Can CDFA tax credits have an impact on creating your organization’s community development campaign? It sure can…if you’re selected. If you’re going to apply, here are some things you need to know.
1. CDFA awards nonprofits and municipalities with a community development project. We’re looking to help fund the creation of programs and facilities that benefit target areas or target populations, and cannot be financially successful without our assistance. We don’t make awards to cover operational costs.
Awards are made for projects, not for organizations. So even if you’re not a conventional “community development” organization, an innovative project has the ability to be selected.
CDFA awarded must comply with qualifications listed in RSA 162-L. If you’re not sure you meet the legislative requirements, call us.
2. CDFA tax credits are not cash. If you’re selected, you’ll be given your award amount in the form of tax credits. It’s then up to you, as part of your fundraising effort, to get businesses to “purchase” the credits in lieu of a cash contribution. Because they’ll get at least 75% of this investment back in reduced businesses taxes, most companies pledge more to the project than they would in cash alone.
3. CDFA makes its selections once a year in a competitive funding round, awarding approximately $5 million in tax credits each state fiscal year. Your project will be evaluated against other affordable housing, economic development, and community advancement efforts. (We often get three times the amount of requests than we can award.)
4. The application process. Each application must be filled out and submitted online through our Grants Management System. This process begins after the first of the calendar year; deadlines change each year. We’ll do our best to publicize these dates when they’re set (like on our Events calendar), but the responsibility to be attentive to these deadlines falls on you.
5. CDFA holds workshops on how to write your application; watch for dates and locations. Although it’s not mandatory, we highly recommend you attend (we mean, like, totally recommend it, fer sure). The tax program isn’t for everybody and better for both of us if we can determine that early on.
That’s it in a nutshell, but if you have even more questions go to our FAQ page.
If you would like additional information about the CDFA Tax Credit program, call 603.226.2170.