Housing Program Contribution Tax Credit
Conn. Gen. Stat. §8-395
Description and Applicable Taxes
The Housing Program Contribution tax credit is available to business firms that make cash contributions to housing programs that benefit low and moderate income individuals and families. The housing programs must be sponsored, developed, or managed by nonprofit corporations.
This tax credit program is administered by the Connecticut Housing Finance Authority (CHFA) in accordance with its adopted written procedures. This tax credit may be applied against the taxes imposed under:
- Chapter 207 (Insurance Companies and Health Care Centers Taxes);
- Chapter 208 (Corporation Business Tax);
- Chapter 209 (Air Carriers Tax);
- Chapter 210 (Railroad Companies Tax);
- Chapter 211 (Community Antenna Television Systems and One-Way Satellite Transmission Business Tax); and
- Chapter 212 (Utility Companies Tax).
Business firm means:
- Any business entity authorized to do business in Connecticut and subject to the corporation business tax;
- Any company subject to the tax imposed under Chapter 207;
- Any air carrier subject to the air carriers tax imposed under Chapter 209;
- Any railroad subject to the railroad companies tax imposed under Chapter 210;
- Any community antenna television systems company subject to the tax imposed under Chapter 211; or
- Any utility subject to the utility companies tax imposed under Chapter 212.
Nonprofit corporation means any nonprofit corporation incorporated according to Chapter 602 of the Connecticut General Statutes (or any predecessor statutes) which: 1) has as one of its purposes the construction, rehabilitation, ownership or operation of housing; and 2) has articles of incorporation that have been approved by the executive director of CHFA in accordance with CHFA’s adopted regulations.
Tax Credit Amount
Upon verification that the contribution has been made, a tax credit voucher may be issued by CHFA in an amount equal to 100% of the cash contribution made by the business firm.
No tax credit shall be granted to any business firm for any contribution of less than $250. In addition, no organization conducting an eligible housing program may receive total cash contributions in excess of $500,000 in any one fiscal year. The maximum tax credit allowed in the aggregate to all business firms in any one fiscal year is $10 million. Each year until the 60 days after the date CHFA publishes the list of housing programs that will receive tax credit reservations:
- $2 million of the total amount of all tax credits under this section shall be set aside for the permanent Supportive Housing Initiative established to provide additional units of affordable housing and support services to eligible persons; and
- $1 million of the total amount of all tax credits under this section shall be set aside for workforce housing, as defined by CHFA through its written procedures.
No business firm will receive both the Housing Program Contribution tax credit and the Neighborhood Assistance Act tax credit for the same cash contribution.
Carryforward and Carryback Limitations
The amount of tax credit that is not used in the income year during which the cash contribution was made may be carried forward or back for the five immediately succeeding or preceding income years until the full credit is taken.
How to Apply
Contact CHFA Tax Credit Unit at 860-721-9501, Ext. 237 or go to www.chfa.org for information regarding the application process.
Assignment and Transfer
Insurance Companies and Health Care Centers: This credit may be assigned by an insurance company or health care center to an affiliate, provided the affiliate may only apply the assigned credit against its tax liability under Chapter 207 (Insurance Companies and Health Care Centers Taxes).
How to Claim the Credit
The amount listed on the tax credit voucher issued by CHFA must be entered on Form CT-1120 HPC, Housing Program Contribution Tax Credit, and Form CT-1120 HPC must be attached to Form CT-1120K, Business Tax Credit Summary, and/or Form CT-207K, Insurance/Health Care Tax Credit Schedule.
Where to Get Additional Information
Direct inquiries to:
Connecticut Housing Finance Authority
Tax Credit Unit
Rocky Hill CT 06067-4005
860-721-9501 Ext. 237
Statutory and Regulatory References
Conn. Gen. Stat. §8-395; Conn. Agencies Regs. §§8-395-1 through 8-395-10
Last updated January 25, 2017