liability Maryland Department of Housing and Community n Helping a local nonprofit organization Development for tax credit allocations. Nonprofit achieve an essential community goal organizations utilize the tax credits as incentives n Making a targeted community impact for businesses to donate money, goods or real property to support operational and programmatic n Improving community relations and costs associated with specific, approved projects increasing their visibility delivering services to communities across Maryland. What types of contributions are eligible? Businesses that donate to a qualified organization’s Contributions of money, goods or real property approved project can earn tax credits equal to 50 worth $500 or more. Contributions of services or percent of the value of the money, goods or real labor are not eligible for tax credits. Businesses Dorchester County property contribution. These tax credits are in New Beginnings received $130,000 in tax credits which raised may claim a maximum of $250,000 in tax credits addition to deductions on both Federal and State funds to support activities that focus on social skills, character per year, representing $500,000 in contributions. taxes as a result of the charitable contribution. building and academics for at-risk youth and their parents. Based on the income and tax structure of the Businesses making donations are required to individual business, the net cost of the donation complete a simple one-page form and submit n Job and Self-Sufficiency Training could be as low as $0.27 for every $1.00 contributed. it to the nonprofit organization receiving the n Enhancing Neighborhoods and contribution, along with documentation of the Business Districts value of the contribution. Businesses that wish Businesses must use the tax credits against taxes owed for the year in which the contribution was n Arts, Culture and Historic Preservation to donate real property must contact the made and may not be used retroactively for taxes n Economic Development and Maryland Department of Housing and from a prior year. Any business contemplating Tourism Promotion Community Development/Community making a donation, that has questions about their n Technical Assistance and Capacity Building Investment Tax Credit Program for approval specific tax advantages, is encouraged to consult prior to making the donation. n Services for At-Risk Populations with their accountant or tax professional. For more information contact: What types of businesses are eligible for the Reginald Stanfield What types of projects are eligible for tax credits? Director contributions? Any entity conducting a trade or business in the Community Investment Tax Credit Over the past ten years, the Community Investment State and is subject to: the State income tax on 410-514-7209 Tax Credit Program has leveraged up to $19.8 individuals or corporations; the public service email@example.com million in charitable contributions to 296 nonprofit company franchise tax or the insurance premiums projects. Projects must be located in or serve tax. These types of entities generally include residents of a Priority Funding Area and typically corporations, public utility companies, insurance involve activities such as: companies, financial institutions, S corporations, n Education and Youth Services partnerships, sole proprietorships and limited n Housing and Community Development liability corporations. Revitalization at Work!
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