Maryland Capital Enterprises has been awarded funds from a program through the Maryland Department of Housing and Community Development (DHCD) known as the Community Investment Tax Credit (CITC).
In the past, only businesses qualified for this program, but since 2010 individuals too, can get an additional tax break when making a donation to a 501C (3) non-profit. To qualify for this credit, the individual or business must donate at least $500, which qualifies as a charitable contribution on both Maryland and Federal returns and is tax-deductible to the fullest extent allowed by law. Individuals or businesses receive their normal charitable deduction on both Federal and State taxes and an additional credit of 50% of the donation on their Maryland tax return.
Here is an easy example: If you owe $1,000 in Maryland state taxes and you make a donation to Maryland Capital Enterprises or become a sponsor for our annual fundraiser in the amount of $2,000, you earn $1,000 in tax credits, reducing the amount you owe in taxes to $0!
In addition, you can also claim the Maryland Charitable Donation deduction on your taxes as well as the Federal Charitable Donation deduction. Here is an example of how it breaks down:
$2000 donation to Maryland Capital Enterprises
$1000 CITC tax credit earned
$140 Maryland charitable deduction
$780 Federal deduction
Your total expense = just $80!
It’s a win-win-win situation!
To find out more about the CITC Tax Credit give us a call at 410-546-1900 if you would like to make a donation.