Connecticut Tax Exemptions

Steps To Applying For Tax Exemptions In Connecticut

Is my nonprofit corporation in Connecticut eligible for any tax exemptions?

Connecticut nonprofit corporations are eligible for exemptions on corporate, sales and use, and admissions taxes at the state level. To receive many of the Connecticut exemptions, a nonprofit corporation needs to first be granted 501c3 status by the IRS.

Once I have 501(c)3 status, do I have to do anything special to receive the Connecticut exemptions?

Short answer, yes. Mostly, it depends on the type of tax exemption. See examples below:

• To qualify for the corporate tax, Connecticut accepts a copy of the federal Determination Letter as proof of tax exempt status.
• After years of difficult application processes and convoluted forms, Connecticut has streamlined the process for nonprofit organizations eligible for sales and use tax exemptions. Instead of applying to a government agency, nonprofit corporations with 501(c)3 status need to attach a copy of the federal Determination Letter to a Certificate for Exempt Qualifying Purchases of Meals or Lodging by an Exempt Organization or Qualifying Governmental Agency and give it to the retailer from who the corporation is buying goods or services.
• To receive exemption on admissions tax, you’ll need to submit a letter to the Connecticut Department of Revenue describing the event planned, along with copies of any contracts with any event co-sponsors.

Is there anything else I need to know about sales tax exemptions in Connecticut?

A Connecticut nonprofit corporation can hold up to five fundraising events a year where they sell items and don’t need to charge sales tax.

Does it cost anything for the tax exemptions in Connecticut?

No. Fortunately, after having to wade through all the tax code information, the state of Connecticut does not charge money for the exemptions. There are no application fees, just a few forms to fill out.

For more tax exemption information:

State of Connecticut
Department of Revenue Services
25 Sigourney Street
Hartford, CT 06106
Telephone: 860-297-5962
Department of Revenue Services

This comprehensive guide to obtaining and maintaining 501c3 status from the IRS includes information on how to prepare your nonprofit to apply for 501c3 status, as well as information about the forms and fees required by the IRS.

This guide overviews and includes the special tax-exempt language a 501c3 nonprofit organization must include as part of its articles of incorporation.