Tax credits set to expire at the end of March

Friday, March 23, 2012

In March 2010, the Southeast Missouri Food Bank received $250,000 in Neighborhood Assistance Program tax credits from the state to issue to eligible donors.

With locations in Cape Girardeau and Sikeston the Food Bank has $234,500 in tax credits that must be used by the end of this month or future funding will be lost.

In an economic recession it is more difficult to raise money, so this project should attract donors who pay significant amounts of Missouri income tax. The only drawback is the looming deadline to participate. Donors eligible to take part in the NAP credit program include corporations, insurance companies, banks, partnerships, limited liability companies, farm owners and people with rental property or royalty income.

Donors receive a Missouri income tax reduction for 50 percent of the value of their donation and other tax benefits may apply based on the actual tax liability of the donor.

The full amount of the tax credit award was originally going to be applied to a property purchase for Southeast Missouri Food Bank to purchase a facility, but that transaction was recently canceled resulting in tax credits going to waste if not used by the end of this month.

Funds raised will become a down payment on our future and be applied to a property purchase to establish a warehouse distribution center for the Food Bank. Southeast Missouri Food Bank has been providing hunger relief programs and services since 1985 and never had a home of its own. The food bank serves more than 160 charitable agencies in 16 Southeast Missouri counties.

This may be a wasted opportunity for now and the future as the Missouri Department of Economic Development may not allow us to apply for tax credits again if we don't use them this year.

This opportunity gives people an opportunity to give locally instead of writing that tax check to the state.

Karen Green is the executive director of the Southeast Missouri Food Bank,

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