Neighborhood Assistance Act Tax Program
The City of Torrington participates in the Connecticut Neighborhood Assistance Act (NAA) Tax Credit Program,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.
Businesses can receive a credit of 60% of their approved contribution to certain programs approved by the Department of Revenue Services. The credit percentage is determined by the nature of the program and the type of the individuals served (e.g., indigent or disabled). Businesses unable to utilize the full amount of their credit may carry back any unused credits to the two immediately preceding income years.
The program has several statutory limits which must be observed, including the following:
A business is limited to receiving $75,000 in tax credit annually.
A non-profit organization is limited to receiving $150,000 in contributions in the aggregate.
The total charitable contributions of the contributing business must equal or exceed its prior year's amount (unless the contribution is to an approved open space acquisition fund).
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.
Organizations wishing to request funding:
Each municipal agency or tax-exempt organization that wishes to participate in the 2003 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. DO NOT SEND THE NAA-01 DIRECTLY TO THE DEPARTMENT OF REVENUE SERVICES.
Businesses wishing to participate:
Each business requesting a tax credit under the Neighborhood Assistance Act 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 begins on or after January 1, 2004. Form NAA-02 must have an original signature and be mailed or hand-delivered to the Department of Revenue Services on or after September 15, 2004 but no later than October 1, 2004. Facsimiles or e-mailed applications will not be accepted.
For more information, please contact the Mayor's office at (860) 489-2228.
| 
