How a Connecticut ‘C’ Corporation can claim the Neighborhood Assistant Act Credit

 

Connecticut ‘C’ Corporations can avail themselves to the Connecticut Neighborhood Assistance Act Credit.

The concept of the credit is to promote funding for tax exempt and municipal organizations by providing a Connecticut income tax credit for ‘C’ Corporations.

Click here for a List of Approved Program Proposals.

Credit Amounts

The credit is generally 60% of the contribution made to a qualifying tax exempt organization.

The credit is 100% for certain energy conservation programs.

Any credit that was not used in the current year can be carried back to the two immediately preceding years.

 

Contributions

The contribution must be made in cash and it must be made in the year commencing in 2012.

The tax credit allowed is $150,000.

The minimum contribution allowed to receive a credit is $250.

 

How to Apply

Taxpayers must file Form NAA-002, Connecticut Neighborhood Assistance Act Business Application for each program it wishes to sponsor.  This can be filed on or after September 15,2012.   It can’t be filed any later than October 1, 2012.

The state of Connecticut Department of Revenue Services will issue a letter to approved applicants.

The program has a $5 Million cap.  If this is exceeded, credits would be issued on a pro-rata basis.

ACTION ITEM: Business owners of profitable ‘C’ Corporations must act quickly to apply for this credit.


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About the author:

Tom Scanlon, CPA, CFP®

Tom Scanlon has over twenty-five years experience in public accounting with an extensive background in the areas of financial, tax and estate planning. Find Tom on Google+

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