DCED Neighborhood Assistance Tax Credit Program

Loyalsock Foundation Approved for $334,500

On Sept. 5, 2024, DCED Secretary Rick Siger announced the approval of $334,500 in corporate donations to Loyalsock Foundation through the 2024-25 Neighborhood Assistance Program.

PA Tax Credits for Businesses

Bonnie Morris of Coterra Energy (center) presents a donation to Loyalsock Foundation President, Mary Blondy (left) and Community Outreach & Project Manager, Jessica Pennella (right).

Loyalsock Foundation is an active applicant under the PA Department of Community and Economic Development (DCED) Neighborhood Assistance Program (NAP). This program is available to any business who may want to take advantage of directing their tax dollars to a nonprofit to benefit the community AND receive a 90% tax credit.

Sullivan County is designated as a rural area by DCED under Special Program Priorities. Because of this, the tax credit allowable under the Neighborhood Assistance Program increases from the normal level of 65% to 90%. Therefore, any business who donates to Loyalsock Foundation under this program will receive a PA tax credit of 90% for every dollar donated. The remaining 10% may also receive additional tax benefits as Loyalsock Foundation has been approved as exempt from federal incomes taxes as a 501(c)(3).

The Neighborhood Assistance Program is a win-win for local and regional businesses. All donations stay within the Sullivan County community, contributing directly to Loyalsock Foundation’s mission of building The Summit: Center for Wellness. Every donation also qualifies for up to 75% back in tax credits.

Commitment letters are usually due by June 30. Loyalsock Foundation submits the commitment letters, along with a detailed application to DCED. The governor’s office, along with DCED, release the approved applications in November. Monetary contributions are then due by June 30 of the following year.

Learn more

How It Works

Businesses provide a commitment letter to Loyalsock Foundation indicating the business will provide a specific monetary contribution to a community project if Loyalsock Foundation is approved for NAP tax credits.
Businesses must file the Electronic Clearance Form for Tax Credits on the Department of Revenue website.
Loyalsock Foundation submits an application to DCED for its project, including the commitment letter from the business. Applications and commitment letters are typically due by June 30.
DCED will review all applications and announce awards, typically in November.
Businesses must make their contributions to Loyalsock Foundation by the end of the state fiscal year (SFY) in which the credits were awarded (end of the SFY is June 30).
Contributing businesses must submit an Application for Tax Credit to the Commonwealth by December 31 after the SFY ends.

Questions? Email info@loyalsockfoundation.org.