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 about this program, please contact DSHA's Community Development Section at (302) 739-4263