Neighborhood Assistance Act Program
What is it?
- Opportunity funded by the Delaware State Housing Authority that enables businesses orindividuals to receive a generous credit on their Delaware income taxes in exchange for their support of qualified nonprofit organizations of their choice.
- Participating taxpayers may be eligible for a tax credit up to 50% of the value of their contribution.
When is the tax credit awarded? On July 1st, the state legislature typically approves a lump sum that DSHA often approves to disperse in tax credits. In early July, the taxpayer and YWCA Delaware submit a joint application for the tax credit. The credit is allocated on a first come-first served basis.
Is it difficult to qualify? No. You may not be familiar with this as this is not a highly publicized tax credit opportunity and very few of those taxpayers that qualify for it actually leverage it. YWCA Delaware is a qualifying program and your donations may be qualifying contributions.
Do you file a Delaware State tax return?
Do you have income tax liability? This is the calculation before subtraction of your Delaware tax withholdings. The credit is applied after your Delaware withholdings. If you typically owe taxes, this is the perfect program for you. If you typically get a refund, you may want to consult your tax professional to adjust your withholdings to use the program.
Is there a minimum qualifying donation? $2,500 for individuals and $10,000 for businesses
When does the donation need to be made? Donations must be received within the state tax year; ideally they should be made between January 1st – June 30th.
How do I apply?
Consult your tax professional now for more details and prior to making any financial decisions
Financial Questions? Tax professionals can contact the DSHA at 1-888-363-8808 and reference the Neighborhood Assistance Act program for more information and to ask specific questions.
Remember that when filing your taxes, you will need to file a special credit form, Delaware Income Tax Credit Schedule Form 700 and attach a copy of it to your tax return.
Notify YWCA Delaware if you are planning to participate or if you have any questions regarding the deadline – contact Donna Connor, CFRE firstname.lastname@example.org or 302.655.0039 ext. 227.
Your applications should be received by YWCA Delaware, 100 W. 10th St. Suite 515 Wilmington, DE 19801, Attention: DSHA / Marcia Wright-Soika by June 24th.
Is there a maximum credit? Yes, the maximum credit is $100,000 in tax credits in any 3 year period. In most cases, this is a very difficult threshold to meet but please consult your tax professional for more details.
How do I know if I was approved? Once your donation is approved as part of the program, DSHA will send you a letter confirming your credit.