The Perth Amboy Alliance for Community (PAAC) is encouraging businesses to support its mission by paying their taxes using a state program that provides business entities with a 100% tax credit for funds provided to eligible nonprofits carrying out comprehensive neighborhood revitalization plans.
The Neighborhood Revitalization Tax Credit (NRTC) Program within the state Department of Community Affairs (DCA) allows New Jersey businesses to purchase tax credits for qualified community development efforts in low- and moderate-income neighborhoods, such as Perth Amboy’s north central neighborhood, also known as the city’s Greater Budapest section.
PAAC is a project of the Jewish Renaissance Federation, a nonprofit 501(c)3 organization that received $261,000 in FY2021 for PAAC thanks to the tax credits purchased by Investors Bank and PNC Bank through the NRTC program. The sale of NRTC tax credits for FY2022 is expected to open about Nov. 22 and DCA is authorized to issue up to $15 million in tax credits per fiscal year.
“This is a great community investment opportunity for businesses who make the decision to support PAAC’s innovative 2022 projects by satisfying their state tax obligation through NRTC,” said Sherri Goldberg, director of Community & Family Services at the Jewish Renaissance Foundation.
Businesses that anticipate owing the state insurance premium taxes, corporation business taxes or gross income taxes related to business activities (this includes partnerships, limited liability corporations and S-corporations) are eligible to participate in the NRTC program. The minimum application amount is $25,000 and the maximum is $1 million.
When DCA opens the sale of NRTC tax credits later this month it will also publish a list of qualified neighborhood projects eligible for support, called the Qualified Projects Pool (QPP). Businesses submit a simple NRTC application where they designate and rank the neighborhood projects they would like to support. Credits are sold on a first-come, first-served basis and usually sell out quickly.
For more information about how to help PAAC through the NRTC program, contact Goldberg at email@example.com or call 732-638-5063, extension 125. For general information about the NRTC program, go to DCA’s website here.
The Perth Amboy Alliance for Community (PAAC) includes neighbors, agencies, educators, and small businesses who have worked together for the last 13 years to help make positive changes. PAAC has made a lasting impact in the city through the creation of the PAAC Neighborhood Association, small business support, community gardens, housing rehabilitation, dozens of economic development programs, and the transformation of Francis Street Park.