CT SB01108

Establishes a Connecticut new markets tax credit program effective July 1, 2021, enabling taxpayers to make equity investments in community development entities for calendar years 2022 and 2023.

Caps aggregate qualified equity investments at $10 million for 2022 and $10 million for 2023, with community development entities required to invest at least 85% of funds in qualified low-income community investments within 12 months of issuance.

Provides tax credits of 10% annually for the first two income years and 16% annually for each of the next five years on qualified equity investment amounts, with unused credits eligible for five-year carryforward.

Allows qualified equity investments to be sold, assigned, or transferred up to three times and includes credit recapture provisions if investments cease benefiting low-income communities or are repaid.

Requires CHEFA Community Development Corporation to submit designation forms to the Department of Revenue Services within 45 days and quarterly reports tracking qualified low-income community investments in eligible community businesses.