Has someone approached your business about purchasing CDFA tax credits? Maybe you’ve never heard about the program or you’re unsure how to use the credits if you get them? Here’s what we want you to know.
CDFA has been awarding Investment Tax Credits since 1999 on behalf of the state of New Hampshire. These can be applied toward the state Business Profits Tax, Business Enterprise Tax, and Insurance Premiums Tax.
You could contribute cash to that nonprofit (and get a modest federal tax deduction), but CDFA tax credits are an above-the-line, 75% state business tax credit. If you “purchased” $1,000 in tax credits, you’d get $750 off your state business taxes. Additional tax benefits mean most organizations will only pay 11 cents on the dollar for that investment.¹
That means you could contribute far more than $1,000 and still pay less. If fact, 98% of participating businesses said they invested a greater amount of money than if they’d used cash alone. If you want to see what your potential benefit would be, play with our online tax calculator.²
CDFA makes it easy for your business. You don’t have to pay the money right now; you can fill out a pledge to pay at a later date (like the end of your fiscal year or when your taxes are due). You tell us when you want to be invoiced to fulfill the pledge and we’ll mail you. (You can pledge online right now by clicking here. How much easier can we make it?)
Okay…here’s how much easier we can make it. CDFA will file all the paperwork to DRA for you. All you have to do is write the credit amount on your form DP-160 (your accountant knows which one that is). Also, you can carryover all or part of the credit for up to five years).
Ninety-two percent of participating businesses surveyed said they’d recommend purchasing CDFA tax credits to other NH businesses (and 92% can’t be wrong; that’s arithmetic). Plus, you know projects selected for CDFA tax credits have gone through a rigorous vetting process. You can have confidence these projects will have a real impact on your community.
Now you know why obtaining CDFA tax credits is far better than just giving cash. If you have more questions, go to our FAQ page or call 603-226-2170.
CDFA, NHIA and the NH State Council on the Arts present an event on creative placemaking.