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I love visiting the great state of Connecticut. Connecticut is such a beautiful place to visit. It doesn't hurt that my childhood friend and the Godfather of my son has a restaurant in Waterbury! While doing research on various state business tax credits, I found a cool tax credit given by the state of Connecticut. Today's post will discuss the basics of the Neighborhood Assistance Act Tax Credit Program.


The Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program is designed to provide funding for municipal and tax exempt organizations by providing a corporation business tax credit for businesses who make cash contributions to these entities.

Businesses can receive a credit of 60% of their approved contribution to certain programs (or 100% in the case of certain energy conservation programs) approved by the Department of Revenue Services. Any tax credit that is not taken in the income year in which the contribution was made may be carried back to the two immediately preceding income years (beginning with the earlier of such years).


The program has several statutory limits, including the following:

1. A business is limited to receiving $150,000 in tax credit annually.
2. A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
3. The minimum contribution on which credit can be granted is $250.
4. Beginning on July 1, 2017, the program has a ten million dollar cap, which, if exceeded, results in proration of approved donations.

Organizations wishing to participate:

Each municipal agency or tax-exempt organization that wishes to participate in the NAA Program must complete in its entirety Form NAA-01, the program proposal application. This form must be submitted to a participating municipality for approval.  Contact the municipality for deadline information. Do not send Form NAA-01 directly to the Department of Revenue Services.

Businesses wishing to participate:

Each business requesting a tax credit under the Neighborhood Assistance Act Program must complete a separate Form NAA-02 for each program it wishes to sponsor. The contribution must be cash, and needs to be made in the corporation's income year that corresponds to the same year as the approved program.

Form NAA-02 must be submitted to DRS beginning September 15 through October 2, 2017.

Businesses may mail or hand deliver their applications.  In addition, applications may be submitted electronically by emailing Form NAA-02 to NAAProgram@ct.gov.  No fax transmittals will be accepted.

E-mail any questions to DRS.TaxResearch@po.state.ct.us or contact 860-297-5687 for more information.

SOURCE: http://www.ct.gov/drs/cwp/view.asp?a=1447&q=266058

Name: Jamaal Solomon

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