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 pay Delaware state income taxes to invest in programs serving impoverished neighborhoods or serving low- and moderate-income families. In exchange for a qualified contribution, the NAA provides state tax credits equal to 50% of the investment. Each year a maximum of $500,000 in tax credits is available statewide. The maximum tax credit available to any taxpayer is $50,000

Example: A $100,000 contribution qualifies for $50,000 in Delaware Tax Credits

Availability of Tax Credits

NAA donor applications for FY 2019 (tax year 2018) will be accepted beginning July 1, 2018.

Donor applications may be accepted via email and must include as attachments the following: two page application, Form 2001 AC and proof of payment/donation. Applications should be sent to angie@destatehousing.com and cindy@destatehousing.com. DSHA will generate an email confirmation to indicate receipt of the application.

Non-profit Eligibility Requirements

  1. 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.
  2. 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
    • Education
    • Affordable Housing

Taxpayer Eligibility Requirements

  1. 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.
  2. Contributor must meet the minimum contribution amounts
    • Business: $10,000
    • Individuals: $2,500
  3. Maximum contribution cannot exceed $100,000 per tax year. ($50,000 maximum credit).
  4. Beginning with contributions made in 2013, the maximum amount of contributions by any taxpayer in a three year period is $200,000.(or $100,000 in NAA tax credits over a three year period).

How To Apply - Non-Profits
Download and review the provided program documents for further application instructions and forms.

How To Apply - Taxpayers

  1. If there is a non-profit organization that you would like to contribute to, please contact Delaware State Housing Authority's Public Information Office, at 302.739.4263 for further information; or
  2. Review the attached list of Approved Neighborhood Assistance Act (NAA) Programs and contact the appropriate contact person for further information.

Applications are reviewed by DSHA staff members, who award the credits on a first-come, first-served basis until the maximum of $500,000 in credits has been reached for the fiscal year.

If you have any questions or need further assistance, please contact Angie Lord at (302) 739-4263, email angie@destatehousing.com, or call Delaware State Housing Authority's Public Information Office at (888) 363-8808.