Neighborhood Assistance Program (NAPs) tax credits are beneficial to you and UCCC.
What are NAPs?
Neighborhood Assistance Program (NAP) tax credits are awarded by the Missouri Department of Economic Development to qualified nonprofits. UCCC has been award NAPs for its COVID-19 response including operations of an emergency childcare center, LUME Early Childhood Mental Health Consultation and virtual care, and ongoing mental health supports. UCCC has been awarded NAPs and, for a donation to UCCC of at least $1,000, eligible donors may receive a Missouri tax credit equal to 50% of the amount of the contribution. NAPs are issued on a first come, first served basis.
You can save even more by contributing publicly traded stock that has appreciated in value and which you have held for more than one year. This type of contribution will be valued at current market value and you avoid the capital gains tax.
Who is eligible?
Donors that designate an eligible gift to UCCC and are: corporations, limited liability corporations, partnerships, sole proprietorships, S-corporations, or individuals who operate a farm, have income from rental property or royalties, or are shareholders in an S-corporation or partners in a Partnership.
When can I use NAPs?
Tax credit applications and documentation must be received by UCCC within one year of the date of the gift. Once approved, tax credits can be carried forward for up to five years. UCCC issues tax credits on a first come, first served basis.
How do I access NAPs?
1. Make your gift to UCCC by check, credit card, electronic transfer, or stock transfer.
2. UCCC sends you the one-page tax application.
3. Sign the application in the presence of a notary public and return it to UCCC with proof of donation.
4. UCCC sends the application and proof of donation to the Missouri Department of Economic Development (MO DED).
5. The MO DED sends you the Certificate of Eligibility for your state tax return.
This example assumes that you itemize deductions on your federal return and deduct the maximum amount of state and local taxes allowed. New regulations have been proposed that will reduce the Federal tax savings and MO tax savings to 50% of the amounts shown above for contributions made on or after August 27, 2018. The proposed regulations would not affect the MO tax credit amount and have not yet been approved.
Even if you take the new standard federal deduction, the out-of-pocket cost of your $1,000 contribution is only $440, since you receive a Missouri deduction worth $60 and a $500 Missouri tax credit.
This is only an example. Please consult your tax professional for a personalized look at how NAP tax credits will benefit you.
Contact: Frank Marchiony, Chief Financial Officer
314.726.0148 ext.135 or fmarchiony@uccc.org for further information.