CITC: Community Investment Tax Credits!

NEW! Please check out this TV clip of MACDC ED Joe Kreisberg on CITCs: Click here.

NOAH is looking for donors who'd like to more-than-double the impact of their donation dollars! We are one of the Massachusetts CDCs (Community Development Corporations) who have received Community Investment Tax Credits for 2015.

HOW DOES IT WORK?  It's easy! Speak to us about making a cash donation of over $1,000 (but less than $150,000 in 2015) for a 50% state tax credit. Please click here to send us an email for more information. Please click here to see more about CITCs in our brochure. Click here to see a video featuring the Governor and others explaining how CITC works. Or, click here to give right now!

WHO CAN GIVE?  Anyone in the state - individuals or corporations, including both not-for-profit and non-profit organizations - can speak to us about donating over $1,000 to NOAH and receiving a 50% tax credit to use on that year's Mass. state tax return. Even if donors don't have any tax liability, or if they live out of state, they can utilize this program and receive a refund in the amount of the credit. Banks can utilize the CITCs for CRA donations.

WHEN?  Now! The CITC program has already begun. You can check out the CITC regulations at http://www.mass.gov/dor/businesses/help-and-resources/legal-library/regulations/62-00-income-tax/830-cmr-62-6m-1.html. But, we should mention that the credits are available on a 'first-come, first-serve' basis.

WHY? Depending on your tax bracket, your $325 net donation can work like a $1,000 donation to help NOAH offer free or very low cost programming to seniors, disabled individuals, families, and children in need. Each year, we assist over 1,600 individuals in our affordable housing programming, and hundreds more in our children's, youth, ESOL and US Citzenship initiatives.  Our services are either free or at a low-cost. The state program is designed to encourage private contributions that help non-profit Community Development Corporations achieve essential community goals.

EXAMPLES: Here are a few 2015 tax savings CITC examples. 

NB: Situations vary. Please consult your tax advisor.
 

Minimum Donation 35% Tax Bracket Sample Donor High Donation
$1,000   $110,000
  Mass. State Tax Credit  
$500   $55,000
  Federal Tax Deduction
(if at 35%)
 
$175   $19,250
  Total Tax Savings
(After Years 1 & 2)

 

 

$675   $74,250
  Final Out-of-Pocket Donation  
$325   $35,750

 

Various Tax Entity Scenarios Demonstrating Tax Years 1 & 2 All Total Benefits

 

 

 

 

 

 

                       Individual,
Itemized
35% tax
bracket

                        
 

Individual,
  AMT
1
35% tax
bracket

                         

                    

Corporation,
Business
  35% tax
bracket

                  Nonprofit

Donation

$  10,000

$  10,000

$  10,000

$  10,000

CITC

$  (5,000)

$  (5,000)

$  (5,000)

$  (5,000)

Federal Charitable Tax Deduction2

$  (3,500)

$  (3,960)

$  (3,500)

N/A

1st Year Tax Savings

$     8,500

$     8,960

$    8,500

N/A

1st Year Out-of-Pocket Cost

$    1,500

$    1,040

$    1,500

$    5,000

Possible 2nd Year Add Back3

$    1,750

N/A

$    1,750

N/A

Possible Final Out-of-Pocket Cost 4

$  3,250

$  1,040

$  3,250

$    5,000

1. Alternative Minimum Tax
2. Donations through the CITC program qualify for the Federal Charitable Tax Deduction on the total donation
3. A donor’s federal income tax may be impacted in the subsequent year depending on their individual 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.
4. Please consult a professional tax advisor to determine the final out-of-pocket cost for specific donors, as situations vary.

 

O'Donnell Schoolyard Summer Program & Youth Soccer

This year's bilingual O'Donnell Schoolyard Summer Program in East Boston is now accepting registrations! The dates are from July 6th to August 20th, Monday through Friday, 9 AM to 2 PM, with breakfast and lunch included. All East Boston children ages 6 through 12 are eligible. Arts and crafts, games, sports and more! Staff members speak both English and Spanish.

The bilingual East Boston Community Soccer/Futbol Program is also accepting registrations for the children and youth Community Soccer Program. The program is open to all East Boston children and teens. This year, we are adding an all-girls team for young women ages 12 to 18. The Program will run from July through August on Wednesdays, Thursdays and Fridays from 3:30 to 6 PM, at the American Legion Field on Condor Street.

Please call 617-418-8242 or 617-418-8248 for more information.

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