The designation allows all donor contributions of $250 or more to become eligible for a 25% state tax credit on cash donations, and a 12.5% percent state tax credit on in-kind donations (such as professional services, property, etc.).
This program offers an incentive for businesses and residents to donate to their local Habitat for Humanity affiliate or ReStore.
This income tax credit is subtracted directly from the bottom line of the tax bill, so it is simpler and a greater savings than a tax deduction.
In addition to cash and checks, donated services and/or markdowns are available for the state tax credit as well. For example, a mechanic who does $1,000 worth of work for Habitat but only charges $500 would be eligible for the 12.5 percent tax credit on the deducted amount. Other examples could be legal or real-estate services.
There is some paperwork to fill out, and donors are responsible for defending the value of donated items if they are audited. Donated items must have a value of at least $250 dollars. The forms are sent to the region and state with the tax ID number for certification, and then the credit is given on the next quarterly tax bill.