Did you know that you can support Federal Hill Main Street operations and reduce your Maryland State tax bill at the same time?

Who is eligible for CITC Credit?

• Individuals: Any individual taxpayer who is a Maryland resident is eligible for the CITC.
• Businesses: Any entity that conducts a trade or business in the State and is subject to State income tax on individuals or corporations, the public service company franchise tax, or the insurance premiums tax such as corporations, public utility companies, insurance companies, financial institutions, S corporations, partnerships, sole proprietorships and limited liability corporations.

Is there a minimum contribution amount in order to receive the CITC?

• Yes! In order to received the tax credit, the donation must be $500 or more. 

How does a contribution impact my taxes?

• When a qualifying donation is made, the donor receives a tax credit equal to 50% of the amount donated, i.e., a donation of $500 would result in a $250 tax credit. In addition to the tax credit, the donor is also able to claim an income tax deduction for their charitable contribution. 

You’ve lost me. Are you sure I receive an income tax deduction AND a tax credit?

• YES! Tax credits directly reduce the amount of tax you owe, giving you a dollar-for-dollar reduction of your tax liability. A tax credit valued at $1,000, for instance, lowers your tax bill by the corresponding $1,000. Tax deductions, on the other hand, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. For example, if you fall into the 22% tax bracket, a $1,000 deduction saves you $220 in taxes. The great news is that qualifying contributions to Federal Hill Main Street provide a deduction and a credit! See below for several examples.*

*Note: These are illustrations of potential savings. Donors should contact their tax advisors with specific questions regarding their unique tax circumstance. 

Do I have to contribute cash?

• No! Contributions can be made with cash, but you can also receive the tax credit by contributing stock in-kind to Federal Hill Main Street. Donation of service and/or labor are not eligible for the credit. Additionally, donations from IRA accounts (qualified charitable distributions), charitable trusts, or Donor Advised Funds are not eligible for the tax credit. 

Can my employer match my contribution?

• Hopefully! Any employer with a matching charitable contribution plan should ask the appropriate contact the appropriate person within their organization. With that said, assuming your employee is a Maryland business and subject to State income tax, they too can/will receive a credit for their donation. 

I am sold! How can I support Federal Hill Main Street and receive the tax credit?

• Contribution to Federal Hill Main Street can be made online at  https://fedhill.org/donate/ or by mailing a check made payable to Federal Hill Main Street, Inc. at the address below. 

Ms. Cathy C. Rosenbaum

FHMS

42 E. Cross Street

Baltimore, Maryland 21230

If you have any additional questions, please contact Cathy Rosenbaum at [email protected] or 443.904.4861. 

FHMS  EIN:  52-2273125

 Thank You!