The Community Investment Tax Credit (CITC) program is funded by the State of Maryland and reflects the State’s support for 501c3 nonprofit organizations. It allows qualified nonprofits to use state tax credits as an incentive for donations. Habitat Choptank applied and was accepted for various projects supporting our mission here in Talbot and Dorchester Counties.
How does the program work?
- Tax credits equal 50% of the value of the donation.
- Minimum gift is $500; maximum gift is $500,000.
- Tax credits are in addition to charitable contribution deductions on both Federal and State taxes.
- Tax credits must be used in the year in which the donation is made.
- Tax credits are on a first come, first served basis and are limited, so applying early is greatly recommended.
The table below illustrates the benefit to the donor.
|CITC Tax Benefits to an Individual Donor
Illustrative $1,000 Donation
|Donation to Habitat Choptank||$1,000|
|CITC State Tax Credit||($500)|
|Federal Charitable Tax Deduction||($320)*|
|MD Charitable Tax Deduction||($55)*|
|Net Cost of $1,000 Donation||$125|
|This table is for illustrative purposes, only, and assumes a state tax rate of 5.5% and a federal tax rate of 32%, as well as an itemized deduction scenario. You should consult a tax professional to determine how this program might impact your tax situation.|