The New Hampshire Community Development Finance Authority (CDFA) has awarded $400,000 in Tax Credits to help boost revitalization efforts and economic growth in Franklin, NH. Tax credit funds will be used for façade and building improvements for three downtown properties. The renovated properties will house new business tenants including a restaurant and micro-brewery, community coffee house, an outdoor recreation business, a co-working center and an art gallery.
This Façade Improvement Program is the igniter for the long-term plan for the revitalization of historic Franklin Falls, which will:
— Trigger an additional $500,000 in private investments
— Create 48 new jobs
— Lead to 20% increase in property values
Thank you to our funders for purchasing the Tax Credits!
We are now fully funded to start the Facade Improvement Program
How Does Tax Credit Program Work?
New Hampshire businesses have the unique opportunity to invest in community and economic development projects and receive a 75% state tax credit for that contribution through the Community Development Investment Program (CDIP), also known as the CDFA Investment Tax Credit Program.
It enables businesses to invest cash, securities, or real property to fund CDFA-approved economic, community development, and workforce housing projects in exchange for a state tax credit that can be applied against the New Hampshire business profits tax, business enterprise tax, and/or insurance premium tax. CDFA refers to these businesses as “donors.” The tax credit is equal to 75% of their contributions. An investment is also eligible for treatment as a federal charitable contribution.
For example, a business which contributes $10,000 to a CDFA approved project will receive a state tax credit in the amount of $7,500. After federal tax benefits are accounted for, the contribution actually costs the company approximately 10.9% of the $10,000. This helps the donor make a big impact in a community by leveraging the tax dollars they would pay to the state and federal government anyway.