CDFA’s Tax Credit Program is a competitive, community economic development investment program. The program seeks to advance community economic development projects that: show a high degree of community support, build partnerships, and leverage other resources.
Grants awarded under this program are provided to organizations in the form of tax credit equity, typically over a two-year period. Businesses with New Hampshire tax liability support awarded projects by purchasing the awardee’s credits, resulting in the nonprofit receiving a donation and the business receiving a 75 percent New Hampshire state tax credit for their contribution. The purchased credit can be applied against the Business Profits Tax, Business Enterprise Tax, or Insurance Premium Tax. The donation may also be eligible for consideration as a charitable contribution for state and federal tax purposes.
CDFA’s tax credit funds are allocated to specific projects 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 a target area(s) or target population(s);
- Contribute to the economic development of the state;
- Increase or maintain threatened primary employment;
- Provide affordable housing opportunities to low- and moderate-income people.
CDFA’s founding legislation and foundational guidance for the Tax Credit Program can be found in New Hampshire RSA 162-L.
A portion (20%) of each tax credit award is set aside to support the administration of the Tax Credit Program, as well as CDFA’s statewide investments, technical assistance, data collection, research, and general operations. Applicants should calculate and submit their total request based on this 80% effective award, taking the set-aside into account. For example, if your project needs $100,000 for implementation, the total request would be for $125,000 ($125,000 x .8 = $100,000).