03 Nov 2022
November 3, 2022

NAP Credits Available!

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Muncie Habitat has Neighborhood Assistance Program (NAP) credits available! 

What is NAP? NAP credits allow a donor to Muncie Habitat to receive state tax credits applied to their state tax liability at 50% of the donation. For example: for your donation of $1,000, your donation write-off on your state taxes would be $500 in direct credit to your total state tax liability. Learn more about NAP on the IHCDA website.

What are Neighborhood Assistance Program (NAP) Tax 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, Muncie Habitat is using the credits as a tool to leverage additional contributions. Your contribution will support our affordable housing program and neighborhood revitalization efforts.

How do NAP Tax Credits work? When a donor purchases credits, 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. 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.

Who is eligible to be a donor and make a contribution?  Between $100 – $15,500 will be eligible. These can be used for individuals or businesses, and if you’d like to do both, we can do that too!

How do I make a donation? The process is simple! Contact Eileen Molter and she will get you started!

Is there a deadline? Muncie Habitat must sell at least 60% of our NAP credits by December 31, 2022.

How does a donor redeem NAP tax credits? After donating to Muncie Habitat, we will send you a thank you letter and a Donor Contribution Form form, specifying the amount of your donation that is eligible for NAP credits. We’ll need you to provide some information, including your signature, and return the form to us. You’ll keep a copy and include it with your state tax returns. You will need to file a Schedule 6 with your return. When completing the Schedule 6, the donor will cite the “Neighborhood Assistance Credit”.

Interested in NAP credits or have questions? Email Eileen Molter, Resource Development Director, emolter@munciehabitat.org or 765-286-5739. Thank you!