Neighborhood Assistance Act (NAA) Tax Credit Program
State of Connecticut Tax Credit Program for C Corporations
St. Martin’s was approved for the Neighborhood Assistance Act (NAA) Tax Program again this year at the $150,000 level for the HVAC/MEP project. The Heating and Cooling Efficiency Project will enable St. Martin’s to replace its old steam heating system which unevenly heats the four floors of the building, with energy efficient mini-splits in classrooms throughout the building. The mini-splits will not only allow for individual control over room temperatures, they will also add air conditioning to our 130-year-old school building, a critical feature to make an extended-day, extended-year school an environment more conducive to learning for our students and staff.
If you are not familiar with the NAA program, nonprofits apply in the spring to participate in the program for energy efficiency projects (which earn a 100% tax credit) and/or programmatic funding (which earn a 60% tax credit to the donor.) The “Donor” in this case is any C Corporation who pays taxes in the state of Connecticut. They don’t have to located in the state; just doing business here that generates a tax responsibility here.
It doesn’t cost the company anything extra to make this donation!
They are just rerouting some of the money they would have paid in taxes to help a nonprofit. C Corporations can make a donation to SMPA for a minimum of $250 up to a maximum of $150,000 and receive a tax credit offset in the same amount as their donation. This only applies to C Corporations because they are doubly taxed, so the state still receives some tax money, even with the tax credit. The tax credits made may be carried back to the two immediately preceding income years (beginning with the earlier of the two years).
How Companies Participate
There is a super simple online form that companies interested in the NAA Tax Credit complete (about five easy questions listing their contact info, nonprofit name and amount of gift – nothing to upload or attach) that is only open from September 15 through October 1. C Corporations don’t have to have made the gift to fill out the form; the form acts like a pledge form saying the company plans to make the gift. The businesses can make the actual gift to SMPA any time before the end of the calendar year. The Connecticut Department of Revenue Services will send them a letter for the credit, which they submit with their taxes.
Banks, construction companies and utilities are often C Corporations. Because we struggle to find C Corporations, we only raise about $20,000 of the $150,000 we could raise for the school. 1
Scroll through to learn what the Neighborhood Assistance Act is, how it benefits companies, how to participate, and how it will help St. Martin’s.
These are the types of businesses that are C Corporations
Chapter 207 (Insurance Companies and Health Care Centers);
Chapter 208 (Corporation Business);
Chapter 209 (Air Carriers);
Chapter 210 (Railroad Companies);
Chapter 211 (Certified Competitive Video Service Companies);
Chapter 211 (Community Antenna Television System Companies);
Chapter 211 (Satellite Companies); and
Chapter 212 (Utility Companies).
Do you know anyone who works at one of these type of companies who you could connect us to?
If you have any questions, have ideas or suggestions for how to locate or connect to C Corporations, or know someone you want us to reach out to, please let us know.
Read more about the NAA program:
NAA Online Form for C Corps (only active from September 15 to October 1 each year):
https://portal.ct.gov/drs/connecticut-neighborhood-assistance-act-form
