That is, in the judgment of the Commissioner of DECD, consistent with the strategic economic development priorities of the state and the municipality.
Claiming the Credit
Any taxpayer, fund manager, or community development entity wishing to make an investment must submit a written application to the Commissioner of DECD containing information concerning the type of project proposed to be made, its location, the number of jobs to be created or retained, the physical infrastructure that might be created or preserved, feasibility studies or business plans for the project, projected revenue the state might derive as a result of the project, and any other information necessary to demonstrate the financial viability of the project and to demonstrate that the project will provide net benefits to the economy of, and employment for citizens of, the municipality and the state. The amount of the investment approved will not exceed the amount of state revenue that will be generated according to the revenue impact assessment prepared by the Commissioner of DECD.
Upon approving an investment, the Commissioner of DECD will issue a certificate of eligibility certifying that the applicant has complied with the provisions of this credit.
The credit may be claimed by a taxpayer who has made an investment:
Directly of at least $20 million;
Through a fund if the fund has a total asset value of at least $60 million for the income year in which the initial credit is taken and not less than three investors who are not related persons; or
Through a community development entity.
The credit may be assigned but must be claimed by the assignee in the same year that it could have been claimed by the taxpayer.
No taxpayer will be eligible for this credit and the tax credits under Conn. Gen. Stat. §§12-217e (tax credit for manufacturing and service facilities)
or 38a-88a (Insurance Reinvestment Fund) for the same investment. No two taxpayers will be eligible for any tax credit with respect to the same investment or the same project costs.
The sum of tax credits granted will not exceed $100 million with respect to a single project. The sum of all tax credits granted will not exceed $500 million. However, a taxpayer may apply for a tax credit that exceeds the limit, and the Commissioner of DECD will make a recommendation to the General Assembly as to whether or not the credit should be granted.
The credit may be applied to any combination 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);
Utility companies tax (Chapter 212);
Public service companies tax (Chapter 212a); or
Surplus lines brokers tax (Conn. Gen. Stat. §38a-743).
The credit may be claimed on Form CT-UISR, Urban and Industrial Site Reinvestment Credit. Attach Form CT-UISR to Form CT-1120K, Business Tax Credit Summary.
Credit Percentage The credit is allowable over ten years as follows:
The income year in which the investment was made and the two succeeding income years, 0%;
The third full income year following the year in which the investment was made and the three succeeding income years, 10%; and
The seventh full income year following the year in which the investment was made and the two succeeding income years, 20%.
Informational Publication 2006(15), Guide to Connecticut Business Tax Credits Issued: 04/24/07