Youth Development Organization Contribution Tax Credit
§161 of PA 23-205
The Youth Development Organization Contribution Tax Credit is a new tax credit that can be earned by corporations or individuals for donations made to youth development organizations. The tax credit is equal to 50% of the donation to such organizations, not exceeding (1) $100,000 tax credit per year for corporations subject to the corporation business tax and (2) $20,000 tax credit per year for taxpayers subject to the personal income tax. The tax credit can be earned for donations made on/after January 1, 2024. The tax credit may be claimed against the income tax or corporation business tax for taxable and income years 2024 and 2025. Taxpayers must apply to the Office of Policy & Management to reserve an allocation for a credit. Upon approval of the application, if the donation has not yet been made to the youth development organization, the individual or entity making the donation has 120 days to make the donation and submit proof to the Office of Policy & Management. The total amount of credits reserved may not exceed $2.5 million per fiscal year.
For purposes of this program, "youth development organization" means a nonprofit organization that is exempt from taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, or any subsequent corresponding internal revenue code of the United States, as amended from time to time, and that (1) provides evidence-supported interventions to high-risk youth to improve school and family engagement, and (2) offers skills development, transitional employment and job placement and support to assist young adults to be employed and self-sufficient.
If you have any questions, please reach out to:
Revenue Unit – Budget & Financial Management Division
Office of Policy & Management
450 Capitol Avenue
Hartford, CT 06106
860-418-6500
Please submit this application, along with any attachments, to the Office of Policy & Management by:
Email:
OR
Mail:
Attention: Revenue Unit
Budget & Financial Management Division
Office of Policy & Management
450 Capitol Avenue
Hartford, CT 06106