Displaced Worker Credits
There are two distinct credits available for displaced workers:
Displaced Electric Worker Credit A credit against the Connecticut corporation business tax is available to any electric supplier in Connecticut, other than a generation entity or affiliate of an electric company, that hires a displaced electric worker for a minimum period of six months of full-time employment. Conn. Gen. Stat. §12-217bb
Displaced Worker Credit A credit against the tax imposed under Chapters 207, 208, or 212 of the Connecticut General Statutes is available for each displaced worker hired by an employer on or after January 1, 2006.
Conn. Gen. Stat. §12-217hh Definitions
An electric supplier means a facility that provides electric generation services as defined in Conn. Gen. Stat. §16-1.
A displaced electric worker means any Connecticut employee, other than an officer or a director, of an electric company, as defined in Conn. Gen. Stat. §16-1, or a generation entity or affiliate, who has been terminated as a direct result of the restructuring of the electric industry.
A displaced worker is defined as any person employed in Connecticut whose position was terminated because of a business restructuring in which at least ten employees were terminated and whose new salary is at least 75% of their previous annual wages or salary. It does not include any person whose former employer is or was at the time of termination a “related person” with respect to the taxpayer.
Displaced Electric Worker Credit The credit amount available to each electric supplier is $1,500 for each displaced electric worker that is hired. The credit is allowed in the income year in which the displaced electric worker first completes six full months of full-time employment.
Electric suppliers can only claim credits once for each displaced worker that is hired.
Displaced Worker Credit The credit amount available for each displaced worker hired by an employer on or after January 1, 2006, is $1,500. The credit is allowed for the income year during which the displaced worker first completes 12 full months of full-time employment.
The credit may only be taken once with respect to any displaced worker, and no taxpayer may claim this credit and the credit under Conn. Gen. Stat. §12-217bb for the same displaced worker.
No carryforward or carryback is allowed.
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07