Background, Purpose and Applicability

The Community Investment Tax Credit (CITC) was created by St. 2012, c. 238, §§ 29, 35, 36, 82, 83, 95, 97, 97A, and 98; amended by St. 2013, c. 36, §§ 8 through 15, 58, and 82; M.G.L. c. 63, § 38EE; amended by St. 2016, c. 219, §§ 78, 79, 92 and 93; and by St. 2018, c. 99, §§ 11, 12, 12A, 19, 20, and 21; and codified at M.G.L. c. 62, § 6M and M.G.L. c. 63. The Department of Housing and Community Development (DHCD) is the administering agency for this program and is responsible for managing the process by which the tax credits are allocated. DHCD is required by statute to issue regulations to implement the CITC program. The CITC is designed to enable local residents and stake-holders to work with and through community development corporations (CDCs) to partner with nonprofit, public, and private entities to improve economic opportunities for low and moderate income households and other residents in urban, rural, and suburban communities across the Commonwealth. CDCs accomplish this through adoption of community investment plans to undertake community development programs, policies, and activities. Under the program, CDCs and Community Support Organizations (CSOs) are eligible to apply to DHCD for selection as a Community Partner and receive an allocation of tax credits. First time allocation awards are based on DHCD's determination of the quality of the adopted Community Investment Plan (CIP), in the case of CDCs, or capacity building proposal, in the case of CSOs. Subsequent year allocation awards are based on DHCD's determination that the Community Partner is making adequate progress on its credit utilization and adequate progress implementing its CIP or Work Plan. Receipt of a CITC allocation award enables Community Partners to solicit and receive qualified investments from donor taxpayers and to provide those donor taxpayers with tax credits in exchange for qualified investments made to the Community Partner. 760 CMR 68.00 establishes rules, standards, and procedures for the CITC program. 830 CMR 62.M.1: Community Investment Tax Credit explains how to calculate the CITC allowed for qualified investments to a community partner or community partnership fund. The CITC is applicable to tax years beginning, and for qualified investments made, on or after January 1, 2014 through December 31, 2025, or to such time as the Legislature may extend the expiration date of the CITC.