What is CITC?
The Community Investment Tax Credit (CITC) was signed into law by Governor Deval Patrick on August 6, 2012 as part of a larger economic development bill called An Act Relative to Infrastructure, Enhanced Competitiveness and Economic Growth in the Commonwealth.
According to the statute, the purpose of this program is "to enable local residents and stakeholders to work with and through community development corporations to partner with nonprofit, public and private entities to improve economic opportunities for low- and moderate-income households and other residents in urban, rural and suburban communities across the Commonwealth."
Lena Park has received 50,000 tax credits from the Commonwealth to be used to improve the neighborhoods of Dorchester and Mattapan in Boston.
How Does it Work?
The Community Investment Tax Credit Program (CITC) offers individuals, corporations, and nonprofit institutions the opportunity to obtain a 50% Massachusetts state tax credit and up to a 35% federal tax deduction (depending on your tax bracket), while investing in the economic development of the communities that need help most.
Donors will be investing in Lena Park’s Community Investment Plan, providing flexible working capital that can be used to seed new programs, fill funding gaps and leverage other resources.
Lena Park’s Community Investment Plan focuses on three goals:
1. Preserve, improve and expand the community’s affordable housing assets.
2. Sustain and increase residents’ access to and use of human services and promote community involvement and leadership in every aspect of community development.
3. Provide and expand opportunities for children, youth and adults to learn, earn, get and stay fit, expand their horizons and set and achieve goals.
Who Can Claim CITC?
It’s easy to make a CITC-eligible gift. The minimum contribution is $1,000, and the maximum is $2 million. Individuals, nonprofit organizations, and corporations can all claim this tax credit. Banks can utilize the credit for CRA donations.
CITC Tax Example*
How To Claim CITC?
1. Make a donation totaling at least $1,000 to Lena Park and make a note in the memo that it is for CITC.
2. Notify Amy Malkemes at firstname.lastname@example.org of your donation.
3. Amy will email you a link to fill out the online CITC form from the MA Dept. of Housing and Community Development to secure your tax credit.
4. File your taxes. Once you have submitted your CITC form online, Amy will confirm that the information is correct and you will receive via snail mail your tax paperwork from the MA Dept. of Housing and Community Development that you will give to your tax accountant.