DONATE TO FACING HUNGER FOODBANK FOR NEIGHBORHOOD INVESTMENT PROGRAM TAX CREDITS TODAY!
The year is quickly coming to a close and Facing Hunger has a new opportunity for donors to save money on their WV tax bill: Neighborhood Investment Program Tax Credits. Call us to make a donation by phone using your credit card, or mark your donation check with NIP in the memo line. We must have your legal name and address to process your donation and send you a tax voucher. We have a limited amount of tax credits which we issue on a first-come, first-serve basis, so donate today before we run out!
What is NIP?
The program allows 501(c)(3) designated charitable organizations to apply for tax credit vouchers. These organizations then distribute the vouchers to businesses and individuals who contribute to the organizations. By donating to approved NIP organizations like Facing Hunger, contributors can support their communities and earn credits to reduce certain West Virginia taxes.
How much is the credit?
Businesses and individuals who contribute to NIP organizations are eligible to receive up to 50 percent of the contributed amount in the form of state tax credits. Donors may use the credits to reduce liabilities for the following West Virginia taxes:
- Corporate Net Income Tax
- Business Franchise Tax
- Personal Income Tax
What's the difference between a tax credit and a tax deduction?
A tax deduction is generally a reduction in the amount of income on which your tax is calculated. A tax credit is generally a dollar-for-dollar reduction of your actual tax bill. Tax credits are often better for donors than tax deductions.
What types of contributions are eligible for tax credit?
Contributions can be in the form of cash, personal property, real estate, stock and in-kind professional services. The minimum eligible donation is $500.
What are the limitations of the credits?
There are three primary limitations:
- The amount of credit allowable must be taken within a five-year period, beginning with the tax year in which the donation is made.
- A donor may receive no more than $100,000 annually in NIP tax credits.
- A donor cannot use NIP tax credit to reduce total state tax liability by more than 50 percent annually.
Does the Neighborhood Investment Program adversely affect federal tax deductions for charitable contributions?
No. For detailed advice specific to your circumstances, please contact your tax advisor.
How are the tax credits reported?
Contributors to a participating organization will receive a tax credit voucher that lists the amount of the contribution (form WV-NIPA-1). Simply attach the voucher along with a program worksheet (form WV-NIPA-2) to the appropriate West Virginia tax form and deduct the tax credit amount from the tax due amount. If filing electronically, please retain the tax credit voucher (WV-NIPA-1) for your records.
Where can I get more information about NIP?
West Virginia Development Office - 304-558-2234 | www.wvdo.org/nip| 800-982-3386
Here are some documents to help you with donating and claiming the credit: