Charitable giving is good business in West Virginia.
If you pay taxes in West Virginia and you contribute $500 or more, you can get a tax credit of 50% of your contribution (with some limitations 1). That means that your contribution of $1,000, for example, would cost you only $500, plus you can also claim the deduction on your federal taxes.
Contributions may be in the form of cash, personal property, real estate, stock and in-kind professional services.2
The Neighborhood Investment Program (NIP) was established by the WV Legislature in 1996 to increase charitable giving to local non-profit 501(c)3 organizations. Here's how it works: WV Health Right has been awarded a specific amount of tax credit vouchers. We then distribute the vouchers to businesses and individuals who contribute a minimum of $500 in a one-time contribution and request NIP credits. The donors submit these vouchers with their next tax returns to obtain the credit. Credits may be used for personal income tax, business franchise tax or corporate net income tax.
1 Credits are limited to 50% of a specific tax owed to the State of West Virginia and a maximum of $100,000 (in credits) in one year, up to the amount remaining available for WV Health Right. Credits can be spread over five years.
2 Professional service contributions are limited to doctors and other licensed health care professionals, attorneys, state-licensed architects and accountants, but are also limited to 25% of that individual's total contribution.