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 that supply valuable services to their communities.

The Education Alliance distributes tax credits for cash and stock gifts made to our 2012-2013 Annual Campaign. Your gift will go to support our high school completion and college and career readiness initiatives among low-income students in West Virginia and mentoring activities for at-risk youth.

 

Businesses and individuals who contribute to The Education Alliance 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, Business Franchise Tax or Personal Income Tax.

 

FREQUENTLY ASKED QUESTIONS

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?

Contributors to The Education Alliance will receive a tax credit voucher that lists the amount of the contribution (form WV-NIPA-1). Simply attach the voucher along with a program worksheet (form 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.

 

With federal and state tax savings combined, a $10,000 contribution to The Education Alliance could cost as little as $3,350.

 

 Federal Tax Savings

State Tax Savings

Total Savings

*$1,650

**$5,000

$6,650

 

HOW TO GIVE

Mail your contribution to The Education Alliance at PO Box 3071, Charleston, WV 25331-3071, in the enclosed envelope and mark your check or envelope “NIP Contribution.” Contact Director of Development Lisa Ketchum at (304) 342-7859 or your accountant for more information about West Virginia tax credits.