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, called a “housing charity.”
The amount of the credit is based on the difference between the actual income earned from the investment and the charitable threshold rate, 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.