Charitable Housing Investment Tax Credit
Vermont's Charitable Housing Investment Tax Credit incentivizes private investment in affordable housing by offering tax credits for below-market-rate loans to certified housing organizations.
Funder: Vermont Agency of Commerce and Community Development
Due Dates: January 31, 2027: Tax credit statements to investors | January 31, 2027: Reporting to Commissioner of Taxes
Funding Amounts: Up to $5,000,000 in tax credits issued annually statewide; individual credit equals difference between actual income and a capped threshold (max 3% of average principal per year).
Summary: Offers Vermont income tax credits to individuals and corporations investing in eligible affordable housing organizations.
Key Information: Annual reporting by eligible housing charities is required by January 31 each year.
Description
The Charitable Housing Investment Tax Credit (HITC) is a Vermont state program designed to incentivize investments in affordable housing. Individuals and corporations who pay Vermont income tax can receive a dollar-for-dollar tax credit for making loans or deposits (charitable investments) with eligible affordable housing organizations. The credit is calculated based on the difference between the actual income earned from the investment and a capped charitable threshold rate, encouraging below-market-rate investments that support affordable housing initiatives.
