Neighborhood Assistance Act
The Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program is designed to provide funding for municipal and tax exempt organizations by providing a corporation business tax credit for businesses who make cash contributions to these entities.
The following agencies/programs are approved for participation in the 2024 NAA Program:
| Lutz's Children's Museum, Inc. |
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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 Department of Revenue Services. 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, including the following:
-A business is limited to receiving $150,000 in tax credit annually.
-A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
-The minimum contribution on which credit can be granted is $250.
-The program has a five million dollar cap, which, if exceeded, results in proration of approved donations.
For more information on this program see:
Information Publication 2015(13), The Connecticut Neighborhood Assistance Act Tax Credit Program, and
Organizations wishing to participate:
Each municipal agency or tax-exempt organization that wishes to participate in the NAA Program must complete in its entirety Form NAA-01, the program proposal application. This form must be submitted to a participating municipality for approval. Contact the municipality for deadline information. Do not send For NAA-01 directly to the Department of Revenue Services.
A link to a list of Neighborhood Assistance Act Municipal Liaisons from the prior program year can be found below in order to assist you. This list is not all-inclusive. You may still approach any Connecticut municipality. Please note that the municipality must submit all locally approved programs to the DRS no later than July 1, 2024.
An application form NAA-01, may be completed online, and printed from the DRS website. Go to:
NAA/2024-NAA-01_Fillable-Form.pdf
Alternatively, please call Human Services Administration (860) 647-3092, and ask for an application package to be e-mailed to you.
Completed applications must be submitted to the Town. The Department of Revenue Services will not accept applications mailed directly to them.
Businesses wishing to participate:
Each business requesting a tax credit under the NAA program must complete a separate Form NAA-02 for each program it wishes to sponsor. The contribution must be cash, and needs to be made in the corporation's income year that corresponds to the same year as the approved program.
Form NAA-02 must be electronically submitted to DRS between September 15 and October 1 of each year. Submissions that are mailed, hand delivered, emailed, or faxed will not be accepted.
E-mail any questions to DRS.TaxResearch@po.state.ct.us (mailto: DRS.TaxResearch@po.state.ct.us) or contact 860-297-5687 for more information.
2024 Application Process
All forms and some DRS publications are in Adobe Acrobat format. You will need Adobe Acrobat Reader 7.0 or higher to view and print the forms. For additional assistance or if you are have trouble downloading a form, visit our Adobe Information page.
2024 Connecticut Neighborhood Assistance Act Program Proposal - Form NAA-01
2023 Neighborhood Assistance Act Approved Business Contributions