MILFORD – It’s that time of the year again – the time of year when people give thanks for what they have. Many get together with those they love and sit in their warm homes, enjoying good food and family.
Unfortunately, not everyone is able to enjoy Thanksgiving on the same level. For some low-income individuals, Thanksgiving can be yet another day in a long cold-weather season due to a leaky ceiling or a broken furnace. If they don’t have the funds for repairs, their home is not the cozy place most think of around the holidays.
Housing Opportunities of Warsaw (HOW) – a local not-for-profit organization that assists in improving the housing conditions of low-income households in Kosciusko County – has been helping give the gift of warm, safe homes since 1997.
One way HOW acquires funding for its programs is by offering Neighborhood Assistance Program (NAP) tax credits, which decrease a person’s Indiana state taxes. Those interested in these credits for their 2019 Indiana state taxes must purchase the credits by Dec. 31. All credits purchased on or after Jan. 1 will go toward 2020 Indiana state taxes.
Each credit is valued at 50% of the amount of the purchase (e.g. a $250 credit for a $500 purchase). The minimum purchase is $100.
As opposed to a deduction, these credits will take away from the total amount of state tax owed, rather than just reducing the taxable income. For example, if a person made $100,000 per year and had $10,000 in deductions, their taxable income would be $90,000. If they were taxed at 25%, they would be taxed $22,500.
If they made $100,000 per year with no deductions, their initial taxes would sit at $25,000. However, if they purchased a $10,000 tax credit, they would owe $15,000.
“This NAP credit program is really a great opportunity for both HOW and taxpayers alike,” said Pam Kennedy, executive director of HOW. “Not only do taxpayers get to save money on their taxes, but they also get to give to an organization that gives back to local homeowners in a big way.”
“All funding we receive through this tax credit program goes directly toward helping hardworking homeowners who really need housing assistance,” said Kennedy. “It’s rare for a nonprofit to have a chance to raise funds in a way that benefits both the donor and the recipient program directly; it’s a unique idea that we really want to make the most of.”
To contact HOW about purchasing these tax credits, or for questions, contact Program Manager Alaister McFarren at 574-269-7641, ext. 106, or via email at amcfarren@warsawhousing.com.
