Eastern Audrain Library/YMCA Project
The Vandalia Recreation Corporation has tax credits available for purchase. Please see below information.
NEIGHBORHOOD ASSISTANCE PROGRAM (NAP)
QUESTIONS MOST FREQUENTLY ASKED BY BUSINESSES
I. WHAT IS THE PROCEDURE FOR CLAIMING THE NAP CREDIT?
• To qualify for the credit, a business must make an eligible contribution to Vandalia Recreation Corporation. Since each project has limited credits, and occasionally is subject to certain other restrictions, you are strongly advised to contact the project before hand to verify your donation will qualify for credit.
• Obtain a current Tax Credit Application from Terri Jungers, project administrator of the Vandalia Recreation Corporation. Please read all instructions on the back of the application. Complete the application, sign and notarize the application before returning it to Vandalia Recreation Corporation.
• Vandalia Recreation Corporation will review the application for completeness, verify the contribution as described was actually received, sign it and forward it to DED for processing.
• DED will review the application and notify you in writing of the amount of credit allowed. The Department of Revenue will also be notified. Please allow at least 3 to 4 weeks for processing an application. DO NOT CLAIM THE CREDIT ON YOUR TAX RETURN UNTIL YOU HAVE RECEIVED OFFICIAL NOTIFICATION OF CREDIT APPROVAL. The notification from DED consists of a tax credit certificate for eligibility of credit.
• If your business is a Partnership, S-Corporation, or Limited Liability Company, be sure to inform all partners, shareholders or members of their exact share of the credit as they will use the same benefit number listed on the business certificate.
2. WHICH MISSOURI TAXES MAY BE CREDITED?
The NAP credit may be claimed against the following taxes in this order:
a) The annual tax on gross premium receipts of insurance companies in Chapter 148, RSMo if applicable;
b) The tax on banks determined under subdivision (2) of subsection 2 of section 148.030, RSMo if applicable;
c) The tax on banks determined in subdivision (1) of subsection 2 of section 148.030 RSMo if applicable:
d) The tax on other financial institutions in Chapter 148, or RSMo if applicable;
e) The Corporation franchise tax in Chapter 147, RSMo if applicable;
f) The state income tax in Chapter 143, RSMo if applicable, and
g) The annual tax on gross receipts of express companies in Chapter 153, RSMo, if applicable.
3. WHEN MAY THE CREDIT BE CLAIMED?
The credit may first be claimed on taxes due for the year the contribution was made (2014) and may be extended for five additional tax years until the credit is exhausted. The tax credit is only claimable for the six year period and any credit not claimed in that timeframe will automatically be forfeited. The credit may not be used to offset taxes due for periods prior to the year of contribution.
4. MAY CREDITS BE TRANSFERRED OR SOLD?
No, NAP tax credits are not transferable or sellable.
5. IS THE NAP CREDIT REFUNDABLE?
NAP tax credits are not refundable. Credits earned may only be used to offset actual liabilities. If you have credits in excess of your liabilities, you are allowed an additional five years to claim them. After six years, any unused credits will be forfeited.
6. HOW MUCH CREDIT MAY AN INDIVIDUAL CLAIM?
The amount of credit an individual may claim in any one year is only limited by his or her total liability; it is not limited to that portion of income that was business-related.
7. WHO IS ELIGIBLE TO RECEIVE THE NAP TAX CREDIT?
The Missouri Neighborhood Assistance Act makes this credit available to any person, firm or corporation with business income in the State of Missouri.
Besides corporations, this includes financial institutions, insurance companies, express companies, partnerships and their individual partners, small business corporations (S-corporations) and their individual shareholders, limited liability companies and their individual members, and individuals who either own and operate their own business, own and operate a farm in Missouri, or receive income from royalties or rental property in Missouri.
8. WHAT WILL BE THE AMOUNT OF THE CREDIT?
Because Vandalia is in a rural community of less than 15,000 population, the credit is 70% of the donation.
9. WHAT KINDS OF CONTRIBUTIONS QUALIFY FOR THE CREDIT?
Contributions of cash, materials, supplies, equipment, technical assistance, professional services, labor, contract services, stocks and bonds may all qualify for the NAP credit. If you wish to contribute something other than cash, you are urged to first contact Department of Economic Development for verification that it will qualify for credit. (Financial institutions and insurance companies are prohibited by law from earning tax credits for investments which are part of the normal course of business.)
10. WHEN MUST THE TAX CREDIT APPLICATION BE SUBMITTED?
Current NAP rules require the Tax Credit Application be submitted to DED within one year of the date of donation or the right to the credit is forfeited.
11. DOES THE NAP CREDIT APPLY TO WITHHOLDING TAX?
The NAP tax credit may not be used to offset withholding tax. NAP tax credits may only be used to offset income tax, franchise tax, financial institution tax, gross premium receipts tax, and gross receipts tax.
12. HOW DOES THE CREDIT AFFECT MY QUARTERLY ESTIMATED TAX PAYMENT?
Taxpayers who are required to make quarterly payments must anticipate what their tax liability will be, and make quarterly payments in an amount sufficient to defray that liability. If you anticipate taking advantage of the NAP credit, you may take that into account when determining the amount of your estimated payments. The donor would claim the NAP credit on their year-end tax return. You should consult with your individual tax preparer or accountant for specific information.
If you desire additional information concerning this tax credit or a list of approved projects go to our website at www.ded.mo.gov or contact our office at (573) 751-4539. Feel free to contact Terri Jungers, project administrator, Vandalia Recreation Corporation, PO Box 91, Vandalia, MO 63382, 573.406.2982 or firstname.lastname@example.org.