The Neighborhood Investment Program (NIP) was established by the West Virginia Legislature in 1996 to increase charitable giving to local non-profit organizations. The program allows 501(c)3 designated charitable organizations to apply for tax credit vouchers. These organizations then distribute the vouchers to businesses and individuals who contribute to the organizations.
By donating to approved NIP organizations, contributors can support their communities and earn credits to reduce certain West Virginia taxes.
The West Virginia Legislature sets aside $2.5 million annually in state tax credits for the NIP. To participate, a 501(c)3 organization must apply to the West Virginia Development Office. Applicants will be evaluated on a number of criteria before being approved by an advisory board. Approved organizations can use the credit as a tool for attracting donations from potential contributors.
Businesses and individuals who contribute to NIP organizations are eligible to receive up to 50 percent 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
A list of approved NIP organizations is available from the West Virginia Community Advancement and Development.
Take a look at the NIP Brochure.
