Missouri Youth Opportunities Program (YOP) and Neighborhood Assistance Program (NAP) Tax Credits
LifeWise StL has been awarded Youth Opportunities Program (YOP) and Neighborhood Assistance Program (NAP) tax credits by the Missouri Department of Economic Development. Taking advantage of Missouri NAP tax credits or Missouri YOP tax credits is a win-win!
Missouri residents or individuals/businesses with Missouri income who donate $500 or more may be eligible for credits. The credit amount is equal to 50% of your donation. Credits allow you to save on both your federal and state tax liabilities.
Illustration*
| Donation | $10,000 | $5,000 | $1,000 | $500 |
|---|---|---|---|---|
| Missouri Tax Credit | -5,000 | -2,500 | -500 | -250 |
| Missouri Tax Savings** | -270 | -135 | -27 | -14 |
| Federal Tax Savings** | -1,100 | -550 | -110 | -55 |
| Total Tax Savings (Federal and Missouri) | -6,370 | -3,185 | -637 | -319 |
| Net cost to donor | $3,630 | $1,815 | $363 | $182 |
*Assumes donor itemizes deductions and is in the 22% marginal Federal income tax bracket and 5.4% Missouri income tax bracket. As with any gift, the amount that is tax-deductible is dependent on each individual’s unique financial circumstances. Consult your tax advisor to determine your exact savings.
**Contribution deduction reduced by amount of Missouri credit per Final Treasury Regulations issued June 2019.
Who is eligible to receive tax credits? YOP credits are available to any individual or business with a Missouri tax liability. NAP credits are available to any person, firm or corporation in business 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 kind of donations are eligible? Gifts of stock or cash/monetary donations are accepted. The donation may not originate from a tax-exempt trust or foundation.
How do I apply? Individuals or businesses who donate $500 or more will be mailed a tax credit application upon request (for a donation by check, write “YOP” in the memo line; for an online donation, write “YOP” in the “Add special instructions to the seller” field; for a stock donation, contact Jennifer March at jmarch@lifewisestl.org or (314) 627-1228 prior to transfer). Donors are required to provide proof of their donation with their signed and notarized application within six months of donation. Sample tax credit application.
When may the credits be claimed? The credit may first be claimed on taxes due for the year the contribution was made, and extends for four additional tax years. The tax credit is only to be claimed on taxes due for that period, and any credit not claimed in that time will automatically be forfeited. The credit may not be used to offset taxes due for periods prior to the year of contribution.
May credits be transferred or sold? No, tax credits are not transferable or sellable.
Distribution of credits: Tax credits are limited. Therefore, they will be distributed on a first-come, first-served basis.
Please contact Jennifer March, Development & Associate Executive Director, at jmarch@lifewisestl.org or (314) 627-1228 for more information.
