NEIGHBORHOOD ASSISTANCE ACT 2018
The Connecticut Neighborhood Assistance Act Tax Credit Program is an annual program designed to generate funding for municipal and tax exempt organizations by providing a corporation business tax credit for businesses who make cash contributions to one or more of these entities.
The following agencies/programs are approved for participation in the 2018 NAA Program:
Businesses can receive a credit of 60% of their approved contribution to certain programs approved by the Department of Revenue Services, or 100% of their approved contribution to certain "green programs". 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 which must be observed, including the following:
-A business may receive up to $150,000 in credit.
-A non-profit organization is limited to receiving $150,000 in contributions.
-The total charitable contributions of the contributing businesses must equal or exceed its prior year's amount.
-The minimum contribution on which credit can be granted is $250.
-Beginning on July 1, 2018, the program has a ten million dollar cap, which, if exceeded, results in proration of approved donations.
Municipal and tax exempt organizations may develop programs that qualify for NAA benefits. Areas that qualify include, but are not limited to, energy conservation, employment and training, child care services, neighborhood assistance and substance abuse.
Tax exempt and Municipal entities: Neighborhood organizations and Connecticut Municipalities wishing to obtain benefits under the NAA must complete Form NAA-01 and return it to the Town of Manchester Human Services Department no later than April 3, 2018 in order to allow adequate time to prepare submissions for approval by the Board of Directors and onward forwarding to the Department of Revenue Services by its July 2, 2018 deadline.
An application form, number NAA-01, may be completed online, and printed from the DRS website. Go to --
Alternatively, please call Human Services Administration (860) 647-3092, and ask for an application package to be mailed to you.
Completed applications must be submitted to the Town. The Department of Revenue Services will not accept applications mailed directly to it.
Corporations: Businesses that wish to make a cash contribution to a qualified community program are required to complete Form NAA-02 by September 15 and no later than October 1, 2018.
For further information, please call the Department of Revenue Services Research Unit during business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday: 1-800-382-9463 (in state) or 860-297-5687 (anywhere). TTY, TDD and Text Telephone Users only may transmit inquiries 24 hours a day, seven days a week by calling 860-297-4911.
Forms and publications are available 24 hours a day, seven days a week:
- Internet: preview and download forms and publications from the DRS web site: www.ct.gov/drs
- DRS Tax Fax: call 860-297-5698 from the handset attached to your fax machine and select from the menu; or
- Telephone: call 1-800-382-9463 (in state) or 860-297-5687 (elsewhere)