Tax Credit Benefits Nonprofits

By NJM -

A couple of local nonprofits will get some free cash from corporations to make environmental and other upgrades via the Connecticut Neighborhood Assistance Tax Credit program.

Laurelton Hall, the Beth-El Center, and St. Gabriel School split a total of $176,227given by United Illuminating, Solidus Inc., EMCOR Group Inc., and Cigna Health Management.

Beth-El will use the money for a rad purpose: installing a solar-powered hot-water heater. Laurelton Hall will install energy-efficient lighting at its athletic center, and St. Gabriel will use it for capital costs.

Here’s how the tax credit program works: A company like United Illuminating makes a donation to a nonprofit for something like energy efficiency upgrades. UI then gets to claim 100 percent of that as a tax credit. Companies donating money for energy efficiency upgrades get to claim 100 percent; otherwise, companies get a 60 to 100 percent credit.

It’s kind of like when you donate a bunch of stuff to the Salvation Army and they give you a receipt so you can deduct it from your taxes, but in this instance, Beth-El gets to use the enormous power of the sun to heat its water. 

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