Neighborhood Assistance Program Grant

The Neighborhood Assistance Program (NAP), administered by the Missouri Department of Economic Development, provides tax credits to incentivize donations for community projects. Aimed at enhancing community service, education, and revitalization, NAP offers up to $16 million in credits, with a maximum of $500,000 per project. Eligible applicants include nonprofits and businesses, while donors can receive credits up to 70% for their contributions. Attend the virtual workshop on April 1, 2025, to learn more about applying.

Purpose
To provide assistance to community-based organizations that enables them to implement community or neighborhood projects in the areas of community service, education, crime prevention, job training and physical revitalization.
General Information
Administered by the Department of Economic Development (the DED), NAP is a tax credit for contribution program created to help improve endangered communities through a public-private partnership. To administer a project, eligible nonprofits or business organizations/projects must be approved by the DED through the NAP application process.
An approved applicant is granted assistance in the form of state tax credits to help attract eligible donors who would be able to, in effect, redirect their Missouri tax dollars to an approved community development project. Under NAP, a tax credit is equal to 50% or 70% of eligible contributions. The tax credit is used to offset an eligible donor’s income tax liability and is claimed when the donor files their Missouri tax return. The credit may be used against taxes owed for the year of the donation plus five additional tax periods. This form of assistance is not a grant and does not include the transfer of tax dollars from NAP to approved organizations. Through fundraising efforts, approved organizations assume full responsibility for securing the financial support necessary to implement the NAP project. The State’s role is to approve projects, provide project oversight, and issue tax credits to eligible donors that contribute to NAP projects.
The total amount of NAP tax credits available for distribution is $16 million, consisting of an allocation of $10 million in 50% credits and $6 million in 70% credits. Seventy percent (70%) credits are reserved for projects located in a city, town or village with populations less than 15,000 or in unincorporated areas (with the exception of Clay, Jackson, St. Charles and St. Louis counties).
The maximum initial per project award is $500,000 ($350,000 in 70% credits or $250,000 in 50% credits).

Eligibility

Eligible Applicants:
Not-for-profit corporations organized under Chapter 355, RSMo;Organizations holding a 501(c)(3) ruling from the IRS; andMissouri businesses (Special conditions apply. Please see the NAP Guidelines for details.)
Eligible Donors:
The Department of Economic Development (DED) will issue 50% or 70% tax credits to an eligible taxpayer who makes a qualified contribution to an approved Neighborhood Assistance Program (NAP) projec​t.
BusinessesIndividuals who operate a sole proprietorship, operate a farm, have rental property or have royalty income. Shareholders in an S-corporation, a partner in a Partnership or a member of a Limited Liability Corporation.