OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-75

AN ACT INCREASING THE CAP ON THE NEIGHBORHOOD ASSISTANCE ACT TAX CREDIT PROGRAM AND EXTENDING THE PROGRAM TO PASS-THROUGH ENTITIES.


OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 15 $

FY 16 $

Revenue Serv., Dept.

GF - Cost

3,000-5,000

None

Department of Revenue Services

GF - Revenue Loss

Up to 5.0 million

Up to 5.0 million

Municipal Impact: None

Explanation

The bill expands the existing Neighborhood Assistance Act (NAA) tax credit program by increasing, from $5.0 million to $10.0 million, the aggregate annual cap on the amount of credits that may be awarded, and by allowing more taxpayers to claim the credits. This results in a revenue loss of up to $5.0 million annually beginning in FY 15, and a one-time cost to the Department of Revenue Services (DRS) of $3,000-$5,000 in FY 15 only.1

The one-time cost of $3,000-$5,000 to DRS is for personal income tax form alteration and changes to the online Taxpayer Service Center (TSC) in order to accommodate the provisions of the bill extending the credit to pass-through business entities.

The Out Years

The annualized ongoing revenue impact identified above would remain constant into the future due to the annual cap on the amount of credits available

Sources:

Department of Revenue Services

1 According to DRS, credit-eligible donations under the NAA program currently exceed the $5.0 million cap.