Charitable Housing Investment Tax Credit
Vermont's Charitable Housing Investment Tax Credit incentivizes private investment in affordable housing by offering state tax credits for investments in approved housing charities.
Funder: Vermont Agency of Commerce and Community Development
Due Dates: January 31, 2027 (annual deadline for tax credit statements & reporting)
Funding Amounts: Up to $5 million in tax credit certificates issued annually; individual credit capped at 3% of average investment balance per year.
Summary: Vermont income taxpayers can reduce their state tax liability by investing in approved affordable housing charities.
Key Information: Credit applies to both individuals and corporations; investments must be with eligible housing charities.
Description
The Charitable Housing Investment Tax Credit (HITC) is a Vermont state program designed to incentivize private investment in affordable housing. Individuals and corporations who pay Vermont income tax can receive a dollar-for-dollar tax credit for making charitable investments (loans or deposits) in eligible housing charities. The goal is to increase funding for organizations that provide affordable housing to low- and moderate-income Vermonters, while allowing investors to reduce their Vermont income tax liability.
