The Maryland Department of Housing and Community Development has award Community Investment Tax Credits to Habitat for Humanity Choptank in support of its affordable home building program. Tax credits serve as incentives for individuals and businesses to financially support costs of approved projects while decreasing their state tax obligation. Habitat Choptank’s tax credit allocation is available to donors contributing $500 or more. Funds raised from this allocation help with construction costs at the five-home development on Port Street in Easton. Designated contributions earn state tax credits equal to 50% of the gift amount. This is in addition to the standard deductions on Federal and State taxes for charitable gifts.
“The state tax program has proven to be a benefit for our mission and our donors,” explains Nancy Andrew, executive director of Habitat Choptank. “It helps raise much need funds for our affordable housing program and helps our donors decrease their state tax liability.” The credits can be used by the donor in one tax year or carried out over five years.
For the local community and state government, Habitat’s home ownership program in turn helps to increase local property tax revenues. Habitat Choptank sells its homes for the cost of land, materials and supervision to qualifying working people who are not able to purchase a home through the conventional market. Provided with affordable mortgage financing, these home buyers become tax paying property owners thereby investing back into the community that has helped to make their dream of home ownership a reality. Since 1992, Habitat Choptank has completed 63 homes between Dorchester and Talbot counties. While selling its homes to mostly first time and even first generation home buyers, the nonprofit continues to maintain a less than 2% foreclosure rate with only one foreclosure to date.
For additional information about the tax credits, contact Nancy Andrew, executive director, at 410-476-3204 or [email protected] .
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