NAP Credits

Making the most of your $100+ donation to NeighborLink

 

What Are NAP 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, NeighborLink Indianapolis is using the credits as a fundraising tool to help us use additional contributions from individual donors and organizations to support our mission of helping one of Indy's most vulnerable populations age-in-place safely and with dignity.

How Do They Work? A donor purchases credits with a donation of $100 or more to NeighborLink Indianapolis and in so doing, 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.

Can businesses participate? Yes! 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 whether it is by a business or individual donor.

I want to purchase NAP credits, how do I do it? Yes! 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 whether it is by a business or individual donor. Donations can be made to NeighborLink online (select a donation amount $100+ or write in your own amount) then select the "NAP Credits" campaign selection. After making your donation, we will send a thank you letter and a completed form, specifying the amount of your donation that is eligible for NAP credits. Keep this form to include in your state tax returns. You will need to file a Schedule 6 with your return and cite "Neighborhood Assistance Credit." 

Have questions around NAP credits? Let us know!

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