LACONIA — Longtime Laconia Area Community Land Trust (LACLT) partner Gary Chicoine Construction Corporation of Weare is working on rebuilding local housing in a new way -- by purchasing $30,000 in tax credits.
Executive Director Linda Harvey noted, "Chicoine has built our largest new construction projects. We are very happy to have them support this rehab project through the purchase of tax credits."
LACLT has been selling state tax credits after being awarded $500,000 to by New Hampshire's Community Development Finance Authority (CDFA). Once the credits are sold to business donors, LACLT uses 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, in addition to other capital improvements.
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.
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. CDFA supports the development of vibrant and resilient communities by providing resources for community development efforts. For more information about CDFA and its programs visit www.nhcdfa.org or call 603-226-2170.
To learn about purchasing tax credits from LACLT in support of their Portfolio Strengthening Initiative contact Hope Jordan at 603-524-0747 ext. 108.