(Concord, NH) More than $6.3 million has been awarded through the Community Development Finance Authority Tax Credit Program to sixteen New Hampshire organizations for projects which make local communities thrive and become more resilient. The CDFA Board of Directors has approved the funding – in the form of state tax credits – for projects from Nashua to Lisbon and Keene to Portsmouth. The tax credits allow for nearly $42 million in leverage for these projects.
“These tax credits are designed to stimulate private investment in community development projects throughout New Hampshire,” said CDFA Executive Director Kathy Bogle Shields. “Now they’ll be able to attract the necessary support to complete their missions of providing affordable housing, economic development, and community revitalization.”
“Companies that donate to these nonprofit projects can now get a 75% business tax credit against their contribution,” said Janet Ackerman, CDFA Acting Board Chairwoman. “This allows the businesses an unprecedented opportunity to direct their support for these efforts in their own communities. The tax credit allows them to maximize their financial impact that a straight donation could not.”
“There is a misconception that businesses will buy tax credits just for the tax savings,” added Shields. “They purchase CDFA tax credits because they are proud to stand behind these nonprofits and can see the results in their communities.”
Among the awards made include $700,000 to renovate the Boys & Girls Club facility on Bradley Street, $300,000 to help rebuild the Concord’s fire-razed Friendly Kitchen, and $125,000 to upgrade the nonprofit Red River Theatre to digital projection. Other projects that received tax credits include $1m for converting an abandoned mill to mixed-use housing in Nashua; $300,000 to bring broadband internet to underserved communities in Southwestern NH, and $200,000 for the development of a business incubator in Plymouth.
The following projects received tax credits for FY13/FY14 from CDFA:
- Housing Innovation Fund (Statewide) - $200,00 in tax credits to help community-based nonprofit housing organizations build the capacity of participating nonprofits to investigate opportunities, secure financing, and test innovative new solutions for area residents.
- NH Regional Development Corporations (Statewide) - $250,000 in tax credits to fund capacity of the state’s ten regional development corporations which provide economic development resources to small businesses in their areas.
- 801 Elm Street Downtown Revitalization (Manchester) – A tax credit award of $300,000 to NeighborWorks Greater Manchester to purchase a downtown building for office and business development.
- The Palace Theatre (Manchester) - $500,000 in tax credits to the historic Palace Theatre for public safety and electrical improvements.
- Hollow Neighborhood Revitalization Project (Manchester) - $500,000 in tax credits to the City of Manchester to renovate the historic Odd Fellows Building to accommodate nine nonprofit agencies operating in the city.
- Bradley Street Clubhouse Rebuild (Concord) - $700,000 in tax credits to the Concord Boys and Girls Club for the renovation and expansion of its current facility.
- The Friendly Kitchen (Concord) – Tax credits of $300,000 to finance part of The Friendly Kitchen’s 5,936 sq ft rebuild of its once-burned-out soup kitchen.
- Red River Theatres Digital Conversion (Concord) - $125,000 in tax credits for the nonprofit movie theater to replace soon-to-be-obsolete projection equipment.
- Bow Highlands II (Bow) - $935,000 in tax credits to CATCH Neighborhood Housing to build phase II of its award-winning affordable housing development.
- Cotton Mill Square (Nashua) – Southern NH Services will receive $1,000,000 in tax credits for a $26 million adaptive reuse of an abandoned mill to be converted to 109 units of mixed income housing.
- Enterprise Center at Plymouth (Plymouth) – An additional $200,000 in tax credits to the Grafton County Economic Development Council to support the creation of a business incubator in downtown Plymouth.
- Lakes Region High School Internship Program (Lakes Region) - $150,00 in tax credits to the Belknap County Economic Development Council to support the development of an online internship database for six area high schools.
- FastRoads (Southwest NH) - $300,000 in tax credits to continue NH FastRoad’s efforts to provide fiber broadband connections to underserved towns in Cheshire and Sullivan Counties.
- Peterborough Players On-campus Housing (Peterborough) – Tax credits amounting to $155,000 to provide housing for the seasonal employees of the Peterborough Players.
- Jean’s Playhouse (Lincoln) - $250,000 in tax credits for the North Country Center for the Arts to complete the 12,000 sq ft performing arts facility.
- Lisbon Swimming Pool (Lisbon) – An award of $200,000 in tax credits to the North Country Council and Lisbon Lion’s Club to reconstruct the community pool and bathhouse in the small town.
- Prescott Park Pavilion (Portsmouth) – An award of $250,000 in tax credits to the Prescott Park Arts Festival to upgrade the pavilion, part of a larger upgrade of the facility.
“This was another difficult year, with several worthy projects that were left unfunded,” said Ackerman. “We had nearly $15 million in applications from nonprofit organizations. The desire and demand from the business community to purchase CDFA tax credits is strong. The time is coming to increase the allocations to meet this demand.”
The CDFA Tax Credit Program, also known as the Community Development Investment Program (CDIP), enables businesses to invest cash, securities, or real property to fund CDFA-approved projects in exchange for a 75% state tax credit. It can be applied against the New Hampshire business profits, business enterprise, and insurance premium taxes. The organizations that are awarded state tax credits are responsible for raising donations in the amount of their tax credit award from for-profit businesses that have a New Hampshire state tax liability.
CDFA, created by legislation in 1983, is a nonprofit public instrumentality of the State of New Hampshire. CDFA administers nearly $57 million in funding resources, which includes a combination of state tax credits and federal Community Development Block Grant, Neighborhood Stabilization, and Energy Reduction Funds. CDFA supports the development of vibrant and resilient communities by providing resources for community development efforts. For more information about CDFA and its programs visit www.nhcdfa.org or call 603-226-2170.
CDFA will be conducting application writing workshops for the CDBG Microenterprise Program.