NIP Tax Credits

The TMH Foundation is an approved NIP organization.
To learn more about tax credits go to the WV Development Office or call the Foundation Office at (304) 766-4357.

Frequently Ask Questions

How are tax credits reported?
Contributors to a participating organization will receive a tax credit voucher that lists the amount of the contribution (form WV-NIPA-1). Simply attach the voucher along with a program worksheet (form WV-NIPA-2) to the appropriate West Virginia tax form and deduct the tax credit amount from the tax due amount.

What types of contributions are eligible for tax credits?
Contributions can be in the form of cash, personal property, real estate, stock and in-kind professional services. The minimum eligible donation is $500.

What is the program timeline?
The program is administered according to the state fiscal year, from July 1 to June 30. To be eligible for tax credit, contributions must be made after the organization has been approved for participation. A limited number of credits will be distributed on behalf of each organization. Credits can be distributed by NIP organizations until the last day of the fiscal year in which their application was approved.

How does a tax credit differ from a tax deduction?
A tax deduction reduces the amount of the total income on which taxes are based. A tax credit is used to reduce total tax liability. Generally, a tax credit is worth substantially more than a tax deduction.

What are the limitations of the credits?
There are three primary limitations of the credits? The amount of credit allowable must be taken within a five-year period, beginning with the tax year in which the donation is made; the donor may receive no more than $100,000 annually in NIP tax credits; a donor cannot use NIP tax credit to reduce total tax liability on any one tax by more than 50 percent annually.

If a donor makes contributions over several years, can the credits overlap?
Yes; however, the limitations described above still apply.