Liston Center Neighborhood Assistance Program Tax Credits

Answers to your

frequently asked questions

West Central Missouri Community Action Agency (West Central) is a 501(c)3 non-profit corporation. Please consult your tax advisor, accountant or attorney concerning eligibility for this tax credit or other tax benefits that may result from a donation to West Central-Liston.

A $1,000 donation will cost $300

Donation to West Central for the Liston Center programs $1,000

Missouri state tax credit (70% of donation) -$700

Missouri Tax Liability $300

Do I qualify for a NAP credit?

The Missouri Neighborhood Assistance Act makes this credit available to any person, firm, or corporation with business income in the State of Missouri. Any qualified person, firm or corporation in business in Missouri is eligible

to receive credits, including:

Sole Proprietors who own/operate businesses Corporations Limited Liability Corporations Farm operations

Financial Institutions Limited Liability Companies & individual members

S-corporations and individual shareholders Partnerships and individual partners Insurance Companies Express Companies

Individuals with income from royalties or rental property Qualified contributions include cash, stocks, or bonds

NAP credits may be used to offset individual income taxes, corporation franchise tax, tax on gross premium

receipts of insurance companies, and financial institution tax.

Credits may be used in the year the donation was made, or up to an additional 5 years thereafter.

What do I have to do to get the NAP credit?

Make a qualified donation to West Central Missouri Community Action Agency in support of the Liston Center and request the NAP credit

After West Central receives the donation, we will mail you a Tax Credit Form to be completed within 12 months of the donation

Mail the completed Tax Credit Form along with a copy of the front and back of your cancelled check or other documentation of your donation.

West Central will notarize the application and submit it to the Department of Economic Development

Within 60 days, you will receive notification of approval from the Department of Economic Development

Submit Form MO-TC with your MIssouri income tax return to use the credits and reduce your tax liability

What is the procedure for claiming the NAP credit?

West Central will assist you every step of the way. To qualify for the credit, a business must make an eligible contribution in support of the Liston Center. Since credits are limited, please contact us beforehand to verify your donation will qualify for credit

Obtain a current Tax Credit Application either from West Central or the Department of Economic Development. Complete the application and submit the original to West Central. Please read ALL instructions on the back of the application. Attach the necessary proof of the contribution, then sign the application and send it to West Central.

West Central will review the application for completeness, verify the contribution as described was actually received, sign it, and forward to the Department of Economic Development 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 3-4 weekds for processing an application. All credits are rounded down to the next lowest dollar amount. DO NOT CLAIM THE CREDIT ON YOUR TAX RETURN UNTIL YOU HAVE RECEIVED OFFICIAL NOTIFICATION OF CREDIT APPROVAL. The notification from the Department of Economic Development consists of a tax credit certificate for eligibility of credit.

If your business is a partnership, S-Corporation, or Limited Liability Company, be sure to inform all partners, shareholders, or members of their exact share of the credit, as they will use the same benefit number listed on the business certificate.

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 or section 148, RSMo, if applicable

The tax on banks determined in subdivision (1) of subsection 2 of section 148, 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 sufficieint 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 may the credit be claimed?

The credit may first be claimed on taxes due for the year the contribution was made and may be extended for 5 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 Department of Economic Development within one year of the date of the donation or the right to the credit is forfeited.

How much credit may an individual claim?

The amount of credit an individual may claim in any one year is limited only 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 the wife are limited by their individual portion of their total tax liability.

Is the NAP credit refundable? May credits be transferred or sold? 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. After 6 years, any unused credits will be forefeited. NAP tax credits are not transferrable or sellable.

What will be the amount of the credit?

The amount of a 70% tax credit is generally equal to 70% of the total contribution ($700 credit per $1,000).

What kinds of contributions qualify for the credit?

Contributions of cash, vehicles, stocks and bonds may all qualify for the NAP credit. If you wish to contribute something other than cash, you are urged to first contact West Central.

How will my contribution be used to support the Liston Center Regional Hub?

The Liston Center is a neighborhood-based project housed in the renovated former Liston school owned by West Central Missouri Community Action Agency. The regional hub combines job readiness development with social supports and resources such as drop-in child care; life skills and financial empowerment classes; a 15-county Women’s Business Center for entrepreneurs; and a revolving loan fund and credit building program. The innovative facility creates sustainable, integrated services for individuals and families in one convenient location. A coalition of community partners will expand programs to include classes for literacy skills, the achievement of High School Equivalency certificate, and in-depth job training. Your contribution to the Liston Center will help expand these efforts, developing partnerships with local businesses through apprenticeships, new jobs in the community and surrounding area, and expansion of additional social support services.