Senate advances bill to increase Neighborhood Assistance Program tax credit cap

The Pennsylvania Senate recently advanced H.B. 645 to double the tax credit cap for the state’s Neighborhood Assistance Program (NAP), which aims to encourage businesses to invest in community revitalization efforts.

Through the NAP, businesses make commitments related to community revitalization in exchange for state tax credits. The program’s $18 million annual tax credit cap has not been increased since the program was established in 1971. H.B. 645 would double the cap to $36 million.

The tax credit program creates partnerships between businesses, government and community development organizations that target investment in struggling communities in Pennsylvania. NAP funding helps to leverage resources and build technical capacity and infrastructure in communities.

“The Neighborhood Assistance Program (NAP) provides a significant bang for the buck,” Sen. Wayne D. Fontana (D-Pittsburgh), who sponsored the Senate version of the legislation, said. “In fiscal 2015-16, the $17 million in tax credits generated nearly eight times that amount in economic investment.”

H.B. 645 now heads back to the House of Representatives for concurrence and then to the governor.