DRS: Enterprise Zone Tax Credit for Qualifying Corporations

Enterprise Zone Tax Credit for Qualifying Corporations

Conn. Gen. Stat. 12-217v


 

Description and Applicable Taxes

A tax credit administered by the Department of Economic and Community Development (DECD) may be applied against the tax imposed under Chapter 208 of the Connecticut General Statutes by a qualifying corporation established in an area designated for Enterprise Zone level benefits and that meets certain employment levels.
 
 

Definitions

Qualifying corporation means a corporation that is created on or after January 1, 1997, in an Enterprise Zone or other area designated as having Enterprise Zone level benefits, and which either:

  • Has 375 or more employees, at least 40% of whom:
    1. Are residents of the municipality in which the Enterprise Zone is located; and
    2.Qualify under the federal Workforce Investment Act (WIA);

                                        OR

  • Has fewer than 375 employees, at least 150 of whom:
    1. Are residents of the municipality in which the Enterprise Zone is located; and
    2. Qualify under the federal WIA.

Enterprise Zone has the same meaning as defined in the Service and Manufacturing Facilities tax credit summary.

 

 

Tax Credit Amount

The tax credit amount is equal to:

  • 100% of the corporation business tax liability in years 1 through 3; and
  • 50% of the corporation business tax liability in years 4 through 10.

 

Carryforward and Carryback Limitations

No carryforward or carryback is allowed.

 

 

How to Apply

Corporations may call DECD at 860-270-8252 and request the Enterprise Zone Program pre-application questionnaire. Upon review of the completed pre-application questionnaire, a DECD staff representative will contact the corporation to discuss the program further and to explain the formal application process.

 

Completion of the pre-application questionnaire does not constitute a formal application for the tax credit.   Once a formal application is approved, DECD will issue to the corporation Forms UT-4,  Eligibility Certificate for Enterprise Zone Benefits, and UT-9, Claim for Corporate Business Tax Credit Under the Provisions of the Enterprise Zone Program.

 

 

How to Claim the Tax Credit

Enter the available tax credit on Form CT-1120K, Business Tax Credit Summary.

 

 

Where to Get Additional Information

Direct inquiries to:

Connecticut Department of Economic and Community Development

505 Hudson Street

Hartford CT 06106-7107

860-270-8252

www.ct.gov/ecd

 

 

Statutory and Regulatory References

Conn. Gen. Stat. 12-217v

 

 

Last updated March 1, 2012