LACONIA — Melcher & Prescott Insurance is helping rebuild Laconia's housing stock by purchasing $35,000 in tax credits from the Laconia Area Community Land Trust (LACLT).
Calling the program a win-win, Melcher & Prescott president H. Thomas Volpe said, "Melcher & Prescott welcomes the opportunity to support the Laconia Area Community Land Trust in fulfilling its mission to provide clean and efficient moderately-priced housing and effective property management for our communities. Its projects restore older housing while returning a sound tax revenue stream for our cities and towns."
Over the past two years, Melcher & Prescott employees have provided more than 65 hours of highly-skilled volunteer service to LACLT. Linda Harvey, Executive Director of LACLT, said, "Melcher & Prescott has been serving the community for 150 years and has been a partner to us for 20 years. We are grateful for their terrific service and support."
Last year, LACLT was awarded a total of $500,000 in tax credits to sell by New Hampshire's Community Development Finance Authority (CDFA). Once the credits are sold to business donors, LACLT can use the proceeds to continue upgrading 60 units of permanently affordable rental housing in Laconia.
As a new nonprofit housing organization 20 years ago, LACLT began rehabbing scattered-site apartments in Laconia to create permanently affordable housing for families with low and moderate incomes. Now with the tax credits to fund a Portfolio Strengthening Initiative for these properties, LACLT will further invest in these community assets by installing new "green" flooring and energy-efficient fixtures, among other improvements.
Last year more than $4.1 million was recently awarded through the CDFA Tax Credit Program. Twenty-three community projects throughout the state sought tax credit funding; LACLT's Portfolio Strengthening Initiative was one of only three applications awarded its full request.
The Tax Credit Program enables businesses to donate to LACLT in exchange for a state tax credit that can be applied against the New Hampshire business profits, business enterprise, or insurance premium taxes. The state tax credit is equal to 75% of that contribution. In addition, the contribution may be treated as a charitable deduction to the extent the federal laws allow. Tax credit may be carried forward during a five-year period. After both state and federal tax benefits are accounted for, a contribution of $10,000 actually costs the company less that 11% or $1,100. LACLT is responsible for securing donations/pledges from for-profit companies with a New Hampshire state tax liability.
Melcher & Prescott Agency, incorporated in 1862, is a locally-owned independent insurance agency providing Property & Casualty along with Life, Health, and Benefits products and services.
CDFA, created by legislation in 1983, is a nonprofit public instrumentality of the State of New Hampshire. CDFA administers nearly $57 million in funding resources, which includes a combination of state Tax Credits and federal Community Development Block Grant, Neighborhood Stabilization, and Energy Reduction Funds.