Local businesses have an opportunity to support community projects in a more strategic way through Pennsylvania’s Neighborhood Assistance Program (NAP), a tax credit program that remains underutilized in many parts of the region.
NAP allows eligible businesses to redirect a portion of their Pennsylvania state tax liability to support approved community projects. In return, businesses can receive a tax credit of up to 90% of their contribution. The program provides a way for companies to give directly to local nonprofits while enjoying those tax credits.
With the deadline quickly approaching, businesses are encouraged to explore whether the program is a good fit and take the first step soon. Participating businesses are required to fill out a simple eligibility form online through the state and provide their selected nonprofit with a commitment form. Nonprofit recipients typically require commitments forms from participating businesses by mid-May to complete their own state applications by the May 29th deadline.
“It’s a win for everyone. Through this program, businesses dictate where their state tax dollars are spent, keeping tax dollars local, increasing their own visibility in the community, and strengthening our neighborhoods through the work of great local nonprofits,” said Kirsten Hubbard, CEO of Ghost Writer LLC, a company that specializes in working with local nonprofits and who utilizes the NAP program. “NAP allows businesses to put dollars they’re already paying in taxes to work right here in their own community.”
Locally, Waynesboro Volunteer Fire Department will be applying to support their growing junior fire fighter program and Waynesboro Community and Human Services will be applying for their homelessness prevention program. Other initiatives strengthen local services, programs, and infrastructure.
Despite its benefits, participation in the NAP program remains limited in many communities, often due to lack of awareness. Local leaders are encouraging businesses to take a closer look before the upcoming deadline.
Businesses interested in participating should complete the required form, found on page 8 of the program guidelines, to be considered for this year’s program. Learn more and access the application at: https://dced.pa.gov/download/nap-business-contributor-handbook/?wpdmdl=114159.
