June 30 is deadline for housing-donation tax credits

Companies that do business in Missouri — and are subject to Missouri taxes — are eligible to receive tax credits if they make a donation to Lutheran Housing Support’s Nazareth Homes project by June 30.

The foundation for a model Nazareth Home in the College Hill neighborhood of St. Louis awaits waterproofing in May 2013. Lutheran Housing Support plans to build 20 Nazareth Homes in College Hill to provide affordable home-ownership opportunities for individuals and families of modest means. (Greg Loeffler)

The $55,000 tax-credit allocation from the Missouri Housing Development Commission’s Affordable Housing Assistance Program (AHAP) is intended to spur affordable housing development efforts in the College Hill community of St. Louis. LHS broke ground March 20 for two model “Nazareth Homes” that will be part of a 20-home development in College Hill, one of the city’s most impoverished neighborhoods.

The tax credits are valued at 55 percent of each contribution to LHS’ College Hill project and may be applied to a donor’s Missouri state business income-tax liability. The credits do not affect what a donor might owe in federal or local income taxes.

Eligible business income for an individual may include revenue from a sole proprietorship, S-corporation, limited-liability company, rental units or a farm. Nearly all businesses are eligible to receive AHAP tax credits through a cash donation or a direct material or labor contribution.

Gifts made by corporations entitle the corporation to receive the tax credit; individuals who are limited partners may receive a direct tax credit if they make the contribution from their business income from the partnership. Lutheran Housing Support is a 501(c)3 organization and a gift to the College Hill project is fully tax-deductible on a company’s or individual’s federal tax return. (Please consult with your tax accountant or adviser for more information on how a charitable deduction might be applied to your own personal tax situation.)

All donations to LHS in relation to the tax credits will be used to support the material and construction costs of the new Nazareth Homes in College Hill. The project is designed to provide affordable home-ownership opportunities to individuals and families of modest means.

“The communitywide effort to restore the College Hill neighborhood includes a comprehensive approach which includes — but is not limited to — empowering resident leadership, installing community gardens, renovating aging homes and building new ones,” said Nicole Ridley, chief executive officer of LHS. “The Nazareth Homes development is the embodiment of the residents’ vision for the neighborhood. We are grateful for our generous donors and thankful to God for the gifts He blesses us with so we can carry out that vision.”

Distribution of the full tax-credit allocation to LHS will result in $100,000 in donations for the College Hill project, according to James Kienker, director of advancement for LHS.

“We thank the Missouri Housing Development Commission for its support of the College Hill project through this tax-credit allocation,” Kienker said. “It is a great boon for the College Hill community and the Nazareth Homes.

“We hope that businesses and eligible donors will take advantage of this unique opportunity to support a very worthy community-development project and receive a generous tax benefit at the same time.”

To make a donation as part of the AHAP allocation, contact Kienker at 800-248-1930, Ext. 2823, or james.kienker@lcms.org.

For information about Lutheran Housing Support, which also operates as the LCMS National Housing Support Corporation, visit lcms.org/lhs.

To learn more about the Missouri Housing Development Commission, click here.