Habitat for Humanity tax credit incentive for supporting affordable housing
For years, Habitat for Humanity has been spreading the maxim that everyone should have access to affordable housing.
The concept has caught on, and in La Porte
“La Porte County has a big need for single-family homes and our organization strives to aid in helping this mission,” said Bill Roser, executive director of the La Porte County Habitat for Humanity.
How to get Habitat tax break
To take advantage of the Attainable Homeownership Tax Credit, apply by filling out a form on the Habitat for Humanity website at nwihabitat.org. Key benefits of the tax credit Include:
- 50% Tax Credit: For every $2,000 donated, donors can receive a $1,000 tax credit on their Indiana state taxes
- Contributions can include cash, stocks, bonds, real estate and in-kind materials.
- Unused credits can be carried forward for up to five years, allowing donors to maximize their support over time
The nonprofit also has a new tool to help raise funds for more homes: a new tax credit available only through the longtime 501C nonprofit status.
Through the credit, Indiana taxpayers can significantly reduce their tax liability while supporting Habitat’s mission. Donations like an old car or that inheritance from a grandmother will result in a better tax break, according to Dawn Michaels, Habitat for Humanity Northwest Indiana executive director.
“That is why the Department of Revenue worked so hard with Habitat for Humanity of Indiana (its state support office),” Michaels said.
This kind of tax break will extend to the 45 Habitat for Humanity locations throughout Indiana.
Wende Burbridge, Habitat for Humanity NWI’s development director, agrees more money in the pocket of donors will be a boon. She says it’s an amazing opportunity for Indiana taxpayers to significantly reduce their tax liability while supporting Habitat’s mission.
“We really wanted to have this reduction,” Burbridge said.
The concept of helping others and creating sustainable housing caught on in the business world long before incentives like the tax break came around.
According to Meegan Siegwarth, vice president of marketing for Interra Credit Union in Goshen, one of their employees needed the help of the local Habitat for Humanity.
“Two members of the employee’s family had passed away, and the employee was now tasked with being the caregiver for a family of six,” Siegwarth says.
Interra’s employees and the local Habitat banded together to help build a bigger home. They all helped in different ways. At the end of the project, their colleague had a new home fit for a large family. It was all done as part of Interra’s Hometown Giving program, which consists of putting funds into the community. They worked with the Goshen Habitat for Humanity to get the job done.
Indeed, Habitat for Humanity is a nongovernmental agency that relies on volunteers, businesses, donations and more to enter into a faith-based initiative to give families and homeowners a leg up.
The Habitat for Humanity ReStore locations like this one in Gary are independently owned. (Photo provided by Habitat for Humanity NWI)
One of the best parts of the enterprise is the ReStore, which is like a mini-home improvement/thrift store used by many in the Region.
Stepping into a ReStore establishment is like thrifting for sinks and furniture but finding small treasures like a 1928 authentic painted mirror along the way. The Habitat in Gary offers new couches for 50 percent off the original price, as well as lighting in bulk.
“When I shop here, I look for a tiny candle thrift environment,” said Jacqueline Tribble, a frequent Habitat shopper. Tribble also owns Tribble’s Travel in Gary.
That’s not all. The Habitat for Humanity also works with students at the University of Notre Dame to make sure affordable home projects are completed.
The university partnered with Habitat for Humanity of St. Joseph County to break ground on five new homes in South Bend as part of recent events in conjunction with the official inauguration of the Rev. Robert Dowd, the university’s 18th president.
“Habitat for Humanity of St. Joseph County has been helping individuals and families in the South Bend area realize the dream of homeownership for nearly 40 years,” said Tim Sexton, associate vice president for public affairs at the University of Notre Dame, in a press release
About 1,000 volunteers, including students, faculty and staff, assisted in the home building. The homes should be ready for move-in sometime next year.
“(We) look forward to many more years of partnership with the university to help make sure everyone in our community has a decent place to live,” said Jim Williams, president and CEO of Habitat for Humanity of St. Joseph County, in a press release.
The university also donated four lots in 2023 and committed $250,000 in donations to the nonprofit over five years.
Michaels said projects led by community and business leaders are the reason Habitat works so hard for things like tax credits.
Roser reiterated that the organization fights for housing for everyone.
“La Porte County Habitat for Humanity strives for everyone to have a safe, affordable and decent place to live,” he said.
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