5/3/2019 - Neighborhood Assistance Act Tax Credit Program
Neighborhood Assistance Act
The Town of Canton is looking for community organizations that may be interested in participating in the Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program. The NAA program is designed to provide funding to State-approved community programs conducted by municipal agencies or community non-profit organizations. The community programs must first be endorsed by the host municipality prior to submission to the State Department of Revenue Services. If subsequently approved, the NAA allows businesses to claim a State tax credit for cash contributions made to these community programs.
Businesses can receive a credit of 60% of their approved contribution to certain programs (or 100% in the case of certain energy conservation programs) if approved by the Department of Revenue Services. The minimum contribution on which a tax credit may be granted is $250, and the maximum contribution that any non-profit or municipal entity can receive under this program is $150,000. There are no local funds involved.
Information about the NAA Tax Credit Program, including an online “fillable” application form (Form NAA-01, 2019 Connecticut Neighborhood Assistance Act (NAA) Program Proposal) and information about the types of community programs which qualify, is available at the Department of Revenue Services’ website: www.ct.gov/DRS and search for “Neighborhood Assistance Act.” The types of community programs that qualify for the NAA tax credit program include, but are not limited to: energy conservation; employment and training; child care services; neighborhood assistance; substance abuse; open space acquisition; crime prevention programs; and affordable housing development. There are specific requirements so it is important to check the DRS website for qualifications.
The deadline for submitting applications is May 2, 2019. Applications must be sent to:
Robert H. Skinner
Chief Administrative Officer
4 Market Street, P.O. Box 168
Collinsville, CT 06022
Applications will be forwarded to the Board of Selectman for a public hearing to be held on May 8, 2019, at 7:00pm in Room F at the Canton Community Center and at a date thereafter to a Town Meeting for final municipal approval. All applications approved at Town Meeting will be submitted to the Department of Revenue Services for its approval.
The Department of Revenue Services will provide the Town with a list of approved applications. Each entity will receive a letter from the Town notifying them as to whether their application has been approved. If approved, the entity’s sponsoring business must mail or hand-deliver Form NAA-02 with an original signature to the Department of Revenue Services on or after September 15 but no later than October 1, 2019.
Please direct any questions you may have about the NAA program to the Department of Revenue Services Research Unit at (860) 297-5687 or email them at DRS.TaxResearch@po.state.ct.us.