open space acquisition fund, the business firm’s total charitable contributions during a taxable year must equal or exceed its prior year's charitable contributions in order to be eligible for the tax credit.
The maximum credit allowed to any business firm is $75,000 annually. A nonprofit organization is limited to receiving $150,000 in contributions in the aggregate. The maximum credit allowed in the aggregate to all business firms is $5 million in any one fiscal year.
No business firm will receive both the NAA credit and the Housing Program Contribution Credit for the same cash contribution.
The NAA credit may be applied 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 systems companies tax (Chapter 211);
Utility companies tax (Chapter 212); or
Public Service companies tax (Chapter 212a).
Business firms that wish to make a cash contribution to a qualified community program can obtain a list of approved programs from DRS by September 1 of each year. The business firm is required to complete Form NAA-02, Connecticut Neighborhood Assistance Act Business Application, and mail or hand-deliver the form to DRS between September 15 through October 1 of each year.
For specific information, call DRS Research Unit at 860-297-5687. Application forms and the approved programs list are available anytime from the DRS website at www.ct.gov/DRS or by calling the DRS Forms Unit at 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) and selecting Option 2 from a touch-tone phone, or 860-297-4753 (from anywhere).
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
How to Compute the Credit
DRS issues a Neighborhood Assistance Program approval letter to corporations that make qualifying contributions. The letter indicates the tax credit amount that may be claimed on the Connecticut Corporation Business Tax Return. The credit amount must be entered on Form CT-1120K, Business Tax Credit Summary.
No carryforward is allowed. Any tax credit that is not taken in the income year in which the investment was made may be carried back to the two immediately preceding income years (beginning with the earlier of the years).
How to Apply
Non-profits and Municipalities Neighborhood organizations and Connecticut municipalities desiring to obtain benefits under the NeighborhoodAssistanceAct must complete Form NAA-01, Connecticut Neighborhood Assistance Act (NAA) Program Proposal, Parts I, II, and III, and submit it to the municipal agency that will be overseeing the implementation of the proposal. (The overseeing municipal agency will then complete Form NAA-01, Part IV and submit it to DRS on or before July 1 of each year.)
Where to Get Additional Information
Direct inquiries to:
Department of Revenue Services Neighborhood Assistance Act Program Attn: Research Unit 25 Sigourney Street Hartford CT 06106
REFERENCES: Conn. Gen. Stat. §§12-631 through 12-638
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07