Tax Credits

mo-sealThe State of Missouri has approved EnergyCare to issue Neighborhood Assistance Program (NAP) tax credits. That means that if you have qualifying income you can receive 50% of your gift back on your taxes when you give $500 or more. If you would like to find out more about the NAP please read the information below, ask your tax adviser and contact us.

What are NAP Tax Credits?
EnergyCare has been approved by the Department of Economic Development (DED), through the Missouri Neighborhood Assistance Program (NAP), to make state tax credits available to any eligible person or business in Missouri. The NAP credits allow a qualified donor to reduce their Missouri tax liability by 50% of their total contribution.

What is the procedure for claiming the NAP credit?

  • EnergyCare is familiar with the process and can assist you every step of the way. To qualify for the credit you must make an eligible contribution to EnergyCare. Since EnergyCare’s project has limited credits, please contact EnergyCare beforehand to ensure your donation will qualify for credit.
  • Contact EnergyCare to obtain a current Tax Credit Application. Complete the application and submit the original to EnergyCare. Please read all instructions on the back of the application. Attach the necessary proof of contribution, then sign the application, and send it to EnergyCare.
  • EnergyCare will review the application and forward it to the 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 4 weeks for processing an application.
  • The notification from the DED includes a tax credit certificate. Unfortunately you may not claim the credit on your tax return until you have received official notification of credit approval.

Which Missouri taxes may be credited?

  • The annual tax on gross premium receipts of insurance companies in Chapter 148, RSMo if applicable;
  • The tax on banks determined under subdivision (2) of subsection 2 of section 148.030, RSMo if applicable;
  • The tax on banks determined in subdivision (1) of subsection 2 of section 148.030, RSMo if applicable;
  • The tax on other financial institutions in Chapter 148, RSMo if applicable;
  • The corporation franchise tax in Chapter 147, RSMo if applicable;
  • The state income tax in Chapter 143, RSMo if applicable, and
  • The annual tax on gross receipts of express companies in Chapter 153, RSMo, if applicable.

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 NAP credits, you may take that into account when determining the amount of your estimated payments. You should consult with your individual tax preparer or accountant for specific information.

When can I claim the tax credit?
The credit may first be claimed on taxes due for the year the contribution was made 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.

When must the tax credit application be submitted?
The Tax Credit application must be submitted to the DED within one year of the date of donation.

May credits be transferred or sold?
No, NAP tax credits are not transferable or sellable.

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 5 years to claim them.

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. On joint returns, both the husband and wife are limited by their individual portion of their total tax liability.

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.

What kinds of contributions qualify for the credit?
Contributions of cash, stocks, bonds and various in-kind items may all qualify for the NAP credit. If you wish to contribute something other than cash, you are urged to first contact EnergyCare.