NAP is a program of the State of Indiana, created by Indiana Code 6-3.1-9 and 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) non-profit organizations across Indiana. These recipients (like HomesteadCS) use NAP tax credits as a fundraising tool to help them leverage further contributions from individuals and organizations to support programs and services.
When a donor purchases credits from HomesteadCS, 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.
Who can buy NAP tax credits?
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.) They may purchase credits from multiple organizations.
How does a donor redeem NAP tax credits?
When completing their Indiana State Tax return (IT-40,) a donor will also complete form Schedule 6 and submit it with their tax return.
When completing the Schedule 6, the donor will cite the “Neighborhood Assistance Credit” and use the tax credit code 828.
Can a donor buy NAP credits and IDA credits as well?
Yes. There is nothing in Indiana Code that prevents a taxpayer from purchasing both NAP and Individual Development Account tax credits.
Can NAP credits be rolled over?
No. NAP tax credits must be claimed for the year in which they were purchased.
Can NAP credits be transferred, or bought on behalf of someone else?
Yes. But ensure that your NAP partner is aware of this and reports their sale accurately to ensure that this purchase is reported accurately.
Where can I find more information?
You can learn more about NAP through HomesteadCS, or at: http://www.in.gov/myihcda/2354.htm
To take advantage of these tax credits and make an impact in our community, call 765.423.1284 or fill in the blanks below and our development staff will contact you: