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Community Development Assistance Act (CDAA)

The Community Development Assistant Act (CDAA) enables DED to distribute a 40% state tax credit to individuals and business firms that make eligible contributions to certified projects or programs.

Any county, city, village, or non-profit Community Betterment Organization (CBO) which provides community assistance or community services in a community development area may apply for CDAA tax credits through DED. Once the project is approved, the organization can notify donors that they’re eligible for tax credits.

What Qualifies?

Employment training
Human services
Medical services
Physical facility and neighborhood development services
Recreational services or activities
Educational services
Crime prevention activities, including, but not limited to:
- Instruction of any individual in the Community Development Area that enables him or her to acquire vocational skills
- Counseling and advice
- Emergency services
- Community, youth, day care, and senior citizen centers
- In-home services
- Home improvement services and programs

Close up of a handshake - signifying a business deal.

The Limit

DED will not authorize more than $50,000 of tax credits for any single project or program during any single fiscal year. Agreements for approved projects have a term of 12 months to make use of the tax credits. Applications for additional tax credits may be made in subsequent fiscal years for the same project or program. Subject to legislative changes, a total of $350,000 in state tax credits can be allocated each fiscal year by the DED.

Application Process

CBOs seeking to have a program or project certified for tax credit status under CDAA must apply to DED. DED will consider applications in the order in which they are received.

Applications will be considered for funding during the state’s fiscal year they are received as long as tax credits remain to be allocated.

Before beginning the application process, please consult the CDAA Coordinator to see if proposed project or program meets the chronic economic distress criteria threshold. Filing an application does not guarantee certification of a submitted program or project for tax credit status.

Applications