Accumulated Tax Credit Program
Created in Public Act 17-2 (June Special Session), the Accumulated Tax Credit Program allows business with certain “stranded” tax credits to utilize them in exchange for undertaking capital projects or making corporate venture fund investments. “Stranded” tax credits are those that the taxpayer has earned but not redeemed, typically because the business has more credits than tax liability against which the credits can be claimed.
There are two components of the program and two separate applications. The first is for those Connecticut businesses that wish to utilize stranded credits in return for major capital expenditures that will create jobs and economic returns to the state’s economy. The second is for those businesses that are interested in using their credits in return for investments into venture capital funds that support Connecticut businesses.