When donating money, many people look at the tax credits available to them through various charities.
With that in mind, Community Connections has received eligibility through the Community Development Assistance Act program from the Nebraska Department of Economic Development to offer a 40% tax credit to donors.
“We applied for the program and it’s offered to any 501(c)(3) nonprofit organizations,” said Catiana Urrutia, Substance Abuse Prevention Coordinator. “We are eligible to offer a 40% tax credit on Nebraska taxes to anyone who donates $500 or more to our organization.”
The program is a way to ensure donations stay in the community and Urrutia said substance abuse prevention is an important cause.
“Anybody who has lived in North Platte for any period of time knows that a big problem we have is substance abuse,” said board member Andrew Van Velson, a North Platte attorney. “That’s been the case since I’ve been a young pup and still is.”
He said many folks are looking for ways to lower their state tax obligation and this program can help.
“It’s really an awesome opportunity both for Community Connections and members of the community of North Platte, whether that be individuals or businesses alike,” Van Velson said. “If you don’t use the whole tax credit this year, you can use it as a carry-over credit for up to five years.”
Urrutia said the program deadline is coming up in mid-August, so the time to take advantage of the tax credit is now.
For those who wish to make a donation of $500 or more, they can come to the Community Connections office in the downtown NebraskaLand National Bank Building, 121 N. Dewey St. The form for the credit is available once the donation is made and Community Connections will help the donor complete the process.
“After making an eligible contribution to an approved community betterment project, the business, corporation, insurance company, financial institution, or individual must complete and submit Form CDAA1 with proof of contribution to the department,” according to NDED. “DED will then send contributor a copy of the completed Form 1099NTC. The contributor must complete the Nebraska Department of Revenue’s Form CDN and attach the two forms to the contributor’s tax return.
“The tax credit must be claimed on the tax return for the year when the contribution is made, according to the state website. Any tax credit balance can be carried over and applied against the tax liability for the next five years immediately succeeding the tax year where the credit was first properly claimed and allowed.”
More information about the program can be found at nebraska.gov.