Neighborhood and Community Assistance Program - Individual Donor Eligibility for Tax Credit

House Bill 1399 (Chapter 166, Acts of 2009)

This Act amends applicable sections under Title 6 Subtitle 4 of the Housing and Community Development Article providing for the Neighborhood and Community Assistance Program, to expand the Neighborhood and Community Assistance Tax Credit by allowing the credit to be claimed by an individual, as defined under Section 10-101 of the Tax-General Article.

Currently, the Neighborhood and Community Assistance Tax Credit is available only to a business entity. This Act provides that the credit is allowed to either a business entity or an individual for contributions of $500 or more in goods, money or real property to a Department of Housing and Community Development (DHCD) approved project conducted by a nonprofit organization in a priority funding area. The allowable credit is equal to 50 percent of the amount contributed. However, the amount of credit that may be claimed in a taxable year may not exceed the lesser of $250,000 and the contributor's tax liability for the taxable year. Any excess credit may be carried over for up to 5 taxable years after the year in which the contribution was made or until the full amount of the excess credit is used, whichever is earlier.

To be eligible for this tax credit, the contributor is required to submit an application to the DHCD and receive an approval for the contribution.

This Act takes effect July 1, 2009, and shall be applicable to all taxable years beginning after December 31, 2009.