The Neighborhood Assistance Program (“NAP”) is a program of the State of Indiana, created by Indiana Code 6-3.1-9. Donors that receive state tax credits from an eligible non-profit organization may receive a reduction of their Indiana income tax liability valued at 50% of the amount of their donation. That means that if they donate $200 and receive tax credits for their full donation, they can receive a $100 tax credit, which is applied against their Indiana state tax liability (not their federal tax liability). That tax credit is applied when they file their next State tax returns.