Want to make a difference in your community and receive valuable Tax Credits?
Neighborhood Assistance Act (NAA)
The Neighborhood Assistance Act (NAA) Program encourages businesses and individuals who have a Delaware state tax liability
to invest in programs serving impoverished neighborhoods or serving low- and moderate-income families. In exchange for a
qualified contribution, the NAA program provides state tax credits equal to 50% of the investment. Each year a maximum of
$1,000,000 in tax credits is available statewide. The maximum tax credit available to any taxpayer is $50,000 annually and
$100,000 over three-year period
Example: A $100,000 contribution qualifies for $50,000 in Delaware Tax Credits
Availability of Tax Credits
NAA donor applications will be accepted via the NAA web portal exclusively and uploaded by the qualified non-profit. Please contact DSHA for accessibility to the NAA web portal.
Non-profit Eligibility Requirements
- Organizations must be designated as 501(c)(3) organizations by the Internal Revenue Service and document that they provide neighborhood assistance in an impoverished area, or provide neighborhood assistance for low- and moderate-income families. This includes Community Development Corporations or Community-Based Development Organizations.
- Non-profits may be considered eligible if the assistance meets the NAA Program definition of a qualified purpose, including any of the following:
- Community Services
- Crime Prevention
- Economic Development
- Affordable Housing
Taxpayer Eligibility Requirements
- The NAA Tax Credit is available to any individual or business paying income tax in Delaware and whose contribution is made to an approved NAA non-profit organization.
- Contributor must meet the minimum contribution amounts
- Business: $10,000
- Individuals: $2,500
- Maximum contribution cannot exceed $100,000 per tax year. ($50,000 maximum credit).
- The maximum amount of contributions by any taxpayer in a 3-year period is $200,000. ($100,000 in NAA tax credits over a 3-year period).
How To Apply - Non-Profits
Download and review the provided program documents for further application instructions and forms.
- Program Manual
- NAA Non-Profit Application
- NAA Tax Credit Request Application
- 2001AC Form
- NAA Brochure
Please note: the Division of Revenue has determined that transfers from traditional Individual Retirement Accounts (IRAs) directly to NAA non-profits are not considered eligible for the NAA tax credit. Traditional IRA accounts are tax deferred and not taxable until the account holder withdraws funds or takes a distribution. By rolling over these funds from a non-taxed account directly to a NAA non-profit, these funds are not taxable therefore are not eligible for an NAA tax credit. The alternative would be the withdraw of funds from the IRA account and a check sent directly from the donor to the selected non-profit.
How To Apply - Taxpayers
If there is a non-profit organization that you would like to contribute to, please review the list of Approved Neighborhood Assistance Act (NAA) Programs and contact the qualified non-profit for further information.
Applications are reviewed by DSHA and credits are awarded on a first-come, first-served basis until the maximum $1,000,000 in credits have been allocated for the fiscal year.
If you have any questions or need further assistance, please contact Angie Lord at (302) 739-4263 or email firstname.lastname@example.org