2020 Neighborhood Assistance Act Tax Credit Opportunity Opens for Local Businesses

The following was compiled from a press release from the office of Wilton’s First Selectwoman.

The State of Connecticut Department of Revenue Services (CT DRS) has just announced the approved proposals under the 2020 Neighborhood Assistance Act (NAA) Tax Credit Program. The NAA Tax Credit program provides a corporation business tax credit for businesses that make cash contributions to support organizations’ approved program proposals. 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 CT DRS.

All 16 proposals submitted for 2020 by Wilton based municipal and tax-exempt organizations were approved and a list of the approved programs is available on the CT DRS’s website. 

There are 14 organizations represented on the proposal list, up from five non-profits that participated last year. This year the groups are:

A Better Chance of Wilton
Apple Blossom School and Family Center
Friends of Ambler Farm
Friends of the Norwalk River Valley Trail (NRVT)
Riverbrook Regional YMCA
Stay at Home Wilton
Trackside Teen Center (2) 
Visiting Nurse of Fairfield County
Wilton Congregational Church
Wilton Go Green
Wilton Historical Society
Wilton Library Association 
Wilton Youth Council
Woodcock Nature Center

Last year, five Wilton tax-exempt organizations collectively received cash contributions from businesses in excess of $35,000 facilitated through this program which resulted in total approved business tax credits of over $30,000 to CT businesses. 

To request a tax credit, businesses must complete Form NAA-02 for each program it wishes to sponsor. The contribution must be in cash, and needs to be made in the corporations’ income year that corresponds to the same year as the approved program. Form NAA-02 must be submitted to the CT DRS beginning Sept. 15 through Oct. 1, 2020. New this year, businesses must complete Form NAA-02 on-line (applications will not be accepted by mail, e-mail nor hand delivery). Businesses wishing to learn more about the NAA Tax Credit Program or access the on-line Form NAA-02 should visit the CT Neighborhood Assistance Act (NAA) Tax Credit Program website. Questions can be sent via email or by calling 860.297.5687 for more information. 

The program has several statutory limits including: 

  • A business firm is limited to receiving $150,000 in tax credits annually; however, the amount of tax credit allowed any business firm for investments in child daycare facilities for any income year may not exceed $50,000. 
  • The minimum contribution on which a tax credit can be granted is $250. 
  • Any organization conducting a program(s) eligible for funding under the CT NAA program is limited to receiving an aggregate of $150,000 of funding for any program or programs for any fiscal year. 
  • The total amount of all tax credits allowed in any fiscal year is $5 million, which, if exceeded, results in prorating the approved tax credits among the approved organizations. 

The Town of Wilton is the overseeing municipal agency for the Wilton based programs. For information on the program, please contact Sarah Gioffre via email or by calling 203.563.0129, ext. 1128.