Neighborhood Assistance Program (NAP)

The Neighborhood Assistance Program (NAP), administered by the Pennsylvania Department of Community and Economic Development (DCED), is a state-run tax credit initiative designed to stimulate business investment in community development projects that improve the quality of life in distressed areas throughout Pennsylvania. Authorized under Article XIX-A of the Tax Reform Code of 1971 and expanded by Act 55 of 2007, NAP encompasses four main components: the general Neighborhood Assistance Program, the Special Program Priorities (SPP), the Neighborhood Partnership Program (NPP), and the Charitable Food Program (CFP). Collectively, these programs aim to support comprehensive, collaborative, and sustainable approaches to neighborhood revitalization and economic development, with a strong focus on improving outcomes for low-income populations. NAP incentivizes private-sector involvement by offering substantial state tax credits—ranging from 65% to 95% depending on the program type and duration of investment—to businesses that contribute to approved nonprofit-led community development projects. Eligible projects must serve distressed or low-income communities and align with specific priority areas such as affordable housing, crime prevention, job training, education, community services, and neighborhood conservation. The tax credits are made available to business firms authorized to operate in Pennsylvania and subject to specified state taxes, provided they meet clearance requirements through the Pennsylvania Department of Revenue. The four NAP program categories offer different levels of engagement and commitment. The standard NAP supports one-year projects that meet key neighborhood needs with a 65% tax credit for contributors. The NPP is a long-term engagement of five or more years requiring an annual business contribution of at least $50,000, offering up to 90% or 95% in credits. SPP targets critical, state-prioritized issues—such as disaster recovery, healthcare equity, or affordable housing—and allows a one-year contribution for up to 90% tax credit. Lastly, the CFP targets food insecurity and enables both cash and in-kind food donations, with a 65% tax credit for approved contributions to eligible nonprofit food providers. To be eligible, applicants must be nonprofit neighborhood organizations with verified 501(c)(3) status. All projects must serve residents of distressed neighborhoods, as defined by criteria such as poverty rates, unemployment, public assistance dependency, and housing inadequacy. Distressed areas include designated Enterprise Zones, Act 47 municipalities, Main Street Matters communities, and others as officially recognized by DCED. Businesses must submit a tax clearance form and sign a commitment agreement before contributing. Applications from nonprofits must include all required documentation, including the contributor commitment forms, via DCED’s Electronic Single Application (ESA) system before the close of the application period. For FY2026-2027, the application period opens on March 16, 2026, and closes at 5:00 PM ET on May 29, 2026. All submissions must be completed electronically, and late contributor documents are not accepted. Proposals are reviewed on a competitive basis using criteria such as organizational capacity, community impact, collaboration, financial readiness, strategic alignment, and inclusion of Small Diverse Businesses. Approved projects must complete activities within a 15-month window beginning July 1, 2026. Annual reports are due by December 31 to assess project outcomes and compliance. Although audits are not required, DCED retains the right to monitor awarded projects. Inquiries regarding the NAP should be directed to the Center for Community Services at [email protected] or through the relevant DCED Regional Office listed in Appendix F of the guidelines. The application process is detailed and requires alignment with NAP’s goals and compliance with eligibility, documentation, and reporting requirements. Due to its structured tax credit benefits and broad community development scope, NAP is an essential funding mechanism for revitalizing distressed communities across Pennsylvania.

Align project with state priorities such as affordable housing and childcare; All contributor forms must be submitted by deadline; Project cannot be modified post-submission.