Under most tax credit programs, tax credits can be applied to different types of taxes, the most popular of which are the individual income, the corporate income tax, the corporate franchise tax, and the insurance premium tax. Below is redemption information for the Neighborhood Assistance Program Tax Credit.
The Neighborhood Assistance Program Tax Credit assists community-based organizations that engage in certain activities. Contributors to projects receive tax credits equal to a percentage of their contribution. Tax credits under the program cannot be transferred but can be carried forward for up to five tax years. Below is a chart with the past three fiscal years’ redemption figures and the taxes against which the tax credits were redeemed. The column on the far right provides the three-year average percentage of redemptions by tax.
|Type of Tax||FY 2009||FY 2010||FY 2011||3-Year Average % of Total Redemptions|
The bulk of the contributors under the program redeem tax credits against the individual income tax (82%) while corporations redeem the majority of the remaining credits (13%) against the corporate income tax and the corporate franchise tax. The program was one of the first tax credit programs enacted by the legislature; it was created in 1977. According to the authorizing statutes of the program, a contributor must be a “business firm” as such term is defined in section 32.105, RSMo; the same holds true for the Affordable Housing Assistance Program Tax Credit and the Development Tax Credit.
Originally contained as a portion of the article, “Who’s Cashing in on Tax Credits? The types of taxpayers redeeming tax credits vary across programs,” published in the June 15, 2012 issue of the Missouri Wonk Report.