MILFORD – 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, is offering Neighborhood Assistance Program (NAP) tax credits until March 31, 2020.
Those interested in the tax credits for their 2019 Indiana state taxes must purchase the credits by Dec. 31. All credits purchased on or after January 1 will go towards your 2020 Indiana state taxes.
Each credit is valued at 50% of the amount of their purchase (For example, $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 you made $100,000 per year and had $10,000 in deductions, your taxable income would be $90,000. If you were taxed at 25%, you would be taxed $22,500.
If you made $100,000 per year with no deductions, your initial taxes would sit at $25,000. However, if you purchased a $10,000 tax credit, you 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.”
HOW provides a mix of repair and educational programs to local low-income homeowners, assisting with both necessary home repairs and educational courses that teach families to treat their homes as assets.
HOW’s owner-occupied rehab programs come in to play when a homeowner’s furnace goes out, their roof leaks, their sewage line bursts, etc. These programs apply both to conventional homes and mobile homes.
Educational courses include Lifecycles of Homeownership — which teaches all kinds of homeowner tips such as how to lower your property taxes, how to prioritize handling debts and how to network to maintain a home on limited income — and Home Energy Impact, which teaches homeowners how to make their homes energy efficient and provides materials to do so.
“All funding we receive through this tax credit program goes directly towards 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, you can reach Program Manager Alaister McFarren at 574-269-7641, ext. 106 or via email at [email protected]