April 15, 2021
If you’re a nonprofit in Norwalk, CT you may be interested in applying for the Connecticut NeighborhoodAssistance Act Program (NAA). The Norwalk Redevelopment Agency is handling the application process for tax exempt organizations in Norwalk. The deadline for applying is 5 p.m. on May 10, 2021.
What is the Neighborhood Assistance Act Program? Read on and we’ll fill you in on the details on how it works and how both area businesses and the Norwalk community benefit from this program.
Connecticut Neighborhood Assistance Act Program
The Connecticut Neighborhood Assistance Act program is a tax credit program designed to incentivize businesses to provide funding to support approved municipal and tax-exempt organizations.
Businesses may be eligible for a tax credit of up to 60% of the amount they contribute to one of these organizations. Tax credits may even go as high as 100% of the contribution amounts for certain qualified programs.
How Do Nonprofits Qualify For The Program?
Community programs must be approved by both the municipality in which the programs are conducted and by Connecticut’s Department of Revenue Services. A tax exempt organization interested in participating in the NAA Program must first complete in its entirety the program proposal application, Form NAA-01. This form must be submitted for approval to the municipality where the tax exempt organization’s program is conducted. In Norwalk that is the Norwalk Redevelopment Agency. All approved applications will then be sent to the CT Department of Revenue for another round of reviews.
Organizations that qualify include, but are not limited to:
- Employment and training
- Energy conservation
- Child care services
- Substance abuse
- Neighborhood assistance
What Are The Guidelines For Businesses?
Although the program is available to a wide range of businesses, there are some parameters to be followed to qualify. For one, the annual tax credit is limited to $150,000. There is also a minimum contribution amount of at least $250 to qualify for the program.
The application process for businesses can be done online through the Connecticut Department of Revenue Services website.
NAA Application Process in Norwalk
All tax exempt organizations in Norwalk will follow this process:
- The Norwalk Redevelopment Agency will collect applications and, after a public hearing, will present them to the Norwalk Planning Committee and Common Council for approval. Then the Agency will submit applications approved by the City of Norwalk to the CT Dept. of Revenue Services.
- The Dept. of Revenue Services will post on their website the list of approved applicants for businesses to review as potential community programs to make a contribution towards.
- Businesses wishing to sponsor a community program will have to fill out and submit Form NAA-02 between September 15th and October 1st. No earlier and no later.
- Later in the fall, CT Dept. of Revenue Services will notify municipalities of the applications that received contributions from companies. At that point, municipalities are asked to notify the organizations directly.
Nonprofit applications must be sent via email to koleary@norwalkct.org before 5 p.m. on May 10, 2021.
For more information, or to have any questions answered about the NAA, visit the Department of Revenue Services or call 860-297-5687. Applicants are also welcome to contact Katie O’Leary at the Norwalk Redevelopment Agency at koleary@norwalkct.org.
