Saving on your year-end taxes can sometimes be confusing and hard to figure out. People think that the more money you make, the more taxes you will have to pay, but that is not always the case. Many Hoosiers do not know they can save on taxes by having tax credits apply to them. One credit that Indiana taxpayers can take advantage of is the Neighborhood Assistance Tax Credit.
Funds are used for affordable housing, counseling, child care, educational assistance, emergency assistance, job training, medical care, recreational facilities, downtown rehabilitation, and neighborhood commercial revitalization. All projects must benefit economically disadvantaged areas and persons.
The Neighborhood Assistance Tax credit gives you back 50% of any dollar amount in tax credits to use towards your IN state tax liability. The minimum contribution amount is $100.00, which results in a $50 credit. The maximum contribution amount is $50,000, which results in a $25,000 credit.
Please remember that this results in a state income tax; it cannot be used to offset your local county income tax.
You MUST contribute your funds to participating organizations with the NAP program. A list of organizations and more specifics regarding the program can be found here: https://www.in.gov/ihcda/program-partners/neighborhood-assistance-program-nap/.
You must tell the organization that this contribution is for the NAP credit. They MUST give you the appropriate donor contribution form.
Michael Salazar
The post Indiana Neighborhood Assistance Program Credit (NAP Credit) appeared first on SBS CPA Group, Inc..
SBS CPA Group promises to execute an amazing customer experience through service and communication. We guarantee to make sure your needs are met. Questions about our services are welcome and encouraged!
Helpful Links
Contact Information
All Rights Reserved | SBS CPA Group, Inc.