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in Section 267(c) of the Internal Revenue Code of 1986, as in effect on October 14, 1994, other than paragraph (3) of that section.)

The average number of qualified employees is the sum of the average of the number of qualified employees:

  • Reported on federal Form 941, Employer's Quarterly Federal Tax Return, of the financial institution or a related person;

  • Who are included on the quarterly reports required to be submitted to the Commissioner of DECD. Conn. Gen. Stat. §12-217u(g) requires quarterly reports of the number of individuals to whom the financial institution or a related person made payments of $600 or more that must be reported as provided by Section 6041 of the Internal Revenue Code of 1986; and

  • Reported on federal Form 941, Employer's Quarterly Federal Tax Return of the company described in Conn. Gen. Stat. §12-217u(d)(1)(c).

Credit Amount

How to Compute the Credit

For years one through ten, the amount of the credit allowed to an eligible financial institution varies from 30% to 50%, depending upon the number of qualified employees employed by the corporation. The credit must be taken before any other credits for which the company is eligible.

Carryforward/Carryback Limitations

No carryforward or carryback is allowed. How to Apply

A financial institution that intends to build and occupy a facility located in Connecticut of at least 900,000 square feet and to create and maintain new jobs in Connecticut should submit a proposal to the Commissioner of DECD. The Commissioner of DECD, in consultation with the Commissioner of Banking, and the Commissioner of the Department of Revenue Services (DRS), determines whether the applicant is eligible for the credit. If the proposal is approved, the Commissioner of DECD will issue an eligibility certificate to the financial institution.

Percentage of Corporation

Maximum Aggregate Amount

Business Tax That of Credit That May

May be Taken

be Taken Over

as a Credit

Ten Year Period

1,200 – 1,599

30%

$72 million

1,600 – 1,999

40%

$96 million

2,000 or more

50%

$120 million

During the initial and subsequent qualified years, a financial institution that satisfies the above requirements will be eligible for the amount of credit indicated below:

Average Number of Qualified Employees Employed During the Year

Where to Get Additional Information

Direct inquiries to:

Department of Economic and Community Development Managing Directo , Business Recruitment Division 505 Hudson Street Hartford CT 06106

860-270-8040 www.ct.gov/ecd

REFERENCES:

Additional Five-Year Period

If the financial institution satisfies the requirements for the additional five-year credit period by employing an average of 3,000 or more qualified employees, then it is eligible for a 25% credit for years 11 through 15. The aggregate amount of credit over the 15-year period may not exceed $145 million.

Conn. Gen. Stat. §§12-217u, 36a-2, and 36a-410; 26 U.S.C. §§267(c) and 6041

Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07

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