DRS: Neighborhood Assistance Act Tax Credit Program

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:

  • A business is limited to receiving $75,000 in tax credit annually.
  • A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
  • The total charitable contributions of the contributing business must equal or exceed its prior year’s amount (unless the contribution is to an approved open space acquisition fund).
  • The minimum contribution on which credit can be granted is $250.
  • The program has a five million dollar cap, which, if exceeded, results in proration of approved donations.
For more information on this program, see Information Publication 2008(12) The Connecticut Neighborhood Assistance Act Tax Credit Program.
 
 
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.  Do not send Form NAA-01 directly to the Department of Revenue Services.

A link to a list of Neighborhood Assistance Act Municipal Liaisons from the prior program year can be found below in order to assist you. This list is not all-inclusive. You may still approach any Connecticut municipality. Please note that the municipality must submit all locally approved programs to the DRS no later than July 1.

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 have an original signature and be mailed or hand-delivered to the Department of Revenue Services on or after September 15 but no later than October 1, 2009. Facsimiles or e-mailed applications are not accepted.

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

2009 Application Process
 

All forms and some DRS publications are in Adobe Acrobat format.  {adobe} You will need Adobe Acrobat Reader 7.0 or higher to view and print the paper or fillable versions of our forms.   For additional assistance or if you are have trouble downloading a form, visit our Adobe Information page.

 
Paper Version Fill-In Version
Program Proposal Form NAA-01  [size 43KB, 5 pages, PDF Format] Program Proposal Form NAA-01 [size 84 KB, 5 pages, PDF Format]
Business Application Form NAA-02 [size 31KB, 1 page, PDF Format Business Application Form NAA-02 [size 37KB, 1 page, PDF Format]