1. Neighborhood Assistance Tax Credit Program (NAP) Helping Build Successful Communities June 2018

2. Clarify and review the application and submission process
Provide an overview of the Neighborhood Assistance Program (NAP) Guidelines
Clarify and review the application and submission process
Share success story and the concepts behind NAP projects
Session Objectives

3. About DCED
The Department of Community and Economic Development’s mission is to encourage the shared prosperity of all Pennsylvania by supporting good stewardship and sustainable development initiatives across the commonwealth.

4. The Act
Low income individual: The goals of NAP are to provide resources to assist neighborhoods and communities with fiscal difficulties, encourage positive health outcomes, and address the safety and welfare of their residents.
Neighborhood: May be a few houses, a block, or a designated neighborhood—an area like West Philadelphia would not qualify, while a neighborhood like Mantua would.

5. The NAP Program Components
“Regular” Neighborhood Assistance Program (NAP)
Special Program Priorities (SPP)
Neighborhood Partnership Program (NPP)
Charitable Food Program (CFP)
NAP Enterprise Zone Program (EZP)
(Separate Guidelines)

6. NAP SPP 75% tax credit 55 % tax credit
One project that meets the criteria of a special program priority
One year commitment
$500,000 max tax credit (3 or more projects $1.25M max)
No minimum amount
55 % tax credit
One project
One year commitment
$500,000 max tax credit (3 or more projects $1.25 max)
No minimum amount

7. NAP Projects include: Affordable Housing
Community Economic Development
Community Services
Education
Neighborhood Assistance
Neighborhood Conservation
Crime Prevention
Job Training
Charitable Food Assistance

8. SPP Projects Include: Disaster or Economic Recovery
Integrating Weatherization & Housing Rehab
Diversity Initiatives
Mortgage Foreclosure Prevention
Blight Elimination
Veteran Initiatives
Rural Transportation Initiatives
Affordable Housing & Supportive Services for At-Risk Population
At-Risk & Vulnerable Populations Initiative

9. NPP 75% tax credit minimum
Collaboration in the community-CDC/NID/BID+ 501(c)3
Foster community involvement
At least five year commitment-renew contract every year
Six or more year commitment earns an 80% credit
$50,000 minimum contribution amount and with a minimum application amount of $100,000

10. Process
Agency responsibilities: define project, look for businesses to participate, complete application, follow up, reporting, closeout or audit.
Business participation: Agree with project, write letter of commitment for application process, make contribution once credits are approved, submit form to DCED for Department of Revenue approval to use credits

11. To formulate your application, consider and explain “The Four P’s”:
PLACE
PROBLEM
PROJECT (The bulk of the narrative)
PROJECTED OUTCOMES

12. PLACE
Describe the Project Area: Physical Boundaries (Street Boundaries) Distress Criteria of the Project Area - Provide Data - Include Source of Data Relate NAP Project to Larger Community Efforts Project Planning Process - Project Development Process - Other Funds Being Invested

13. PROBLEM
• Clear & Specific Description of the NEED • Greater Detail of the Specific Distress Criteria -Project will address this problem • Include Verifiable Statistics • How is the Problem Impacting the Area

14. PROJECT Description of the Project
Must Relate to the Defined “Problem”
Present the “Plan”
Detail the “Approach”
List Goals, Objectives and Outcomes
Detailed Project Schedule
Key Milestones and Dates
Identify Other Partners and Collaborators
Long-Term Sustainability Plan

15. PROJECTED OUTCOMES
• Community Measures Report Inception Projected
Actual
Must be completed and
included with application
Annual Report

16. How does it work for the business contributor?
Write a letter committing an amount; If applying for NPP complete an MOU
Once application is approved, make contribution
Complete one page form requesting tax credits
Will receive a letter from the Department of Revenue and the credits will be applied to your account

17. Tax Compliance Form
As part of NAP application, applicants must include a completed Tax Compliance Form that will be reviewed by PA Department of Revenue (DOR)
Contributors must be in good standing with DOR
Any individual or entity with 20% or greater interest in the business must be identified and comply with DOR requirements.
Approval of projects is contingent upon the tax compliance requirements for each business contributor.

18. What type of State taxes can NAP credits be applied against?
Corporate Net Income Tax
Personal Income Tax
Insurance Premiums Tax
Mutual Thrift Institutions Tax
Capital Stock-Foreign Franchise Tax
Bank Shares Tax
Title Insurance and Trust Company Shares Tax

19. Benefits of NAP Credits
Credits may be used up to five years following the contribution
Credits can be passed through in a partnership
Credits can be sold if your tax liability is satisfied
Business does not apply to NAP through ESA

20. Application Process
• Non-profit community organization submits Electronic Single Application (ESA) to apply for project consideration • Application for Tax Credits “Approved” By DCED This is a competitive process and is NOT guaranteed! • Business Firm Must Still “Apply” To Use the Approved Tax Credit

21. NAP Tax Credit Application “Content”

22. NAP Tax Credit Application “Content”

23. General Info $18M available
Commonwealth fiscal year: July 1 to June 30
DCED will review all NPPs first, then move onto the others
Contributions may be cash, equipment or supplies, real estate, technical assistance or on-the-job training
May have multiple contributors
Applications reviewed and evaluated by DCED

24. Impact Services Corporation Casey O'Donnell - President/CEO
Case Study:
Impact Services Corporation Casey O'Donnell - President/CEO

25. Impact Services

28. Impact Services

30. Thank you! Aliyah Furman Stanger Jesse Kowalick, M.Ed.
Regional Director
Chief, Division of Policy and Programs
Southeast Regional Office
Center for Community Services
Phone:   | 
Phone: |
Michael Shorr
John Winters
Deputy Regional Director
Human Resources Development Specialist
Phone:  
Phone: