Apply for NAP Tax Credit
Apply for NAP tax credit
To apply for state tax credit through the Neighborhood Assistance Program, e-mail Anne Henry, Executive Director, for forms, details, and instructions. AHenry@SoundscapesHR.orgNeighborhood Assistance Act Credit
The purpose of the Neighborhood Assistance Program (NAP) is to encourage individuals, trusts and businesses to make donations to approved 501(c)(3)(4) non-profit organizations for the benefit of low-income persons or an eligible student with a disability. To be considered for the NAP program, a 501(c)(3)(4) non-profit organization is required to submit an application to the Department of Social Services (DSS) or Department of Education (DOE) by the first business day in May of each year. Those applicants submitting all required information and meeting the eligibility criteria will be determined an approved organization.
Soundscapes is offering state tax credit equal to 65% percent of a donation’s value to individuals giving a minimum of $500 and to trusts and corporations giving a minimum of $616. A NAP tax credit is non-refundable and non-transferrable. Excess donor credit, if applicable, may be carried forward for the next five taxable years.
To claim the NAP state tax credit on an income tax return:
- An individual filer must complete Schedule CR, Part III.
- A business filer must complete Form 500CR, Part II.
- A trust must claim the credit on Form 770, line 5(e).
A certificate will be issued to each donor by the Department of Education for use in completing a state tax return. Information about the application process or making a donation to a NAP approved organization can be found athttp://www.dss.virginia.gov/community/nap.cgi or by calling (804) 726-7920 or (804) 726-7924.Reference: Virginia Code 58.1-439.18:24 http://www.tax.virginia.gov/site.cfm?alias=TaxCredit