For businesses looking to receive tax credit by donating to Wilton tax exempt organizations, the 2019 Neighborhood Assistance Act (NAA) Tax Credit Program is an opportunity presented by the State of Connecticut Department of Revenue Services (CT-DRS). The two-week period to apply is approaching this month.
The NAA Tax Credit program provides a corporation business tax credit for businesses which make cash contributions to 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. Last year, five Wilton tax exempt organizations collectively received cash contributions from businesses in excess of $18,000 facilitated through this program which resulted in total approved business tax credits of over $12,000 to CT businesses.
In August, CT-DRS announced the approved proposals from the non-profits under this year’s NAA program; all proposals submitted by Wilton based municipal and tax-exempt organizations were approved by state officials. A list of the approved programs is available on the CT DRS’s website and below:
Businesses wishing to learn more about the NAA Tax Credit Program should visit the CT NAA Tax Credit Program website. 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, 2019. Businesses may mail or hand deliver their applications to the DRS. In addition, applications may be submitted electronically by emailing Form NAA-02. No fax transmittals will be accepted. Questions can be emailed or call 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 day care 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, x 1128.