Mass. to offer revitalization tax credits
To get private investors to participate in community revitalization efforts, Massachusetts will offer them $33 million in tax credits over the next six years, according to the state’s Department of Housing and Community Development.
In a first-time program for Massachusetts, to be unveiled Tuesday, the state will funnel the tax credits primarily through community development corporations that are trying to increase the amount of affordable housing and provide job training for residents in cities and towns.
In the first year, the state will distribute $3 million in tax credits to 38 organizations, including in Boston, Springfield, and Franklin County and on Cape Cod. The amount will increase to $6 million in subsequent years, said Aaron Gornstein, undersecretary of Housing and Community Development.
For every $2 private investors give to community development organizations, they will be able to write off $1 in state taxes, said Joseph Kriesberg, president of the Massachusetts Association of Community Development Corporations, an advocacy group.
Community development groups have faced cuts in federal funding in recent years, and state tax credits help fill some of those gaps and expand services, Kriesberg said.