HOW THE NEIGHBOROOD ASSISTANCE PROGRAM WORKS

Unlike a direct government grant, this form of state assistance involves no transfer of dollars. Instead, PCSW assumes full responsibility for securing the desired financial support through their own fund-raising efforts, using the tax credits as an incentive.

The State's role is to approve the projects and process tax credits for eligible donors. The credits equal 70% of the value of most contributions and are issued in the form of "coupons" that donors may then redeem when they file their Missouri tax return.


WHO QUALIFIES FOR CREDITS

* Corporations
* Insurance Companies
* Express Companies
* Banks and other financial institutions
* Partnerships (and their individual partners)
* S-corporations (and their individual shareholders)
* Limited Liability Companies (and their individual members)
* Individuals who either:
      A) operate a sole proprietorship in Missouri
      B) operate a farm in Missouri
      C) have rental property
      D) receive royalty or honorarium income

NAP CREDIT FEATURES

Credits may be claimed against a variety of state taxes
      A) Financial Institution Tax (special restriction may apply)
      B) Corporate Franchise Tax
      C) Corporate & Individual Income Taxes

Five-year carry-forward provision. Donor has six tax periods to utilize credits. May be combined with federal charitable deduction.

Rules for valuing NAP donations are more favorable than IRS rules in some instances.

TYPES OF DONATIONS

PCSW may accept cash, materials, supplies, equipment, real estate, stocks and bonds. The allocation of credits for donations is based on the fair market value of the item(s) at the time they are donated.