Origin: A personal income tax and corporate excise credit equal to 50% of the total amount of qualified investments made by a taxpayer in a "community partner." A Qualified investment is a cash contribution made to: (i) a specific community partner to support the implementation of the community partner's approved community investment plan, or (ii) a community partnership fund. Community partners include "community development corporations" and "community support organizations" selected by the Executive Office of Housing and Livable Communities (EOHLC) through a competitive process. A "community partnership fund" is a fund administered by a nonprofit organization selected by the EOHLC to receive qualified investments from taxpayers for the purpose of allocating the investments to community partners. A "community development corporation'' is a non-profit corporation dedicated to improving the economic well-being of communities in the Commonwealth, as certified by the EOHLC. A ''community support organization'' is any nonprofit organization which is not a community development corporation "but has a focus on and track record of providing capacity building services to community development corporations." A qualified investment must be in the form of a cash contribution of at least $1,000. A taxpayer must claim the credit in the taxable year in which a qualified investment is made. The credit is refundable, or alternatively may be carried forward by the taxpayer for 5 years. The credit is not transferable. The EOHLC is mainly responsible for administering the credit. The EOHLC determines whether an organization is a community partner and decides whether projects proposed by community partners will be eligible for the credit. The total cumulative value of all credits authorized may not exceed $12 million in any taxable beginning in 2023 or later. Prior limits were $10 million for 2021 and 2022 taxable years, $8 million for 2019 and 2020 taxable tears, $6 million for 2015 through 2018 taxable years, and $3 million for 2014 taxable years. For taxable years beginning on or after January 1, 2025, the annual cap has been increased from $12 million to $15 million. The credit was due to expire on December 31, 2025, but has been made permanent. The amount of revenue foregone as a result of the credit constitutes a tax expenditure.
Origin: St. 2012, c. 238, §§29, 30, 35, 36 ; M.G.L. c. 63, § 38EE
Corporate Excise Tax
Credits Against Tax
2.621
Community Investment Credit
A personal income tax and corporate excise credit equal to 50% of the total amount of qualified investments made by a taxpayer in a "community partner." A Qualified investment is a cash contribution made to: (i) a specific community partner to support the implementation of the community partner's approved community investment plan, or (ii) a community partnership fund. Community partners include "community development corporations" and "community support organizations" selected by the Executive Office of Housing and Livable Communities (EOHLC) through a competitive process. A "community partnership fund" is a fund administered by a nonprofit organization selected by the EOHLC to receive qualified investments from taxpayers for the purpose of allocating the investments to community partners. A "community development corporation'' is a non-profit corporation dedicated to improving the economic well-being of communities in the Commonwealth, as certified by the EOHLC. A ''community support organization'' is any nonprofit organization which is not a community development corporation "but has a focus on and track record of providing capacity building services to community development corporations." A qualified investment must be in the form of a cash contribution of at least $1,000. A taxpayer must claim the credit in the taxable year in which a qualified investment is made. The credit is refundable, or alternatively may be carried forward by the taxpayer for 5 years. The credit is not transferable. The EOHLC is mainly responsible for administering the credit. The EOHLC determines whether an organization is a community partner and decides whether projects proposed by community partners will be eligible for the credit. The total cumulative value of all credits authorized may not exceed $12 million in any taxable beginning in 2023 or later. Prior limits were $10 million for 2021 and 2022 taxable years, $8 million for 2019 and 2020 taxable tears, $6 million for 2015 through 2018 taxable years, and $3 million for 2014 taxable years. For taxable years beginning on or after January 1, 2025, the annual cap has been increased from $12 million to $15 million. The credit was due to expire on December 31, 2025, but has been made permanent. The amount of revenue foregone as a result of the credit constitutes a tax expenditure.
<a href="https://malegislature.gov/Laws/SessionLaws/Acts/2012/Chapter238" target="_blank">St. 2012, c. 238, §§29, 30, 35, 36</a> ; M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38ee" target="_blank">c. 63, § 38EE</a>
3.5
4.8
5.2
5.2
6.5
