Community Investment Tax Credits support 501(c)(3) nonprofit organizations by awarding allocations of State tax credits for use as incentives to attract contributions from individuals and businesses to benefit local projects and services.
Community Investment Tax Credits complement other
State Revitalization Programs which offer resources to assist communities with revitalization efforts. As part of 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.
Businesses and individuals that donate $500 or more to a qualified organization’s approved project(s) 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. Visit
GIVE Maryland for information on specific projects and donate now to nonprofits that have available tax credits.
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. Any individual or business contemplating making a donation is encouraged to consult with their accountant or tax professional for information about their specific tax benefits.
Eligible Applicants
IRS designated 501(c)(3) organizations are eligible for CITC to support initiatives in and/or serving Priority Funding Areas.
Eligible Projects
Projects must be located in or serve residents of a
Priority Funding Area.
Projects can be capital and/or operating and typically involve activities such as:
- Education and Youth Services
- Housing and Community Development
- Job and Self-Sufficiency Training
- Enhancing 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 information on specific projects funded by Community Investment Tax Credits.
Additional consideration will be given to initiatives that address the overarching priorities of the Moore-Miller Administration, including ensuring that all those who want to live in Maryland can do so. In addition, priority consideration will be given to those projects and places that reflect the core objectives of MD DHCD (listed below), including to create great, lovable places and to right the wrongs of the past. Great places – lovable places– result from consistent targeted investment in locally-driven and inclusive community reinvestment plans.
- Investments in designated
Engaging Neighborhoods, Organizations, Unions, Governments and Households (ENOUGH) areas, addressing the community conditions surrounding children in poverty, enriching community assets and services for youth.
- Investments in designated
Just Communities, transforming neighborhoods into thriving communities where all Marylanders, regardless of background, have access to fair housing, and economic stability and opportunity, righting the wrongs of the past.
- Increased housing production, including mixed-income, middle market and affordable housing.
- Increased household and generational wealth building, such as through homeownership, legacy homeowner renovations, and small business development.
- Accelerated elimination of vacant properties, particularly in Baltimore City.
Eligible Contributions
Donors that make contributions of $500 or more are eligible to receive Community Investment Tax Credits. Individuals and businesses making donations are required to obtain from the nonprofit a Donor Acknowledgement Form and complete and submit it to the nonprofit organization receiving the contribution. Individuals or businesses that wish to donate real property must contact the nonprofit prior to making the donation.
GIVE Maryland provides an opportunity for individual donors to connect directly with nonprofits that have available tax credits. Search by county for a nonprofit organization working in your community to give.
Eligible Donors
Businesses: Any entity that conducts a trade or business in the State and is subject to: the State income tax on individuals or corporations; the public service company franchise tax or the 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: An individual is a natural person or fiduciary having personal tax liability in the State of Maryland.
Individuals and businesses that make charitable contributions benefit by:
- Reducing their Maryland tax liability
- Helping a local nonprofit organization achieve an essential community goal
- Making a targeted community impact
- Improving community relations and increasing their visibility
Resources
Video of the May 29, 2024 virtual application training.
Be sure to review the
program FAQs for answers to commonly asked questions about the program.
Application
In order to access the application and apply you must be registered through the Application Portal. Select “New User?” and complete the registration request form. Requests for registration may take up to 72 hours to be approved.
Application Status: Closed
Application Period Opens: May 19, 2025 at 8:00 AM (EDT)
Application Period Closes: June 19, 2025 at 5:00 PM (EDT)
Useful Links
The following information may be useful to both individuals and businesses making contributions, as well as nonprofit participants in the Community Investment Tax Credit program. This information is for reference only and any individual or business contemplating making a contribution, that has questions about their specific tax advantages, is encouraged to consult with their accountant or tax professional.
For general information and assistance, please contact:
Karen Forbes
Assistant Director
Email: CITC Program -
citc.nr@maryland.gov
Phone: 410-209-5809
Schedule a meeting via Calendly
