Virginia Tax Credits
Neighborhood Assistance Program
The Neighborhood Assistance Program (NAP), a program of the Commonwealth of Virginia, encourages partnerships between the private and public sectors to assist the economically disadvantaged. Virginia state income tax credits are provided as incentives for businesses and individuals to contribute to an approved nonprofit organization, such as Springhouse Community School. The VDOE allots a limited amount of tax credits to participating organizations. The credits are available on a first come, first served basis.
How Donors Benefit
Credits may be applied against Virginia state income tax liability, in addition to a charitable contribution deduction for both federal and state.
Businesses may use credits to reduce tax liability against Virginia state:
Corporate income taxes
Bank franchise tax
Insurance premiums license tax
Public Service Corporation tax
Credits may be carried over for five succeeding years following the donation to mitigate forthcoming liabilities.
Any individual, married couple or business that pays Virginia state income tax is eligible by donating cash or marketable securities. A private or business foundation or charitable organization is typically not eligible.
For individuals, in a taxable year, $500 is the minimum donation eligible for tax credits. For businesses, $616 is the minimum donation eligible for tax credits in their taxable year. All donors are encouraged to consult with their tax advisors to determine their specific tax savings.
Springhouse Community School is a 501(c)(3)organization. Gifts to the school are tax-deductible.
If you have any questions regarding the NAP Tax Credits, please contact Roxanne Greenberg.