Committee forwards list of 49 agencies for Neighborhood Assistance Act tax-credit review

The Operations Management, Budget and Government Accountability Committee voted June 16 to forward to the Common Council a list of 49 agency applications for the Connecticut Neighborhood Assistance Act tax-credit program, representing roughly $5.2 million in requested support.

Director of Budget Julian Fran told the committee the city reviews nonprofit applications for eligibility before submitting the approved list to the Connecticut Department of Revenue Services (DRS), which administers the tax credits. "This year, we received 49 eligible applications seeking support for approximately $5,200,000, and this was the subject of a public hearing a week or so ago," Fran said.

Council members raised questions about which businesses can use the credits. Councilman John Gayle asked whether limited liability companies are eligible to claim tax credits in lieu of direct tax payments. Fran said, "I don't see anything in the language that would suggest that an LLC would not be eligible." Fran also noted participation levels vary: "Last in last year's program, we had a list of 51 different participating agencies. And through the program, they were able to raise half a million dollars in total." He suggested the city could promote the program to increase business participation.

Committee members discussed how limited corporate participation can lead nonprofits to reapply year after year for the same small projects because contributions are spread thin; one council member said that can stretch projects across multiple years. Fran said he would raise marketing and outreach with the city's new marketing manager to increase awareness among businesses.

The committee voted to forward the approved list to the Common Council with a favorable recommendation. The forwarded list will go to DRS for final administration and awarding of tax credits to participating businesses.