To The Daily Sun,
Would you like to pay your N.H. business taxes while helping Laconia Area Community Land Trust (LACLT) help others?
LACLT is over halfway to its goal of raising $500,000 through the sale of New Hampshire Tax Credits. Once sold, these credits will be matched by a 2:1 grant from NeighborWorks America. The proceeds from both the credits and grant will be used to upgrade 60 units of rental housing owned by the Trust.
More than 20 years ago, LACLT began creating permanently affordable rental housing for working families by investing in buildings scattered throughout Laconia. After two decades of use, these early units need work beyond routine maintenance and replacement. Since inception, LACLT has reserved a portion of all monthly rents in an account for improvements, but the capital needs of these early units now exceed the amount in the reserves.
I invite you to join the list of local tax credit donors helping to fund capital improvements to these older properties including Belknap Landscaping, Boulia-Gorrell Lumber, Denoncourt, Waldron & Sullivan, EPTAM Plastics, Franklin Savings Bank, Hunter Homes, Laconia Clinic, Mainstay Technologies, Malone, Dirrubo & Company, Melcher & Prescott, Meredith Village Savings Bank, Northway Bank, RFS Engineering, and Stewart Associates.
The New Hampshire Tax Credit Program allows a business to make a donation to LACLT in exchange for state tax credits that can be applied against New Hampshire business profits, business enterprise, or insurance premium taxes. The amount of the tax credit is equal to 75 percent of the contribution. For example, a business making a $10,000 donation to LACLT through this program will receive a state tax credit in the amount of $7,500.
In addition, the contribution may be treated as a charitable contribution to the extent the federal and state law allows. These state tax credits may be used at any time during a period of five consecutive years. The actual out-of-pocket cost to a donor/purchaser is generally less than 11 percent. In addition, the donation to LACLT will be matched 2:1.
A purchase of tax credits can be in any amount; the program was designed so that small businesses could put their donations to work in their communities.
The process is easy. There's no complicated paperwork for this program. The business signs a pledge agreement indicating the amount of the donation and when they would like to be invoiced (quarterly, semi-annually or just once). CDFA sends all the documentation to the Department of Revenue Administration. Later, the business simply fills in the tax credit purchase amount on the appropriate line on the state tax form.
LACLT has until June 30 to sell the remaining tax credits.
Because I believe in the mission of the Land Trust, I volunteered to help raise these funds by meeting with businesses to explain the program and process. I recognize there are many community-based projects and campaigns seeking support. However, quality housing that is affordable benefits the region by making a difference for our employees and their families and reduces the demand of other programs and services. LACLT's tenants are employees of area businesses working in manufacturing, service, healthcare and hospitality industries.
For 20 years, LACLT has made a difference in the lives of so many.
Please consider a purchase of tax credit, so as a community we can continue to make that difference.