NAP Tax Credits Are Available

by | Oct 24, 2016

GSH was awarded over $30,000 in Neighborhood Assistance Program Tax Credits for FY 2017. The purpose of the Neighborhood Assistance Program (NAP) is to encourage businesses, trusts and individuals to make donations to approved 501(c) (3) organizations for the benefit of low-income persons. In return for their contributions, businesses, trusts and individuals may receive tax credits equal to 65 percent of the donation that may be applied against their state income tax liability.

How do tax credits work?

  • NAP Tax Credits are offered by the Commonwealth of Virginia to offset Virginia tax liability in exchange for a donation to a qualified NAP organization like Good Shepherd Housing (GSH).
  • NAP Tax Credits can be used in the current tax year, or carried over for up to 5 years.
  • Tax Credits do not negate the potential deduction value of the donation on income tax.
  • Tax Credits are on a first-come, first-serve basis. They will run out. They are not committed to a donor, until a donation is received.

Who can use tax credits?

  • Individuals, businesses, and trusts have the ability to use the tax credits. Different forms will be provided depending on the donor.

What’s the minimum donation?

  • GSH will offer tax credits for up to 50% of the value of the donation, with a minimum donation of $1,000. For example, if a donor gives GSH a check for $1,500, GSH can offer a NAP Tax Credit for $750.
  • GSH can offer tax credits for donations of cash or stocks/securities.
  • Donations can be cumulative between July 1 and December 31, and between January 1 and June 30.

How do I participate?

  • If GSH still has NAP Tax Credits available, GSH will send the donor an application form to complete, including the SSN or FEIN and a physical signature. The Donor will send the original form back to GSH for review and signature. GSH will then send the form on to Virginia’s NAP office for review. Review takes approximately 8 weeks. Upon acceptance, NAP will mail the donor a certificate for the tax credits to be used with their Virginia Income Tax submission. If the application is denied, GSH will work with the donor to remedy the application for positive acceptance, but the final approval rests with NAP and not GSH.

For more information, please contact Candice Bennett, Director of Development at 703-768-9404 ext. 113