Need Tax Credits? Let MCE help.

Have you considered making a tax-deductible contribution to help Maryland Capital Enterprises assist the small businesses of Maryland's Eastern Shore? Thanks to Community Investment Tax Credits, contributions of money, goods or real property worth $500 or more are eligible for tax credits.

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, 501(c)(3) nonprofit organizations apply to the Maryland Department of Housing and Community Development for tax credit allocations.   Over the past 12 years, the Community Investment Tax Credit program has leveraged nearly $20 million in charitable contributions to 300 projects (Directory of Projects) across the State.  Nonprofit organizations utilize the tax credits as incentives for individuals and businesses to donate money, goods or real property to support operational and programmatic costs associated with specific, approved projects delivering services to communities across Maryland.

Businesses and individuals that donate to 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.

Eligible Contributions

Contributions of money, goods or real property worth $500 or more are eligible for tax credits. Contributions of services or labor are not eligible. Individuals and businesses may claim a maximum of $250,000 in tax credits per year, representing $500,000 in contributions.

Individuals and businesses making donations are required to complete a simple two-page form and submit it to the nonprofit organization receiving the contribution, along with documentation of the value of the contribution. Individuals or businesses that wish to donate real property must contact the Maryland Department of Housing and Community Development’s Community Investment Tax Credit Program for approval prior to making the donation.

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 resident of Maryland if the individual is domiciled in Maryland on the last day of the taxable year or if the individual maintains a 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.

*Tax rate of 7% State and 39% Federal shown as illustrative purposes only. Net cost of your donation depends on the donor's tax rate.

Donors benefits from charitable donations 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

For more information about the Maryland Community Investment Tax Credit program please visit:

http://www.neighborhoodrevitalization.org/Programs/CITC/CITC.aspx