Community Investment Tax Credits Program

Community investment tax credits support 501(c)(3) nonprofit organizations by providing allocations of state tax credits to be used as incentives to attract individual and corporate contributions to the benefit of local projects and services.

Community investment tax credits complement other state funding programs that provide resources to help communities in their revitalization efforts. Through an annual, competitive application process, 501(c)(3) nonprofit organizations apply to the Maryland Department of Housing and Community Development for tax credit allocations. The Community Investment Tax Credit program has leveraged nearly $27 million in charitable contributions to approximately 700 projects across the state.

Companies and individuals who donate $500 or more to an eligible organization’s approved project(s) can earn tax credits equal to 50% of the value of the money, property or real estate contribution. These tax credits are in addition to federal and state tax deductions resulting from the charitable contribution. Visit GIVE Maryland for more information on specific projects and donate now to nonprofit organizations that have tax credits available.

Individuals and businesses must use tax credits against taxes due for the year in which the contribution was made and cannot be used retroactively for taxes from a prior year. Any person or business considering making a donation is encouraged to consult their accountant or tax professional for information on their specific tax benefits.

HOW TO REGISTER

The DHCD-NR Project Portal is the online gateway for submitting applications and managing awards for community investment tax credit programs.

WHO CAN APPLY

Nonprofit organizations, designated as a 501(c)(3) organization by the Internal Revenue Service, are eligible to claim community investment tax credits to support a project or activity located in or serving a community in a priority funding area.

Organizations soliciting charitable contributions in Maryland are generally required to register with the Office of the Secretary of State as a charity. Nonprofit organizations must maintain charitable registration status with the office of the Maryland Secretary of State. Additionally, provide an official status certificate from the Maryland Department of Assessment and Taxation.

Once tax credits are granted, nonprofits are required to submit a semi-annual report in January and July providing information on:

  • Project activity/status
  • Use of tax credits/contributions received
  • How the organization markets its project and the availability of tax credits

Once the initial tax credit award has been granted, an organization may request additional tax credit allocation no more than twice during the term of its award agreement. The Community Investment Tax Credits program reviews applications for additional allowances in February and August of each calendar year. Current scholarship recipients who wish to obtain additional tax credits must complete the application form for additional allocation of tax credits for community investment. For February, applications must be received by February 28 and for August by August 31.

ELIGIBLE PROJECTS

Projects must be located in or serve residents of a priority funding area.

Projects typically involve activities such as:

  • Education and youth services
  • Housing and Community Development
  • Training for employment and autonomy
  • Enhance neighborhoods and business districts
  • Arts, Culture and Historic Preservation
  • Economic development and tourism promotion
  • Technical assistance and capacity building
  • Services for at-risk populations

Visit GIVE Maryland for more information on specific projects funded by Community Investment Tax Credits.​​​​​​​​​​​​​​​​​​​​​

ELIGIBLE CONTRIBUTIONS

Donors who make contributions of $500 or more are eligible to receive community investment tax credits. Individuals and businesses making donations are required to obtain a Donor Acknowledgment Form from the nonprofit, complete it, and submit it to the nonprofit receiving the contribution. Individuals or businesses wishing to donate real estate should contact the nonprofit before making the donation.

GIVE Maryland offers individual donors the opportunity to connect directly with nonprofit organizations that have tax credits. Search by county for a nonprofit working in your community to donate.

ELIGIBLE DONORS

Businesses: Any entity that carries on business or commerce in the State and is subject to: State personal or corporate income tax; utility franchise tax or insurance premium tax. These types of entities typically include corporations, utility companies, insurance companies, financial institutions, S corporations, partnerships, sole proprietorships, and limited liability companies.

Individuals: An individual is an individual or fiduciary with personal tax liability in the State of Maryland.

Individuals and businesses who donate to charity benefit by:

  • Reduce their Maryland tax liability
  • Helping a local nonprofit achieve a vital community goal
  • Have a targeted community impact
  • Improve community relations and increase their visibility

USEFUL LINKS

The following information may be helpful to individuals and corporations making contributions, as well as non-profit participants in the Community Investment Tax Credit program. This information is provided for guidance only and any person or company considering making a contribution, who has questions about its specific tax benefits, is encouraged to consult their accountant or tax practitioner.

MORE INFORMATION

CITC Program Mailbox
Email: [email protected]
Such. : 410-209-5800

Barbara Kearney
Program manager
Community investment tax credit
Email: [email protected]
P: (410) 209-5817

Melissa Carter
Program Coordinator​
Community investment tax credit
Email: [email protected]
P: (410) 209-5843​​​

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Jill E. Washington