DRS: Hiring Incentive Credit 01JAN2014

Hiring Incentive Tax Credit  

Conn. Gen. Stat. 12-217y


This tax credit has been repealed effective July 1, 2013.

 

Description and Applicable Taxes

A tax credit may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes by business firms that hire recipients of Temporary Family Assistance (TFA).

 

 

Definitions

A qualifying employee is any employee who:

  • Is employed not less than 30 hours per week by the same business firm;
  • At the time of being hired is, and has been receiving benefits from the TFA program for more
    than nine months; and
  • Meets other requirements that the Connecticut Department of Labor (DOL) may establish in regulations.

Business firm means any entity authorized to do business in Connecticut and subject to the corporation business tax.

 

 

Tax Credit Amount

A business firm may claim a tax credit on its tax return for the income year during which a qualifying employee was employed, in the amount of $125 for each full month that the employee was employed.

 

No tax credit will be allowed, with respect to wages paid to any qualifying employee, to any business firm that has previously been granted a tax credit with respect to wages paid to the same employee.

 

 

Carryforward and Carryback Limitations

Any unused tax credit balance can be carried forward and applied to five successive income years. No carryback is allowed.

 

 

How to Apply

In order to apply for this program, a business firm must submit an application to DOL on or after July 1 but not later than December 31. Contact DOL at 860-263-6755 for application information.

 

 

How to Claim the Tax Credit

Claim the tax credit on Form CT-1120 HIC, Hiring Incentive Tax Credit, by multiplying the number of complete calendar months worked by a qualifying employee during the income year by $125. The tax credit amount reported on Form CT-1120 HIC must be entered on Form CT-1120K, Business Tax Credit Summary.

 

 

Where to Get Additional Information

Direct inquiries to:

Connecticut Department of Labor

Program Support Tax Credit Unit

200 Folly Brook Blvd.

Wethersfield CT 06109-1114

860-263-6755

 

 

Statutory and Regulatory References

Conn. Gen. Stat. 12-217y

 

 

Last updated January 1, 2014