|Posted:||December 15, 2016 12:01 PM|
|From:||Senator Wayne D. Fontana and Sen. Guy Reschenthaler|
|To:||All Senate members|
|Subject:||Increase for the Neighborhood Assistance Tax Credit Program|
|In the near future, we plan on introducing legislation that would increase the allocation for the Neighborhood Assistance Tax Credit Program (NAP). Created in 1967, NAP continually serves as a resource for non-profits, businesses and neighborhoods.
The overall goal of NAP is to help improve the lives of low-income people in distressed neighborhoods through the creation of an effective partnership between community-based organization and the business and corporate community. In order to be eligible for NAP, an applicant must qualify under one or more of the following categories: community service, education, job training, crime prevention and/or neighborhood assistance.
Included under the NAP umbrella are five sub-parts including the Special Priorities Program (SPP), Neighborhood Partnership Program (NPP), Charitable Food Program (CFP), and the Enterprise Zone Program (EZP). Therefore, an increase in the allocation would make more money available to DCED to distribute to the various programs that fall under NAP.
With the change in the economic situation over the last several years, tax credit programs have become a more attractive resource for organizations and businesses looking to perform community based improvement programs. The NAP has historically been allocated with $18 million. However, during the 2015-16 fiscal year, DCED received over 200 applications totaling close to $35 million in requests. For that reason, this legislation would increase the funding to $36 million for NAP.
Introduced as SB512