Tax credit opportunity for Maryland businesses and individuals
Nov 10, 2011
Did you know about the Community Investment Tax Credit (CITC) program, which financially rewards Maryland businesses that support qualified community projects?
How a business is eligible for the Community Investment Tax Credit
A business that donates cash, goods or real estate between $500 and $500,000 in value to a qualifying project is eligible for the credit, awarded through the Department of Housing and Community Development.
The state awards up to $1 million annually in tax credits through the CITC program.
A business must begin claiming the tax credit against taxes owed for the year in which the contribution is made, unless it does not owe sufficient taxes that year. If the tax liability for the year is less than the amount of the credit, the credit can be carried over for up to five years following the year in which the contribution is made, until the full credit is used.
Can individuals also benefit from the CITC program?
Beginning with tax year 2010, individuals, including fiduciaries, who are not business entities may also apply for and receive the credit.
Browse eligible CITC projects
An online directory lists qualifying projects. You can search based on the type of nonprofit mission and project you wish to support.
What kinds of nonprofits can benefit from the CITC program?
Nonprofit organizations designated as 501(c)(3) organizations by the IRS are eligible to apply for Community Investment Tax Credits to support a project or activity that is either located in or serving a community in a priority funding area. Nonprofits must maintain their charitable organization status with the Maryland Department of Assessment and Taxation (SDAT) and provide an official Certificate of Status from SDAT.
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