Credit Summaries Each section may include the following information:
Effective Date(s) - newer credits only
How to Compute the Credit
Credit Carryforward/Carryback Limitations
How to Apply
Where to GetAdditional Information
Statutory and Regulatory Reference(s)
Questions and Answers
Ordering Rules for Claiming Corporation Business Tax Credits
Conn. Gen. Stat. §12-217aa establishes specific ordering rules for corporations claiming more than one Connecticut corporation business tax credit.
The credits must be applied in the following order:
Carrybacks expiring first;
Current year credits that do not have a
carryforward or carryback provision;
Any credit carryforward expiring first;
The Financial Institutions Credit (see Page 27) must be claimed before any other credit allowed against the Connecticut corporation business tax. In addition, the Electronic Data Processing Equipment Property Tax Credit (see Page 19) must be claimed after all other credits allowed against the taxes imposed by Chapters 207, 208, 208a, 209, 210, 211, or 212 of the Connecticut General Statutes have been applied.
Limit on Credits
The amount of tax credits otherwise allowable against the corporation business tax and insurance premiums tax for any income year must not exceed 70% of the amount of tax due prior to the application of the tax credit.
Conn. Gen. Stat. §§12-212a and 12-217zz
No tax credit can be applied against the minimum tax of $250.
Conn. Gen. Stat. §12-219
Flow-Through of Corporation Business Tax Credits
Unless specifically provided in the tax credit statute, a tax credit may only be claimed by the entity that earned the credit. Thus, in the case of most tax credits, a tax credit earned by a partnership in which a corporate taxpayer is a partner may not be claimed by the corporation. See Bell Atlantic Nynex Mobile v. Commissioner of Revenue Services, 273 Conn. 240, 869 A.2d 611 (2005).
How to Claim Tax Credit(s) Against the Connecticut Corporation Business Tax
Follow the instructions in the How to Apply heading for each applicable credit.
Complete the applicable tax credit form.
Report credit amount(s) on Form CT-1120K, Business Tax Credit Summary.
Enter your carryforward and carryback credits on Form CT-1120K. Aworksheet and all applicable schedules must be attached listing all details of each credit item taken for computing the credit carryforward or carryback balance(s).
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07