NEIGHBORHOOD ASSISTANCE PROGRAM (NAP)
State tax credits may be issued to any business entity authorized to do business in the Commonwealth of Virginia. In return for their contributions, businesses receive tax credits that may be applied against their state income tax liability. The tax credit equals 45% of the value of the contribution. The contribution may also be recorded as a deduction on the federal income tax return.
State tax credits may be issued to any business entity authorized to do business in the Commonwealth of Virginia. In return for their contributions, businesses receive tax credits that may be applied against their state income tax liability. The tax credit equals 45% of the value of the contribution. The contribution may also be recorded as a deduction on the federal income tax return.
- The contribution must be at least $889 but no more than $388,889 during each approval period (July 1 - June 30).
- All contributions must be valued in accordance with IRS standards with the exception of professional services, contracting services, and leased space.
CCDI Certification:
CCDI is approved by the Neighborhood Assistance Program (NAP) to offer state tax credits to businesses for contributions of cash, services, and merchandise. The Neighborhood Assistance Program was created by the 1981 General Assembly to encourage private sector partnerships with non-profit groups to assist the economically deprived. The NAP Program is administered by the Virginia Department of Social Services.
CCDI is approved by the Neighborhood Assistance Program (NAP) to offer state tax credits to businesses for contributions of cash, services, and merchandise. The Neighborhood Assistance Program was created by the 1981 General Assembly to encourage private sector partnerships with non-profit groups to assist the economically deprived. The NAP Program is administered by the Virginia Department of Social Services.
How it works:
Once the contribution has occurred, a Contribution Notification Form (CNF) is filled out by the donor and CCDI, which is then submitted to the Department of Social Services by CCDI along with the supporting documentation. In approximately four to six weeks, a Tax Credit certificate will be sent directly to the donor to be included on their tax return.
For more information, visit the Department of Social Services' website at http://www.dss.state.va.us, then follow the links to Community Programs and Neighborhood Assistance Program.
