How to Apply
Computer Donation Credit
A credit may be applied against various Connecticut business taxes for the donation of new or used computers to a local or regional board of education or a public or nonpublic school. The used computers may not be more than two years old at the time of donation.
The amount of the credit granted to any business firm must not exceed $75,000 annually. The total amount of business credits allowed to all business firms must not exceed $1 million in any one fiscal year.
The amount of the credit must not exceed 50% of the fair market value of the new or used computers at the time of donation.
How to Compute the Credit
Report the credit amount on Form CT-1120K, Business Tax Credit Summary.
The credit may be applied to any of the following taxes:
Insurance companies, hospital and medical services corporations taxes (Chapter 207);
Health care centers tax (Chapter 207);
Corporation business tax (Chapter 208);
Air carriers tax (Chapter 209);
Railroad companies tax (Chapter 210);
Community antenna television system companies tax (Chapter 211); or
Utility companies tax (Chapter 212).
The business firm must submit Form CT-CDC, Computer Donation Credit Application, to DRS. Along with the application, the business firm must provide a copy of the written agreement between the business firm and the local or regional board of education or public or nonpublic school. The written agreement will provide for the acceptance of the computers by the board of education or public or nonpublic school, an acknowledgment that the computers are in good working condition, and a requirement that the business firm install, set up, and provide training to school staff on these computers.
The Commissioner of Revenue Services will review each application and within 30 days following its receipt, approve or disapprove the application in writing.
Submit Form CT-CDC to:
Department of Revenue Services Research Unit 25 Sigourney Street Hartford CT 06106
Where to Get Additional Information
Direct inquiries to the above address or contact DRS Research Unit at 860-297-5691. Inquiries may also be submitted to the DRS website at www.ct.gov/DRS
Forms are available anytime from the DRS website at www.ct.gov/DRS or by calling the DRS Forms Unit at 1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only) and selecting Option 2 from a touch-tone phone, or 860-297-4753 (from anywhere).
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
No carryforward or carryback is allowed.
REFERENCES: Conn. Gen. Stat. §10-228b
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07