The Community Contribution Tax Credit Program (CCTCP) was created by the State of Florida to encourage business to make donations to certified non-profit charitable organizations that provide affordable housing and promote economic development.  The program provides an incentive of a state tax credit or state sales tax refund at a rate of 50% to any type "C" corporation who does business in Florida, earns more than $5,000 annually and pays one or more of the following taxes:

1. Florida State Corporate Income Tax
2. Florida State Insurance Premium Tax
3. Florida State Franchis Tax, or
4. Florida State Sales and Use Tax

Each corporation is eligible to receive credits of up to a maximum of $200,000 per tax year.  The donation must be made in the same fiscal year as the July 1st filing date for the credit.  Currently $12 million is set aside for the community based organizations providing affordable housing/homeownership opportunities to low and very low income families.  The remaining $2 million is used for community based organizations that promote economic development, like schools, museums and performing arts facilities.

A component of the program is referred to as the "improved deed method".  With improved deed method the donor's 50% of credit is based not on the value of the cash or in-kind donation, but on the market value of the improved housing unit at the time of completion (appraisal).  To qualify for improved deed method the donor must also provide a minimum or more amout of the labor to complete the improved housing unit.  In other words, donate cash or in-kind materials plus supply employees, family, friends, clients, etc. for 200 hours or more of the labor and the credit becomes 50% of the market (appraised) value of the structure.  This part of the program was designed, specifically, to encourage donors to work with the Habitat for Humanity model.

All donations to Big Bend Habitat for Humanity are fully 100% tax deductible under normal IRS rules for 501(c)(3) charitable donations.  As with any donation, please feel free to consult your inancial advisor, tax attorney or certified public accountant before making a decision about a charitable gift.

We encourage all Florida type "C" corporations to apply for this tremendous opportunity and help eliminate substandard housing in our community.  Please call the BBHH office at 850-574-2288 with any questions you may have about this program.  It benefits the business, it benefits the homeowners and it benefits the community.

Thank you for taking the time to read this article.  If you know of any business that may qualify for the tax credit, please encourage them to call us to find out how to participate in the CCTCP or call the Office of Tourism, Trade and Economic Development (OTTED) at 850-487-2568.