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House Co-Sponsorship Memoranda
House of Representatives
Session of 2017 - 2018
Regular Session
MEMORANDUM
| Posted: | January 27, 2017 12:34 PM |
|---|---|
| From: | Representative P. Michael Sturla |
| To: | All House members |
| Subject: | Allowing for Endowments in the Neighborhood Assistance Program (NAP) Tax Credit |
| In the near future, I will be introducing legislation that would allow non-profit organizations approved under the Neighborhood Assistance Program Tax Credit (NAP) to use NAP qualifying donations for the establishment of, or contribution to endowment funds for those organizations. As you may be aware, NAP is a program administered by the Department of Community and Economic Development (DCED). Through this program, private donors may earn tax credits for financial contributions to non-profit organizations that meet NAP requirements. Services provided by NAP-approved organizations include job training, education, affordable housing programs and much more. Generally, NAP-approved organizations are required to use NAP qualifying contributions by the end of the year—forcing them to spend any additional revenues. My legislation would amend the Tax Reform Code of 1971 to allow NAP-approved organizations to use NAP-qualifying contributions to establish endowment funds. Any use of the endowment funds would be restricted to pay for NAP-approved programs, such as job training and education services. By enabling the organizations to invest money into endowment funds we can allow for the continuous growth of their financial resources so they may do more within our communities into the future. My legislation would protect organizations that provide vital services to our communities and allow them to better plan for long-term financial solvency. Please consider cosponsoring this important piece of legislation. |
Introduced as HB1456