Neighborhood Assistance Program (NAP)

The Neighborhood Assistance Program (NAP), administered by the Pennsylvania Department of Community and Economic Development (DCED), is a statewide initiative designed to stimulate community investment and economic development in low-income and distressed neighborhoods. Originally authorized under Article XIX-A of the Tax Reform Code of 1971 and later amended through Act 55 in 2007, NAP facilitates collaboration between nonprofit organizations and for-profit businesses to support projects that improve health, safety, economic opportunity, and overall quality of life for underserved populations across Pennsylvania. Through tax credit incentives, the program promotes contributions from businesses to support eligible community-driven projects. The NAP operates as an umbrella for four distinct program components: the core Neighborhood Assistance Program (NAP), the Neighborhood Partnership Program (NPP), Special Program Priorities (SPP), and the Charitable Food Program (CFP). While each component has its own focus and requirements, all are united under a shared goal: assisting Pennsylvania’s distressed communities through strategic investment and engagement. Businesses contributing to approved projects receive tax credits ranging from 65% to 95% of their contributions, depending on the program component and duration of commitment. All contributors must submit electronic tax clearance forms and formal commitment letters, and only businesses authorized to operate in Pennsylvania under specific tax codes are eligible. Eligible applicants for NAP are nonprofit neighborhood organizations with 501(c)(3) status. Projects must serve low-income individuals and address specific community needs such as affordable housing, education, job training, crime prevention, transportation, community economic development, or community services. Project activities must not result in the displacement of low-income residents. For the FY 2025–2026 cycle, the Department prioritizes applications aligning with the Commonwealth’s Housing Action Plan and Economic Development Strategy, particularly those focused on affordable housing, blight elimination, workforce development, and economic revitalization. All projects must be located in officially designated distressed areas, such as Enterprise Zones or Act 47 Municipalities. Applications for the FY 2025–2026 round open on March 10, 2025, and must be received by 5:00 PM on May 30, 2025. All supporting documentation, including contributor commitment letters and tax clearance forms, must be submitted electronically through the DCED’s Electronic Single Application for Assistance (ESA) portal at grants.pa.gov. Mailed documentation is not accepted. Applicants are required to engage with their regional DCED office before submission for technical support and project alignment. Appendix A of the guidelines outlines the required components of a complete application, which include a detailed narrative addressing the community problem, project scope, measurable outcomes, budget justification, IRS nonprofit documentation, and formal contributor letters. The DCED evaluates applications based on eligibility, strength of project narrative, community impact, secured funding commitments, organizational capacity, and the level of collaboration demonstrated. Applications are competitively scored, and approval is not guaranteed year to year—even for projects with prior success. Approved projects enter into a binding agreement upon signing an approval letter from DCED, after which contributors are formally notified and can proceed with submitting their application for tax credits. Projects must be completed within a 15-month activity window (July 1, 2025–September 30, 2026), while contributions must be received between July 1, 2025, and June 30, 2026. Annual reports summarizing accomplishments and updated metrics are due by December 31, 2026. For inquiries, applicants may contact the Neighborhood Assistance Program via email at [email protected] or reach out to regional staff listed in Appendix F. While no audit is required for projects under NAP, the DCED reserves the right to monitor expenditures and activities. Extensions to project timelines may be granted on a case-by-case basis, but applicants are discouraged from requesting major modifications after submission. The program is not an entitlement, and resubmission is required annually for recurring or multi-year projects.