How to Help
Tax Credit Program
Community Investment Business Tax Credit Program
The Community Investment Tax Credit Program provides Maryland businesses with a financial incentive to support community projects. Through the program, businesses that make a donation to qualified nonprofit organizations receive a valuable State tax credit.
Donating to the Community Investment Tax Credit Program helps the contributing businesses:
- Make a targeted community impact
- Help a local nonprofit organization achieve an essential community aim
- Reduce their Maryland tax liability
How Does the Program Work?
Abilities Network: Healthy Families Baltimore County has been awarded tax credit allocations by the Maryland Department of Housing and Community Development.
Business entities that donate directly to Healthy Families Baltimore County for approved projects receive tax credits equal to 50 percent of the value of the donation. These tax credits may be claimed in addition to State and Federal deductions for charitable contributions, which may make the cost of a contribution 27 cents or less for each dollar contributed.
A Business must start using the credits against the taxes owed for the year in which the contribution is made. If the credits earned exceed the taxes owed, the excess credits may be carried over for up to five years following the tax year in which the contribution is made.
What Businesses Are Eligible?
Any entity conducting business or operating a trade in Maryland is eligible. Legislation in 1998 expanded eligibility to include S corporations, partnerships, sole proprietorships and limited liability corporations, in addition to those previously eligible, which included corporations, public utility companies, insurance companies and financial institutions.
What Contributions Are Eligible?
Businesses may claim a maximum of $125,000 in tax credits per year, representing $250,000 in contributions. We currently have $20,000 in tax credits available. Contributions must be cash or goods of at least $500 in value. Contributions of services and real estate are not eligible for tax credits. Used goods contributions must be certified by an independent and unrelated third party. The value of contributions of new goods is equal to the certifiable cost of the goods to the tax credit contributor. Used goods are valued according to IRS regulations.
How to Participate in the Program
Business contributions fill out a portion of a simple one-page form and submit it to Abilities Network, Healthy Families Program, along with documentation of the value of the contribution, such as a check. Contact for more information.