Research and Development Credit for Grants to Institutions of Higher Education
The credit is equal to 25% of the amount by which qualifying grants made in the current income year exceed the average qualifying grants made during the three immediately preceding income years.
How to Compute the Credit
A credit may be applied against the Connecticut corporation business tax for the incremental increase in amounts spent by a corporation for any grant or combination of grants to any institution of higher education in Connecticut made for the purposes of research and development related to advancements in technology.
Calculate the credit by multiplying by 25% the excess of the current income year's expenditures for research and development grants to Connecticut institutions of higher education over the average expenditures for such grants during the three immediately preceding income years.
An institution of higher education is any public or nonprofit institution in Connecticut that:
Admits regular students having a certificate of graduation from high school or equivalent certificate;
Is licensed, accredited, or approved by the Board of Governors of Higher Education to provide a program beyond high school education; and
Provides an educational program in Connecticut for which it awards a bachelor’s or higher degree, or provides a program towards gainful
No carryforward or carryback is allowed. How to Apply
CompleteForm CT-1120GC, TaxCredit forResearch and Development Grants to Institutions of Higher Education, and attach it to Form CT-1120K, Business Tax Credit Summary.
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).
employment. Research and
TTY, TDD, and Text Telephone users only may transmit inquiries anytime by calling 860-297-4911.
advancements in technology means development of new products, development of new uses for existing products, and improving methods for producing products.
Where to Get Additional Information
Direct inquiries to:
Research and development related to advancements in technology does not include:
Testing or inspection for quality control purposes;
Efficiency surveys, management studies, consumer surveys or other market research;
Advertising or promotional activities;or
Research in connection with literary, historical, or similar projects.
Department of Revenue Services Taxpayer Services Division 25 Sigourney Street Hartford CT 06106
1-800-382-9463 (Connecticut calls outside the Greater Hartford calling area only), or 860-297-5962 (from anywhere)
REFERENCES: Conn. Gen. Stat. §12-217l
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07