Cheshire Opens NAA Tax Credit Applications; Deadline June 5, 2026

Cheshire Opens Applications for Neighborhood Assistance Act Tax Credits, Deadline June 5

Cheshire has opened applications for the Connecticut Neighborhood Assistance Act Tax Credit Program, with a deadline of June 5, 2026, for eligible nonprofit and municipal organizations to seek state-backed tax incentives that encourage private contributions to community programs.

Eligible organizations must complete Form NAA-01 and submit it to the Town Manager's Office at 84 South Main Street. Town Manager Sean Kimball's office reviews and endorses applications locally before forwarding approved program proposals to the Connecticut Department of Revenue Services by July 1. Businesses that wish to contribute to an approved program then apply separately to DRS between September 15 and October 1.

How the Tax Credit Works

The Neighborhood Assistance Act program offers Connecticut businesses a credit against their corporation business tax in exchange for cash contributions to qualifying organizations. The credit equals 60% of the contribution for most eligible programs. For energy conservation projects and college access loan forgiveness initiatives, the credit rate increases to 100%.

Business donors may claim a maximum annual credit of $150,000 under the program, or up to $50,000 for child care-related contributions. The minimum qualifying contribution is $250. The state caps total credits issued statewide at $5 million per year; if aggregate credits exceed that ceiling, each approved business's credit is prorated.

Types of Programs That Qualify

Organizations applying for the NAA program must demonstrate that their programs primarily serve disadvantaged populations. The state defines eligible activities broadly, including neighborhood assistance, job training, education, community services, crime prevention, housing rehabilitation, and child care.

To qualify on the basis of poverty, an organization's program must serve at least 75% of beneficiaries at or below 150% of the federal poverty level. Programs focused on employment training for seniors or workers with disabilities, as well as open space acquisition initiatives, may also qualify under separate criteria.

Cheshire has run the NAA program in prior cycles, as a June 2025 deadline for the program appeared on the town's official website.

Cheshire's Fiscal Context

The NAA program opens as Cheshire reports significant growth in its tax base. Town Manager Kimball announced in January that Cheshire's net Grand List for October 1, 2025, reached $4.14 billion — an increase of $110.5 million, or 2.74%, from the prior year. The 2.66% growth in real estate values represents the highest rate of increase in a non-revaluation year in more than 30 years, according to Kimball.

Eighty-three percent of the real estate growth came from the Stone Bridge Crossing development. The town noted that tax revenue from those properties flows into a Tax Increment Financing district rather than the general fund — meaning the overall property value growth does not translate directly into higher municipal revenues for general services.

Application Requirements

Organizations interested in applying for the 2026 cycle must act before the June 5 deadline. The process proceeds in stages:

• By June 5, 2026: Submit Form NAA-01 to the Cheshire Town Manager's Office at 84 South Main Street
• After local approval: Cheshire holds a public hearing and the Town Council votes to approve submitted programs
• By July 1: Cheshire submits approved program proposals to the Department of Revenue Services
• September 15 to October 1: Businesses apply electronically to DRS to claim credits for contributions to approved programs

Final approval rests with the state. DRS reviews all municipal submissions and issues a list of approved programs before the business application window opens in the fall.

Further information is available through the Connecticut Department of Revenue Services at NAAProgram@ct.gov or through the Cheshire Town Manager's Office at 84 South Main Street.

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