Sen. Sal DiDomenico recently announced that his bill to extend the Community Investment Tax Credit (CITC) was included as a critical provision in the Housing Bond Bill that was passed by the Massachusetts Senate. The Senator was the original sponsor of legislation that created the CITC in 2012, and since then he has continued to champion the tax credit and sponsor legislation extending the program.
“I am thrilled that my CITC legislation was included in the Housing Bond Bill passed by the Massachusetts Senate,” said Sen. DiDomenico. “This tax credit enables local residents and businesses to work together to address specific local challenges and opportunities, thereby creating jobs, economic opportunity, and vibrant communities. The CITC has helped to drive innovation in Massachusetts and spur local development, and I am proud to have worked with the Massachusetts Association of Community Development Corporations in championing this tax credit and helping to promote greater investment in our communities that need it most.”
The CITC offers a 50 percent credit to anyone who donates money to a community development corporation (CDC). CDCs are nonprofit, community based organizations focused on revitalizing the areas in which they are located— typically low- and moderate-income, underserved neighborhoods— by promoting and developing affordable housing, providing job training, and supporting local businesses, among other initiatives. Over the past three years, this program has generated nearly $24 million for CDCs across the state, enabling them to deepen their community engagement, create more housing opportunities, and increase their impact.
The CITC program is currently authorized through calendar year 2019 with up to $6 million in credits available each year, representing $12 million in fundraising potential. Under the provisions filed by Senator DiDomenico and included in the bond bill, the CITC would be extended to 2025 and the annual cap would be gradually raised to $12 million, representing $24 million in fundraising potential.
The Senator and his staff also worked closely with the Massachusetts Association of Community Development Corporations (MACDC) to facilitate a key role for United Way as a fundraiser and investor in the CITC. Since the CITC’s inception in 2014, United Way has raised over $2.5 million from donors to support CDCs across the state, which have built over 600 new affordable housing units, prevented more than 1,300 foreclosures, and provided more than 11,600 individuals with financial coaching and education to help them build savings, reduce debt, and improve credit scores.