New River Community & Technical College Foundation offers the valuable incentive of state tax credits for eligible cash and stock gifts made in support of student scholarships and program enhancements.
The Neighborhood Investment Program (NIP), overseen by the West Virginia Development Office provides state tax credits to businesses and individuals contributing to NIP–approved 501(c)(3) nonprofit organizations, like the NRCTCF, that supply valuable services to their communities.
Businesses and individuals who contribute to the NRCTCF are eligible to receive 50% of the contributed amount in the form of state tax credits.
Donors may use the credits to reduce liability for the following West Virginia taxes:
- Corporate Net Income Tax
- Business Franchise Tax
- Personal Income Tax
Frequently Asked Questions
What types of contributions are eligible for tax credit?
Contributions can be in the form of cash or stock gifts. The minimum eligible donation is $500.
How does a tax credit differ from a tax deduction?
A tax deduction reduces the amount of total income on which taxes are based. A tax credit is used to reduce total tax liability. Generally, a tax credit is worth substantially more than a tax deduction.
How are the tax credits reported?
Eligible Contributors to the NRCTCF will receive a tax credit voucher that lists the amount of the contribution (WV–NIPA–1). Simply attach the voucher along with a program worksheet (WV–NIPA–2) to the appropriate West Virginia tax form and deduct the tax credit amount from the tax due amount.
Does the Neighborhood Investment Program adversely affect federal tax deductions for charitable contributions?
No. In fact, the use of NIP tax credits in conjunction with federal tax deductions greatly reduces the cost of the contribution to the donor.
Where can I get more information on this program?
You can call our office at 304.929.6734, download the Neighborhood Investment Program brochure, or talk with your tax accountant.
