NAP (Neighborhood Assistance Program) is a unique program of the Commonwealth which emphasizes partnerships between the private and public sectors to assist the economically deprived. State tax credits are provided as incentives for businesses to contribute directly to approved nonprofit organizations that are designed to benefit impoverished people. Contributions may be in the form of cash, goods, stock, real estate, professional services, contracting services, and rent/lease of the participating nonprofits' facilities. In return for their contributions, businesses receive credits that may be applied against their state income tax liability.

Eligibility for NAP is limited to nonprofit organizations whose primary function is to provide assistance for impoverished people. Several of the activities sponsored under the program include education, job training, housing assistance, health care clinics, and community services.

Tax credits are also available to individuals who make cash donations to approved NAP organizations (PDF). Up to $1 million in tax credits may be available for individual donors each fiscal year. Effective January 1, 2002, the minimum allowable donation increases from $50 to $900 and the maximum donation increases from $200 to $1,666.67. The value of the tax credit changes from 100 percent to 45 percent of the donation value. A maximum $750 tax credit may be issued to an individual or to a married couple in a taxable year.

Example:

Minimum - $900 cash donation X .45 = $405 tax credit
Maximum - $1,666.67 cash donation X .45 = $750 tax credit

Organizations wishing to participate in NAP must submit an application to the Office of Community Services no later than the first business day in May. NAP applications (PDF) are available in March of each year.

For additional information on this program, please call (804) 692.1895. 

Individuals:  

The Neighborhood Assistance Act Credit provides tax credits to individuals making a monetary donation to a neighborhood organization approved by the Department of Social Services.

The credit is 45% of the donation. However, the donation can not be less than $900 in the taxable year and no more than $750 in tax credit can be issued to an individual or to married persons in a taxable year.

Licensed physicians, dentists, nurse practitioners, physician assistants, optometrists, dental hygienists and pharmacists that donate their services in a pre-approved NAP clinic may also be eligible for the credit. The allowable credit may not exceed your tax liability. Unused credits may be carried forward for five years.

Completed applications are due at the Department of Social Services on the first business day in May, for the upcoming program year. For a list of currently approved organizations or additional information, contact the Virginia Department of Social Services, NAP, 730 E. Broad St. Richmond, VA 23219-1849.

Complete Schedule CR, Part III, and attach it to your tax return to claim this credit. Virginia Code 58.1 - 333. Virginia Code 63.1-325

FORMS AND PUBLICATIONS
Each Form Has a Specific Due Date.  
Neighborhood Assistance Program Application is provided as a reference as 2002 -2003
application window has already closed.   When 2003 -2004 window opens, new forms will be posted.