Through the Tax Credit Program, also known as the Community Development Investment Program (CDIP), CDFA grants state tax credit awards on a competitive basis to qualified organizations for specific projects or programs. CDFA is attracted to innovative projects that show a high degree of community support, build partnerships, and leverage other funds.
We issue tax credits totaling 75% of the value of each donation to the project donors. For example, a donor making a $100,000 donation to CDFA on behalf of an approved project will receive a state tax credit in the amount of $75,000. All approved Tax Credit project sponsors must raise the money for their project within an allocated time frame.
The tax credit may be applied against the business profits tax, business enterprise tax, and/or the insurance premium tax. The donation also may be eligible for treatment as a state and federal charitable contribution.*
Tax credit awards are made annually in July. By law, CDFA is restricted to providing support to nonprofit community development organizations, cooperatives, and some municipal entities. Legislation permits CDFA to accept donations of up to $5 million in each state fiscal year in exchange for $3.75 million in state tax credits for CDFA approved community development projects.
Want to learn more about how your community development organization can benefit from the CDFA tax credit program? Call us at 226-2170, or drop us a line here.
*Contributors are responsible for consulting with their own tax advisors to determine the impact of contributing to the CDFA tax credits on their finances.
Required for all awardees, this workshop discusses how to implement the requirements of a CDBG grant.
This workshop will explain the CDBG program and instruct applicants how to apply for funding.
The CDFA Board of Directors will hold their monthly meeting.
The CDBG Advisory Committee will discuss the latest CDBG requests.
The CDFA Board of Directors will hold their monthly meeting and make funding decisions for the Tax Credit Program.