Tax Credit Program
How the Community Investment Tax Credit program from the State of Maryland Can Help You Make a Gift to Baltimore Clayworks

Baltimore Clayworks has received a grant for tax credit allocation from the Maryland Department of Housing and Community Development of the State of Maryland. The Community Investment Tax Credit program (CITC) provides additional tax credit to a corporations, small businesses and sole proprietor who make a gift to Clayworks and pay Maryland State Tax. The tax credit is an incentive to businesses to make charitable gifts at a fraction of the usual net cost to organizations doing good and needed work in our community. Since 2002, Baltimore Clayworks has raised over $350,000 in support through the tax credit program.

Currently, Baltimore Clayworks tax credits support our community arts satellite program in West Baltimore at Forest Park. Quality clay classes for disadvantaged youth and senior adults are given at no or little cost to the community.

"It sounds almost too good to be true - but it's real, " states Stuart "Topper" Crook, Board member and Treasurer for Baltimore Clayworks and financial accountant. "I have created this chart (below) to show you how your can maximize your support through making your gift through the NPP Program for Clayworks this year."

This is for illustration purpoposes and the net cost to donor will vary depending upon the tax rates in effect when the donation is made. All taxpayers should consult with their tax advisors as to their ability to deduct such a proposed contribution.

For example, if you are in the 17% tax bracket (10% federal and 7% state), you can make a $1,000 donation at a net cost of $330 ($1,000 minus $170, the value of the charitable deduction, minus $500, the value of the Maryland tax credit, equals $330). As your tax bracket goes up, your net cost goes down: in the 30% tax bracket (23% federal and 7% state), your net cost is $200 ($1,000 minus $300, the value of the charitable deduction, minus $500, the value of the Maryland tax credit, equals $200); in the 43% tax bracket (36% federal and 7% state), your net cost is $70 ($1,000 minus $430, the value of the charitable deduction, minus $500, the value of the Maryland tax credit, equals $70)!

The tax credit paperwork is not complicated (just 1 ½ pages). Your charitable contribution can be in cash or in kind (but it must be at least $500 in value, and contributions of services or real estate do not qualify). Unused tax credits can be carried forward and applied against future tax liability (up to 5 years).

Please contact Deborah Bedwell or Sara Warren at 410-578-1919 (or have your accountant or financial officer do so) to learn how you can give a highly visible boost to Baltimore Clayworks' program at this remarkably low net cost.