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AHAP Tax Credits
Affordable Housing Assistance Program (AHAP) tax credits are used as an incentive for Missouri businesses and/or individuals who make contributions to approved non-profits, like Welcome Home.
The State offers a Missouri income tax credit for any eligible firm or eligible individual that makes an eligible donation to a non-profit community-based organization.
These credits are equal to 55% of the value of the contribution and offset your Missouri Income Tax liability. The credit can be carried forward up to ten years, sold or transferred.
Who is an Eligible Donor?
Donor eligibility is determined by the business affiliation.
If you have direct or passive income from the state of Missouri, you will most likely qualify (i.e. corporation, sole proprietorship, financial institution, insurance company, farm operation, rental property/royalties, S-Corp or partnership, public or private foundation subject to Missouri tax, etc.).
What Are Eligible Donations?
In addition to direct IRA contributions, donations may be in the form of cash, stock, or in-kind.
Here’s an example of how a cash donation to acharity that has tax credits available can affect your bottom line:
Donation per $1,000.00
Federal Tax Deduction (35%) = $350.00
Missouri Tax Deduction (6%) = $60.00
Missouri AHAP Tax Credit (55%) = $550.00
Total Tax Savings = $960.00
Donation-Tax Savings = After Tax Cost of Donation
$1,000.00- $960.00 = $40.00
*This is an example only; please check with your tax accountant to determine how tax credits will affect your personal tax situation.
How Do I Obtain 55% Tax Credits For My Donation?
Welcome Home makes the process easy for donors.
After consulting your personal tax accountant, please contact us at [email protected] or call 573-443-8001 and ask for a member of our Development Team.