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WV/NIPA-2
NEIGHBORHOOD INVESTMENT PROGRAM CREDIT SCHEDULE INSTRUCTIONS
(For periods AFTER January 1, 2015)
GENERAL INFORMATION Advisory Board and has been certi fied by the West Virginia
The West Virginia Neighborhood Investment Program Development O ffice. The allowed credit must be taken
Act (WV Code §11-13J) provides credit to individuals and within a 5-year period, beginning with the tax year in which
private sector businesses which make eligible contributions the taxpayer irrevocably transfers its eligible contribution
to community based nonpro fit organizations that establish to the project. The maximum amount of credit allowed per
projects to assist neighborhoods and local communities. year for any one taxpayer is one hundred thousand dollars
These projects provide services such as health care, ($100,000), and the total maximum credit which may be
counseling, emergency assistance, crime prevention, certi fied in any fi scal year is two million five hundred thousand
education, housing, job training and physical and dollars ($3,000,000) in the aggregate.
environmental improvements. Termination of Credit. The Neighborhood Investment
Eligible projects are determined by application to the West Program Act is scheduled to terminate on July 1, 2026, and
Virginia Development O ceffi and The Neighborhood no credit shall be available for contributions made after that
Investment Advisory Board through one of two approaches: date. Taxpayers who have made eligible contributions to
certi fied projects prior to July 1, 2026, shall retain entitlements
1. quali cationfi based on contributions destined for a to the credit for the remainder of their eligible period.
certi fied economically disadvantaged area; or
Claiming the Credit
2. quali cationfi by need (regardless of location).
The Neighborhood Investment Program Tax Credit is
Contribution eligible for the credit include cash, tangible claimed by completing Form WV/NIPA-2, Neighborhood
personal property (valued at its fair market value), real Investment Program Tax Credit Schedule. Please retain
property (valued at its fair market value), and contributions of this schedule in your records.
in kind professional services (valued at 75 percent of their fair
market value). E ffective June 10, 1999, eligible contributions INSTRUCTIONS FOR COMPLETING THE
were expanded to include publicly traded corporate stock, NEIGHBORHOOD INVESTMENT PROGRAM CREDIT
with the requirement that such stock must be sold within one SCHEDULE
hundred eighty (180) days after its receipt by the transferee. Line 1 Enter the project number for each project for which
No taxpayer is allowed more than $100,000 of tax credits for credit is claimed, and the amount of project tax
eligible contributions made during a taxable year, whether credit from the corresponding tax credit schedule
the contributions are made pursuant to one or more certi fied WV/NIPA-2 (Rev. 1/16). If there are more than
project plans. The minimum contribution of a taxpayer that three projects, attach a separate page. Also,
would qualify for the credit during a tax year is $500 and attach a copy of the voucher for each project for
the maximum contribution is $200,000. The total amount which credit is claimed and proof that payment of
of tax credits allowed pursuant to project plans certi edfi by the amount of each eligible contribution has been
the West Virginia Development O ffice during any fiscal year made. Failure to attach a copy of the voucher will
is limited to $3,000,000. The credit is available for taxable result in the credit being disallowed.
years ending after June 30, 1996. This credit expires July
1, 2026. Line 2 Enter the project number and amount for each
project for which credit is carried forward from
Eligible Taxpayers previous years.
Eligible taxpayers may claim the credit as provided in WV
Code §11-13J-5. An eligible taxpayer is any person or entity Line 4 This is the lesser of the total allowable credit or
subject to the Corporation Net Income Tax or Personal $100,000.
Income Tax that makes an eligible contribution to a quali fi ed
charitable organization pursuant to the terms of a Certi edfi PARTNERSHIPS, S CORPORATION OR
Neighborhood Investment Program Project Plan. BENEFICIARIES OF AN ESTATE OR TRUST SHOULD
ONLY COMPLETE LINES 5a THROUGH 8f.
Amount of Credit
Line 5a This is the amount of this year’s Corporate Net
The amount of the allowed credit is 50 percent of the taxpayer’s Income Tax liability determined before applying any credits.
eligible contribution to a quali fied charitable organization that
has received approval from the Neighborhood Investment Line 5d This is the amount of credit which may be applied
WEST VIRGINIA STATE TAX DEPARTMENT
NIPA-2 Instructions — Rev. 6/2022 Page 1 of 2
