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Tax Credits
Promise Community Homes has partnered with the Missouri Housing Development Commission to offer Affordable Housing Assistance Program (AHAP) tax credits for eligible donors.
Missouri Donor
Tax Credits
In Missouri, nonprofit organizations can be awarded tax credits to offer to eligible donors as an extra thank you for their gift. A percentage of the total donation amount may be awarded to the donor in the form of a state tax credit. Specific forms and paperwork must be filed with the state, but our team is ready to help assist with any part of the process!
Promise Community Homes participates in the the Missouri Housing Development Commission’s (MHDC) Affordable Housing Assistance Program (AHAP) for tax credits. To learn more about this program, please view the information below. You may also contact our development team at gabriellegl@promisecommunityhomes.org, 314-567-1522 ext. 209, or through the contact form below.
The information below is primarily sourced from the MHDC AHAP Program Guide.
What is it?
The AHAP tax credit is a one-time credit that may be allocated to an eligible donor (see eligibility below) for up to 55% of the total value of an eligible donation (also below). The credit may be applied dollar-for-dollar against liability for Missouri corporate income tax, individual income tax, franchise tax, financial institution tax, gross premium receipts tax, and gross receipts tax.
How does it work?
When an eligible donor makes a gift, they will work with our team to submit forms AHAP-150 and AHAP-125 with proof of the donation (cleared check, stock certificate, credit card statement, etc.) to the Missouri Housing Development Commission (MHDC). Upon approval, MHDC will mail the approved tax credit certificate to the donor with instructions on applying it to their Missouri return. The awarded tax credit amount is 55% of the total donation amount. For example, if the donation is $100, the donor may receive a $55 tax credit to apply to their Missouri return!
| Donation Amount | Credit Amount |
|---|---|
|
$500 |
$275 |
|
$1,000 |
$550 |
|
$2,500 |
$1,375 |
|
$5,000 |
$2,750 |
|
$10,000 |
$5,500 |
Eligible Donors
To be eligible, a Donor must be subject to Missouri tax from business activities performed in the state of Missouri. Employees of the non-profit who have been allocated AHAP tax credits are not eligible to make donations for AHAP credits. However, they are eligible to receive AHAP tax credits through the transfer process. More specifically, a Donor must be classified as one of the following:
- A corporation filing Missouri Form 1120
- A sole proprietorship filing Federal Form 1040 Schedule C and Missouri Form 1040
- A farm operation filing Federal Form 1040 Schedule F and Missouri Form 1040
- An individual reporting income from rental property or royalties on Federal Form 1040 Schedule E and filing Missouri Form 1040
- A small business corporation (S-Corporation) filing Missouri Form 1120S
- A partnership filing Missouri Form 1065
- A bank, credit institution, savings and loan association, credit union, farmer’s cooperative credit association, or building and loan association filing a Missouri financial institution tax return
- An insurance company filing a Missouri Insurance Tax Return with the Division of Insurance
- An individual partner in a partnership or shareholder in an S-Corporation
- A public or private foundation subject to Missouri tax. The foundation must certify that it is subject to the state income tax imposed by the provisions of chapter 143 RSMo because the unrelated business income of the foundation is subject to Missouri income tax
- The corporation franchise tax in Chapter 174 RSMo
- The State income tax in Chapter 143 RSMo
- The annual tax on gross receipts of express companies in chapter 153 RSMo
- The tax on banks determined under subdivisions (1) or (2) of subsection 2 of RSMo 148.030
- The tax on other financial institutions in Chapter 148 RSMo
- The annual tax on gross premium receipts of insurance companies in Chapter 148 RSMo
Eligible Donations
If the donor meets the eligibility requirements above, donations must also meet all of the following criteria:
- Be in the form of cash or stocks
- Have a corresponding statement or proof of funding document (two-sided copy of the check, stock certificate, credit card statement, etc.)
- Donated on or after 10/01/2023, but before 04/30/2024
- Gifted for the funding of general operations
- Not receiving tax credits from another MO tax credit program for the same donation
- Not receiving anything in exchange for the donation (table at an event, tickets to a fundraiser, food/drinks, etc)
Frequently Asked Questions
Yes! Donors may transfer the allocated credits to any individual or entity upon MHDC’s review and approval of the Missouri Transfer Form MO-TF (AHAP-275) providing the details of the transaction. There are no limits on the transfer of credits. The transfer process must start after the official awarding of the original credit. Our team would be happy to assist with this process!
The credit is fully transferable and may be carried forward for a period of up to ten years. It may not be applied to previous years.
MHDC calculates the value of stock donation based on the transfer date (this may be different form the date the stock is sold by the agency) and based on the average high and low price on the transfer date.
Our team is happy to help complete the process to receive a tax credit! Ultimately, the Missouri Housing Development Commission has final approval to issue credits. Furthermore, the Missouri Department of Revenue may have additional guidelines for how tax credits can be used. We suggest speaking with your accountant to gain a better understanding of how a tax credit may impact your MO tax return.
Nonprofits are awarded a specific amount of tax credits. These credits are available on a first-come-first-served basis. There is no minimum or maximum amount a donor may receive.
Yes! If you make a donation through a platform that charges a processing fee, the total amount of your gift will reflect the processing fee as well.
Donors have until June 30th following the fiscal year in which their donation was made to submit their Tax Credit Certification form. Missouri’s fiscal year is from July 1st through June 30th. MHDC encourages the filing of this documentation as soon as possible following the donation to facilitate timely recordkeeping and allocation of credits.
Please contact our Development Director Gabrielle Grundy-Lester at gabriellegl@promisecommunityhomes.org, 314-567-1522 ext. 209, or through the contact form below. Some questions may need to be answered by your accountant or through the Missouri Housing Development Commission.
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