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Neighborhood Assistance Program (NAP) Tax Credits

The Indiana Housing and Community Development Authority (IHCDA) offers up to $2.5 million in NAP (Neighborhood Assistance Program) tax credits annually for distribution by 501(C)(3) not-for-profit corporations. These organizations use NAP tax credits as an incentive to help leverage more contributions from individuals and businesses. IYG was awarded $11,000 in credits for the July 1, 2017 - March 31, 2018 period.

How NAP Credits Work: Like a Rebate

NAP credits are like a rebate from the state. When you contribute to IYG through the NAP program you are able to reduce your state tax liability by 50% of your donation. As an example, a donation of $1000 to IYG would allow the donor to subtract a credit of $500 from their state tax liability. Eligible donors include any person, business (including sub-chapter S corporations), or organization that has an Indiana income tax liability. Donors can make contributions over a period of time as long as it is in the same calendar year.

The process is very simple!

  • Make a donation (either check, credit card or on the IYG website) to Indiana Youth Group. The minimum donation is $100. Several donations throughout the year can be combined for your total NAP donation. Let IYG know that you would like NAP credits! This is not automatic! In order to process we must receive notice along with your completed NC-10 tax form. 
  • Complete, sign, and return state form NC-10 to IYG (download below) to P.O. Box 20716, Indianapolis, IN 46202 or email Erica Pahud at epahud@indianayouthgroup.org.

How do I reduce my tax obligation on my tax forms?

First, have your tax preparer use the entire donation amount as a charitable contribution on your Federal tax form. You will receive a donation letter from IYG to use with your Federal return.
Second, IYG will send you a copy of the NC-10 form (that you signed) that you will give to your tax preparer to use to claim your tax credit from the State. This is a tax credit, not a deduction so 50% of what you donate is added directly to your state tax refund (or deducted from what you owe, depending on your situation). Your tax preparer will use this credit to reduce your tax liability when you file your state tax return.
An example:    $500 Your donation to IYG
                       -$250 Savings on your state tax return
                        $250 Net cost to you

Plus, if you itemize on your federal taxes, you save another $140 (assuming a 28% tax bracket).

How do I sign up?

  1. Call or email Erica Pahud at Indiana Youth Group to see if NAP credits are still available.
  2. Fill out the necessary State Form (NC-10).  You can print and fill out this form or scan an return it via email.  You do not have to fill in the boxes for the organization name or address, federal ID number, or the program number. 
  3. Return the completed form with your donation to IYG. PO Box 20716, Indianapolis, IN 46220

Your donation can be either by check or credit card or you can donate through the Give page. If you have any questions about the program, please don't hesitate to call 317-541-8726.

Thank you in advance for supporting programs and services to LGBTQ youth!