State tax credits are back for donors to the Hampshire County Community Foundation.
The foundation has been approved to distribute tax credits totaling $28,000 from the state Neighborhood Improvement Program. Gifts to any eligible funds the foundation administers can directly result in dollars off income taxes owed next year.
“NIP Tax Credits are much better than a tax deduction since tax credits directly reduce the tax owed,” the foundation said in a press release.
The foundations offered 2 rounds of these credits last year.
Executive Director Amy Pancake said the foundation will accept gifts of $500 to $4,000 from individual donors. Each gift receives a 50-percent tax credit. A $1,000 gift would knock $500 directly off a taxpayer’s bill in 2022.
The designated gifts are split 3 ways. The West Virginia Development Office receives 3 percent for administering the NIP credits, the foundation’s general fund gets 30 percent to help it support the named programs and the fund designated by the donor receives the other 67 percent.
Credits will be awarded on a 1st-come, 1st-served basis.
The West Virginia Legislature sets aside $3 million annually in NIP tax credits to help nonprofit organizations that are serving distressed neighborhoods and at-risk populations.