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- Appendix A
- Appendix D
1.617 -Community Investment Tax Credit
|1.617||Community Investment Tax Credit
The 2012 Jobs Act provides a Community Investment Tax Credit that is effective January 1, 2014 and is set to expire on December 31, 2019. It was created to enable local residents and stakeholders to work with and through community development corporations to partner with nonprofit, public and private entities to improve economic opportunities for low and moderate income households and other residents in urban, rural and suburban communities across the commonwealth. The credit is available to both chapter 62 and chapter 63 taxpayers (personal income taxpayers and corporate & business excise taxpayers).
The Department of Housing and Community Development will administer the credit program by: 1) issuing a certification to a taxpayer after the taxpayer makes a qualified investment; 2) authorizing a dollar amount of credit for a qualified investment; 3) developing regulations and procedures with the Department of Revenue to implement the Community Investment Credit.
The certification will be acceptable as proof that the expenditures related to such investment constitute qualified investments for purposes of the community investment credit. The Community Investment Credit is set at 50 percent of the total qualified investments made by a taxpayer in a "community partner," i.e., a "community development corporation" or a "community support organization," selected by the Department of Housing and Community Development through a competitive process. A qualified investment must be in the form of a cash contribution of at least $1,000. A taxpayer may invest in more than one community partner, but may not claim more than $1,000,000 of credits in any single taxable year. A taxpayer must claim the credit in the taxable year in which a qualified investment is made. The total amount of Community Investment Credits is subject to a $3,000,000 cap in 2014, and an annual cap of $6,000,000 in 2015 to 2019, inclusive. This credit is non-refundable, but it is transferrable and it could be carried over up to five years.
Origin: St. 2012, c. 238, S. 29, 30, 35, 36; M.G.L. c. 62, S. 6M; M.G.L. c. 63, S. 38EE
|IRC||Federal Internal Revenue Code (26 U.S.C.)|
|U.S.C||United States Code|
|M.G.L.||Massachusetts General Laws|
|Rev. Rul.; C.B.||Revenue Ruling; Cumulative Bulletin of the U.S. Treasury|
|ESTIMATES||All estimates are in $ millions.|
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