INRC has Neighborhood Assistance Program (NAP) credits available!
What is NAP? NAP credits allow a donor to INRC to receive state tax credits applied to their state tax liability at 50% of the donation. For example: for your donation of $1,000, your donation write-off on your state taxes would be $500 in direct credit to your total state tax liability. Learn more about NAP on the IHCDA website.
What are Neighborhood Assistance Program (NAP) Tax Credits? NAP is a program of the State of Indiana, administered by the Indiana Housing and Community Development Authority (IHCDA). Each year, NAP offers $2.5 million in tax credits for distribution to 501(c)(3) not-for-profit organizations across Indiana. As a recipient of NAP tax credits, INRC is using the credits as a tool to leverage additional contributions. Your contribution will support our Public Allies Indianapolis program that focuses on increasing nonprofit organizations’ capacity to deliver direct services by leveraging communities’ under-utilized human assets: young adults from the very communities these organizations are serving.
How do NAP Tax Credits work? When a donor purchases credits, they receive a tax credit toward their Indiana state income tax liability valued at 50% of the amount of their purchase. The donor receives this credit when filing their Indiana state tax return. Donors may also be eligible to claim the amount of the gift as a tax deduction on an itemized federal income tax return, extending the savings even further.
Who is eligible to be a donor and make a contribution? Any individual or business with Indiana income tax liability may purchase up to $25,000 in NAP credits per fiscal year (a $50,000 donation). A minimum contribution of $100 is eligible for NAP credits.
How do I make a donation? The process is simple! Make a donation by check or go online by December 31! Donations can be made to INRC by check or credit card. Donations can be made online at inrc.local/donate/; please note ‘NAP’ in the notes section when you donate.
Is there a deadline? INRC must sell at least 60% of our NAP credits by December 31, 2023.
How does a donor redeem NAP tax credits? After donating to INRC, we will send you a thank you letter and a Donor Contribution Form form, specifying the amount of your donation that is eligible for NAP credits. We’ll need you to provide some information, including your signature, and return the form to us. You’ll keep a copy and include it with your state tax returns. You will need to file a Schedule 6 with your return. When completing Schedule 6, the donor will cite the “Neighborhood Assistance Credit”.
Interested in NAP credits or have questions? Email Anne-Marie Taylor, Executive Director, firstname.lastname@example.org. Thank you!