Under the NPP businesses can tailor their corporate giving to invest in selected communities and projects that are important to them. Typical activities include community services, literacy training, job training and placement, development of affordable housing, redevelopment assistance and community crime prevention. Business entities that make donations directly to Nonprofits for approved projects will receive a tax credit equal to 50 percent of the value of the donation. These tax credits may be claimed in addition to State and Federal deductions for charitable contributions, which may make the net cost of a contribution typically less than 30 cents for each dollar contributed.
Any entity conducting business or operating a trade in Maryland is eligible.
Legislation in 1998 expanded eligibility to include s-corporations, partnerships, sole proprietorships, and limited liability corporations, in addition to those eligible formerly, corporations, public utility companies, insurance companies and financial institutions. Contributions of services and real estate are not eligible for tax credits. The value of contributions of used goods must he certified by an independent and unrelated third party. The value of contributions of new goods is equal to the certifiable cost of the goods to the tax credit contributor . Businesses are limited in the amount of NPP tax credits them may earn each year.