Maryland Department of Housing and Community Development Awards $1.75 Million in Tax Credits to Boost Local Nonprofits

The Maryland Department of Housing and Community Development has announced the allocation of $1.75 million in Fiscal Year 2026 Community Investment Tax Credits, a move aimed at bolstering social services, community revitalization, and economic development initiatives across the state. This funding will support nonprofit organizations by providing incentives for individuals and businesses to contribute financially, donate goods, or offer real property, thereby aiding these organizations in covering operational and programmatic expenses.

The Community Investment Tax Credit program is designed to empower local nonprofits undertaking crucial work within Maryland communities. These tax credits encourage charitable giving, enabling organizations to secure the necessary resources to implement projects that enhance the quality of life for residents. Examples of supported projects include the development of affordable, energy-efficient housing and the provision of specialized healthcare for vulnerable youth. These partnerships are instrumental in fostering stronger neighborhoods and encouraging a sense of investment in a shared future among residents and community groups.

Under this program, individuals and businesses that donate to an approved project by a qualified nonprofit organization can receive tax credits equivalent to 50% of the contribution’s value. These credits are offered in addition to any federal and state tax deductions that may apply to charitable donations. Since its inception, the program has successfully facilitated nearly $34 million in charitable contributions, benefiting approximately 845 projects statewide.

In the Fiscal Year 2026 cycle, 70 awards were distributed to organizations operating in 22 different jurisdictions within Maryland. Among the recipients are Rehoboth Community Development, which will receive support for the redevelopment of Patapsco Place, an affordable senior housing community in Baltimore City’s Brooklyn neighborhood. Lifestyles of Maryland Foundation in Charles County will utilize its award for operating support of its Basic Needs Distribution Center, providing essential items to low-income and homeless households.

Housing Initiative Partnership, Inc. in Prince George’s County is set to receive funding for operating support to aid individuals transitioning out of homelessness through rental assistance and intensive coaching. Parent’s Place of Maryland, serving Queen Anne’s County and the Lower Eastern Shore, will use its award to provide assistance and advocacy training for families with children who have disabilities or special healthcare needs. Additionally, Habitat for Humanity of Washington County received support for the new construction of affordable housing units at McCleary Hill, aiming to create homeownership opportunities for low- to moderate-income families.

Residents interested in contributing to these community-focused projects and potentially benefiting from tax credits can find more information on the Maryland Department of Housing and Community Development’s Community Investment Tax Credit webpage.

Article by Mel Anara, based upon information from the Maryland Department of Housing and Community Development

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