Neighborhood Assistance Program (NAP)
NAP emphasizes partnerships between the private and public sector to assist the economically deprived. State tax credits are provided as an incentive for businesses and individuals to contribute directly to an approved nonprofit organization designed to benefit impoverished people. Business contributions may be in the form of cash, goods, stock, real estate, professional services, contracting services or the rent or lease of a participating nonprofits' facilities. Individual contributions are restricted to cash only. In return for their contributions, businesses and individuals receive credits that may be applied against their state income tax liability.
Eligibility for NAP is limited to nonprofit organizations whose primary function is providing assistance for impoverished people. Several of the activities sponsored under the program include education, job training, housing assistance, health care clinics and community services.
A business contributing directly to an approved NAP organization may receive a state tax credit for 40 percent of their total contribution. Tax credits may be available to a business making a donation of at least $1,000, but not more than $437,500.
Example:
Minimum - $1,000 donation X .40 = $400 tax credit
Maximum - $437,500 donation X .40 = $175,000 tax credit per tax year
Tax credits may also be available to individuals or married couples that make cash donations directly to approved NAP organizations. The minimum donation by an individual or a married couple must be at least $500. The value of the tax credit is equal to 40 percent of the donation.
Example:
Minimum - $500 cash donation X .40 = $200 tax credit
Organizations wishing to participate in NAP must submit an application to the Office of Community Services no later than the first business day of May. NAP applications are available in March of each year.
For additional information on this program, please call (804) 726-7923 or (804) 726-7924.
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