NIP credits for gifts of $500 or more, while supplies last
You qualify for Neighborhood Investment Program tax credits if you:
— Pay income taxes in West Virginia, or
— Pay corporate net income taxes in West Virginia, and
— Donate $500 or more to Read Aloud West Virginia.
Taxpayers can use this credit even if they don’t itemize on federal or state income tax returns.
It works like this:
1. Send a donation of $500 or more to a qualifying organization, such as Read Aloud WV.
2. Read Aloud sends you a voucher for as much as half the gift amount. At tax time, turn in the voucher to reduce your WV tax bill by that amount. Taxpayers may use all or part of the credits. They have five years to use all the credits.
A larger gift qualifies for a larger credit. So, a $1,000 donation gets $500 in tax credits. A $5,000 gift qualifies for $2,500 off your taxes, and so on.
The maximum tax credit allowed in any one year is $100,000. Donors cannot reduce their total state tax bill by more than 50 percent.
NIP credits are administered by the state to encourage donations to local nonprofits. All credits must be distributed by March 2024. Credits are limited, so the sooner you secure yours, the better.
Every dollar donated to Read Aloud results in more time spent sending volunteer readers into classrooms to motivate children to read for fun, or giving kids happy, choice-filled book distributions.
As little as $100 can fund books for an entire classroom, while $1,100 can fund a month of Books for Babies, providing a new book for all babies born at Women and Children’s Hospital, CAMC, for example.
To donate at this time of year, it is best to call 304-345-5212 to verify that NIP credits are still available. Then, you may:
Mail a check to Read Aloud WV, PO Box 1784, Charleston, WV 25326 (the most cost-effective method).
Donate online by going to readaloudwv.org.square.site to make a secure donation through Square.
Transfer stock. Call 304-345-5212 or email dmiller@readaloudwv.org for more details. Read Aloud’s DTC number is 0141.
Direct a retirement account distribution to Read Aloud WV. If it comes straight from your financial institution, even a disbursement from a tax-deferred plan may not incur federal taxes, and it will also qualify for NIP tax credits. Call or email if you have questions.
Gifts made after Jan. 1, 2024 work the same way, except that taxpayers may apply their credits starting with taxes due for the 2024 tax year.