Oregon IDA InitiativeOregon IDA Initiative

Aug
10

Very Important Changes to the IDA Tax Credit for Donors

In July, the 2015 Oregon Legislature renewed the Tax Credit that funds the Oregon IDA Initiative. This represents an opportunity for more Oregonians with low incomes to achieve their dreams. Your continued participation in the IDA Initiative in this new chapter will make Oregon a better place to live.

As part of the IDA Tax Credit Renewal, the Legislature also changed the specifics of how the tax credits will be sold and set a date that the changes must be in place by October 5, 2015. The short timeline was unexpected and out of our control.

Given this short timeline, Neighborhood Partnerships, with Oregon Housing and Community Services, will pause Tax Credit sales to adjust our procedures to align with the recent changes in legislation. This will give us a chance to fully and thoughtfully implement the changes to ensure the best possible customer service to donors.

We appreciate your past support of hardworking Oregonians with big dreams through the IDA Initiative. We hope you understand the impact that IDAs have on individuals, their families and their communities. We hope that you will continue to work with us to make a better Oregon.

Details about the Pause in Tax Credit Sales

Oregon IDA Initiative Tax Credits will be available at the 75% state tax credit rate before August 15th, 2015. Between August 15th and October 4th, 2015 we will not be accepting contributions to the Oregon IDA Initiative. We will reopen tax credit sales on Oct. 5.

We are pausing sales to take time to properly implement a change made by the 2015 Oregon Legislature.

We will notify you via email and regular mail when Oregon IDA Initiative tax credits are available again (projected date is October 5th, 2015). Information and updates will also be posted on the Oregon IDA Initiative website: www.OregonIDAInitiative.org.

All donations initiated between August 15 – October 4 will be returned in full. Neighborhood Partnerships will incur any fees associated with the receipt and/or return of those donations.

Why We Are Pausing Donations

Pausing tax credit sales will allow us to work through the changes we need to make due to the recent changes in legislation. We want to adequately prepare our staff to offer you and all of our donors the best customer service.

We estimate that the change in the tax credit to a 70% credit along with the pause in donations could allow at least 64 additional people to start saving to buy a home, start a small business or go to college that otherwise would not have been able to do so.

Donating Before August 15

Any donations made before August 15 will be honored at the 75% Tax Credit rate as before.

This includes:

  • Checks postmarked on or before August 14
  • Stocks received in our account by 1pm PST on August 14
  • Credit card payments initiated by 5:00 pm on August 14

To reiterate – all donations made before August 15 – including donations that have already been made in 2015 — will qualify for the 75% Tax Credit rate.

Changes in the Tax Credit as of October 5

For donors, the new changes made to the IDA Tax Credit that will become law as of October 5 include:

  • There is now no maximum for yearly individual donations (previously there was a maximum of $100,000 per year per return)
  • The highest allowable Oregon tax credit will now be 70% of your donation.
  • The “cap” on contributions to the Initiative will now be calculated differently. We are limited to $7.5 million in state expenditure each year. This is a slight increase over previous funding levels.
  • We may have the opportunity to structure sales of tax credits differently. We will be exploring those options for the 2016 calendar year.

Contacting Us

We also encourage you or your financial advisor to call or email Matt Kinshella (mkinshella@NeighborhoodPartnerships.org, 503- 548-4475).

We will also be sending a paper mailing, frequent email updates and posting updates on our website to provide you information about the new Tax Credit changes.

Lastly, we will be conducting focus groups with donors, CPAs and partners to develop the best range of options and processes for current and future changes to the IDA Tax Credit. Please let Matt Kinshella know if you would like to participate in that effort.

Summary

In summary:

  • All tax credits sold before August 15 will be honored at the 75% Tax Credit rate.
  • We will not accept donations from August 15 – October 4.
  • Beginning October 5, the Tax Credit rate will be 70%, there is now no maximum for yearly individual donations (previously there was a maximum of $100,000 per year per return) and the “cap” on total statewide contributions to the Initiative will now be calculated differently. We are limited to $7.5 million in state expenditure each year.

We appreciate your past support of hardworking Oregonians with big dreams through the IDA Initiative. We hope you understand the impact that IDAs have on individuals, their families and their communities. We hope that you will continue to work with us to make a better Oregon.

Aug
5

Important Message to Donors

Oregon IDA Initiative tax credits will be available at the 75% state tax credit rate until August  15th, 2015. Between August 15th and October 6th, 2015 we will not be accepting contributions to the Oregon IDA Initiative.

We are pausing sales to take time to properly implement a change made by the 2015 Oregon Legislature.

We will notify you when Oregon IDA Initiative tax credits are available again (projected date is October 6th, 2015). Information and updates will also be posted on Oregon IDA website.

If you have any questions please call us at 503-548-4475.

Jul
6

The Oregon IDA Initiative Renewed!

IDAballon

This morning, with a near unanimous vote in the Oregon State Senate, the tax credit bill that extends the IDA sunset passed the Legislature. We will be providing many more updates about the impact of the IDA renewal in the coming weeks.

But for the meantime we just want to say: Thank You!!!

Thank You Rep. Read

Also, special thanks to our legislative champion Rep. Tobias Read.

TR_TY

Let’s Party

Join us on Wednesday, July 8th at 4pm for a celebration of the IDA renewal!

Neighborhood Partnerships
310 SW 4th Ave., Suite 715
Portland, OR 97204