Invest tax dollars in local economic development

WOLFEBORO — Some wonder as they do their tax return if there is a way to decide where at least a portion of taxes are directed. Businesses paying New Hampshire business profits, business enterprise or insurance premium taxes, can do just that.

The New Hampshire Community Development Finance Authority oversees a program that allows businesses to direct their taxes to vetted nonprofit development organizations for innovative projects that show community support, build partnerships and leverage other funds. It’s called the NHCDFA Tax Credit Program.

Several Carroll County businesses have already directed their 2019 taxes through this program to the revitalization of the building that is the future home of the GALA Community Makerspace & Vocation Hub. The space aims to help close the workforce skills-gap, allowing for business growth, job creation and regional economic development.

The community-minded investors collectively contributed over $92,000 towards capacity-building planning and projects for the G.A.L.A. Makerspace. With matching funds from other grants, this investment supports community visioning, a feasibility study, strategic plan, architectural design, and required environmental studies. Investors are Green Mountain Communications, Meredith Village Savings Bank, Keller Williams Coastal Realty, Wolfeboro Family Dental, PSI Moulded Plastics, Bradley’s Hardware, Carroll County Landscape, Mill Street Meat Market, Made on Earth, and Healing Frontiers.

GALA is drawing up construction documents for public bidding for fall 2020 renovations. To achieve the goal of completing phase one by 2021, GALA needs to sell its allocation of $213,000 in business tax credits for the 2020 state fiscal year. Businesses have up to five years to use the credits they have purchased against their business enterprise tax or business profits tax liability.

“The sooner we open, the sooner we can support businesses by providing a space in which to run programs that address the shortfall in job skills, and the stronger our community and state will be," said GALA Executive Director Josh Arnold said. 

Unlike donation processes where businesses give cash to nonprofits, tax credits offer more. Taxes a business would already pay are redirected from the state general fund to the nonprofit. The value of the credits is maintained in the state economy and, according to economic analysis, magnified by a factor of almost two to one. The tax credit program helps a participating company significantly increase its community impact by leveraging tax dollars. To learn more, visit nhcdfa.org.

Many CPAs who handle business tax returns are familiar with the tax credit program. With questions about the program, contact Josh Arnold at 603-569-1500 or josh@galacommunity.org.

For more information, visit galacommunity.org or call 603-569-1500.