A new state tax credit incentivizes Hoosiers to donate to Habitat for Humanity and similar organizations focused on making affordable housing more accessible in Indiana.
The Attainable Homeownership Tax Credit can be claimed for the first time on state income tax returns filed in 2025 for monetary donations made this year to affordable housing organizations recognized by the Indiana Economic Development Corp.
The credit is a reduction in state tax liability equal to 50% of the taxpayer's donations to an eligible organization, according to House Enrolled Act 1001 (2023).
Under the law, both individuals and businesses can claim the credit and reduce their state tax liability by up to a maximum of $10,000.
Dawn Michaels, executive director for Habitat for Humanity of Northwest Indiana, believes the new tax credit is "a game-changer for the families we serve."
"Every contribution helps build more homes and strengthens our local community. Especially as 2024 draws to a close, we urge taxpayers to consider making their charitable contributions soon to take full advantage of Indiana's Attainable Homeownership Tax Credit," Michaels said.
Up to $4 million in tax credits are available statewide through the program established last year by the Republican-controlled General Assembly and Republican Gov. Eric Holcomb.
"With a finite amount of tax credits available, early donations ensure that contributors secure this substantial tax benefit while supporting local families on their path to homeownership," Michaels said.
Habitat for Humanity of Northwest Indiana serves Lake County by partnering with hardworking families to build safe, energy-efficient, quality homes and brighter futures.
More information about the donation incentive is available online by following the "Tax Credit Program" link on the nwihabitat.org website.
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