Neighborhood Assistance Program Credit
Child Care Services Any activity that aids in child care services.
Alcohol Abuse Programs
A credit may be applied against various Connecticut business taxes by a business firm that makes individual cash investments of at least $250 to certain community programs that have received both municipal and state approval.
The cash investments must be made in community programs that are proposed and conducted by tax exempt or municipal agencies and must be approved both by the municipality in which programs are conducted and DRS.
Any community-based alcoholism prevention or treatment programs.
Child Day Care Facilities
Any program directed at the planning, site preparation, construction, renovation, or acquisition of facilities for the purpose of establishing a child day care facility and for equipment installed in the facility that is necessary to operate the facility. The amount of credit allowed to any one business firm for day care facilities cannot exceed $50,000. No credit may be granted under the Neighborhood Assistance Act (NAA) for daycare if a taxpayer is claiming the Human Capital Investment Credit for the same expenditures for the same year.
Business firm means any business entity authorized to do business in Connecticut and subject to any of the following taxes:
Insurance companies, hospital and medical services corporations taxes (Chapter 207);
Corporation business tax (Chapter 208);
Air carriers tax (Chapter 209);
Railroad companies tax (Chapter 210);
Community antenna television system companies tax (Chapter 211);
Utility companies tax (Chapter 212); or
Public service companies tax (Chapter 212a).
Examples of Eligible Programs Neighborhood Assistance
Programs that furnish financial assistance, labor, material, or technical advice to aid in the physical improvement of all or any part of a neighborhood.
Energy Conservation Energy conservation projects.
Employment and Training Employment and training programs.
Donation of Money to Open Space Acquisition Fund
Any donation of money that is used for the purchase of land, interest in land, or permanent conservation restriction on land, which is to be permanently preserved as protected open space.
Any activity that aids in the reduction of crime in Connecticut.
Construction or Rehabilitation
Construction or rehabilitation of dwelling units for families of low or moderate income in Connecticut.
Any type of counseling and advice, emergency assistance, or medical care furnished to individuals or groups in Connecticut.
Any type of instruction to any person who resides in Connecticut that enables the person to acquire vocational skills to become employable or seek a higher grade of education.
The tax credit amount available is equal to 60% of the amount contributed to programs approved by DRS. Except for the donation of money to an
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07