The Charitable Housing Investment Tax Credit (“HITC”) is an opportunity to support affordable housing in Vermont and reduce your Vermont taxes.
The HITC is a program authorized by Vermont law 32 V.S.A. Section 5830c which allows individuals and corporations who pay Vermont income tax to receive a credit on their taxes if they invest their funds with an eligible affordable housing organization, called a “housing charity.” The amount of the credit is based on the difference between the interest earned on the investment and the charitable threshold rate (1.5% from January 1, 2017 - June 30, 2017; 1.88% from July 1, 2017 - December 31, 2017) and is capped at 3% of the average balance of the investment for the year. Because it is a credit (as opposed to a deduction), the HITC reduces your income tax liability dollar-for-dollar.
If you are interested in learning how to make a charitable housing investment, contact the Vermont Community Loan Fund (VCLF). VCLF provides loans to affordable housing, small businesses, child care programs, and community facilities that serve Vermonters earning 80% of the median income or less.