Office of Grants Management
Neighborhood Assistance Act
(NAA)
Olga Simpson, Municipal Liaison -
(860) 757-9278
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.
Please note that the NAA is not a
Grants program.
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. The credit percentage is determined by the nature
of the program and the type of individuals served (e.g.,
indigent or disabled). Businesses unable to utilize the full
amount of their credit may carry back any unused credits to
the two immediately preceding income years. Please see Information
Publication 2008(12)
for qualifying programs.
2010 Application
Process Has Expired
-
2010 NAA Applicants:
Approved by City Council - Pending DRS Approval
-
2010 NAA Program Sponsorhip Final Summary
-
2009 NAA Program Sponsorship Final Summary
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A tax credit equal to 60% of the cash
invested is available to business firms that invest in
programs that provide: |
|
Neighborhood assistance |
Community services |
|
Job training |
Employment and training
programs directed at handicapped persons |
|
Education |
Crime prevention |
|
Child care services |
Child day care facilities |
|
Donation of money to an
open space acquisition fund |
Construction or
rehabilitation of dwelling units for families of low and
moderate income in the state |
|
Employment and training
programs for unemployed workers who are 50 years of age
or older |
Education and employment
training programs for recipients in the temporary family
assistance program |
|
Other programs serving a
group of individuals where at least 75% are at an income
not exceeding 150% of the poverty level for the year
immediately preceding the year during which the tax
credit is to be granted |
|
Time Table
|
Date |
Action |
March 10,
2010
|
2010
Connecticut Neighborhood Assistance Act (NAA) Program
Proposal (Form NAA-01) Legal Notice & Mailing to Community
Based Organizations. |
|
April 30,
2010 |
Deadline for
Proposals to be submitted to the Office of Grants. No
Later than 3:30 p.m. |
|
May 10, 2010 |
Program
Proposals submitted to the Mayor. |
|
May 24, 2010 |
Program
Proposals Presented to Hartford Court of Common Council
for consideration under the 2010 NAA Program.
Public
Notice published in the Hartford Courant 5/19/2010. |
|
July 1, 2010 |
Deadline for
municipalities to submit list of approved programs to the
Department of Revenue Services. |
|
Sept 1, -
Sept. 15, 2010 |
Department
of Revenue Services compiles a list of approved municipal
programs. |
|
Sept. 15 -
Oct. 1, 2010 |
Deadline for
businesses to file a Letter of Intent with Department of
Revenue Services to sponsor a program. |
|
November
2010 |
Organizations
are notified as to the businesses who have pledged to
sponsor a program. |
|
January 2011 |
Department
of Revenue Services notifies businesses of approved tax
credits. |
Department of Revenue Services - DRS: 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:
Form NAA-02
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.
Please contact DRS at 860-297-5687 for
more information.
All NAA-02 applications
(2010 CT NAA
Business Applications) must be received between September 15,
2010 and
October 1, 2010 to be included in the 2010 Program.
The program has several statutory limits which must be observed, 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 years 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.
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