Form Ct-1120 Fcic - Fixed Capital Investment Credit

2001

STATE OF CONNECTICUT

DEPARTMENT OF REVENUE SERVICES

(Rev. 12/01)

FORM CT-1120 FCIC

Fixed Capital Investment Credit

FOR INCOME YEAR

Beginning

2001, and Ending

CT TAX REGISTRATION NUMBER

Corporation Name

0 0 0

PURPOSE OF FORM

Complete Form CT-1120 FCIC, Fixed Capital Investment Credit , to claim the credit allowed under Conn. Gen. Stat. §12-217w.

This form must be accompanied by a detailed schedule that identifies the fixed capital acquired, date of acquisition, cost of the

fixed capital, location where the fixed capital is used in Connecticut, and from whom the fixed capital was acquired. Expenditures

claimed for this credit cannot be claimed in connection with any other corporation business tax credit. See Informational

Publication 2001(17), Guide to Connecticut Business Tax Credits, or contact the Department of Revenue Services, Taxpayer

Services Division at: 1-800-382-9463 (toll-free within Connecticut) or 860-297-5962 (from anywhere).

DEFINITIONS

Fixed capital is defined as tangible personal property that:

1. Has a class life of more than four years, as described under I.R.C. §168(e);

2. Is purchased from a person other than a related person;

3. Is not acquired to be leased, and is not leased, to another person during the twelve months following its acquisition; and

4. Will be held and used in Connecticut by a corporation in the ordinary course of the corporation’s trade or business in

Connecticut for not less than five full years following its acquisition.

Fixed capital does not include inventory, land, buildings or structures, or mobile transportation property.

Mobile transportation property is considered to be any transport equipment that is designed to move or convey people or

property from one place to another, including but not limited to: trucks; buses; forklifts; snowplows; or certain construction

equipment such as backhoes, bulldozers, cement mixers, and loaders.

RECAPTURE PROVISION

•

If the fixed capital on account of which a corporation claimed the credit is not held and used in Connecticut in the ordinary

course of the corporation’s trade or business in Connecticut for three full years following its acquisition, the corporation will be

required to recapture 100% of the amount of the credit allowed on its corporation business tax return required to be filed for the

income year immediately succeeding the income year during which the three-year period expires.

•

If the fixed capital on account of which a corporation claimed the credit is not held and used in Connecticut in the ordinary

course of the corporation’s trade or business in Connecticut for five full years following its acquisition, the corporation will be

required to recapture 50% of the amount of the credit allowed on its corporation business tax return required to be filed for the

income year immediately succeeding the income year during which the five-year period expires.

•

The recapture provisions do not apply if the property that is the subject of the tax credit is replaced.

–This form must be attached to Form CT-1120K –

PART I - Credit Computation

1. Fixed capital investment expenditures made during the income year.

(Attach detailed schedule)

2. Enter fixed capital expenditures from Line 1 that were applied against any other corporation

business tax credit.

3. Subtract Line 2 from Line 1 and enter the result here.

Tax Credit: Multiply Line 3 by 5% (.05). Enter here and on Form CT-1120K,

Part I-D, Line 20, Column A.

NOTE: For credit carryforward schedule, see Part II on reverse side of this form.

Form Ct-1120 Fcic - Fixed Capital Investment Credit - 2001

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