Jul 25 2024
Habitat GFW accepted 34 more families into the program, recognized Crew Leads, is WOWO's 2024 Penny Pitch recipient, and more from July.
Attainable Homeownership Tax Credits
We Build the House — You Take the Credit
This fiscal year (July 1, 2024 – June 30, 2025) donors are eligible for a tax credit equal to half of their donation! Tax credits are available to qualified individual taxpayers, small businesses, or corporations in Indiana that make a donation to Habitat for Humanity of Indiana and will directly benefit families in Greater Fort Wayne through the Habitat GFW affiliate.
Details
Who
Donors must be Indiana state taxpayers and must report if the tax credit should be assessed to their personal or business tax liability. Ask your financial advisor if you qualify — if you qualify, Habitat GFW staff would be happy to walk you through that process.
What
Tax credits may be used to offset individual income taxes or business taxes in the tax year the donation is made beginning in 2024. Eligible donations may be:
- Checks
- Land or real estate
- Stocks and bonds
- Contributions from IRA
- Donor-advised funds* under certain conditions
- Construction materials
- Cryptocurrency
How
The tax credit is equal to 50% of the donation made to Habitat. For example, a gift of $1,000 qualifies you for a $500 tax credit on your IN state income tax return. There is a cap of $20,000 donation ($10,000 in tax credits) allowed per tax year, but unused credits may be carried over for up to 5 years.
Where
Donations must be made to Habitat for Humanity of Indiana to process tax credits. All donations will be distributed to Habitat GFW when indicated on your tax credit form.
Donate
Checks made out to Habitat for Humanity of Indiana must be sent with a tax credit form and mailed to 101 West Ohio Street,
Suite 2000, Indianapolis, IN 46204. Pre-paid return envelopes are available upon request.
Attainable Homeownership Tax Credits Form
FAQs
This tax credit program is critical in helping Habitat build more homes for struggling Hoosier families. Over the course of this program, we hope to provide 300 families with improved housing every year in the state of Indiana. A tax credit incentive for donors is a great way to get more local investment in our work. In this program, donors will receive half of their donation back as a tax credit to reduce their Indiana state income tax liability. See commonly asked questions about the program below.
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HFHIN is processing all of the tax credits at the request of the State of Indiana so there is only one point of contact to process tax credits and ensure privacy, proper accounting, and accurate interface with the Department of Revenue. Due to the volume of tax credits in this program, this will ease the administrative burden for affiliates. Simply send your form and donation in the pre-paid business reply envelope, and HFHIN will take care of the rest.
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Checks, stocks, bonds, land/real estate, cryptocurrency, and larger in-kind gifts of building materials are eligible for the program.
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A donor can make any size donation but may only claim a maximum of $10,000 in tax credits in a given tax year. (Donations over $20,000 do not receive more than $10,000 in tax credits).
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Yes, a maximum of $10,000 in tax credits can be awarded every year if your affiliate has credits available. Credits are processed on a first-come, first-served basis until they are expended or drawn down each year. The tax credit program is currently scheduled to sunset on January 1, 2030.
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You may only carry forward tax credits if your tax liability is less than the tax credit amount in a given year. For example, if you have $10,000 in tax credits and you only have $8,000 in tax liability, then you may carry forward the difference of $2,000 in tax credits for up to 5 years until you expend all of the credits. Credits are expended based on the year they were acquired; older tax credits must be used before new tax credits may be applied.
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After the donation is made, HFHIN will send you an acknowledgment letter that will have all the pertinent information needed for your tax professional to fill out your Indiana income tax forms to properly claim your credits.
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In addition to an acknowledgment letter from Habitat for Humanity of Indiana for the tax credits, Habitat GFW will also send a thank you upon receipt of the gift.
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Reach out to email taxcredit@habitatindiana.org or call 317-454-8090 and ask for Maggie Wimberly if you need any assistance with your tax credit claim.
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Schedule IN OCC (Other Certified Credits) on your state income tax return.
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All land donations must be approved by Habitat GFW as suitable for use, prior to making the donation. In addition to approval, there must be a third-party appraisal performed to establish the value. Once this is completed, there will be title work performed at Barrister Title to ensure a clear title. At that time, a corporate warranty deed will be prepared. No limited warranty deeds will be allowed. To process the tax credit, the donor will need to fill out a tax credit donor contribution form and attach a copy of the appraisal when sending it to Habitat for Humanity of Indiana. The first step in making a land/real estate donation is talking with Christine Lyons at Habitat GFW.
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An in-kind gift must be approved and received by Habitat GFW and an in-kind donation form will need to be completed. The tax credit is for building new units of homeownership, so materials must be used in construction to meet that goal. Please reach out to Christine Lyons at Habitat GFW to discuss an in-kind donation.
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The Indiana Department of Revenue does not allow in-kind gifts of labor for any of its programs including the Attainable Homeownership Tax Credit.
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Contact your tax professional if you are seeking a tax credit from a donation from a donor advised fund. The Indiana Department of Revenue has specific rules related to DAFs. Please do not make a gift from a Donor Advised Fund without first discussing this with your tax preparer or lawyer.
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Contact your tax professional if you are seeking a tax credit from a donation from a retirement account. Indiana Habitat and the Indiana Department of Revenue are in the middle of discussions about accepting gifts from IRAs in exchange for Attainable Homeownership Tax Credits.
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Speak with Habitat GFW about the donation you would like to make or contact taxcredit@habitatindiana.org to be connected to our broker. Our policy states that stock is sold on the day it is received and the valuation is based on that sale amount.
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The data concerning your contribution and tax credit will be shared with the Indiana Department of Revenue to process your tax credit. Your data will also be shared with Habitat GFW so they can send a thank you. Habitat for Humanity of Indiana does not share or sell donor data to any external agency.
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The tax credits are in the Indiana state budget beginning on July 1, 2024, however any qualified donation made after January 1, 2024 may be eligible.
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Yes, but it will require the affiliate writing you a check back for the donation and you reissuing one to Habitat for Humanity of Indiana, as they are the only Habitat agency that can process a tax credit.
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Yes, you may be able to use multiple tax credits, but you should consult with your tax professional to be sure you understand the limits on any other tax credit program you are participating in. Donors are only allowed a maximum of $10,000 per tax year for the Attainable Homeownership Tax Credit.
