Community Investment Tax Credit

 

Take advantage of Community Investment Tax Credit and lower your tax obligation by making a contribution to CCYD by the end of the year.

 

Community Investment Tax Credits complement other State funding programs which offer resources to assist communities with revitalization efforts.  As part of an annual, competitive application process, CCYD has a remaining $10,000 in tax credit allocations from the Maryland Department of Housing and Community Development that must be used by the end of the year.

 

Businesses and individuals that donate to CCYD can earn tax credits equal to 50% of the value of the money, goods or real property contribution. These tax credits are in addition to the deductions on both Federal and State taxes as a result of the charitable contribution. A minimum donation of $500 could cost a donor as little as 25 cents on the dollar depending upon the business or individual’s tax bracket.  Following is a sample contribution summary:

 

TAX SAVINGS TO DONOR

 

Contribution Maryland Federal
Cash $1,000 $1,000
Tax Rate* 7% 39%
Taxes Saved $70 $390

*Tax rate shown are for illustrative purposes only. Actual rates will vary based on particular income and legal structure of each individual or business. Consult your accountant or tax professional for information about your specific tax benefit.

 

BENEFIT TO DONOR

 

Initial cash gift by Donor  $1,000

 

Maryland tax savings received on donation ($70)

 

Federal tax saving received on donation ($390)

 

CITC awarded based on 50% of donation ($500)

 

NET COST TO DONOR FOR CONTRIBUTION: $40

 

Individuals and businesses must use the tax credits against taxes owed for the year in which the contribution was made and may not be used retroactively for taxes from a prior year.

 

Simply complete Part 1 of a simple two-page form and fax or mail to CCYD before December 31, along with documentation of the value of the contribution and leave the rest to us.

 

CITC Certification Form

 

ELIGIBLE DONORS

 

Businesses:  Any entity conducting a trade or business in the State of Maryland and is subject to: State income tax on individuals or corporations; the public service company franchise tax or insurance premiums tax.  These types of entities generally include corporations, public utility companies, insurance companies, financial institutions, S Corporations, partnerships, sole proprietorships and limited liability corporations.

 

Individuals:  A resident of Maryland.  An individual is a resident of Maryland if the individual is domiciled in Maryland on the last day of the taxable year or if the individual maintains place of abode in Maryland for more than six months of the taxable year and is physically present in the State for 183 days or more during the taxable year.

 

For questions contact:

Ivan Leshinsky (410) 355-4698 x13 email –ivanl@ccyd.org

 

You can find more information and useful links at the Maryland Department of Housing’s CITC webpage.

 

The Chesapeake Center for Youth Development

301 East Patapsco Avenue
Baltimore Maryland 21225

Tel: 410-355-4698 • Fax: 410-354-8160