Program Overview & Objectives

CDFA’s Tax Credit Program is a competitive community and economic development investment program. The program awards approximately $5 million in tax credits annually to eligible nonprofits engaged in community economic development initiatives that show a high degree of community support, build partnerships and leverage other resources. The program is a proven example of how to achieve local priorities by leveraging public-private partnerships.

Grants made to eligible projects are in the form of tax credit equity and serve as a powerful fundraising tool. Businesses with New Hampshire tax liability support awarded projects by purchasing the credits resulting in the nonprofit receiving a donation and the company receiving a 75 percent New Hampshire state tax credit against that contribution. The credit can be applied against the Business Profits Tax, Business Enterprise Tax or Insurance Premium Tax. The donation may also be eligible for treatment as a state and federal charitable contribution.

CDFA’s founding legislation and authority to administer the Tax Credit Program is New Hampshire RSA 162-L.

In accordance with New Hampshire RSA 162 L:4, CDFA’s tax credit funds are allocated to specific projects or programs that are of public benefit, for a public purpose and can reasonably be expected to address one or more of the following objectives:

• Contribute to the development or redevelopment and economic well-being of target areas or target populations;
• Contribute to the economic development of the state;
• Increase or maintain threatened primary employment;
• Provide affordable housing opportunities to low- and moderate-income people.