Double your donation to Joe’s and get the difference back at tax time! Community Investment Tax Credit (CITC) Program is a Win-Win for You and Joe’s!
You’ll reduce your Maryland tax liability while helping Joe’s keep the arts alive
A gift of $500 or more to Joe’s qualifies you for a 50% tax credit from the state in addition to a federal charitable tax deduction. The two combined could reduce your actual cash outlay by up to 80%!
The CITC program supports nonprofit organizations by granting them state tax credits which help to encourage contributions from donors. Joe’s has a limited amount of tax incentives available for Maryland businesses and residents.
When you make a donation of $500 or more to Joe’s, you may be eligible to receive a Maryland CITC tax credit equal to half the value of your donation. The CITC program supports nonprofit organizations like Joe’s by granting State tax credits to nonprofits which they, in turn, use to encourage contributions. CITC tax credits are equal to 50% of the value of the donated money, goods or real property and are in addition to Federal and State charitable tax deductions.
Who is Eligible
Businesses: Any entity that conducts a trade or business in the State and is subject to State income tax on individuals or corporations, the public service company franchise tax, or the insurance premiums tax.
Individuals: Individual residents of Maryland are eligible if domiciled in Maryland on the last day of the taxable year or if s/he maintains a place of abode in Maryland for more than six months of the taxable year and is physically present in the State for 183 days or more during the taxable year.
How to Apply for Credits
Individuals and businesses making donations are required to complete a simple two-page form and submit it to Joe’s. When filing your Maryland Income Tax Return, Part E of Form 500CR of the electronic return must be completed and submitted with appropriate documentation. Contact Melissa Rosenberg, Director of Development at 301-699-1819 or firstname.lastname@example.org with your intent to donate to confirm tax credits are still available.
TAX BENEFITS TO INDIVIDUAL DONOR WITH A $1,000 DONATION
Donation to Joe’s $1,000
CITC State Tax Credit (500)
Federal Charitable Tax Deduction (396)*
MD Charitable Tax Deduction 57.50*
Net Cost of $1,000 Donation 46.50
TAX BENEFITS TO AN INDIVIDUAL DONOR WITH A $5,000 DONATION
Donation to Joe’s $5,000
CITC State Tax Credit (2,500)*
Federal Charitable Tax Deduction (1,980)*
MD Charitable Tax Deduction 287.50
Net Cost of $5,000 Donation 232.50* Using the highest 2014 state (5.75%) and federal (39.6%) marginal tax rates and shown for illustrative purposes only. The net cost of your donation depends on your particular federal and state tax brackets. Any individual or business contemplating making a donation is encouraged to consult with its tax professionals to determine the actual tax benefits from a donation to Joe’s.