Form Ct-1120cr - Instructions For Filling Form (Page 2 of 4) in pdf

OPERATING LOSS CARRYOVERS

PART I - TAX CREDITS FROM 1998 INCOME YEAR

The provisions of Conn. Gen. Stat. §12-217 pertaining to operating

PART I-A - FINANCIAL INSTITUTIONS TAX CREDIT

loss carryovers apply to companies filing separate returns. There

are different rules for the application of operating loss carryovers for

Line 1 -

Enter on Schedule KC, Part I-A, Line 1, Column A, the

companies filing a combined return. See Conn. Agencies Regs.

combined total tax credit being applied from Form

§12-223a-2, Combined Operating Loss, for further information.

CT-1120K, Part I-A, Line 1, Column B, for financial

institutions constructing new facilities in Connecticut.

PART III - COMPUTATION OF COMBINED MINIMUM TAX

BASE

Enter on Schedule KC, Part I-A, Line 1, Column B, the

The combined minimum tax base is the sum of the separate

name of each affiliate or parent included in the combined

minimum tax base of each corporation included, but only to the

return claiming the tax credit.

The initial eligibility

extent that the base is separately apportioned to Connecticut in

certificate issued by the Department of Economic and

accordance with the provisions of Conn. Gen. Stat. §12-219a or

Community Development (DECD) must be attached to

12-244.

the tax return.

When a banking or other financial corporation is included in the

PART I-B - TAX CREDITS WITH CARRYBACK PROVISIONS

combined return with corporations that are not banking or other

Enter on Schedule KC, Part I-B, Lines 2 through 4, Column A, the

financial corporations, add the minimum tax of the banking or other

amounts from Form CT-1120K, Part I-B, Lines 2 through 4, Column

financial corporation to the product of the combined minimum tax

B. This is the combined total of all credits actually applied to the

base for the other corporations, multiplied by 3 1/10 mills per dollar

corporation business tax in 1998 that have a carryback provision.

(.0031). Enter the sum on Part III, Line 7, Combined Total Column.

The credits indicated here are applied to the current year’s tax first.

Any remaining balance may be claimed against a preceding year’s

PART IV - COMPUTATION OF AMOUNT PAYABLE

tax by filing Form CT-1120X or the appropriate amended tax returns.

Enter on Schedule KC, Part I-B, Lines 2 through 4, Column B, the

Line 1 -

Enter the total of all separate taxes as reported on Part I,

combined totals of all credit amounts from Form CT-1120K, Part I-B,

Line 8.

Lines 2 through 4, Column D. This is the combined total of all tax

Line 2a - Enter the total tax on Combined Net Income as reported

credits which are being carried back to a preceding tax year. For

on Part II, Line 16, Combined Total Column.

credits that also have a carryforward provision, complete Schedule

KC, Part I-D. Enter on Schedule KC, Part I-B, Lines 2 through 4,

Line 2b - Enter the total tax on Combined Minimum Tax Base as

Column C, the name of each affiliate or parent included in the

reported on Part III, Line 7, Combined Total Column.

combined return claiming the tax credit.

Line 2c - Enter the largest of Line 2a or Line 2b or $250 (minimum

Line 2 -

Enter in Column A the amount from Form CT-1120K,

tax).

Part I-B, Line 2, Column B. Enter in Column B the amount

Line 2d - Multiply the number of companies included in this

from Form CT-1120K, Part I-B, Line 2, Column D. A copy

combined return, less one (the parent or designated

of the Neighborhood Assistance Act (NAA) tax credit

parent), by $250. Each affiliate included in the combined

approval letter issued by the Department of Revenue

return must pay the minimum tax of $250.

Services must be attached to the tax return.

Line 2 -

To compute the combined tax, add the amounts on Line

Line 3 -

Enter in Column A the amount from Form CT-1120K, Part

2c and Line 2d.

I-B, Line 3, Column B. Enter in Column B the amount

Line 3 -

To compute the preference tax, subtract Line 2, the

from Form CT-1120K, Part I-B, Line 3, Column D. A copy

combined tax, from Line 1. If the amount is negative,

of the tax credit voucher issued by the Connecticut

enter zero. If the amount is greater than zero, enter the

Housing Finance Authority (CHFA) must be attached to

amount up to a maximum of $25,000.

the tax return.

Line 4 -

To compute the total tax, add Line 2, the combined tax, to

Line 4 -

Enter in Column A the amount from Form CT-1120K, Part

Line 3, the preference tax.

I-B, Line 4, Column B. Enter in Column B the amount

from Form CT-1120K, Part I-B, Line 4, Column D. A copy

Lines 5 through 11 - Complete as indicated.

of the Certificate of Compliance issued by CHFA must be

attached to the tax return.

Line 5 -

Add Lines 2 through 4 in Column A and Column B, and

Schedule KC, Combined Tax Credits, must be attached to Form

enter the totals in the spaces provided.

CT-1120CR. Schedule KC contains the combined total of the tax

credits which are claimed on Form CT-1120K, Business Tax Credit

Summary , by the parent corporation and each affiliate in the group.

PART I-C - TAX CREDITS WITHOUT CARRYBACK OR CARRYFORWARD

Attach Form CT-1120K to Schedule KC for each corporation in the

PROVISIONS

combined group claiming a business tax credit. See IP 95(2.1), A

Enter on Schedule KC, Part I-C, Lines 6 through 12, Column A, the

Guide to Connecticut Corporation Business Tax Credits, for

combined total of all credits applied to the current year’s corporation

additional information on Connecticut tax credits. To order this

business tax from Form CT-1120K, Part I-C, Column B, Lines 6

publication send a 9” x 12” self addressed envelope with $1.43

through 12. Enter on Schedule KC, Part I-C, Lines 6 through 12,

postage affixed to: DRS Mail Unit, Corporation Credit Guide

Column B, the name of each affiliate or parent included in the

25 Sigourney Street

combined return claiming the tax credit.

Hartford CT 06106-5032

Line 6 -

Enter in Column A the amount from Form CT-1120K, Part

I-C, Line 6 Column B. Eligibility certificate Form AT-45,

issued by the Department of Labor, must be attached to

the tax return.

CT-1120CR Instructions (Rev. 12/98)

Page 2

Form Ct-1120cr - Instructions For Filling Form Page 2

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