Legislation extends and expands the Community Investment Tax Credit
Leaders from the Massachusetts Association of Community Development Corporations and United Way praised Governor Charlie Baker today for signing the Affordable Housing Bond Bill into law. The legislation, officially known as An Act Financing the Production and Preservation of Housing for Low and Moderate Income Residents, authorizes $1.8 billion in capital funds for the preservation and production of affordable housing, while also extending and expanding several highly successful tax credit programs.
“By signing this bill into law, Governor Baker assures that the Commonwealth will have the capital authorizations it needs to fully implement the Governor’s five-year capital plan for housing, with the flexibility to adapt and expand those plans as needed to meet evolving circumstances and opportunities,” noted Joseph Kriesberg, President of MACDC. “We are particularly excited that the Legislature and the Governor enacted legislation to extend and expand the Community Investment Tax Credit program, which is a gamechanger for the Commonwealth by spurring millions of dollars of private philanthropy aimed at high impact, resident-led community economic development.”
The Community Investment Tax Credit provides a 50% refundable tax credit for qualifying donations to participating Community Development Corporations. With this tool, CDCs attracted over $34 million since the program was enacted in 2014 to fund community engagement, affordable housing, small business development, family asset building and other high impact programs that expand economic opportunity. This program was limited to $6 million per year and it was scheduled to end in 2019, so this legislation extends the sunset until 2025 and increases the statewide cap to $8 million in 2019 and eventually up to $12 million by 2023.
“With high housing costs, a lack of affordable housing, and low-wages, too many individuals and families can’t make ends meet and do not have the opportunity for upward economic mobility,” said Michael K. Durkin, President and CEO at United Way of Massachusetts Bay and Merrimack Valley. “The Community Investment Tax Credit is generating millions of new dollars to build affordable housing, prevent foreclosures, provide financial counseling, jump-start small businesses, and revitalize neighborhoods. We applaud Governor Baker, the Massachusetts Senate and the Massachusetts House of Representatives for their support of this tax credit and for helping to create financial opportunity for people in need.”