Skip to main content

Charitable Housing Investment Tax Credit

Photo of affordable housing project funded by Charitable Housing Investment Tax Credit. The Charitable Housing Investment Tax Credit (HITC) is an opportunity to support affordable housing in Vermont and reduce your Vermont income 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 if they invest their funds with an eligible affordable housing organization.

The amount of the credit is based on the difference between the actual income earned from the investment and the charitable threshold rate, which 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 organizations, small businesses, child care programs, and community facilities that serve Vermonters earning 80% of the area median income or less.