NAP Tax Credits

What are NAP Tax Credits?

United Services for Children has been approved by the Department of Economic Development, through the Missouri Neighborhood Assistance Program (NAP), to make state tax credits available to any eligible person or business in Missouri. The NAP credits allow a qualified donor to reduce their Missouri tax liability by 50 percent of their total contribution.

Do I qualify for a NAP Credit?

Any qualified person, firm or corporation in business in Missouri is eligible to receive credits, including:

• Individuals with income from royalties or rental property
• Sole proprietors
• Corporations
• S-corporations
• Partnerships
• Limited liability corporations
• Farm operations
• Credits may be used in the year the donation was made or up to an additional five years thereafter.
• Qualified contributions include cash, stocks, or bonds.
• NAP credits may be used to offset individual income taxes, corporation franchise tax, tax on gross premium receipts of insurance companies, and financial institution tax.

Download this pdf for more information on eligible contributors.

What do I have to do to get the NAP credit?

• Make a qualified donation of $1,000 or more to United Services for Children and request the NAP credit.
• After United Services receives your donation, we will mail you a Tax Credit Form to be completed within 12 months of the donation.
• Mail the completed credit application with a notarized signature, along with a copy of the front and back of your cancelled check or other documentation, to United Services for Children.
• Within 60 days, you will receive notification of approval from the Department of Economic Development.
• Submit Form MO-TC with your Missouri income tax return to use the credits and reduce your tax liability.

Estimated costs are based on current law and are for illustration purposes only. Please consult your tax adviser on your eligibility for the tax credits and how they may be utilized in your circumstances.

Brian Hollander, an accountant with Hollander CPA Group, LLC, said the combination of the charitable contribution and the 50 percent state tax credit are a wonderful way to donate to your favorite charity and achieve tax savings. Taxpayers can deduct the donation as a charitable contribution on their state and federal income taxes.  They also receive a Missouri tax credit for 50 percent of their donation.  “Their actual out-of-pocket expense is quite small compared to the donation they made,” Hollander said.