Holiday Closure

NOAH will be closed all day on Monday, May 30th, for the Memorial Day holiday. There will be no Foreclosure Prevention & Mitigation Workshops held that day. Have a nice long weekend, everyone!

CITC: Community Investment Tax Credits!

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 2016 donation dollars!

HOW DOES IT WORK?  It's easy! Speak to us about making a cash donation of over $1,000 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.

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 for 2016; and NOAH has received the maximum credit allotment! 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 citizenship 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.

WORDS FROM A CITC INVESTOR: John Barresi of 21st Century Construction - "I've known NOAH for 20 years through our construction business, and I made a modest donation to them for the holidays. Then, I doubled it when I found out I could actually get half of it back at no cost to me! So, we both win. I urge more people to take a look at the Community Investment Tax Credit. It can really help the organization, and it did not hurt my cash flow. If you are making a donation anyway, try it! If you were not planning on making a donation, I hope you go ahead and make one."

EXAMPLES: Here are a few 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
28% 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)

$  (2,800)

$  (3,500)

N/A

1st Year Tax Savings

$     8,500

$     7,800

$    8,500

$5,000

1st Year Out-of-Pocket Cost

$    1,500

$    2,200

$    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

$  2,200

$  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.

 

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