Connecticut Legislation Would Create State-Level NMTC

Tuesday, April 20, 2021 - 11:45am

Legislation to create a state-level new markets tax credit (NMTC) incentive in Connecticut was introduced in the state General Assembly. S.B. 1108 would create a 100% NMTC for qualified low-income community investments (QLICIs) in nonprofit organizations in 2022 and 2023. The annual statewide cap would be $10 million and the transaction cap would be the lesser of $2 million or 40% of the eligible costs. The credit would be for 10% of the eligible investment for the first two years and 16% for each of the next five years.

The interaction of state and federal incentives will be a topic at the Novogradac 2021 Spring New Markets Tax Credit Virtual Conference, June 10-11.