Raised Bill No. 432 - Neighborhood Assistance Act Summary

• Expands the definition of "business firm" to include entities subject to taxes under chapter 229 (previously limited to chapters 207-213a), effective July 1, 2020.

• Allows municipalities to submit programs after the July 1 deadline with a 15-day grace period if they provide explanation and proof of prior public hearing and legislative approval, effective July 1, 2020.

• Permits S corporations, partnerships, and single-member LLCs to claim neighborhood assistance tax credits through their shareholders, partners, or owners respectively, effective January 1, 2020.

• Maintains annual tax credit cap of $5 million total ($3 million allocated for section 12-635 programs), with $150,000 maximum per business firm and $250 minimum investment threshold.

• Establishes Commissioner of Early Childhood loan program for businesses to finance planning, construction, and renovation of licensed child care facilities for employees, with loans up to 5 years at rates determined under section 3-20.