NAP CREDITS
United Services is partnering with the Missouri Neighborhood Assistance Program, which provides tax credits to donors. The credit amount is equal to 50% of the donation amount. For example, for $1,000 donation, assuming a 36% tax bracket, the following is a breakdown of the total tax savings:
| $1,000 |
Donation Amount |
| $360 |
Federal Tax Savings |
| $60 |
State Tax Savings |
| $500 |
NAP Credit |
| $920 |
Total Tax Savings |
WHO IS ELIGIBLE TO RECEIVE THE NAP TAX CREDIT?
The Missouri Neighborhood Assistance Act makes this credit available to any person, firm or corporation in business in the State of Missouri. Besides corporations, this includes financial institutions, insurance companies, express companies, partnerships and their individual partners, small business corporations (S-corporations) and their individual shareholders, limited liability companies and their individual members, and individuals who either own and operate their own business, own and operate a farm in Missouri, or receive income from royalties or rental property in Missouri.
WHAT IS THE PROCEDURE FOR CLAIMING THE NAP CREDIT?
To qualify for the credit, a business must make an eligible contribution to an approved Neighborhood Assistance project in the State of Missouri.
Obtain a current Tax Credit Application from United Services. Complete the application and submit the original to United Services. Please read all instructions on the back of the application. Attach the necessary proof of contribution, then sign and notarize the application before submitting it to United Services.
United Services will review the application for completeness, verify the contribution as described was actually received, sign it and forward it to the Department of Economic Development (DED) for processing.
DED will review the application and notify you in writing of the amount of credit allowed. The Department of Revenue will also be notified. Please allow at least 2-3 weeks for processing an application. DO NOT CLAIM THE CREDIT ON YOUR TAX RETURN UNTIL YOU HAVE RECEIVED OFFICIAL NOTIFICATION OF CREDIT APPROVAL. The notification from DED consists of a tax credit certificate for eligibility of credit.
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