A Win-Win for Donors and the Community
The Community Investment Tax Credit provides an opportunity for individuals and businesses to reduce their Maryland tax liability while making a targeted impact on their community. The program is intended to foster private sector and nonprofit partnerships by providing incentives to businesses and individuals to support community projects they care about.
The Kent Center is focused on helping adults with disabilities find employment, in our program titled Diverse Abilities at Work. Through the growth and investment of our Employment Services program, more persons served will experience the personal fulfillment of obtaining and maintaining a job. There is currently $19,000 remaining in available tax credits that will expire December 31, 2019. Donations toward this program assist Kent Center is attracting and retaining key staff, upgrading technology and offering more comprehensive transportation.
As part of an annual competitive application process, Maryland-based 501(c)(3) organizations apply to the Maryland Department of Housing and Community Development for the much-coveted tax credit allocations. In 2014, 2017 and 2018, Kent Center was awarded an allocation tax credits totaling more than $60,000 for approved projects including the purchase of several handicapped busses.
Individuals and businesses that donate to an organization’s approved projects earn Maryland tax credits equal to 50% of the value of their qualifying contribution. These credits are in addition to the deductions on both Federal and State taxes for the charitable contribution. Individuals and businesses must use the tax credits against Maryland taxes owed for the year in which the contribution is made. Individuals and businesses contemplating a donation are encouraged to consult with their tax professional for information about their specific tax benefits, based on their situation.
The paperwork is minimal and we help you complete it!
The minimum contribution to qualify for a tax credit allocation is $500 and must be received by December 15, 2019. Businesses and individuals may donate up to $250,000 in one year, utilizing many Maryland non-profit’s tax credits. Tax credits may be rolled over 3 years to cover a business or individual’s Maryland tax obligation.
Contributions of $500 or more may be made by check payable to Kent Center, Inc. and mailed to or dropped off to 215 Scheeler Road, Chestertown MD. This program requires a signed form authorizing the Department of Housing and Community Development to process the tax credits within the Community Investment Tax Credit program. This form must be signed and dated prior to the date of the contribution. Within thirty days of receipt, donors should expect our letter evidencing receipt of the contribution from Kent Center. The tax credit certificate will be delivered via email with three months with instructions on how to claim the credit. Donors are encouraged to make their donation early in the fall to avoid delays in receiving their certification letters for the tax filing year.
For more information, contact Courtney Williams at 410-778-7303, ext. 37 – or the State of MD, CITC Program at 410-514 -7280.