NAP may offer up to $2.5 million in State tax credits each State fiscal year for distribution to 501 (c)3 not-for-profit organizations across Indiana. The state fiscal year runs from July 1 to June 30. These recipients use NAP tax credits as a fundraising tool to help them leverage further contributions from individuals and businesses for these activities. NAP tax credits are distributed to donors at 50% of the contribution amount and are subtracted from a state income tax donor’s liability. Indiana Code 6-3.1-9 establishes the NAP credits and authorizes the Indiana Housing and Community Development Authority (IHCDA) to administer it. An application is released annually for organizations to apply for credits and participate in NAP. Organizations who meet eligibility and reporting requirements may be eligible to receive credits. Once the application has been approved, then the organization will receive credits organization’s according to a formulaic process. How NAP Works NAP is administered by the Indiana Housing and Community Development Authority (“IHCDA”), in partnership with the Indiana Department of Revenue (“IDOR”). At its simplest, IHCDA administers the distribution of NAP tax credits to eligible organizations, organizations distribute tax credits based on contributions received, and IDOR administers the receipt of those credits by taxpayers/donors. IHCDA accepts applications once each fiscal year from organizations who wish to sell NAP tax credits. IHCDA determines the eligibility of these organizations, and distributes tax credits accordingly. Applications are posted to the website in March-April each year. IHCDA will post a press release announcing the opening of the application; agencies are responsible for familiarizing themselves with the application time period, checking the IHCDA website for updates, and signing up for the IHCDA newsletter. The organizations will give donors confirmation of their contribution for tax purposes, which allows the donor to claim the contribution and receive the tax credit when filing taxes. (Confirmation to the donor is provided by letter or a copy of the Donor Contribution Form.)
NAP may offer up to $2.5 million in State tax credits each State fiscal year for distribution to 501 (c)3 not-for-profit organizations across Indiana. The state fiscal year runs from July 1 to June 30. These recipients use NAP tax credits as a fundraising tool to help them leverage further contributions from individuals and businesses for these activities. NAP tax credits are distributed to donors at 50% of the contribution amount and are subtracted from a donor’s state income tax liability. Indiana Code 6-3.1-9 establishes the NAP credits and authorizes the Indiana Housing and Community Development Authority (IHCDA) to administer it. An application is released annually for organizations to apply for credits and participate in NAP. Organizations who meet eligibility and reporting requirements may be eligible to receive credits. Once the organization’s application has been approved, then the organization will receive credits according to a formulaic process. How NAP Works NAP is administered by the Indiana Housing and Community Development Authority (“IHCDA”), in partnership with the Indiana Department of Revenue (“IDOR”). At its simplest, IHCDA administers the distribution of NAP tax credits to eligible organizations, organizations distribute tax credits based on contributions received, and IDOR administers the receipt of those credits by taxpayers/donors. IHCDA accepts applications once each fiscal year from organizations who wish to sell NAP tax credits. IHCDA determines the eligibility of these organizations, and distributes tax credits accordingly. Applications are posted to the website in March-April each year. IHCDA will post a press release announcing the opening of the application; agencies are responsible for familiarizing themselves with the application time period, checking the IHCDA website for updates, and signing up for the IHCDA newsletter. The organizations will give donors confirmation of their contribution for tax purposes, which allows the donor to claim the contribution and receive the tax credit when filing taxes. (Confirmation to the donor is provided by letter or a copy of the Donor Contribution Form.)
Final%202016%20Draft%20NAP%20Program%20Manual.docx