Tax credit available to companies that contribute to affordable housing programs

Could help increase supply of skilled workers in state

(July 11, 2008) Connecticut’s Housing Tax Credit Contribution (HTCC) Program provides tax credit vouchers to companies that make cash contributions to state-approved, nonprofit housing programs. Housing programs eligible for contributions must benefit very low, low, and moderate income families and individuals. Ten million dollars in tax credits are available in 2008.

The HTCC Program, which is administered by the Connecticut Housing Finance Authority (CHFA), works on a dollar-for-dollar basis: The amount of tax credits a company receives is equal to the amount of its contribution. There is no limit to the size of contributions a company can make, although the amount any one housing program can receive cannot exceed $500,000 annually.

[Reminder: The amount of tax credits allowed for any income year cannot exceed 70% of the amount due.]

Benefits of the HTCC Program extend well beyond business tax breaks. High housing costs can reduce the availability of skilled workers and deter young people from choosing to stay here. Connecticut is one of the most expensive places in the nation to live. By reducing the amount of financing required to implement a housing project, contributions to the program greatly enhance the state’s ability to increase the supply of affordable housing to individuals and families. That in turn enables Connecticut companies to attract skilled workers who otherwise might find the state’s costs prohibitive.

For more information, visit www.chfa.org or contact the CHFA’s Sheila G. Stone at 860-571-4237.