Neighborhood Assistance Program (NAP)

The Pennsylvania Department of Community and Economic Development (DCED) administers the Neighborhood Assistance Program (NAP), a state-level initiative under the Tax Reform Code of 1971, designed to encourage private sector investment in community-based nonprofit programs that serve low-income and distressed neighborhoods across Pennsylvania. Operating under the authority of Act 48-1994 and enhanced by Act 55 of 2007, the NAP consists of five distinct components: the base Neighborhood Assistance Program, the Special Program Priorities (SPP), the Neighborhood Partnership Program (NPP), the Charitable Food Program (CFP), and the Enterprise Zone Program (EZP), though EZP is managed separately. The core goal of the program is to stimulate collaboration between nonprofit organizations and for-profit businesses to promote positive outcomes in health, housing, education, public safety, and economic development. The program awards state tax credits to businesses that contribute funding or resources to approved nonprofit-led projects in targeted areas. Contributions can qualify for tax credits ranging from 65% to 95%, depending on the program type and length of commitment. Projects must demonstrate a strong impact on low-income populations, and displacement of residents is expressly prohibited. Priority funding areas for fiscal year 2025–2026 include affordable housing, blight elimination, community and economic development, and workforce development. Each NAP component has specific criteria. The standard NAP program offers a 65% tax credit for one-year projects addressing affordable housing, job training, education, transportation, and similar community needs. NPP supports longer-term, strategic community development efforts and provides up to a 95% tax credit for business commitments lasting six years or more. SPP focuses on high-impact projects aligned with Commonwealth priorities like disaster recovery, healthcare equity, or services for veterans and vulnerable populations, offering up to a 90% tax credit. CFP assists food banks and similar organizations in reducing food insecurity and provides a 65% credit for both cash and qualifying food donations. Eligible applicants are Pennsylvania-based nonprofit neighborhood organizations with 501(c)(3) status. Businesses must be registered and in good tax standing in Pennsylvania. Contributors must submit an electronic tax clearance form and provide a formal commitment letter on company letterhead by the May 30, 2025, deadline. NPP applications must also include a Memorandum of Understanding, a strategic plan, and an advisory committee. All application materials, including IRS proof, project narratives, and contributor letters, must be submitted via the Electronic Single Application for Assistance (ESA) portal at grants.pa.gov. Hard copies are not accepted. The evaluation process is competitive and considers the alignment of the project with eligible categories, the organization’s capacity, community engagement, financial need, and readiness. Projects must also show measurable outcomes and include reporting on progress by December 31. All contributions must be received by June 30, 2026, and funds expended by September 30, 2026. Extensions may be granted on a case-by-case basis, though NPP programs are expected to continue annually through their planned term. Program inquiries should be directed to the DCED Center for Community Services at RA-DCEDNAPMAIL@pa.gov. Technical questions regarding the application portal can be addressed by calling 1-800-379-7448 or emailing ra-dcedcs@pa.gov. Regional staff contacts are listed in the program guidelines. The application window opens March 10, 2025, and closes at 5:00 p.m. on May 30, 2025. Applications must be complete, with all required contributor documents included by the submission deadline. Incomplete applications will not be considered for funding.