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Community-Builders Wanted: How to Receive State Tax Credits for Investing in Local Betterment Projects

Tuesday, August 06, 2019

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August 6, 2019 (LINCOLN, NEB.) – Are you or someone you know a community-builder? Do you enjoy leading and/or supporting projects that enhance quality of life and create economic opportunities for fellow citizens? 

If so, the Nebraska Department of Economic Development (DED) wishes to inform you of an open application cycle for a program that offers 40% state tax credits for individuals and organizations who invest in qualifying community development projects through eligible cash donations or by providing services and materials. 

The tax credit, made possible by the Community Development Assistance Act (CDAA), is intended to spur community and economic development by making it easier for community-builders to invest in impactful local projects.

If you are an individual, a business, a corporation, an insurance firm or a financial institution, you may be eligible under the CDAA for a 40% credit for your community betterment project, with amounts up to $75,000 per project. To be eligible for tax credits, the local government or eligible nonprofit must first submit an application for the project to DED. Contributions made prior to Department approval of an application are not eligible for CDAA tax credits.

Many types of projects are eligible for CDAA credits. But projects deemed most important — and most likely to be awarded — are those that 1) build the capacity of local residents to address local objectives; 2) provide essential services to low- and moderate-income persons; and/or 3) tangibly contribute to the development of lasting cooperation and public-private partnerships between area organizations and businesses.

Many varieties of projects have already been completed with support from CDAA tax credits. These include new childcare centers, community wellness centers, playgrounds, theaters, libraries, grocery stores, social service centers and much more. In fact, any project that falls under the following categories could potentially qualify: employment training; human and medical resources; physical facility and neighborhood development services; recreational and educational activities; and crime prevention. 

Interested applicants to the CDAA tax credit program must apply through their respective municipality or a county, tribal authority or non-profit development organization. DED will then determine whether the project is eligible for and/or approved to receive an allotment of CDAA tax credits.

Note that certain requirements and restrictions apply. An informational brochure is available at https://opportunity.nebraska.gov/wp-content/uploads/2018/06/NeComm-DevAssActNCDAA.pdf. For detailed information, including on how to apply for or administer CDAA tax credits, visit https://opportunity.nebraska.gov/program/community-development-assistance-act/ or contact Amber Ward, DED Community Development Specialist and CDAA Coordinator, at amber.ward@nebraska.gov or 402-471-3369. 

Category: Construction, Community, DED