NPU allocates $150K in Neighborhood Assistance Act funding

Norwich Public Utilities is allocating $150,000 to support energy-efficiency projects at two local organizations through the State of Connecticut’s Neighborhood Assistance Act program.

The Neighborhood Assistance Act is a tax credit program administered by the Connecticut Department of Revenue Services, allowing businesses to claim a state tax credit for cash contributions made directly to municipally approved projects of local tax-exempt agencies, according to a community announcement.

“The Neighborhood Assistance Act is a great way for us to invest with community partners and keep ratepayer funds right here in Norwich,” NPU General Manager Jeff Brining said, according to the announcement. “This fantastic program has provided critical funding to great nonprofits for many years, helping them save money on projects that decrease their energy costs.”
Leffingwell Inn will use funds from NPU to replace an inefficient and failing furnace at the museum on Washington Street
Leffingwell Inn will use funds from NPU to replace an inefficient and failing furnace at the museum on Washington Street

Through the Neighborhood Assistance Act, the following organizations will receive funding from NPU in 2025:

Leffingwell Inn ($100,000) will use the funds to replace an inefficient and failing furnace at the museum on Washington Street. The project also includes maintenance and sealing of the building’s duct system to improve energy efficiency. The existing furnace was damaged in 2025, requiring the museum to close for nearly two months.

Eastern Connecticut Housing Opportunities ($50,000) will replace a single, older boiler system currently serving three residential units with three individual systems, each serving one unit at 130 Washington St. The funding will also support the replacement of aging boilers with modern, efficient units at 91 S. 2nd St. in Taftville.

Each year, NPU pays Gross Receipts Tax to the state from the purchase of its electricity. The Neighborhood Assistance Act limits participating organizations to $150,000 per year in tax credits, and the statewide program has a cap of $5 million.

Since 2022, NPU has been exempt from the Gross Receipts Tax on its purchase of natural gas, which saves customers more than $950,000 each year.

This story was created by reporter Beth McDermott, bmcdermott1@usatodayco.com, with the assistance of Artificial Intelligence (AI). Journalists were involved in every step of the information gathering, review, editing and publishing process. Learn more at cm.usatoday.com/ethical-conduct.