CT SB00382

Establishes a Connecticut new markets tax credit program effective July 1, 2022, administered by the CHEFA Community Development Corporation to stimulate economic development in low-income communities.

Allows taxpayers to make equity investments in qualified community development entities during calendar years 2023 and 2024, with a cap of $25 million in qualified equity investments per year.

Provides tax credits of 5% annually for the first three years and 6% annually for the next four years based on the qualified equity investment amount, with unused credits eligible for carryforward up to five years.

Requires qualified community development entities to invest at least 85% of equity investment proceeds into community businesses providing community benefits such as job creation, improved access to goods/services, or environmental improvements in low-income census tracts.

Allows taxpayers to sell, assign, or transfer credits to other taxpayers up to three times, with credit recapture provisions if investments cease to meet program requirements or are repaid.