Just as it’s never too late to start saving, it’s never too early to start preparing for tax time. If you’d like a way to reduce the amount of taxable income you’ll be responsible for paying taxes on, the Greater Wheeling Coalition for the Homeless is pleased to announce the availability of a limited amount of state tax credits. These tax credits are provided by the Neighborhood Investment Program (NIP), which was established in 1996 to provide incentives to help local non-profit organizations in the state collect charitable contributions.
Donors who contribute to NIP organizations such as the Coalition are eligible for a state tax credit worth up to 50 percent of the total contribution. These credits can be used to reduce the liability for any of the following West Virginia taxes: Corporate Net Income Tax, Business Franchise Tax and Personal Income Tax.
If you or your business are responsible for filing taxes for any of those purposes, here’s how a tax credit can help you: A tax credit is used to reduce total tax liability, in contrast with a tax deduction which reduces the amount of total income on which taxes are based. Generally, a tax credit is worth substantially more to the donor than a tax deduction.
While there is a $100,000 limit on the amount of tax credits which can be used in a single year and no donor can use NIP tax credits to reduce their total tax liability by more than 50 percent in a single year, NIP tax credits can be used for for up to five years from the date of the donation and tax credits for contributions can overlap.
The minimum eligible donation for an NIP tax credit is a donation of $500. Charitable contributions can be made in the form of cash, personal property, real estate, stock and in-kind professional servives.
To learn how to make a contribution in support of the Greater Wheeling Coalition for the Homeless, contact Melissa Bennington by phone at 304-262-6105 or via e-mail to firstname.lastname@example.org
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