What is the Community Investment Program?
The Community Investment Program is a donation-based state tax incentive that would provide long-term, sustainable support for locally-based revitalization work in neighborhoods and rural communities. This legislative initiative would unleash more private resources for Michigan’s communities.
How would it work?
A corporate or individual donor makes a contribution directly to a place- based nonprofit. The donor receives a 50% state tax credit on their donation.
What is an eligible nonprofit?
Eligible nonprofits are place-based organizations providing economic development services including:
- Small business development, including agri-business
- Affordable housing
- Financial empowerment
- Workforce attraction & retention
- Neighborhood & community revitalization
- Commercial corridor revitalization
Michigan needs community investment now
Michigan faces a number of challenges including
- Lack of affordable housing—In many Michigan communities, there is a well-documented shortage of affordable housing. In these communities, local businesses cannot attract workers because there simply is no place for their workers to live.
- Lack of resources for small- to medium-sized projects—Very large community development projects have tax incentives to attract investors. Small- to medium-sized neighborhood and rural community revitalization projects are often overlooked because they lack the same tools to attract resources.
- Government can’t do it all—Over the past 8 years, federal neighborhood programs have been drastically cut. Community Development Block Grants (CDBG) has been cut by $1.1 billion and HOME has been cut by $46 million. Governments are trying to do more with less.
It’s time to establish a Community Investment Program
Community members across Michigan, urban-rural-suburban, simply want the same tools to attract investment that larger projects already receive. They know what they need to grow their local economies, stabilize and strengthen neighborhoods, and attract the talent needed for new businesses to start and existing businesses to thrive.
Fourteen states have some form of this tax credit, including Pennsylvania. Here’s how the Neighborhood Assistance Program (NAP) has worked:
The Neighborhoods & Communities Coalition (NACC) is a group of community development advocates and professionals, local job providers, and investors committed to establishing a source of sustainable support for local nonprofits working to revitalize neighborhoods and rural communities.
- To join the Neighborhoods & Communities Coalition (NACC) contact: Jessica AcMoody, CEDAM, 517.485.3588, firstname.lastname@example.org or Maggie DeSantis, BECDD, 313.477.3155, email@example.com
- Sign on to the petition to help move legislation forward